NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH LUBBOCK, TEXAS FINANCIAL STATEMENTS

Transcription

1 2016 REPORTS NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH LUBBOCK, TEXAS FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE TOTALS FOR 2014 AND REPORT OF CERTIFIED PUBLIC ACCOUNTANTS J - 1

2 2016 NORTHWEST TEXAS ANNUAL CONFERENCE NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH LUBBOCK, TEXAS FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE TOTALS FOR 2014 TABLE OF CONTENTS Statement Identification Page No. Independent Auditor s Report 1 Financial Statements Statement of Financial Position Exhibit A 3 Statement of Activities Exhibit B 4 Statement of Cash Flows Exhibit C 5 Notes to Financial Statements 6 J - 2

3 2016 REPORTS -1- BOLINGER, SEGARS, GILBERT & MOSS, L.L.P. certified public accountants PHONE: (806) FAX: (806) Nashville Avenue LUBBOCK, TEXAS Independent Auditor s Report Council on Finance and Administration Northwest Texas Conference of the United Methodist Church Lubbock, Texas We have audited the accompanying financial statements of Northwest Texas Conference of the United Methodist Church (a nonprofit organization), which comprise the statement of financial position as of December 31, 2015, and the related statements of activities and cash flows for the year then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. J - 3

4 2016 NORTHWEST TEXAS ANNUAL CONFERENCE -2- Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Northwest Texas Conference of the United Methodist Church as of December 31, 2015, and the changes in net assets and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Report on Summarized Comparative Information We have previously audited Northwest Texas Conference of the United Methodist Church s 2014 financial statements, and our report dated August 12, 2015, expressed an unmodified opinion on those audited financial statements. In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2014, is consistent, in all material respects, with the audited financial statements from which it has been derived. Lubbock, Texas August 12, 2016 Certified Public Accountants J - 4

5 2016 REPORTS -3- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2015 WITH COMPARATIVE TOTALS FOR 2014 Exhibit A ASSETS December 31, Assets Cash and Cash Equivalents - Unrestricted $ 1,415,848 $ 1,843,206 Cash and Cash Equivalents - Temporarily Restricted 4,102,541 4,082,914 Accounts Receivable - Shared Ministries 696, ,874 Prepaid Expenses 67,901 35,023 Plan Assets in Excess of Post-Retirement Benefit Obligation 14,558,291 12,974,652 Land, Building, and Equipment (Less: Accumulated Depreciation) 1,672,949 1,714,848 $ 22,513,804 $ 21,497,517 LIABILITIES AND NET ASSETS Liabilities Accounts Payable $ 765,914 $ 834,654 Other Current and Accrued Liabilities 183, ,000 Payable - Ceta Canyon Camp 47,047 50,226 Payable - Butman Camp 50,560 53,770 Total Liabilities $ 1,046,580 $ 1,118,650 Net Assets Unrestricted Undesignated (Deficit) $ (28,379) $ 181,836 Designated for Post-Retirement Benefit Obligation 14,558,291 12,974,652 Investment in Land, Building and Equipment, Net of Related Debt 1,672,949 1,714,848 Total Unrestricted Net Assets $ 16,202,861 $ 14,871,336 Temporarily Restricted Net Assets $ 5,264,363 $ 5,507,531 Total Net Assets $ 21,467,224 $ 20,378,867 $ 22,513,804 $ 21,497,517 See accompanying notes to the financial statements. J - 5

6 2016 NORTHWEST TEXAS ANNUAL CONFERENCE -4- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE TOTALS FOR 2014 Exhibit B SUPPORT AND REVENUE Temporarily Unrestricted Restricted December 31, Net Assets Net Assets Church Remittances Shared Ministries $ 4,237,836 $ 491,837 $ 4,729,673 $ 4,759,626 Other Church Giving 281,073 83, , ,413 Total Church Remittances $ 4,518,909 $ 575,073 $ 5,093,982 $ 5,140,039 Other Support and Revenue Investment Income $ 24,961 $ 4,286 $ 29,247 $ 97,396 Insurance Premiums, Registrations & Fees 4,221,662 4,221,662 4,097,003 Grant Income 986, , ,666 Gifts - Capital Campaigns Gain on Sale of Property 0 1,192,500 Total Other Support and Revenue $ 5,233,609 $ 4,286 $ 5,237,895 $ 5,942,560 Assets Released from Restrictions $ 822,527 $ (822,527) $ 0 $ 0 Total Support and Revenue $ 10,575,045 $ (243,168) $ 10,331,877 $ 11,082,599 EXPENSES Program Services: Remitted to Agencies $ 3,582,382 $ $ 3,582,382 $ 3,205,145 Grants Made 133, , ,722 Premiums Paid 3,678,156 3,678,156 3,729,899 District and Conference Ministries 1,661,425 1,661,425 1,969,617 Services Provided on Fee Basis 605, , ,559 Total Program Services $ 9,661,291 $ 0 $ 9,661,291 $ 9,622,942 Supporting Services: Conference Administration $ 1,061,628 $ $ 1,061,628 $ 941,424 District Administration 88,928 88,928 92,425 Interest and Other Expense 15,313 15, Total Supporting Services $ 1,165,869 $ 0 $ 1,165,869 $ 1,034,755 Total Expenses $ 10,827,160 $ 0 $ 10,827,160 $ 10,657,697 CHANGES IN NET ASSETS BEFORE OTHER BENEFITS $ (252,115) $ (243,168) $ (495,283) $ 424,902 OTHER BENEFITS Post-Retirement Benefit - Change in Value $ 1,583,640 $ 0 $ 1,583,640 $ 3,613,781 CHANGE IN NET ASSETS $ 1,331,525 $ (243,168) $ 1,088,357 $ 4,038,683 NET ASSETS - BEGINNING OF PERIOD 14,871,336 5,507,531 20,378,867 16,340,184 NET ASSETS - END OF PERIOD $ 16,202,861 $ 5,264,363 $ 21,467,224 $ 20,378,867 See accompanying notes to the financial statements J - 6

7 2016 REPORTS -5- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE TOTALS FOR 2014 Exhibit C December 31, CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets $ 1,088,357 $ 4,038,683 Adjustments to Reconcile Change in Net Assets to Net Cash From Operating Activities Depreciation 68,081 59,379 Accounts Receivable 150,600 95,657 Pledges Receivable 533,471 Prepaid Expenses (32,878) 2,665 Accounts Payable and Accrued Liabilities (65,681) (196,480) Intercompany Payable (6,389) 19,956 Post-retirement Benefit (1,583,639) (3,613,781) Net Cash From Operating Activities $ (381,549) $ 939,550 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Land, Building, and Equipment $ (26,182) $ (32,407) Net Cash From Investing Activities $ (26,182) $ (32,407) CASH FLOWS FROM FINANCING ACTIVITIES Payments on Capital Lease Obligation $ $ (1,590) Net Cash From Financing Activities $ 0 $ (1,590) CHANGE IN CASH AND CASH EQUIVALENTS $ (407,731) $ 905,553 CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 5,926,120 5,020,567 CASH AND CASH EQUIVALENTS - END OF YEAR $ 5,518,389 $ 5,926,120 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash Paid During the Year for: Interest $ 0 $ 461 Income Taxes $ 0 $ 0 See accompanying notes to the financial statements. J - 7

8 2016 NORTHWEST TEXAS ANNUAL CONFERENCE -6- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS 1. Nature of Activities and Summary of Significant Accounting Policies Nature of Activities The purpose of the Northwest Texas Conference of the United Methodist Church (the Conference) is to help make disciples of Jesus Christ for the transformation of the world. The Conference fulfills that mission by providing leadership and resources to the local churches in the Conference, providing care and benefits for the clergy, and by funding ministries in and beyond the Conference through the extended connection of The United Methodist Church. The financial statements have been prepared on the accrual basis of accounting which recognizes income when earned and expenses when incurred. All assets of the Conference reported in these financial statements - with the exception of the Conference s equity in the episcopal residence of the area bishop - are held in trust by the Board of Trustees of the Conference, incorporated under the laws of the State of Texas. The episcopal residence of the area bishop is located in Albuquerque, New Mexico and by operation of church policy is held in trust by the Board of Trustees of the New Mexico Annual Conference of The United Methodist Church, incorporated under the laws of the State of New Mexico. Basis of Accounting The Conference is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Concentration of Credit Risk The Conference maintains its cash balances in institutions insured by the Federal Deposit Insurance Corporation (FDIC). The Conference also has investments with the Texas Methodist Foundation s Methodist Loan Fund and with Wespath Investment Management, a part of the General Board of Pension and Health Benefits of the United Methodist Church. These investments are not insured by the FDIC. Property and Equipment Property and equipment are carried at cost or, if donated, at the approximate fair value at the date of donation. All land and buildings are capitalized. Equipment is capitalized if it has a cost of $100 or more and a useful life of more than one year when acquired. Expenditures for repairs and maintenance are charged to expense as incurred, and additions and improvements that significantly extend the lives of assets are capitalized at cost. All assets are depreciated on the straight-line basis. Equipment, computers and furnishings are depreciated over lives of 3 to 5 years and the Conference building is depreciated over 40 years. Depreciation expense for the year ended December 31, 2015 was $68,081. Collections The Conference owns and maintains a collection of historic documents and artifacts housed in the Archives Center. The collections which were acquired primarily through contributions since the Conference s inception, are not recognized as assets on the Statements of Financial Position. Proceeds from deaccessions or insurance recoveries, if any, will be reflected as increases in the appropriate net asset classes. J - 8

9 2016 REPORTS -7- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS Shared Ministries and Accounts Receivable The Conference records Shared Ministries and other church giving actually received on or before January 14, 2016, but intended as Support and Revenue for those years by the remitting church, as revenue and receivables as of December 31, Therefore, an allowance for uncollectible accounts is not required. Cash Equivalents For purposes of the Statements of Cash Flows and the Statements of Financial Position, the Conference considers all investments purchased with a maturity of three months or less to be cash equivalents. Income Tax Status The Conference is exempt from income tax under Section 501(c)(3) of the Internal Revenue Code and, therefore, has no provision for federal or state income or franchise taxes. Comparative Totals The financial information for the year ended December 31, 2014, is presented for comparative purposes only and is not meant to be a complete financial statement presentation. Estimates The Conference uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. 2. Cash and Cash Equivalents Cash and cash equivalents consist of the following as of December 31, 2015: Insured Accounts Prosperity Bank, Lubbock $ 2,239,644 Vista Bank, Lubbock 84 Total Insured $ 2,239,728 Uninsured Accounts Texas Methodist Foundation $ 2,278,562 Wespath 999,699 Petty Cash Imprest Account 400 Total Uninsured $ 3,278,661 Total Cash and Cash Equivalents $ 5,518,389 J - 9

10 2016 NORTHWEST TEXAS ANNUAL CONFERENCE -8- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS Of the total cash and cash equivalents, a portion of the total is temporarily restricted for pension and health benefits and other temporarily restricted uses. On the Statements of Financial Position, cash and cash equivalents are shown as follows: Cash and Cash Equivalents - Unrestricted $ 1,415,848 Cash and Cash Equivalents - Restricted For Pension and Health Benefits $ 967,011 For Other Uses 3,135,530 $ 4,102,541 Total Cash and Cash Equivalents $ 5,518, Accounts, Notes and Loans Receivable As disclosed in Note 1, the Conference recorded Shared Ministries and other church giving actually received on or before January 14, 2016, but intended as Support and Revenue for 2015 by the remitting church, as revenue and receivables as of December 31, Total Accounts Receivable at December 31, 2015, was composed of: Summary of Accounts Receivable - Shared Ministries Accounts Receivable - Unrestricted $ 194,397 Accounts Receivable - Restricted for Benefits 132,722 Accounts Receivable - Restricted for Other Uses 369,155 Total Accounts Receivable $ 696,274 Less: Allowance for Uncollectible Accounts 0 Net Accounts Receivable $ 696,274 In addition, the Conference has made loans (but no longer does so) to churches for property acquisitions and to students for education loans. The church loans are collected by Texas Methodist Foundation while most of the student loans are currently with a collection agency. As of December 31, 2015, all church loans have either been collected or allowed for. As of December 31, 2015, notes and loans receivable consisted of: Summary of Notes and Loans Receivable Student Loans Receivable $ 48,621 Less: Allowance for Uncollectible Accounts (48,621) Net Student Loans Receivable $ 0 Total Notes and Loans Receivable $ 0 J - 10

11 2016 REPORTS -9- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS 4. Property and Equipment The following is a summary of property and equipment as of December 31, 2015: Land $ 247,033 Buildings 1,562,630 Furnishings, Equipment, and Other Assets 157,636 $ 1,967,299 Less: Accumulated Depreciation (294,350) Total Property and Equipment $ 1,672,949 As disclosed in Note 1, the Conference has an equity interest in the area episcopal residence located in Albuquerque, NM. The current episcopal residence was acquired in January 2013 at a cost of $322,560. This cost is shared between the Northwest Texas Conference and the New Mexico Annual Conference on a 60%/40% basis, respectively. Accordingly, the Conference capitalized $193,536 (60% of $322,560) as its equity share of the new residence. 5. Post-Retirement Pension Benefits The Conference is responsible for pensions for two classes of persons clergy appointed to the Conference and lay employees. Pensions for clergy currently serving churches in the Conference are billed to and paid directly by their respective churches. For clergy assigned to the Conference and lay employees employed by the Conference, the Conference makes contributions to the pension plan maintained by the General Board of Pensions and Health Benefits of The United Methodist Church (GBPHB). The net cost for all current funding of pension plans in 2015 was $132,339. Prior to 1982 the Northwest Texas Conference participated in a defined benefit program for clergy appointed to local churches of the Conference. The financial liability for that service still exists for the Conference and will until the last clergy person with service prior to 1982 including surviving spouses - dies. The Conference makes the annual required contribution to amortize its liability but invests all excess assets with Wespath Investment Management, the investment arm of the General Board of Pension and Health Benefits. From 1982 through 2006, clergy were subject to the Ministerial Pension Plan (MPP), a defined contribution plan. When a participant retires with service under MPP, that clergy-person s pension is annuitized and, therefore, guaranteed for life. If the plan assets drop below the annuitized liability, the Conference would be responsible for its share of the unfunded liability. However, as of December 31, 2015, there was no unfunded MPP liability. As of December 31, 2015, the market value of these assets invested but, as yet, not contributed to the plan was $22 million, which exceeded the unfunded liability of the pension plans. J - 11

12 2016 NORTHWEST TEXAS ANNUAL CONFERENCE -10- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS Accumulated Post-retirement Benefit Obligation (APBO) $ (45,621,345) Plan Assets Invested with GBPHB 42,475,078 Investments with GBPHB Outside of the Plan 21,120,652 Assets in Excess of Pension Plans - Invested with GBPHB $ 17,974,385 The assets in excess of the pension plan obligation were used to offset the health benefits obligation. See Note Post-Retirement Benefit Obligation The Conference provides post-retirement health benefits for clergy and surviving spouses. The conference provides Health Reimbursement Account (HRA) contributions for each eligible clergy participant (retiree, spouse, or dependent child). The Conference s annual contribution to the HRA is currently set at a maximum of $1,200 per clergy-person and/or surviving spouse but is dependent upon the years of denominational service of the clergy person. In 2015, the net expense to the Conference to fund the health reimbursement accounts and for administration of those accounts was $166,712. As of December 31, 2015, the Conference has an excess of plan assets over the accumulated post-retirement benefit obligation of $14 million as follows: Accumulated Post-retirement Benefit Obligation (APBO) $ (4,579,780) Plan Assets Invested with Texas Methodist Foundation (TMF) 1,163,686 Assets in Excess of Pension Plans - Invested with GBPHB 17,974,385 Plan Assets in Excess of APBO at December 31, 2015 $ 14,558,291 The actuarial valuation date is December 31, Other key actuarial assumptions include: Discount rate of 4.05% Mortality: RP 2014 Generational Mortality Table (male and female) with projected mortality improvements under Scale MP Annual increase in HRA of 1.00% Total Post-retirement Benefit is reported as other benefits in the Statement of Activities and consists of: Service Cost - Conference $ (114,748) Change in Funding Status 1,698,388 Post-retirement Benefit $ 1,583,640 Estimated future benefit payments for the next five years are as follows: J - 12

13 2016 REPORTS -11- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS 7. Pledges Receivable 2016 $ 228, , , , ,887 Build, Renew, Rejoice! is a campaign that started in 2007 to raise funds to help start or re-start churches in the Conference as well as to help build a new Conference Service Center. Pledges were solicited from individuals and churches with individual pledges to be paid over a 3-year period and church pledges to be paid over a 5-year period. In general, all pledges were scheduled to be paid by the end of The pledges were considered to be unconditional and, therefore, recorded as a receivable when a valid pledge card was received. However, the economic climate of the past several years and capital campaigns at some churches resulted in a slowdown in collections and/or cancellation of the remaining balance of many open pledges. As a result, the Conference believes that collection of the remaining balance of pledges at December 31, 2015, is doubtful. Accordingly, the Conference has written off $968,809 of open, unpaid pledges, of which $550,439 had previously been reserved in the Allowance for Uncollectible Pledges. The remaining open pledges total $105,189 and have a corresponding allowance in the amount of $105,189 as of December 31, Restrictions on Net Assets Temporarily Restricted Net Assets consists of the following as of December 31, 2015: J - 13

14 2016 NORTHWEST TEXAS ANNUAL CONFERENCE -12- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS 9. Subsequent Events Temporarily Restricted Net Assets CPHB Fund $ 196,315 Ward Estate Trust Fund/Missions 23,851 Youth Service Fund 5,342 Equitable Compensation Fund 283,700 Equitable Compensation Endowment 255,489 Ministerial Education Fund 159,125 MEF - Pastor Scholarships - Wilson Fund 30,039 Board of Ordained Ministry 26,230 New Clergy Initiative 303,010 Cabinet Minister Emergency Fund 246 Trustees Designated Fund 11,350 Conference Special Offerings 5,388 VIM 2,602 Conference Local Disaster Fund 78,924 Spirit Wind 39,580 Golden Cross 9,410 Jewel Posey Archives Fund 3,383 District Services 49,447 Build Renew Rejoice - Undesignated 909,667 Build Renew Rejoice - CE&R 818,776 Build Renew Rejoice - CSC 842,702 CCER Fund 1,177,434 Ethnic Ministries 24,151 Lubbock District Hispanic Ministries 4,529 New Dawn Camp Scholarship Fund 3,673 $ 5,264,363 Management has evaluated subsequent events through August 12, 2016, which represents the date the financial statements were available to be issued. No events have occurred up to that date that would require adjustment to, or disclosure in, the financial statements. J - 14

15 2016 REPORTS NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH LUBBOCK, TEXAS TREASURER S REPORT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE TOTALS FOR 2014 J - 15

16 2016 NORTHWEST TEXAS ANNUAL CONFERENCE NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH TREASURER S REPORT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015 WITH COMPARATIVE TOTALS FOR 2014 TABLE OF CONTENTS Statement Identification Page No. Financial Statements Statements of Financial Position 1 Statement of Activities 2 Statements of Cash Flows 3 Statement of Fund Balances 4 Statement of Support and Revenue 6 Unrestricted and Undesignated Net Assets (Stabilization Fund) 9 Notes to Financial Statements 10 J - 16

17 2016 REPORTS REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -1- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2015 AND DECEMBER 31, /31/ /31/2014 ASSETS CURRENT ASSETS Cash and Cash Equivalents - Unrestricted 1,415,848 1,843,206 Cash and Cash Equivalents -Temporarily Restricted 4,101,882 4,082,914 Accounts Receivable 696, ,874 Notes and Loans Receivable, Net of Allowance 0 0 Pledges Receivable, Net of Allowance 0 0 Prepaid Expenses 67,900 35,023 Plan Assets in Excess of Post-Retirement Benefit Obligation 14,581,450 12,974,652 Total Current Assets 20,863,354 19,782,669 PROPERTY AND EQUIPMENT Land, Building and Equipment, Net of Accumulated Depreciation 1,672,949 1,714,848 TOTAL ASSETS 22,536,303 21,497,517 LIABILITIES AND NET ASSETS LIABILITIES CURRENT LIABILITIES Accounts Payable 152, ,654 Other Current Liabilities 881, ,996 Total Current Liabilities 1,034,288 1,118,650 NON-CURRENT LIABILITIES Mortgage and Notes Payable, Less Current Maturities Obligations Under Capital Leases, Less Current Maturities Total Non-Current Liabilities Total Liabilities 1,034,288 1,118,650 NET ASSETS Unrestricted and Undesignated 188, ,836 Unrestricted - Designated for Post Retirement Benefits 14,572,180 12,974,652 Investment in Land, Building and Equipment, Net of Related Debt 1,672,949 1,714,848 Total Unrestricted Net Assets (Deficit) 16,433,966 14,871,336 Temporarily Restricted Net Assets 5,068,048 5,507,531 Total Net Assets 21,502,015 20,378,867 TOTAL LIABILITIES AND NET ASSETS 22,536,303 21,497,517 See accompanying notes to the financial statements Unaudited and preliminary for internal use only J - 17

18 2016 NORTHWEST TEXAS ANNUAL CONFERENCE REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -2- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH STATEMENT OF ACTIVITIES FOR THE YEARS ENDED DECEMBER 31, 2015 AND DECEMBER 31, 2014 Temporarily Unrestricted Restricted Net Assets Net Assets SUPPORT AND REVENUE Church Remittances Shared Ministries 4,359, ,837 4,851,322 4,759,626 Other Church Giving ,764 79, ,413 Total Church Remittances 4,359, ,602 4,930,588 5,140,039 Other Support and Revenue Investment Income 22,561 4,286 26,847 97,396 Insurance Premiums, Registrations & Fees 4,225,452 4,225,452 4,097,003 Gifts - Capital Campaigns Grant Income 63,890 63, ,666 Other Income - 1,192,500 Total Other Support and Revenue 4,312,203 4,286 4,316,489 5,942,560 Assets Released from Restrictions 822,527 (822,527) Total Support and Revenue 9,494,716 (247,639) 9,247,077 11,082,599 EXPENSES Program Expenses Remitted to Agencies 2,631,583 2,631,583 3,205,145 Grants Made 195, , ,722 Premiums, Registrations and Fees Paid 3,678,156 3,678,156 3,729,899 District and Conference Ministries 984, ,323 1,969,617 Services Provided on Fee Basis 637, , ,559 Total Program Expense 8,126,937 8,126,937 9,622,942 Supporting Services Conference Administration 927, , ,424 District Administration 661, ,741 92,425 Post-Retirement Benefits Service Cost 114, , ,855 Post-Retirement Benefits Change in Funding Status (1,712,277) (1,712,277) (3,751,636) Interest and Other Expense 5,400 5, Total Supporting Services Expense (3,009) (3,009) (2,579,026) Total Expenses 8,123,929 8,123,929 7,043,916 Increase (Decrease) in Net Assets 1,370,787 (247,639) 1,123,148 4,038,683 Net Assets, Beginning of Year 9,606,794 5,439,471 20,378,867 16,340,184 Net Assets, End of Year 10,977,581 5,191,832 21,502,015 20,378,867 See accompanying notes to the financial statements Unaudited and preliminary for internal use only J - 18

19 2016 REPORTS REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -3- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH STATEMENT OF CASH FLOW FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2015 AND DECEMBER 31, /31/ /31/2014 CASH FLOWS FROM OPERATING ACTIVITIES Increase/(Decrease) in Net Assets 1,123,148 4,038,683 Adjustments to Reconcile Change in Net Assets to Net Cash Provided by Operating Activities Depreciation 68,081 59,379 Change in Operating Assets and Liabilities Decrease\(Increase) in: Accounts Receivable 150,599 95,657 Notes and Loans Receivable 0 0 Pledges Receivable 0 533,471 Prepaid Expenses (32,877) 2,665 Increase\(Decrease) in: Accounts Payable and Accrued Liabilities (66,407) (196,480) Intercompany Payable (17,955) 19,956 Change in Net Post-Retirement Benefit Obligation (1,606,798) (3,613,781) Net Cash Provided from Operating Activities (382,209) 939,550 CASH FLOWS FROM INVESTING ACTIVITIES Property & Equipment (26,181) (32,407) Net Cash Provided\(used) by Investing Activities (26,181) (32,407) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of Capital Lease Obligations 0 (1,590) Net Cash Provided\(Used) by Financing Activities 0 (1,590) NET INCREASE (DECREASE) IN CASH (408,390) 905,553 CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 5,926,120 5,020,567 CASH AND CASH EQUIVALENTS - END OF YEAR 5,517,730 5,926,120 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash Paid During the Year for: Interest Income Taxes See accompanying notes to the financial statements Unaudited and preliminary for internal use only J - 19

20 2016 NORTHWEST TEXAS ANNUAL CONFERENCE REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -4- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH STATEMENT OF NET ASSETS AS OF DECEMBER 31, 2015 AND DECEMBER 31, 2014 Balance Disburse- Balance Description 12/31/2014 Receipts ments Net 12/31/2015 Unrestricted Net Assets Unrestricted Fund 177,477 1,083,364 1,115,247 (31,883) 145,593 Conference Stabilization - GAAP Conversion 187, ,378 Conference Stabilization Fund 994,289 32, ,611 (269,825) 724,464 Conference Leadership Team 193, , ,078 15, ,958 Conference Leadership - Hispanic Ministry 8,628 35,075 35, ,630 Total Unrestricted/Stabilization Fund 1,561,640 1,729,392 2,016,008 (286,616) 1,275,024 BCC Camping Fund 37, , ,580 (10,043) 27,171 Conference Missions Fund 16, (902) 15,436 Unrestricted Endowment Fund 5, ,637 Conference Real Property Fund 115,124 35,342 35, ,466 Conference Personal Property Fund 29,016 29,016 29,016 Student Loans - TMF 119,279 1,042 1, ,322 Student Loans- Conference Fund 40, ,648 CCER Loan Fund Total Unrestricted Net Assets 1,896,684 2,354,277 2,585,490 (231,213) 1,665,471 Clergy Care Unrestricted Net Assets Post-Retirement Benefits 12,974,652 (1,597,529) 1,597,529 14,572,180 Total Unrestricted Net Assets 12,974,652 (1,597,529) 1,597,529 14,572,180 Temporarily Restricted Net Assets CPHB Fund 100,942 4,778,296 4,682,924 95, ,315 Total Temporarily Restricted Net Assets 100,942 4,778,296 4,682,924 95, ,315 Total Net Assets - Clergy Care 13,075,594 4,778,296 3,085,395 1,692,901 14,768,495 Temporarily Restricted Net Assets Ward Estate Trust Fund/Missions 14,148 10, ,703 23,851 Youth Service Fund 5,342 5,342 District Superintendents 572, ,831 Episcopal Fund 147, ,586 Equitable Compensation Fund 346,348 42, ,083 (62,648) 283,700 Equitable Compensation Endowment 253,103 2,386 2, ,489 Ministerial Education Fund 152, , ,469 7, ,125 MEF -Pastor Scholarships - Wilson Fund 28,139 1,900 1,900 30,039 Board of Ordained Ministry 11,754 25,303 10,827 14,476 26,230 New Clergy Initiative 303, , ,010 Chaplaincy Service 54,420 54,420 Homes for the Aging 35,612 35,612 Wesley Community Center 34,958 34,958 Cabinet Minister Emergency Fund 246 4,582 4, Trustees Designated Fund 10, ,350 See accompanying notes to the financial statements Unaudited and preliminary for internal use only J - 20

21 2016 REPORTS REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -5- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH STATEMENT OF NET ASSETS AS OF DECEMBER 31, 2015 AND DECEMBER 31, 2014 Balance Disburse- Balance Description 12/31/2014 Receipts ments Net 12/31/2015 General Advance Specials Advance Special Offerings 65,327 65,327 Global Ministry/World Service - World Service Ministry 346, ,703 Africa University 14,197 14,197 Black College Fund 54,451 54,451 General Administration 41,949 41,949 Interdenominational Cooperation 9,345 9,345 Special Offerings Fund 17,035 17,035 South Central Jurisdiction - Lydia Patterson Institute 18,933 18,933 Mission and Administration 6,861 6,861 Mt. Sequoyah Methodist Assembly 3,760 3,760 Texas United Methodist College Assoc. 93,677 93,677 Special Offerings Conference Special Offerings 30,740 25,353 5,388 5,388 VIM 2,602 2,602 Conference Local Disaster Fund 32,682 46,242 46,242 78,924 Spirit Wind 52,717 27,321 40,459 (13,137) 39,580 Native American Awareness Golden Cross 11,410 2,000 (2,000) 9,410 Other Causes History of NWTX Jewel Posey Archives Fund 3,383-3,383 District Services 30, , ,542 18,877 49,447 Build Renew Rejoice - Undesignated 896,939 2,818 (9,911) 12, ,667 Build Renew Rejoice - CE&R 1,411,478 9, ,000 (592,701) 818,776 Build Renew Rejoice - CSC 842, ,702 CCER Fund 1,324, , ,369 (146,750) 1,177,434 CCER-Path1 - Church Development (37,007) 41,507 4,500 37,007 Ethnic Ministries 104,281 80,129 24,151 24,151 Lubbock District Hispanic Ministries 4,529 4,529 General Camp Scholarship Fund 4,643 8,705 13,349 (4,643) New Dawn Camp Scholarship Fund 4, ,465 (648) 3,672 Grace Camp Scholarship Fund Total Temporarily Restricted Net Assets 5,406,589 3,287,801 3,626,342 (338,540) 5,068,048 Total Net Assets 20,378,867 10,420,374 9,297,226 1,123,148 21,502,015 See accompanying notes to the financial statements Unaudited and preliminary for internal use only J - 21

22 2016 NORTHWEST TEXAS ANNUAL CONFERENCE REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -6- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH SUPPORT AND REVENUE FOR THE PERIOD JANUARY 1, 2015 THROUGH DECEMBER 31, 2015 Shared Shared Ministries Ministries Budget Receipts % Paid MINISTRY SUPPORT AND LEADERSHIP District Superintendent 626, , % Conference Services 1,080, , % District Services/Ministries 221, , % Totals: 1,928,977 1,625, % CLERGY CARE AND BENEFITS SERVICES Clergy Benefits 1,320,198 1,156, % Totals: 1,320,198 1,156, % CONFERENCE MINISTRIES Equitable Compensation 53,164 41, % Board of Ministry 33,138 25, % Camp Operations/Youth 196, , % Chaplaincy Services 79,365 54, % Path 1/CCER 249, , % Conference Leadership/CLT 9,283 10, % Ethnic and Cultural Ministries 46,670 35, % Homes for the Aging 48,507 35, % Stabilization Replenishment 50,002 32, % Wesley Community Center 45,341 34, % Wesley Fnd/Campus Ministries 407, , % Conference Ministries-Deploy 31,432 20, % Conference Ministries-Invite 49,282 33, % Conference Ministries-Nurture 28,579 19, % Conference Ministries-Equip 50,180 33, % Totals: 1,378,364 1,010, % BEYOND CONFERENCE MINISTRIES Episcopal Fund 184, , % Ministerial Education 250, , % World Service Ministries 616, , % Africa University 18,892 14, % Black College Fund 84,442 54, % General Administration 74,417 41, % Inter-denominational Coop 16,564 9, % Lydia Patterson Institute 22,955 18, % Mission and Administration 10,749 6, % Mt. Sequoyah 5,485 3, % Texas United Methodist College Association 124,993 93, % Totals: 1,410, , % Total Budgeted Shared Ministries 6,037,716 4,695, % See accompanying notes to the financial statements Unaudited and preliminary for internal use only J - 22

23 2016 REPORTS REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -7- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH SUPPORT AND REVENUE FOR THE PERIOD JANUARY 1, 2015 THROUGH DECEMBER 31, 2015 Shared Shared Ministries Ministries Budget Receipts % Paid GENERAL ADVANCE SPECIALS Four Corners NAM 2,050 McCurdy School 5,647 UMCOR 19,712 UMCOR - Health Kits 25 UMCOR - Bread for the World 5 Mary L. Escobar Daycare 100 Haiti Earthquake 70 Maua Service Fund 1,510 Maua Hospital 3,010 AIDS Orphans' Project 1,240 David Ceballos Salary 4,782 Cynthia Ceballos Salary 5,300 Ind.Volunteers-J.Mon 3,000 Skip Hodges-Bolivia 1,500 Nothing But Nets 642 International Disaster 4,572 Domestic Disasters 300 Sager-Brown Depot 4,266 Santiago de Veraguas 5,592 Totals: 63,322 CONFERENCE SPECIAL OFFERING Methodist Children's Home 6,033 Providence Place 6,009 Imagine No Malaria 5,239 McMurry University 50 Camp New Dawn Scholarship 817 Grace Camp Scholarships 200 New Clergy Initiative 2,000 Lubbock Co. Bd of Mi 2,500 Hispanic Summer Interns 150 Congo Initiative 6,000 Local Disaster Fund 45,998 Spirit Wind 340 Totals: 75,336 See accompanying notes to the financial statements Unaudited and preliminary for internal use only J - 23

24 2016 NORTHWEST TEXAS ANNUAL CONFERENCE REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -8- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH SUPPORT AND REVENUE FOR THE PERIOD JANUARY 1, 2015 THROUGH DECEMBER 31, 2015 Shared Shared Ministries Ministries Budget Receipts % Paid GENERAL CHURCH OFFERINGS One Great Hour of Sharing 7,072 World Communion Sunday 2,964 United Methodist Student Day 1,012 Human Relations Day 2,069 Peace with Justice Sunday 1,580 Native American Ministries 2,288 Totals: 16,985 Total Shared Ministries 6,037,716 4,851,322 Other Church Giving 79,266 Total Church Remittances 4,930,588 OTHER SUPPORT AND REVENUE Investment Income 26,847 Insurance Premiums, Registrations & Fees 4,225,452 Gifts - Capital Campaigns 300 Grant Income 63,890 Other Income TOTAL SUPPORT AND REVENUE 9,247,077 See accompanying notes to the financial statements Unaudited and preliminary for internal use only J - 24

25 2016 REPORTS REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -9- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH STATEMENT OF UNRESTRICTED AND UNDESIGNATED NET ASSETS AS OF DECEMBER 31, 2015 AND DECEMBER 31, 2014 Balance Disburse- Balance Description 12/31/2014 Receipts ments Net 12/31/2015 Unrestricted Net Assets Unrestricted Fund 177,477 1,083,364 1,115,247 (31,883) 145,593 Conference Stabilization GAAP Conversion 187, ,378 Conference Stabilization Fund 994,289 32, ,611 (269,825) 724,464 Conference Leadership Team 193, , ,078 15, ,958 Conference Leadership -Hispanic Ministry 8,628 35,075 35, ,630 Total Unrestricted/Stabilization Fund 1,561,640 1,729,392 2,016,008 (286,616) 1,275,024 Composition of Fund Balance Cash & Cash Equivalents 1,051,835 Other Assets (e.g. Property & Equipment, net) 1,941,709 Payables to other funds (1,553,263) Payables to Camps (97,607) Other Liabilities (67,628) Total Unrestricted/Stabilization Fund 1,275,046 Net Unrestricted/Stabilization Fund Cash & Cash Equivalents Cash & Cash Equivalents 1,051,835 Other Assets net of Liabilities 223,211 Total Unrestricted/Stabilization Fund 1,275,046 Use of Cash & Cash Equivalents Minimum Cash Reserve 600,000 One-Year Advance Funding for Conference Ministries 330,000 Designated Cash Balances 930,000 Unrestricted and Undesignated Cash & Cash Equivalents 121,835 Total Cash & Cash Equivalents 1,051,835 See accompanying notes to the financial statements Unaudited and preliminary for internal use only J - 25

26 2016 NORTHWEST TEXAS ANNUAL CONFERENCE REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -10- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS 1. Nature of Activities and Summary of Significant Accounting Policies Nature of Activities The purpose of the Northwest Texas Conference of the United Methodist Church (the Conference) is to help make disciples of Jesus Christ for the transformation of the world. The Conference fulfills that mission by providing leadership and resources to the local churches in the Conference, providing care and benefits for the clergy, and by funding ministries in and beyond the Conference through the extended connection of The United Methodist Church. The financial statements have been prepared on the accrual basis of accounting which recognizes income when earned and expenses when incurred. All assets of the Conference reported in these financial statements - with the exception of the Conference s equity in the episcopal residence of the area bishop - are held in trust by the Board of Trustees of the Conference, incorporated under the laws of the State of Texas. The episcopal residence of the area bishop is located in Albuquerque, NM and by operation of church policy is held in trust by the Board of Trustees of the New Mexico Annual Conference of The United Methodist Church, incorporated under the laws of the State of New Mexico. Basis of Accounting The Conference is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Concentration of Credit Risk The Conference maintains its cash balances in institutions insured by the Federal Deposit Insurance Corporation (FDIC). The Conference also has investments with the Texas Methodist Foundation s Methodist Loan Fund and with Wespath Investment Management, a part of the General Board of Pension and Health Benefits of The United Methodist Church. These investments are not insured by the FDIC. Property and Equipment Property and equipment are carried at cost or, if donated, at the approximate fair value at the date of donation. All land and buildings are capitalized. Equipment is capitalized if it has a cost of $100 or more and a useful life of more than one year when acquired. Expenditures for repairs and maintenance are charged to expense as incurred, and additions and improvements that significantly extend the lives of assets are capitalized at cost. All assets are depreciated on the straight-line basis. Equipment, computers and furnishings are depreciated over lives of 3 to 5 years and the Conference building is depreciated over 40 years. Depreciation expense for the year ended December 31, 2015 was $68,081. J - 26

27 2016 REPORTS REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -11- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS Collections The Conference owns and maintains a collection of historic documents and artifacts housed in the Archives Center. The collections which were acquired primarily through contributions since the Conference s inception, are not recognized as assets on the Statements of Financial Position. Proceeds from deaccessions or insurance recoveries, if any, will be reflected as increases in the appropriate net asset classes. Shared Ministries and Accounts Receivable The Conference records Shared Ministries and other church giving actually received on or before January 13, 2016, but intended as Support and Revenue for those years by the remitting church, as revenue and receivables as of December 31, Therefore, an allowance for uncollectible accounts is not required. Cash Equivalents For purposes of the Statements of Cash Flows and the Statements of Financial Position, the Conference considers all investments purchased with a maturity of three months or less to be cash equivalents. Income Tax Status The Conference is exempt from income tax under Section 501(c)(3) of the Internal Revenue Code and, therefore, has no provision for federal or state income or franchise taxes. Comparative Totals The financial information for the year ended December 31, 2014, is presented for comparative purposes only and is not meant to be a complete financial statement presentation. Estimates The Conference uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. 2. Cash and Cash Equivalents Cash and cash equivalents consist of the following as of December 31, 2015: Insured Accounts Prosperity Bank, Lubbock $2,238,985 Vista Bank, Lubbock 84 Total Insured $2,239,069 Uninsured Accounts Texas Methodist Foundation $2,278,562 Wespath 999,699 Petty Cash Imprest Account 400 Total Uninsured $3,278,661 Total Cash and Cash Equivalents $5,517,730 J - 27

28 2016 NORTHWEST TEXAS ANNUAL CONFERENCE REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -12- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS Of the total cash and cash equivalents, a portion of the total is temporarily restricted for pension and health benefits and other temporarily restricted uses. On the Statements of Financial Position, cash and cash equivalents are shown as follows: Cash and Cash Equivalents Unrestricted $1,415,848 Cash and Cash Equivalents Restricted For Pension and Health Benefits $ 966,352 For Other Uses 3,135,530 $4,101,882 Total Cash and Cash Equivalents $5,517, Accounts, Notes and Loans Receivable As disclosed in Note 1, the Conference recorded Shared Ministries and other church giving actually received on or before January 13, 2016, but intended as Support and Revenue for 2015 by the remitting church, as revenue and receivables as of December 31, Total Accounts Receivable at December 31, 2015, was composed of: Summary of Accounts Receivable Accounts Receivable - Shared Ministries Unrestricted $ 194,397 Accounts Receivable Shared Ministries Restricted for Benefits 121,961 Accounts Receivable Shared Ministries Restricted for Other Uses 369,155 Total Accounts Receivable Shared Ministries $ 685,513 Accounts Receivable Other Benefits Billed to Churches $ 10,761 Total Accounts Receivable Other $ 10,761 Less: Allowance for Uncollectible Accounts 0 Net Accounts Receivable $ 696,274 In addition, the Conference has made loans (but no longer does so) to students for educational needs. Most of the student loans are currently with a collection agency. As of December 31, 2015, all church loans have either been collected or allowed for. As of December 31, 2015, notes and loans receivable consisted of: Summary of Notes and Loans Receivable Student Loans Receivable $ 48,621 Less: Allowance for Uncollectible Accounts (48,621) Total Notes and Loans Receivable $ 0 J - 28

29 2016 REPORTS REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -13- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH 4. Property and Equipment NOTES TO FINANCIAL STATEMENTS The following is a summary of property and equipment as of December 31, 2015: Land $ 247,033 Buildings 1,562,630 Furnishings, Equipment and Other Assets 157,635 $1,967,298 Less: Accumulated Depreciation (294,349) Total Property and Equipment $1,672,949 The Conference has an equity interest in the area episcopal residence located in Albuquerque, NM. The current episcopal residence was acquired in January 2013 at a cost of $322,560. This cost is shared between the Northwest Texas Conference and the New Mexico Annual Conference on a 60%/40% basis, respectively. Accordingly, the Conference capitalized $193,536 (60% of $322,560) as its equity share of the new residence which is included in the Buildings total above. 5. Post-retirement Pension Benefits The Conference is responsible for pensions for two classes of persons clergy appointed to the Conference and lay employees. Pensions for clergy currently serving churches in the Conference are billed to and paid directly by their respective churches. For clergy assigned to the Conference and lay employees employed by the Conference, the Conference makes contributions to the pension plan maintained by the General Board of Pensions and Health Benefits of The United Methodist Church (GBPHB). The net cost for all current funding of pension plans in 2014 was $132,339. Prior to 1982 the Northwest Texas Conference participated in a defined benefit program for clergy appointed to local churches of the Conference. The financial liability for that service still exists for the Conference and will until the last clergy person with service prior to 1982 including surviving spouses - dies. The Conference makes the annual required contribution to amortize its liability but invests all excess assets with Wespath Investment Management, the investment arm of the General Board of Pension and Health Benefits. From 1982 through 2006, clergy were subject to the Ministerial Pension Plan (MPP), a defined contribution plan. When a participant retires with service under MPP, that clergy-person s pension is annuitized and, therefore, guaranteed for life. If the plan assets drop below the annuitized liability, the Conference would be responsible for its share of the unfunded liability. However, as of December 31, 2015, there was no unfunded MPP liability. As of December 31, 2015, the market value of these assets invested but, as yet, not contributed to the plan was $21 million, which exceeded the unfunded liability of the pension plans. Accumulated Post-retirement Benefit Obligation (APBO) $ 45,621,345 Plan Assets invested with GBOPHB (42,475,079) Investments with GBOPHB (Wespath) Outside of Plan (21,143,810) Assets in Excess of Pension Plans Invested with GBOPHB $ (17,997,544) The assets in excess of the pension plan obligation were used to offset the health benefits obligation. See Note 6. J - 29

30 2016 NORTHWEST TEXAS ANNUAL CONFERENCE REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -14- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH 6. Post-retirement Benefit Obligation NOTES TO FINANCIAL STATEMENTS The Conference provides post-retirement health benefits for clergy and surviving spouses. The conference provides Health Reimbursement Account (HRA) contributions for each eligible clergy participant (retiree, spouse, or dependent child). The Conference s annual contribution to the HRA is currently set at a maximum of $1,200 per clergy-person and/or surviving spouse but is dependent upon the years of denominational service of the clergy person. In 2015, the net expense to the Conference to fund the health reimbursement accounts and for administration of those accounts was $166,712. As of December 31, 2015, the Conference has an excess of plan assets over the accumulated post-retirement benefit obligation of $15 million as follows: Accumulated Post-retirement Benefit Obligation (APBO) $ 4,579,780 Plan Assets invested with Texas Methodist Foundation (TMF) (1,163,686) Assets in Excess of Pension Plans (see Note 5) (17,997,544) Plan Assets in Excess of APBO at December 31, 2015 $ (14,581,450) The actuarial valuation date is December 31, Other key actuarial assumptions include: Discount rate of 4.05% Mortality: RP-2014 Generational white collar mortality table for annuitants and non-annuitants (male and female) with projected mortality improvements under Scale MP Annual increase in HRA of 1.0% Total Post-retirement Benefit Expense is reported as other expenses (benefits) in the Statement of Activities and consists of: Service Cost Conference $ 114,748 Change in Funding Status (1,712,277) Post-retirement (Benefit) Expense $ (1,597,529) Estimated future benefit payments for the next five years are as follows: 2016 $201, , , , ,559 J - 30

31 7. Pledges Receivable 2016 REPORTS REPORT OF THE TREASURER FOR YEAR 2015 Rev. David W. Andersen, Chief Financial Officer and Conference Benefits Officer -15- NORTHWEST TEXAS CONFERENCE OF THE UNITED METHODIST CHURCH NOTES TO FINANCIAL STATEMENTS Build, Renew, Rejoice! is a campaign that started in 2007 to raise funds to help start or re-start churches in the Conference as well as to help build a new Conference Service Center. Pledges were solicited from individuals and churches with individual pledges to be paid over a 3-year period and church pledges to be paid over a 5-year period. In general, all pledges were scheduled to be paid by the end of The pledges were considered to be unconditional and, therefore, recorded as a receivable when a valid pledge card was received. However, the economic climate of the past several years and capital campaigns at some churches resulted in a slowdown in collections and/or cancellation of the remaining balance of many open pledges. As a result, the Conference believes that collection of the remaining balance of pledges at December 31, 2015, is doubtful. Accordingly, the Conference wrote off $968,809 of open, unpaid pledges in During 2015, $9,911 in pledges were collected. The remaining open pledges total $105,189 and have a corresponding allowance in the amount of $105,189 as of December 31, Restrictions on Net Assets Temporarily Restricted Net Assets are detailed on the Statement of Net Assets and total $5,068, Subsequent Events Management has evaluated subsequent events through April 6, 2016, which represents the date the financial statements were available to be issued. No events have occurred up to that date that would require adjustment to, or disclosure in, the financial statements. J - 31

32 2016 NORTHWEST TEXAS ANNUAL CONFERENCE COUNCIL ON FINANCE AND ADMINISTRATION Michael Jones, President Your Conference Council on Finance and Administration (CF&A) is composed of pastors and members of Conference churches. We understand the challenges that local churches face. Accordingly, we have worked on your behalf to align our resources particularly our financial resources with the Conference s mission of creating new places for new people, of cultivating a new generation of clergy, and telling the Wesleyan message of God s love and grace. Together we have provided resources for ministries like: Path1 (new places) Ethnic ministries (new people) The New Clergy Initiative (new story tellers) Camping and Campus Ministries (which invites young people to hear the story of Jesus and then nurtures and deploys them back into the mission field) We celebrate with you the increases in Shared Ministries giving over the past years. In 2015 we received almost 78% of the Shared Ministries budget, up 2 points from 2014 and 2013, and 11 points from 2010 and THANK YOU FOR SHARING! Shared Ministries Paid 78.00% 77.00% 76.00% 75.00% 74.00% 73.00% 72.00% 71.00% 70.00% However, your CF&A believes we still have the opportunity as well as the necessity to raise our overall pay-in rate. Because we receive substantially less than what we budget (78% in 2015), we must ask for more money than we need just to make sure we can pay our bills and carry out the ministries to which God has called us. The Council believes this gap in connectional giving is unfair and unsustainable. Consider these points: The Shared Ministries Budget (the amount apportioned) is dependent upon Conference expenses (the cost of ministries, clergy care, and South Central Jurisdiction and General Church apportionments), and the pay-in rate for Shared Ministries. At the 2011 session of Annual Conference CF&A proposed a plan for lowering the Shared Ministries budget. We committed the Conference leadership to do everything possible to restrain costs. However, that was only half of the equation. The other half was dependent upon raising the overall pay-in rate for shared ministries. Here is a graphic depiction of the plan and the results. J - 32

33 2016 REPORTS Shared Ministries 7,100 6,900 6,700 6,500 6,300 We Did What We Said We'd Do Origin al Plan (blue bars) Actual/P rojected Pay in Rate Planned Pay in Rate Pay in 90.00% 85.00% 80.00% 75.00% 6, % 5,900 5,700 5,500 Actual Shared Ministries (red bars) % 60.00% Our original projection assumed Conferences expenses what we actually spend would remain relatively flat and that the Shared Ministries Budget what we apportion would start to come down beginning in 2016 as the pay-in rate for Shared Ministries rose above 80%. What has actually occurred is Conference expenses have declined by $400 thousand (-7%) despite adding new ministries and inflation. Secondly, while Conference expenses have declined by $400 thousand, the pay-in rate of Shared Ministries has increased about as expected. When you put these two complementary and compounding factors together the result is a Shared Ministries Budget that is over 18% lower than That s $1.3 million less! Again, we celebrate our past success but we also realize that our work is not yet complete: 1. Churches currently paying 100% of their Shared Ministries are encouraged to continue doing so. 2. Churches that are not yet giving 100% are challenged to increase giving by at least 10 points annually until reaching 100%. Many churches have faithfully followed the plan. J - 33

34 Shared Ministry Giving Remained Approximately the Same Not 100% AND Decreased Shared Ministry Giving 2016 NORTHWEST TEXAS ANNUAL CONFERENCE Shared Ministries Pay in Paid ZERO FIRST TIME Paid 100% or more Paid 100% or more Not 100% BUT Increased Shared Ministry Giving Dropped from 100% Your Council believes that our best days are still ahead of us. But, it is only by working together that we can undertake (and fund) the ministries to which we are called. Please also refer to the Treasurer s report and the 2017 Shared Ministries budget for further details. J - 34

35 2016 REPORTS CHURCHES PAYING 100% OF THEIR SHARED MINISTRIES ABILENE DISTRICT Shared Shared Ministries Ministries 2015 % 2014 % 2013 % Church Goals Paid Paid Paid Paid Bethel United Methodist Church Abilene 5,336 5, % % Caps UMC 5,250 5, % % % Fargo UMC 4,605 4, % % % First UMC Aspermont 8,056 8, % % % First UMC Avoca 5,035 5, % % % First UMC Blackwell 7,635 7, % % % First UMC Childress 46,507 46, % % % First UMC Elbert % % % First UMC Hamby 3,219 3, % % % First UMC Knox City 10,807 10, % % % First UMC Lueders 1,181 1, % % % First UMC Margaret 2,222 2, % % 58.08% First UMC McCaulley 3,648 3, % 62.34% 64.22% First UMC Merkel 13,583 13, % % % First UMC Munday 13,115 13, % 98.03% % First UMC Paducah 8,085 8, % % % First UMC Rotan 12,126 12, % % % First UMC Sagerton 3,409 3, % % % First UMC Throckmorton 12,834 12, % % % First UMC Trent 6,243 6, % % % First UMC Vera % % % First UMC Vernon 43,238 43, % % 84.26% Nolan UMC 1,903 1, % % % Pioneer Memorial UMC 3,503 3, % % 82.70% Potosi UMC 1,593 1, % 0.00% % St. James UMC Abilene 33,653 33, % % % J - 35

36 2016 NORTHWEST TEXAS ANNUAL CONFERENCE CHURCHES PAYING 100% OF THEIR SHARED MINISTRIES AMARILLO DISTRICT Shared Shared Ministries Ministries 2015 % 2014 % 2013 % Church Goals Paid Paid Paid Paid Allison UMC 5,510 5, % % % Central UMC 45,306 45, % % % First UMC Booker 21,471 21, % % % First UMC Canadian 61,162 61, % % % First UMC Canyon 133, , % 81.99% 87.75% First UMC Channing 2,725 2, % % % First UMC Darrouzett 3,378 3, % % % First UMC Dumas 33,139 33, % % 81.78% First UMC Groom 7,765 7, % % % First UMC Gruver 28,294 28, % % % First UMC Heald 4,979 4, % % % First UMC Hedley 3,393 3, % % 0.00% First UMC Higgins 11,341 11, % % % First UMC McLean 12,300 12, % % % First UMC Miami 12,516 12, % % % First UMC Middlewell 4,200 4, % % % First UMC Mobeetie 2,542 2, % % % First UMC Pampa 74,200 75, % % % First UMC Panhandle 32,267 32, % % % First UMC Perryton 55,606 55, % % % First UMC Shamrock 16,418 16, % % % First UMC Spearman 38,094 39, % % % First UMC Sunray 12,755 12, % % % First UMC Wellington 24,412 24, % % % First UMC Wheeler 26,998 26, % % % Pleasant Valley UMC Amarillo 25,020 25, % % % St. Paul UMC Pampa 8,438 8, % % 54.05% St. Matthew UMC Amarillo 8,906 8, % % White Deer United Methodist Church 15,207 15, % % % J - 36

37 2016 REPORTS CHURCHES PAYING 100% OF THEIR SHARED MINISTRIES BIG SPRING DISTRICT Shared Shared Ministries Ministries 2015 % 2014 % 2013 % Church Goals Paid Paid Paid Paid Cooper UMC 12,655 12, % % % Dorn Chapel UMC 3,432 3, % % % First UMC Big Spring 76,820 76, % 18.56% % First UMC Brownfield 29,611 29, % % % First UMC Coahoma 7,929 8, % % 38.15% First UMC Draw 1,704 1, % % % First UMC Garden City 2,195 2, % 0.00% % First UMC Graham Chapel 4,883 4, % % % First UMC Ira 3,637 3, % % % First UMC Midland 378, , % % % First UMC Morton 10,781 10, % % % First UMC New Home 3,633 3, % % % First UMC Plains 11,002 11, % % % First UMC Post 20,519 20, % % % First UMC Ropesville 10,433 10, % % % First UMC Roscoe 13,521 13, % % 55.70% First UMC Seagraves 9,411 9, % % % First UMC Seminole 39,625 39, % % % First UMC Slaton 23,632 23, % % % First UMC Stanton 42,194 42, % % % First UMC Sweetwater 52,149 52, % % % Highland Heights UMC Sweetwater 11,113 11, % % % Means Memorial UMC Andrews 40,227 40, % 82.77% 73.98% St. Luke's UMC Midland 152, , % % % St. Mark's UMC Midland 24,919 24, % % % Visionary Hollowell UMC Midland 5,668 5, % % % Wesley UMC Andrews 5,432 5, % % % J - 37

38 2016 NORTHWEST TEXAS ANNUAL CONFERENCE CHURCHES PAYING 100% OF THEIR SHARED MINISTRIES LUBBOCK DISTRICT Shared Shared Ministries Ministries 2015 % 2014 % 2013 % Church Goals Paid Paid Paid Paid Agape' UMC Lubbock 11,756 11, % % % Crosbyton UMC 9,707 9, % % % Canyon UMC 12,407 12, % % % El Divino Salvador 1,067 1, % % First UMC Amherst 11,544 11, % % % First UMC Bovina 5,215 5, % % % First UMC Dimmitt 30,748 30, % % % First UMC Floydada 33,049 33, % % % First UMC Happy 17,970 17, % % % First UMC Hart 7,709 7, % % % First UMC Hereford 64,755 64, % 75.00% 66.78% First UMC Kress 10,044 10, % % % First UMC Lockney 25,198 25, % % % First UMC Muleshoe 33,251 33, % % % First UMC New Deal 4,592 4, % % % First UMC Oklahoma Lane 5,814 5, % % % First UMC Petersburg 9,712 9, % % % First UMC Quitaque 5,972 5, % % % First UMC Ralls 9,589 9, % % % First UMC Sudan 8,546 8, % % % First UMC Tulia 35,636 35, % % % First UMC Vigo Park 1,249 1, % % % Friona UMC 36,441 36, % % % Grace UMC Plainview 12,047 12, % 54.33% 54.87% Korean UMC 1,950 1, % % 0.00% La Trinidad UMC Lubbock 3,295 3, % % LakeRidge UMC Lubbock 373, , % % % Mt Vernon UMC Lubbock 4,850 4, % % % Oakwood UMC Lubbock 38,104 39, % % % St. John's UMC Lubbock 86,566 86, % % % J - 38

39 2016 REPORTS NORTHWEST TEXAS CONFERENCE SHARED MINISTRY PLAN 2017 HIGHLIGHTS The Northwest Texas Conference Council on Finance and Administration is excited to propose a plan for funding ministry in and beyond the Conference for (000) Ministry Support Leadership & $1,762 $1,813 $1,692 $1,708 $1,791 $1,897 Clergy Care 1,820 1,550 1,440 1,320 1, Conference Ministries 1,896 1,720 1,510 1,378 1,416 1,428 Beyond Conference Ministries 1,451 1,264 1,320 1,410 1,403 1,396 Total $6,929 $6,347 $5,962 $5,816 $5,695 $5,633 Excludes District Services and Ministries. The proposed Budget of $5.6 million is $74 thousand less and last year s budget and $1.3 MILLION LOWER than just five years ago. 7,000,000 6,000,000 5,000,000 Declining Shared Ministries Budget 4,000, As more fully explained in the sections that follow, this budget challenges us to carefully and intelligently use the resources with which God has entrusted us to undertake the ministries to which God has called us. Each committee, board, council and ministry team has sought to discern how each expenditure will steward and extend the United Methodist witness in Northwest Texas and beyond. J - 39

40 2016 NORTHWEST TEXAS ANNUAL CONFERENCE THIS PLAN IS ABOUT MINISTRY This plan is not about money. It is a mission about and a vision for changing lives and changing the world. Often it is helpful to consider what we have done as we consider what we are planning to do. Churches in NWTX are providing access to clean water and the living water of Jesus Christ in the Democratic Republic of the Congo You and United Methodists throughout the world helped over 1 million Congolese people be freed by Christ s gift of salvation in the course of 50 years In 2015 almost 16,000 people in our churches were engaged in mission to and with almost 165,000 persons Each and every day, you help deploy 335 missionaries in over 60 countries throughout the world and right here at home! 1,800 Professions of Faith and 1,400 baptisms in the last two years Over 300 hospitals, clinics and health posts were resourced worldwide Last year we were in ministry to and with 138,000 people in our communities In an average year, 250 NWTX Campers make a profession of faith for the first time J - 40

41 2016 REPORTS We contributed financial resources of almost $7.9 million for kingdom work. 6 Church Starts and 5 Church Re-Starts Every year you help provide United Methodist seminary educations for thousands of students and directly support over 30 students from Northwest Texas We believe God has called us to Align Resources with Mission do this and more in 2017! But, Create New Places for New to do that we all P need to participate Cultivate a New Generation of Clergy fully and faithfully. Establish Clear Metrics for Leaders 4 Areas of Focus J - 41

42 2016 NORTHWEST TEXAS ANNUAL CONFERENCE MOVING TOWARD SUSTAINABILITY At the 2011 session of Annual Conference we unveiled a financial stewardship plan to help provide a sustainable future for our Christian witness and mission in this part of God s kingdom. However, that witness had been limited by our level of participation in our Shared Ministries To reverse that trend, we presented a plan with THREE basic steps: 1. Churches already paying 100% remain faithful and fruitful 2. Less-than-100% churches increase giving by 10 percentage points per year until they reach 100% 3. As the amount of unpaid Shared Ministries declines, the Shared Ministries Budget can decrease or at least remain flat Here is a graphic depiction of the results of embracing the first two points of the plan: 75% of Churches are Working Steps 1 & 2 Not 100% AND Decreased Shared Ministry Giving Paid ZERO FIRST TIME Paid 100% or more Shared Ministry Giving Remained Approximately the Same Not 100% BUT Increased Shared Ministry Giving Dropped from 100% Paid 100% or more The third part of the plan lowering the Shared Ministries Budget is a function of two factors: Increased pay-in (Steps 1 & 2) and Cost control. J - 42

43 2016 REPORTS In 2011 we entered into a covenant. Your Conference leadership said, If the churches in the Conference will do their utmost to work points 1. and 2. of the plan, i.e. 100% churches remain faithful and fruitful and less-than-100% churches increase their Shared Ministries giving, then we the Conference leadership will do our utmost to contain and restrain the budget. So how have we done? Take a look: Shared Ministries 7,100 6,900 6,700 6,500 6,300 6,100 5,900 5,700 5,500 We Did What We Said We'd Do Origina l Plan (blue bars) Actual Shared Ministri es (red bars) Actua l& Proje cted Payin Rate Planned Pay in Rate Pay in Rate 90.00% 85.00% 80.00% 75.00% 70.00% 65.00% 60.00% J - 43

44 OUR PLAN FOR NORTHWEST TEXAS ANNUAL CONFERENCE 2017 Shared Ministries Budget Beyond Conference Ministries, 1,396,100 Ministry Support and Leadership, 1,897,200 Conference Ministries, 1,428,000 Clergy Care, 900,000 Total Shared Ministries = $5,621,300 Ministry Support and Leadership 2017 Budget = $1.9 million Funding for four District Superintendents - salary, travel, pension and benefits who serve the Northwest Texas Conference as points of connection among the local churches, the district, and the annual conference is $665 thousand Ministry Support & Leadership Conference Ministries Beyond Conference Ministries D.S. 665,100 Clergy Care Connectional Resources & Leadership Development 1,232,100 J - 44

45 2016 REPORTS The remainder of the budget ($1.2 million) provides for connectional resources and leadership development through the Conference Service Center. Clergy Care and Benefits 2017 Budget = $0.9 million We provide these benefits out of love and respect, caring for those who cared for us. Due to prudent investments and responsible stewardship, funding necessary to assure these benefits has declined by $900 thousand since Northwest Texas Conference Ministries 2017 Budget = $1.4 million These ministries occur primarily within the boundaries of this Conference but are as varied as they are numerous Conference Ministries Other Conference Ministries 250,900 Wesley Foundations and Campus Ministry 389,000 Conference Ministries DINE 166,100 Congregational Excellence Path1 214,300 Beyond Conference Ministries Camp Operations and Programs 192,000 Ministry Support and Leadership Clergy Care Clergy Excellence 215,700 Each year we make an investment in Clergy Excellence ($216 thousand) and Congregational Excellence ($214 thousand). We continue the heritage of John Wesley who believed in deploying called, qualified people into the mission field. Therefore, we support our students in seminary as well as in the Course of Study. We added the New Clergy Initiative in Over the next 10 years, half of our clergy currently serving in the Northwest Texas Conference will be eligible to retire. It is, therefore, imperative that we seek and retain qualified younger clergy to replace those who will be finishing their active ministerial careers in the next decade. The goal of the New Clergy Incentive is to provide financial support (e.g. seminary debt reduction) for up to three clergy each year a total of 30 over the next ten years - to serve in this Conference. Clergy Excellence is only part of the picture. We also believe in and support Congregational Excellence. We believe that the stewardship and extension of the United Methodist witness in Northwest Texas will only be achieved through vital, healthy congregations. This means we are helping churches understand and develop ways to engage their mission field. Every week in churches across the Conference doors are opened and hands outstretched to welcome new people into relationship with Jesus Christ. Our shared efforts to reach new people include not only support for new churches but also for existing churches to start new ministries on current or second campuses. We believe our Youth and Young Adult Ministries ($581 thousand) are also an important part of who we are what God is calling us to do. A big part of this is our youth and adolescent Christian camping program. Eighty percent of people who accept Christ as their Lord and Savior do so by age 19. Thousands of children each summer have their lives affected in small as well as profound ways. J - 45

46 2016 NORTHWEST TEXAS ANNUAL CONFERENCE At the college level the campus ministries at Texas Tech University, West Texas A&M, South Plains College, Howard College, Midland College and McMurry University are taking the Gospel and Christian community to students at this critical point in their lives. The fruit of our investment of resources in these ministries include a new generation of Christian leaders serving local churches as youth directors, leading Bible studies and small groups. The Conference also supports and resources other Conference Ministries ($417 thousand). Ministry teams look for new and engaging ways to Invite new people into a relationship with Jesus Christ. Ministry teams provide support for clergy, to nurture them in their calling. We also Equip clergy and laity to grow in their faith personally but to also take their faith into a world in desperate need of the life-saving, life-changing Gospel. Accordingly, the Northwest Texas Conference has developed new Hispanic/Latino congregations and helped existing ethnic congregations train and develop leaders. Beyond Conference Ministries 2017 Budget = $1.4 million World Service Ministries 642,800 Other 199,300 TUMCA 125,000 Other SCJ 45,700 Minister Education 203,900 Episcopal Leadership 190,300 Ministry Support and Leadership Conference Ministries Clergy Care 2017 Beyond Conference Ministries A large part of our Beyond Conference Ministries goes to supporting Christian education here and around the world. The Ministerial Education Fund ($204 thousand) provides educational support for ordained elders, ordained deacons, and diaconal ministers of the church through funding for theological schools, recruitment, professional development and continuing education. The Texas United Methodist College Association ($125 thousand) provides scholarships to almost 100 students to attend one of the seven Texas United Methodist colleges and universities. A large number of TUMCA scholarship recipients tell us that it is the TUMCA scholarship that is the tipping point which makes it possible for them to attend one of our schools in Texas. Through the denomination we and the other 8 million United Methodists in the United States support historically black colleges ($87 thousand). On the continent of Africa, Africa University in Zimbabwe ($19 thousand) is helping students become leaders in African government, agriculture, education, business, medicine and the church. The Lydia Patterson Institute ($26 thousand) is an accredited high school with a reputation for providing an excellent education for the whole person intellectual, physical, moral, and spiritual. LPI is located in El Paso and is ministry of the South Central Jurisdiction with a mission directed toward the Hispanic people in a cross-cultural, bilingual learning situation. J - 46

47 2016 REPORTS Another part of our Methodist heritage that we are carrying forward into the twenty-first century is the work of the World Service Fund. Through our support we join with other United Methodist churches in undergirding a network of over 300 missionaries and others who serve in the name of Christ and The United Methodist Church in over 60 countries around the world. Our Shared Ministries contributed here help strengthen evangelism efforts, stimulate church growth, expand Bible studies, nurture spiritual development plus support and enrich local congregational life with worship, retreat and camping resources, leader training and stewardship development work. The general church also provides resources for our work with children, youth, singles, students, persons who are mentally and physically challenged, adults and older persons. Furthermore, we continue a proud history of interdenominational and ecumenical work. Your gifts help assure United Methodists speak and work to help build a more ethical, just and humane world. Through these Shared Ministries we can express our commitment to God's reign through ministries of peace and justice, and efforts to build a church and a society truly inclusive of all persons regardless of race, ethnicity, gender or handicapping condition. Other ministries beyond our conference that are resourced through your gifts include funding to continue our for proud tradition of cooperation and dialogue with other faith traditions, support for our episcopal leaders and other administrative costs at the general church and jurisdictional level. These are your Shared Ministries Through our Shared Ministries we are feeding hungry mouths and filling hungry minds. We are rebuilding broken walls and reviving broken souls. We are raising up tomorrow s church leaders and tearing down cultural barriers. These are ministries that no one congregation could accomplish alone. That s the strength of our Conference and the mission of our calling. COUNCIL ON FINANCE AND ADMINISTRATION POLICIES The Conference Council on Finance and Administration (CCFA) presents the following policies and procedures for consideration and adoption at the session of Annual Conference meeting at Lubbock, TX, June 9-11, I. FINANCIAL PROCEDURES FOR THE NORTHWEST TEXAS CONFERENCE A. The Conference Council on Finance and Administration and the Chief Financial Officer will be directed by the requirements of the 2012 BOOK OF DISCIPLINE, Paragraphs , and by actions of the Session of the Annual Conference each year. B. The Conference CFO s Office is designated as the Central Accounting Office of the Northwest Texas Conference. All funds received on behalf of the Conference shall be deposited with the CFO for distribution as directed by the Conference. C. The Conference books will be audited annually. Used in this context, Audited means an audit conducted by an independent certified public accountant in accordance with Generally Accepted Auditing Standards. D. Budgeting Process and Procedures: Any auxiliary agency requesting Conference Shared Ministries funding for the year 2018 must present its requests on the forms provided by the Conference Chief Financial Officer (CFO). These forms will be available on the Conference website or by contacting the CFO and should be completed according to the accompanying instructions and be submitted to the CFO on or before the dates established in the form instructions and on the Conference website. The 2018 Conference budget will be compiled by the CFO and presented at the Spring 2017 meeting of CCFA. The Conference budget consists of an expense budget and a Shared Ministries budget. The Budget for Shared Ministries is computed based upon the expense budget what we expect to spend and the expected pay-in rate of Shared Ministries. The Budget for Shared Ministries is used to calculate each church s Shared Ministries (apportionments). Contingency amounts shall not be included in any expense budget. Unbudgeted needs may be made through written requests, no later than November 15, addressed to the President of the Conference Council on Finance and Administration (CCFA) for processing with the Executive Committee or the entire CCFA when in session. Any emergency or special funding granted by the Executive Committee or the CCFA will be taken from the Conference Stabilization Fund. The Council on Finance and Administration will present the budget to Annual Conference at least 24 hours prior to voting on the budget. J - 47

48 2016 NORTHWEST TEXAS ANNUAL CONFERENCE E. Shared Ministries: 1. The Budget for Shared Ministries for each church for the Conference year 2017 will be calculated on the Decimals approved by the Annual Conference following the adoption of the 2017 Conference budget at this 2016 Annual Session. These will be given to the district superintendents in late summer to be distributed to the local churches in the fall. 2. The Decimal is determined by each church s total for Current Program Expense, Other Operating Expense, and all Staff Compensation for the three most recent years available (line numbers 48, 49, 50, 51, 52, 54, 54, 55, 56, and 57 of the current statistical report prescribed by the General Council on Finance and Administration) divided by the corresponding conference totals for these line numbers for the same period.). 3. The Budget for Shared Ministries shall be allocated to local churches on a 100% basis for A Remittance Form will be provided by the Conference CFO. A generic form will be available on the Conference website but each church is encouraged to use the Shared Ministries monthly report/turn-around document ed each month. Shared Ministries can be paid on-line, via ACH or by check. Please contact the CFO s office for further information on making payments electronically or on-line. Payments by check should be made payable to: The Northwest Texas Conference Conference Treasurer 1401Avenue M Lubbock, TX For temporarily restricted funds (e.g. Equitable Comp, Episcopal Fund, all General Church and Jurisdictional apportionments, etc.) the Conference will remit to the appropriate agency the money received by the Conference. For unrestricted funds (e.g. Conference ministry support, conference ministries, etc.) the Conference will fund each area up to the amount of the expense budget. All salaries, payroll taxes, pensions and health insurance will be paid at 100% of the amount set by the personnel committee and included in the expense budget. CCFA hereby reserves the right to adjust other unrestricted budget items to match the amount of expected funding to be received from Shared Ministries. 6. All auxiliary agencies and ministries supported though your Conference Shared Ministries will receive funds monthly as they are remitted to the Conference, except the Wesley Foundations at Texas Tech University, West Texas A & M, Southern Methodist University, and South Plains College; and the four district services and ministry funds. Funding for the Wesley Foundations at Texas Tech, West Texas A&M and South Plains College, as well as for the district services and ministries will be projected at the beginning of the fiscal year and remitted to those entities in equal monthly installments. Any difference between the amounts remitted and the amounts received through Shared Ministries will be used to adjust the subsequent year s remittance amount. 7. Money received from all four districts for the financial support of the Wesley Foundations at Texas Tech, West Texas A & M, Southern Methodist University, and South Plains College and campus ministries at McMurry University will be divided with each receiving the percentage that their budget is of the total Wesley Foundation Budget of Shared Ministries. Churches may designate monies to the individual Wesley Foundations only after the amount of their Budget of Shared Ministries for Wesley Foundations and Campus Ministries has been paid in full. 8. The actual Shared Ministries receipts for Camp Operations will be divided among Butman Methodist Camp and Retreat Center, Ceta Canyon Camp and Retreat Center and Camp Programming proportional to the ratio of each budget to the Shared Ministries budget. J - 48

49 2016 REPORTS F. Disbursements: 1. Any expenditure of $ (five hundred dollars) or more and not meeting one of the exceptions in the Purchasing Policy, must first be requested pursuant to the Purchasing Policy published by the CFO s office and available on the Conference website. 2. Reimbursement for travel, lodging and incidental expense for unpaid staff and members of Conference committees, boards, councils and agencies conducting business on behalf of the Annual Conference within the bounds of the Annual Conference: Committees, boards and agencies shall be authorized to pay up to a maximum of 1000 miles (round trip) travel allowance at 30 per mile rate, or the lowest airfare rate, and 35 per mile allowance when more than one board or agency member travels in the same car. Members of committees, boards and agencies and others conducting conference business shall be reimbursed only for actual ordinary and necessary expenses such as motels, meals, tips, etc., relating to the meeting involved. Members of boards and agencies and others doing conference business shall be allowed, by voucher, up to $30 per night for the fees involved in parking a travel camper or other arrangements. All voucher requests shall be accompanied by receipts for travel, meals, lodging, honorarium, and other expenses. Miles claimed are exempt from required receipts. Reimbursements for meals and motel/hotel shall have the following guidelines: Lodging the current per diem rate established by the U.S. General Services Administration (GSA) for Texas (currently $89 per day); Meals and incidentals the current per diem rate established by the U.S. General Services Administration (GSA) for Texas (currently $51 per day). Any exceptions will be reviewed by the Director of Mission and Administration, the chairperson of the involved entity, and/or the Conference CFO. 3. Reimbursement for travel, lodging and incidental expense for unpaid staff and members of Conference committees, boards, councils and agencies conducting business on behalf of the Annual Conference outside the bounds of the Annual Conference: Committees, boards, councils and agencies shall be authorized to pay actual ordinary and necessary expenses for lodging, meals and incidentals related to the business involved. All requests for reimbursement shall be accompanied by receipts documenting the expense. Committees, boards and agencies shall be authorized to pay for use of a personal automobile at a rate of 30 per mile, but not to exceed the lowest airfare rate, and 35 per mile allowance when more than one board or agency member travels in the same car. Any exceptions will be reviewed by the Director of Mission and Administration, the chairperson of the involved entity, and/or the Conference Treasurer. 4. Employees of the Conference, including Conference Service Center Staff and District Superintendents, will be reimbursed for business use of their personal automobiles at the maximum Internal Revenue Service mileage rate. The Conference will also pay actual expenses for ordinary and necessary business expenses including lodging, meals and incidentals and transportation upon the submission of a request for reimbursement accompanied by receipts documenting the expense. 5. Lodging is paid for volunteers attending events only. Spouse s expenses are not covered unless the spouse is a member of that board, committee, or commission. 6. All vouchers will be paid by the due date of the invoice or, if no due date, then within normal trade payable terms, usually 30 days. G. Other Financial Policies and Procedures: 1. District Superintendents: a) The cash salary of each superintendent shall be 180% of the cash portion (excludes value of parsonage or housing allowance) of the Conference Average Compensation (CAC), as determined by the General Board of Pension for the current calendar year. For 2016 the cash salary is $91,100. For 2017 the cash salary shall be $95,152. b) Professional expenses shall be paid monthly to each District Superintendent, as requisitioned (see I.M. above) c) Each district superintendent shall be required to requisition in detail for travel expense; moving expense (new district superintendents); and continuing education. J - 49

50 2016 NORTHWEST TEXAS ANNUAL CONFERENCE d) For 2016: There shall be a monthly payment made for the Clergy Retirement Security Program defined benefit (CRSP-DB) based on 9.0% of plan compensation (cash salary plus housing). In addition, monthly payment will be made for the Clergy Retirement Security Program defined contribution (CRSP-DC) based on 2% of plan compensation, and an additional 1% of plan compensation if the District Superintendent contributes at least 1% of plan compensation to the United Methodist Personal Investment Plan (UMPIP). There will also be a monthly payment to the Clergy Protection Plan (CPP) based on 3% of plan compensation. e) Provision of a district office and housing for the district superintendent is the responsibility of the district trustees. 2. No member or employee of any Conference agency and no employee, trustee, or director of any agency or institution participating in the funds of any Conference budget shall be eligible for voting membership on the council. ( 612.2b, 2012 DISCIPLINE). 3. All institutions and agencies receiving financial support from the Northwest Texas Conference shall forward copies of their audit with the Conference Treasurer for the Conference Council on Finance and Administration. Audits are due by May 31 each year. If audits are not received, funds may be withheld pending receipt of the audit. Used in this context, Audit means a compilation, review, or audit conducted by an independent certified public accountant. When it is not practical to engage an independent certified public accountant, a review may be conducted by qualified person or entity not involved in the day-to-day accounting processes of the church, institution, or agency. For example, a church could make an agreement with another church to swap their financial reviews. If a financial review is conducted by someone other than an independent certified public accountant, then the review must undertaken using the Questionnaire for Examiner of Conference Auxiliary Agency Financial Records. a. Compilation Threshold: Any institution and agency which wishes to receive financial support from the Northwest Texas Conference and which has a total annual budget of $100,000 to $249,999, shall submit, at the minimum, a compilation conducted by an independent certified public accountant. If necessary, the Conference will allocate up to $2,500 of the Shared Ministries support to pay for the compilation. b. Review Threshold:. Any institution and agency which wishes to receive financial support from the Northwest Texas Conference and which has a total annual budget of between $250,000 and $499,999, shall submit, at the minimum, a review conducted by an independent certified public accountant. If necessary, the Conference will allocate up to $5,000 of the Shared Ministries support to pay for the review. c. Audit Threshold: Any institution and agency which wishes to receive financial support from the Northwest Texas Conference and which has a total annual budget of $500,000 or more, shall submit an audit conducted by an independent certified public accountant. If necessary, the Conference will allocate up to $10,000 of the Shared Ministries support to pay for the audit. d. When it is not practical to engage an independent certified public accountant, a review may be conducted by qualified person or entity not involved in the day-today accounting processes of the church, institution, or agency. For example, a church could make an agreement with another church to swap their financial reviews. If a financial review is conducted by someone other than an independent certified public accountant, then the review must undertaken using the Questionnaire for Examiner of Conference Auxiliary Agency Financial Records. 4. The Northwest Texas Conference, in keeping with DISCIPLINE, provides Commercial Blanket Bond Coverage of local church treasurers, up to $100, The CFO is required to retain all documents or electronic facsimiles thereof in retrievable form following appropriate disaster recovery procedures including off-site storage of computer files. 6. Designated or temporarily restricted funds will be considered active so long as reasonable progress continues with respect to the project or ministry. The fund may be assigned inactive status when all money is disbursed from the fund, when the CFO s office determines the fund is no longer active, when the CFO s office determines that the fund is no longer being utilized or when the project or purpose for the fund is completed. 7. A Designated or temporarily restricted fund will be dissolved by the CFO s office with the approval of the Conference Council on Finance and Administration when the fund is assigned inactive status (as described above), or upon the direction of the CCFA, if the purpose of the fund becomes impossible or impracticable to perform. J - 50

51 2016 REPORTS 8. All contributions received by the Conference for a duly inactivated or dissolved Designated/Temporarily Restricted Fund will be treated as a contribution to the Conference, and any remaining balance will be added to the Stabilization fund of the Conference. The CCFA reserves the right to make exceptions on where these balances are channeled. II. CONFERENCE STABILIZATION FUND A. The Conference Stabilization Fund is to assure a reasonable reserve to be used for the operation of the Annual Conference. The adequacy of the Stabilization Fund, and all reserves of the Annual Conference, is reviewed at least annually by CCFA in consultation with the CFO and the Director of Missions and Administration. B. After all revenue and contributions have been received and all expense vouchers have been paid or accrued at the close of the fiscal year, any increase or decrease in unrestricted net assets shall be transferred to the Conference Stabilization Fund, unless restricted by the BOOK OF DISCIPLINE or otherwise excluded by the Conference Council on Finance and Administration. C. The CFO and president of the Conference Council on Finance and Administration are authorized to borrow funds, when necessary, on a short-term basis, from the Conference Depository of Funds to meet the demands made on the Conference Stabilization Fund. Such loans shall be retired with funds received from the churches in the year in which the loan is made. D. In keeping with the recommendations of the General Council on Finance and Administration, the Conference Stabilization Fund should be maintained within a range set by the Council on Finance and Administration. Any monies of the Conference Stabilization Fund not in demand shall be invested with other Conference funds according to the investment policies adopted by the Conference Council on Finance and Administration and the Conference Investment Committee. Earnings from investments shall be credited to and become a part of the Conference Stabilization Fund unless exempted by the Council on Finance and Administration. III. INVESTMENT OF CONFERENCE FUNDS A. The CFO shall execute the policies established by the Conference Investment Committee in conjunction with the Council on Finance and Administration, the Conference Board of Pension and Health Benefits and the Conference Board of Trustees all of which have responsibilities related to governing investments of Conference funds and regulating cash flow. B. All funds shall be invested following the guidelines of the Investment Policy (as approved by the Council on Finance and Administration, the Board of Trustees and the Conference Board of Pension and Health Benefits). See 613.5, 2012 DISCIPLINE. A listing of investments shall be reported annually in the Conference JOURNAL. C. The CFO shall report annually to the Conference Council on Finance and Administration the amounts invested and the earnings gained from the investments. D. The CFO shall seek approval annually from the Conference Council on Finance and Administration of the depository or depositories of Conference funds. The Council can authorize the CFO to make any changes it deems appropriate. IV. GENERAL POLICIES A. We recommend that all councils, boards, commissions, and committees attempt to reduce the number of persons attending any one meeting. Furthermore, we encourage the use of telephone and video conferencing whenever this is practical. B. Ministerial Support Items. ( a)-e), 2012 DISCIPLINE 1. District Superintendent Fund: 2. The Episcopal Fund as presented in the Conference Budget of Shared Ministries. 3. Clergy Care Post-retirement benefits for retired clergy and/or surviving spouses as approved by the Conference Board of Pension and Health Benefits (CBPHB) and included in the Conference Budget of Shared Ministries. 4. The Equitable Compensation Fund as presented in the Conference Budget of Shared Ministries. 5. Ministerial Education Fund as presented in the Conference Budget of Shared Ministries. J - 51

52 2016 NORTHWEST TEXAS ANNUAL CONFERENCE C. Other Support 1. We recommend support of the Texas United Methodist College Association as presented in the Conference Budget of Shared Ministries. 2. We approve the following special days with offerings: a) Fall - Christian Education Sunday b) Third Sunday in September - Wesley Community Center, Amarillo c) November Providence Place (formerly Methodist Mission Home) Sunday d) Last Sunday in October or first Sunday in November - Retired Ministers Sunday e) Second Sunday in May - Homes for the Aging f) December Christmas Offering Methodist Children s Home, Waco 3. We recommend that Special Sundays be observed in our local churches as designated by the General Conference and in the various reports to the Annual Conference. D. When an automobile is furnished for a pastor, it shall be valued as specified in IRS regulations. The utilities for the parsonage should be paid by the church and we encourage churches to pay the pastor s continuing education expense. E. Financial projects and campaigns of the Conference shall be governed as follows: 1. All financial projects and campaigns that involve soliciting funds from all churches in the Conference shall be approved by the agency involved, by the Council on Finance and Administration, and by the Annual Conference before the beginning of the said financial campaign or project; provided, however, that this bylaw shall not apply to those projects or campaigns having the approval of the general church or Council of Bishops. 2. Any financial project or campaign so approved shall state a duration (how long the project or campaign will run) and termination date. These shall be strictly observed. 3. All requests for funds, special days, or authorization of appeals for funds shall be submitted to the Council on Finance and Administration no later than January 31 of each year. The Council on Finance and Administration shall make its recommendations concerning such requests before they are submitted to a business meeting of the Annual Conference. 4. When quotas or apportionments are established to individual churches for a special project or campaign, said quotas shall continue unchanged through the duration of the campaign. 5. All projects of Conference-owned institutions and agencies which will result in the incurring of indebtedness against Conference-owned property shall be submitted to the Conference institution or agency involved. These projects also shall be submitted per the policies of the Council on Finance and Administration, and shall be approved by a business meeting of the Annual Conference before the beginning of the project. Between sessions of the Annual Conference, the Council on Finance and Administration shall have authority to grant the required approval if a) the institution or agency involved presents satisfactory evidence that means of repayment of the indebtedness is adequately committed. b) the project has been presented per the policies of the Conference Council on Finance and Administration. 6. We recommend the following institutions be granted permission to solicit funds within the Conference without a campaign for the year 2017 (A campaign is interpreted as when an institution or agency sets fair share goals for the churches of the Northwest Texas Conference and the churches are expected to meet these goals.): a) Wesley Community Center for the operation budget and special needs. b) `McMurry University for wills and special gifts. c) Butman Methodist Camp and Retreat Center and Ceta Canyon Camp and Retreat Center, for capital development plans. d) King s Manor Methodist Retirement System, Inc. for operation budgets and special needs. e) Wesley Foundation Campus Ministry at Texas Tech University, West Texas A & M, South Plains College and campus ministries in the Big Spring District. J - 52

53 2016 REPORTS F. In each district, there shall be a District Finance Committee. The Finance Committee of each district shall be governed as follows: 1. The responsibilities of the Finance Committee shall include: a) Recommending to the District Conference for its action and determination a budget of anticipated income and proposed expenditures for the district b) Reviewing at least semiannually and accounting to the District Conference for the disbursement of funds in accordance with the budget approved by the District Conference. c) Providing for an audit of the accounts of the District Treasurer(s) for the preceding fiscal year within 120 days after the close of the Conference fiscal year and receiving, reviewing, and reporting such audit to the District Conference. 2. The Finance Committee shall have the following members: The chairperson, elected by the District Conference a) District Superintendent b) District Treasurer(s) c) Chair of the District Ministry Team d) Chair of the District Committee on Ordained Ministry e) Chair of the Committee on District Superintendency f) Chair of the District Board of Trustees g) Additional members as may be determined by the District Nominations Committee or the District Conference 3. The election of District Finance Committee members shall be as follows; a) The District Nominations Committee shall make nominations for the District Finance Committee. b) The District Finance Committee shall be elected at a District Conference session. 4. The District Finance Committee shall meet at least two (2) times a year and, additionally, at the call of the District Superintendent or a District Treasurer. G. In accordance with 2012 BOOK OF DISCIPLINE, Paragraphs , each district should be incorporated. J - 53

54 2016 NORTHWEST TEXAS ANNUAL CONFERENCE CONFERENCE LEADERSHIP TEAM/ DINE TEAMS Members of the Conference Leadership Team for : Bishop W. Earl Bledsoe, Ms. Jerri Ann Booe, Mr. Jeff Fisher, Rev. Marcy Garza, Mr. Billy Joe Jay, Mr. Paul Jones, Rev. Josh Kouri, Mr. Mikey Littau, Mr. Scott Montgomery, Mr. Murray Murphy, Rev. Jimmy Nunn, Rev. George Price, Mr. Randy Stutes, Rev. Donald Ward, Ms. Leia Williams, and Rev. Ted Wilson The Conference Leadership Team (CLT) utilized 2015 as a time for greater study and to increase the number of voices who are represented in discussions. Under the guidance of Bishop Bledsoe, the CLT was encouraged to have thoughtful dialogue around the suggestions in 7 Levers, written by Bishop Schnase, and Team of Teams, written by General Stanley McChrystal. These books provided a basis for initial discussions around the strategic planning process, which Bishop Bledsoe hopes will The CLT is in relationship with the following: Local Church, Invite Team, Nurture Team, Equip Team, Deploy Team, Conference Service Center begin in During these initial discussions, the CLT determined that the four greatest areas of ministry for the conference are: (1) Cultivating or recruiting new clergy (2) Starting new churches or faith communities, which will reach new people (3) Creating leadership development opportunities for clergy and laity (4) Telling the story. The CLT increased the number of voices who were represented in these discussions by creating CLT+. CLT+ encourages representatives from Trustees, Board of Ordained Ministry, Council on Finance and Administration, Cabinet, PATH I, Hispanic/Latino Movement, Equitable Compensation, and the Board of Pension and Health Benefits to attend CLT+ meetings in order to lend their perspectives to the work being done in preparation for the strategic planning process. CLT+ members agreed that the four areas of ministry identified by the CLT are critical to the vitality of the conference. Consequently, CLT and CLT+ will move forward with those priorities in mind as the strategic planning process begins. Action Item CONFERENCE LEADERSHIP TEAM REPORT ON STRATEGIC PLANNING PROPOSAL The Conference Leadership Team, in cooperation with Bishop Bledsoe and the Northwest Texas Cabinet, recommends that the Conference engage Mike Bonem to facilitate the development of a strategic plan for the Northwest Texas Conference. The Conference Finance and Administration has approved a budget of $50,000 to fulfill the process spread over A summary of the scope, timing, process and cost are included below. A written strategic plan will be presented to the Annual Conference in June 2017 for consideration by its members. RATIONALE The rationale for developing a strategic plan at this time include: (1) NWTX has identified four areas of emphasis to further strengthen the conference. Those areas are new churches, clergy recruitment and retention, leadership training, and telling the story of the conference. (2) NWTX has experienced some success in new church starts, Hispanic/Latino Movement initiatives, Healthy Church Initiative, Clergy recruitment, and increase in the number of vital local churches. (3) NWTX is in a healthy financial position that includes an increased level of shared ministry participation, the elimination of debt, and adequate funding for benefits accrued. The development of a strategic plan builds on the strengths and successes of the Northwest Texas Conference. We seek to intentionally build on these strengths as we plan for the future health and vitality of the Annual Conference. SCOPE AND TIMING The objective of this project is for NWTX to develop a five-year strategic plan that will clarify the conference s mission, identify the strategic priorities that are of greatest value, and define the action items that are needed to accomplish these priorities. An effective strategic plan is based on the conference s mission, so it will be important to clarify/define the mission as a foundation for the process. The plan should identify a limited number of strategic priorities that are expected to have the greatest impact for the conference. It will define the major action items which are the primary steps to be taken for each priority and the resources needed for these items. In addition, an effective strategic planning process must recognize the conference s current reality, draw on the wisdom of a diverse team, and be led by God. The proposed process for this strategic planning project includes the following activities: Collect and analyze data that describes the conference s current reality. Collect and analyze input from conference constituents (through surveys, focus groups, and interviews). Clarify the conference s mission, including a written mission statement. Identify a limited number of strategic priorities to be pursued. Define the action items to accomplish the strategic priorities, including resource requirements. Communicate the strategic plan to the conference. J - 54

55 2016 REPORTS The proposed process calls for NWTX to convene an ad hoc strategic planning team. Ideally, the team will be composed of people and will include the bishop, members of the conference staff, and pastors or other leaders from local congregations. The ad hoc team will be named by Bishop Bledsoe. The planning schedule is based on beginning the project in June 2016, after annual conference, and completing the work in time for presentation at the 2017 annual conference. Mr. Bonem will facilitate the meetings of the ad hoc team, synthesize discussions, gather and analyze information and input, and draft the written plan. The strategic plan will be submitted to the Annual Conference in June QUALIFICATIONS Mr. Bonem s ministry is to work with congregations, denominational bodies, and other ministries to enable them to turn their visions into results. His personal experience includes over 20 years of Strategic Planning, consulting with churches and other Christian organizations, authoring or co-authoring three books on ministry leadership, and speaking at a variety of conferences. His background includes an MBA from Harvard Business School, a BS from Rice University, and corporate consulting with McKinsey & Company. He also served for more than 10 years as the executive pastor of a church, a role that has sharpened his consulting skills by giving him a better perspective on the challenges of ministry leadership from the inside. COST The consulting fee for this project, based on the project scope, will be $38,000. Out-of-pocket expenses (e.g., travel, meals, hotel, etc.) will be documented and invoiced as separate line items in addition to the consulting fees. We expect the total out-of-pocket expenses will be less than $5,000. NWTX will have the right to cancel this agreement at any time. DEPLOY MINISTRY TEAM Scott Montgomery, Chairperson Members of Deploy who have served for : Ms. Rhonda Becker, Ms. Jessica Beeman, Rev. T. C. Broom, Mrs. Jean Butler, Ms. Sue Cates, Mrs. Nancy Clopton, Mrs. Carolyn Cobb, Rev. Archie Echols, Rev. Skip Hodges, Rev. Perry Hunsaker, Ms. Lauren Hughs, Rev. Rich Jones, Mr. Scott Montgomery, Ms. Kimberly Reeves, Mr. Harley Reynolds, Rev John Westman, and Ms. Leia Williams This past year, Scott Montgomery took on the role of becoming the Deploy Chair. He has a desire to create new vision and missional opportunities for our Conference. Deploy realigned our goals to match those of the NWTX Conference. Our goals include training our churches on 50/50 missional partnerships, educating and equipping churches in VIM, Mission in Motion, and Disaster Response, and furthering our The Deploy Team Encompasses: Health Missions, Community Missions, Disaster Response, GBCS, VIM, Mission in Motion, Ethnic Scholarships, TX Council of Churches, GCSRW, GCORR, Ethnic Church Grants, GBGM partnership with The Congo. We also defined missions as: Missions is the equipping and outflowing of holistic service, evangelism and justice both locally and globally for the growth of the Kingdom of God. Deploy released $14,000 of the Local Disaster Fund to go to the Fritch project. We have continued our external support to Texas IMPACT, HOPE Community of Shalom, AMOS Midland, Wesley Community Center, and Abilene Service Center. Lauren Hughs and Skip Hodges, VIM coordinators, have trained 11 new VIM Leaders and will be taking a Conference-wide VIM Mission trip in August to the Rio Texas Conference. John Westman, coordinator for Disaster Response, has been busy training our churches and their communities on how to be prepared for disaster, if one should occur. Sue Cates, Mission in Motion Coordinator, has been busy preparing UMCOR Kits to send to Sager Brown. Rich Jones has kept us informed about how the Social Principles are being evaluated on an international basis. Carolyn Cobb, CORR chair, has joined Deploy and has been a great asset by keeping us informed on Ethnic Scholarships. We look forward to continuing to serve in the coming year. KING S MANOR Shelly Moss, Executive Director 400 Ranger Street, Hereford, TX King s Manor Methodist Retirement System (KMMRS) continues to experience God s on a daily basis. The Assisted Living filled back up over the year of 2015 after having been closed for reconstruction in We continue to offer a full continuum of services: Independent Living Homes and Cottages, Assisted Living, Skilled Nursing Care, Child Care, Hospice and Home Health Care. We continue to update and improve our facility. Many or our resident rooms have been remodeled and updated and we are in the process of completely restructuring a shower room and making it a more inviting room for our residents so that shower time is something to look forward to. We are concentrating our efforts on expanding our retirement living offering by building more independent living units. J - 55

56 2016 NORTHWEST TEXAS ANNUAL CONFERENCE King s Manor is initiating a new program designed to enhance the lives of those with dementia and or anyone in the facility whose life is enriched by music and will be a MUSIC & MEMORY Certified Care Facility. Further, a number of our employees have become Certified Dementia Practitioners in order to better care for our residents. John Wesley is quoted as saying, Do you not know that God entrusted you with that money (all above what buys necessities for your families) to feed the hungry, to clothe the naked, to help the stranger, the widow, the fatherless; and, indeed, as far as it will go, to relieve the wants of all mankind? How can you, how dare you, defraud the Lord, by applying it to any other purpose? King s Manor operates on this premise. Our policies towards not only residents and families, but also our employees reflects this philosophy. We operate as a mission to provide for the children and the widows as Christ directed. Our goal is always to keep our rates as affordable as at all possible to admit those on limited budgets. We conduct annual fundraising to raise monies to provide for those who can no longer afford care and are generous with those funds. John Wesley further believed in organizing believers into small groups for vigorous Christian discipleship. Not only do we employ a Chaplin to provide worship services each Sunday, but also conduct multiple bible studies during the week in both the nursing home and in the Assisted Living and Independent Living departments. Management encourages our activity directors to read devotionals and scripture to shut ins or those who cannot read for themselves. Each meal is begun with a prayer. King s Manor values its relationship with the Methodist Church and will continue to do our best to honor this place in your Missions. We are grateful for the prayers and support of the Conference and pledge to continue to use your apportionments to extend Christ s work through all the services provided. LUBBOCK METHODIST HOSPITAL SYSTEM AND COVENANT HEALTH Colton Street, D.D. S., LMHS Board Chair and Sharon Prather, CH Chief Governance Officer th, Lubbock, TX As a religious-based health ministry, Covenant Health (CH) was created in 1998 by the merger between Lubbock Methodist Hospital System and St. Mary of the Plains Hospital. Covenant has two corporate members Lubbock Methodist Hospital System and St. Joseph Health System, the parent company of St. Mary of the Plains Hospital. Covenant s mission is to extend Christian ministry by caring for the whole person body, mind, and spirit and by working with others to improve health and quality of life in our communities. Covenant operates under the directives of The Book of Discipline of the United Methodist Church and the Ethical and Religious Directives for Catholic Health Care Services. Several years ago, Covenant Health adopted a transformational statement to transition our business model to a balance of great hospitals and great community care. Covenant is currently building a full network of care in order to effectively manage the health of the populations we will serve in the future. Covenant Health Partners (CHP) is the accountable care organization for our region. With more than 320 physician members, CHP has been accepted to participate in the Medicare Shared Savings Program and is dedicated to providing the highest quality of care in the most efficient way possible. In addition, Covenant operates hospitals in Plainview and Levelland, a network of clinics, a medical group, and Hospice of Lubbock. Joint ventures include High Plains/Covenant SurgiCenter, Covenant Specialty Hospital, and Trustpoint, a rehabilitation facility. During FY2015, Covenant Health managed mission and margin to provide $78,074,440 in charity care, unpaid cost of state and local programs, community services for low income, and community services for the broader community. Covenant donates 10 percent of its annual net income to provide outreach services to the poor and underserved in Lubbock and the regional communities. A Board of Director-appointed committee comprised of Covenant Health Board and community members oversees Community Benefit programs and expenditures. Those serving on the Committee presently include the following: Tom Vermillion, Sharon Bass, Michelle Hunter, Christine Allen, Joanne Cotter, Nicole Springer, Sr. Sharon Becker, Val Cochran, Keith Mann, Eddie McBride, Dr. Michael O Neill, Sr. Christine Ray, Karen Worley and Richard Parks, Covenant CEO. For FY2016, more than $2.6 million has been budgeted. The funds are expended based on the needs of the community as shown by the Community Needs Survey conducted every three years. Services offered include Dental for Adults and Children, Counseling and General Health and Nutrition Education for adults and children including classes for diabetics and their families. In addition to the Covenant programs for the underserved, Covenant collaborates with others to provide needed services. Those receiving funding this year include: Catholic Charities, Lubbock Children s Health Clinic, South Plains Community Action Association Head Start, The Larry Combest Health and Wellness Center, and the Texas Tech Body/Mind Initiative which is a child obesity intervention currently serving as a model nationwide. Each of these organizations collaborates closely with Covenant Health to coordinate services for those in need. Systems are in place for referrals and, in the case of Catholic Charities and Lubbock Children s Health Clinic Health, the provision of in-kind staff support for specific areas of need. J - 56

57 2016 REPORTS Board Relationships and Information The Covenant Board of Directors is comprised of 19 members: eight of whom are selected by the Lubbock Methodist Hospital System Board with approval from the Northwest Conference of the United Methodist Church; eight of whom are selected by the St. Joseph corporate member; the Covenant CEO; and the Chief of Staff of Covenant Medical Center and Chief of Staff of Covenant Children s Hospital who are also voting members of the Board by virtue of their elected positions. Current members of the Lubbock Methodist Hospital System (LMHS) Board include: Ann Akin, Dr. Sam Ayers, David Bayouth, Raymond Brigham, Ph.D., Val Cochran, Melissa Collier, Robert Craig, Mike Cunningham, Kathy Curry, Terry Dane, Rev. Richard Edwards, Jim Gilbreath, John Hamilton, Judge Mark Hocker, Keith Mann, Beth Ann Moser, M.D., Brian Nicholson, M.D., Eddie Owens, Robert Salem, M.D., Tom Sell, Colton Street, D.D.S., Jim Taylor, and Nancy Wiseman. The LMHS Board remains more than 60% Methodist. Those whose terms expire December 2016 include Dr. Beth Ann Moser and Dr. Brian Nicholson. LMHS is recommending Christine Haggard and Allison Quisenberry for three-year terms and Melissa Collier for a second three-year term on the Board. Board terms will begin January The Lubbock Methodist Hospital System (LMHS) Board reviews the work of the Covenant Health System Board through two committees: Operating and Oversight. The Operating Committee oversees the financial business of the Board while the Oversight Committee is charged with the responsibility of assuring compliance with the definitive agreement between Methodist and St. Joseph Health. In addition, LMHS Board has a Nominating Committee along with a committee for the DeBakey Lectureship Series. The Nominating Committee recommends candidates for membership on the Lubbock Methodist Hospital Board and the Covenant Health Board, along with recommending officers for the Lubbock Methodist Hospital System Board. The Lubbock Methodist Hospital System Board recently pledged $1.5 million to the Keeping the Covenant Capital Campaign to be used for the construction of the chapel which will be located at the front of the new tower when the master facility plan is complete. Lubbock Methodist Hospital System will be recognized in the chapel. In addition, there are plans to build a heritage wall telling the story of Methodist Hospital through the years. Spiritual Services The contributions from the Northwest Texas Conference of the United Methodist Churches to the Spiritual Care Department at Covenant Health remain a vital resource for the department and chaplains. The contributions not only allow the provision of exceptional pastoral care to patients, it also creates opportunities to enhance chaplains skills and provides forums for continued spiritual formation. Following are examples of the work done through the contributions of the Northwest Texas Conference: The CPE Center participated in a 10-Year Accreditation review in While the final results of the review will be made at the meeting of the ACPE Accreditation Commission in June, the initial report from the members of the site-team that conducted the review was positive and affirming. No notations were assigned to our CPE Center. Conference funds helped defray the cost of travel and associated accreditation fees. Seven individuals began their CPE residency in August 2015 and will conclude in August Summer Internship: Five students, representing four seminaries or universities participated in our 11- week summer intensive CPE unit. Extended CPE: We did not offer Extended CPE in 2015 to allow for preparation for our accreditation review. However, five individuals began our spring 2016 Extended CPE. Four of these individuals are United Methodist clergy and one is a chaplain in a correctional facility. The involvement of our CPE Advisory Group members was cited by the Accreditation Site-Team as one of the strengths of our CPE program. Three new members were added to the group two Covenant staff chaplains and a professor from Texas Tech Medical School. This group is working to assure the quality, stability, and longevity of the CPE program. Administrative support remains strong for the spiritual care program and services as leadership and the board receive regular updates. The CPE program and students patient care activities have been more fully integrated into the patient care of the hospital through the inclusion of hospital personnel in CPE seminars and through student learning about healthcare initiatives such as the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAPS). Further integration with quality improvement teams is beginning. A two day Spiritual Retreat focused on personal reflection and journaling was held in November The funds supported the continuation of the monthly Staff formation meetings. A book is selected by the group and discussion is facilitated by a Chaplain. Donations allow for the purchase of a book for each Chaplain, the CPE Supervisor, and department support staff. Several books were purchased to complement our CPE library. J - 57

58 2016 NORTHWEST TEXAS ANNUAL CONFERENCE The book entitled, Good Grief that is given to a family member who had a loved one die in our hospital is purchased through the donated funds. This book has been well-received and is greatly appreciated by families as they travel through their grief journey. We are reprinting our pediatric book, Little Angels to aid our parents in their loss and grief. Memorial services that attend to the deaths/losses of Covenant Health employees have been well received. Funds were used to continue to provide Infant Memorial Services purchased supplies, literature, and refreshments for this semi-annual service. Contributions also allowed the department to do the following: a. Pay for the renewal of Board Certification fees for the Chaplains who are board certified either through the Association of Professional Chaplains or the National Association of Catholic Chaplains. b. Pay for attendance to professional/denominational conferences including: Association of Professional Chaplains, National Association of Catholic Chaplains, Judicatory Assembly, and Convocation meetings, and the Catholic Health Association s Annual Assembly. c. Purchase items for use in the Chapel such as missals, lectionaries, candles, etc. d. Continued support of our Spiritual Care volunteers and Eucharistic Ministers by conducting quarterly education luncheons and hosting an annual appreciation luncheon. DeBakev Lectureship Series The 13 th Annual Covenant/Dr. Michael E. DeBakey Distinguished Lectureship Series will be held on April 29, The Distinguished Lecturer for 2016 is the celebrated Astronaut, Dr. Bernard Harris. Dr. Harris received his medical degree from TTUHSC School of Medicine in Lubbock followed by a residency in Internal Medicine at the Mayo Clinic. Following completion of his residency, Dr. Harris then entered the NASA Space Program in Houston and became the first African American Astronaut to walk in space. Following his experience as an Astronaut, Dr. Harris authored numerous scientific publications and conducted clinical investigations of space adaptation and developed in-flight medical devices to extend astronaut stays in space. Dr. Harris will share some of his experiences during his presentation. Medical Education Over the years since the opening of the Texas Tech Medical School in 1972, Covenant has become increasingly involved with medical education as an affiliate teaching hospital of Texas Tech University Health Sciences Center (TTUHSC). While providing outstanding health care to our patients is our primary mission, the training of future doctors and specialists is becoming a worthy secondary endeavor. The Covenant Campus has been officially designated as one of four official teaching sites for the TTUHSC School of Medicine. The other three are the primary site at University Medical Center in Lubbock and regional sites in Amarillo and the Permian Basin (Midland and Odessa). Beginning in July 2016, 30 third-year medical students will start receiving their clinical training under the direction of various doctors on the Covenant Medical Staff who have been given clinical appointments to TTUHSC. The core curriculum consists of eight-week rotations in the following six medical disciplines: Family Medicine Surgery OB/GYN Pediatrics Psychiatry Internal Medicine, including subspecialties, e.g. Cardiology, Gastroenterology In July 2017, the second set of 30 third-year students will begin their rotations, and the third class will become fourth-year students. This repeats itself every year, so that at any point in time after July 2017, Covenant will be responsible for the training of 60 third and fourth-year medical students. Additionally, Covenant has been expanding its training of residents, physicians who have completed their MD degrees and are specializing in one of the many specialties in medicine. Covenant presently supports the training of 32 residents in the following specialties: Anesthesia Family Medicine Palliative Care Internal Medicine Hematology/Oncology Neurology OB/GYN Pediatrics Psychiatry Pulmonology Surgery These resident rotations are for one year at Covenant and the resident doctors are supervised by Covenant Medical Staff physicians in their respective specialties. J - 58

59 2016 REPORTS Covenant Relationship with THI and TCH Covenant has been the beneficiary of both educational and clinical support through Affiliation Agreements established several years ago among Covenant Health, Texas Heart Institute (THI) and Texas Children s Hospital (TCH), located in Houston. THI has established an Advanced Heart Failure Clinic staffed by one of the Heart Failure Specialties from Houston in the Covenant Cardiac Tower. This clinic helps support Covenant s cardiology specialists in the management of complex heart failure patients with state of the art equipment and informatics, identifying those patients at an early stage of the disease who might benefit from intervention in the form of cardiac assist devices. Additionally, doctors from THI have participated in CME seminars for our medical staff, and one in particular regarding stem cell research for heart patients, was particularly stimulating. TCH has been able to provide onsite support for the Covenant Children s Cardiovascular Program. Teams of specialists, including pediatric cardiovascular surgeons, cardiologists, anesthesiologists and their support staffs have provided care for pediatric patients at the Children s Hospital. Pediatric patients with more severe and complex cardiovascular conditions are preferentially referred to TCH Houston. Additionally, TCH is providing extra coverage for general pediatric surgery, an area where currently Covenant is short in numbers. Other specialty areas are under consideration for collaboration with TCH, which is generally regarding as one of the top three Children s Hospitals in America. Covenant is indeed fortunate to have as our partners two of the leading medical care institutions in America for advancement of our medical knowledge to help provide for better patient care. Master Facility Plan Covenant Health officials announced plans for a $450 million master facility project at a groundbreaking event on March 23, This capital improvement project called Keeping the Covenant includes a $28 million expansion and renovation to the Joe Arrington Cancer Center, a new five-story Women s Center, new clinics including a 24,000- square-foot urgent care center at Erskine Street and Frankford Avenue, renovations to the Children s Hospital and a $40 million expansion/renovation of the Covenant Plainview Hospital. The renovation and expansion project is planned to be completed in five to seven years. Following is a progress update on the effort: Covenant Medical Center Phase II of the Infill Project continues. During Phase II, the space between the South Tower and Heart Center will be enclosed for a new kitchen cafeteria, physician dining room, endoscopy department, and additional pre-op space. The project should be completed by March East 6 is currently closed for renovation of patient rooms. It is scheduled to reopen in November as Covenant s Cardiac Intensive Care Unit (CICU). Construction is underway on a new central utility plant located on the east side of the campus. Completion is scheduled for January The Radiology and Basement Project continues and includes a new ambulance drop-off and canopy, the relocation of MRI and Nuclear Medicine from the basement to the first floor, and the relocation of several departments currently located in the West Tower. Joe Arrington Cancer Research and Treatment Center (JACC) Phase II of the construction is well underway. It includes additional space on the north and south sides of the center plus a complete renovation of existing space in the Cancer Center and Breast Center. A new gamma knife and two new linear accelerators have been installed and offer the finest in technology for cancer treatment in our region. Community Health Covenant Medical Group s new Northwest Clinic, located at the northwest corner of Frankford and Erskine, will be completed and open in the Fall. Covenant Plainview Hospital Phase I of the project, which includes the addition of five new surgery suites, will be completed by January Services for Patients and Their Families The Good Samaritan Room continues to be a much needed service for patients and their families coming to Covenant. Unfortunately, all too often patients arrive with nothing and need clothes, food and other necessary items upon dismissal. Covenant staff donates to the rooms which are located on both campuses. Family Sleep Rooms are almost always filled to capacity and the need is constantly increasing. These rooms are rented to those family members who live outside of Lubbock and cannot afford a hotel room. They are located inside both Covenant Medical Center and Covenant Children s Hospital making it very convenient for family members to visit their loved ones. J - 59

60 2016 NORTHWEST TEXAS ANNUAL CONFERENCE Auxiliary Covenant continues to rely heavily on the generosity of their volunteers. With construction continuing, volunteers have taken on increased duties in assisting with wayfinding throughout the facilities. They have established a service to assist patients and family members at Joe Arrington Cancer Center, especially in the lobby area. This new service is in addition to the transportation services to and from the parking lots to the Cancer Center. They are also distributing refreshments to patients who are receiving chemotherapy. Other areas of the hospital using volunteers include, but are not limited to, Waiting Rooms (surgery, surgical ICU, and medical ICU); Information Desks; Gift Shops; Endoscopy Lab; Lobby Greeters; Messengers; SurgiCenter; Medical Office Buildings; and Escort. All in all, the Auxiliary members are contributing more than 50,000 hours to the patients and family members at Covenant while meeting their pledge of donating $1 million to the Keeping the Covenant Capital Campaign. Summary Creating a healthier community is a major goal for Covenant Health. The health care system is being re-tooled in order to concentrate on the provision of preventive care. Covenant is proud of the strides that have been made in this effort, while continuing to provide caring, compassionate care to the sick. Our mission of caring for all patients body, mind, and spirit and working with others to enhance quality of life in the communities we serve is the foundation on which we build for the future. Covenant is very grateful for the collaboration with and support from the Northwest Conference of the United Methodist Church. LYDIA PATTERSON INSTITUTE Socorro de Anda, President 517 S Florence St, El Paso, TX Bishop and Members of the Conference: It is with great respect and gratitude that I bring you a report from your institution on the US-Mexico border, Lydia Patterson Institute. The past few years have been a time of change and preparation for the next 100 years. Since the celebration of Lydia Patterson s Centennial Celebration, the Board of Trustees, teachers and staff, students and parents and our committed supporters have been busy at work assuring that the next 100 years of La Lydia be even greater than the first. We commit to see Lydia Patterson continue to be a model ministry of the South Central Jurisdiction of the United Methodist Church. We began with the kick-off of a capital campaign for the renovation of its facilities and the development of programs to meet the needs of the 21 st Century. Phase I of the plan has been completed, and 14 classrooms have been renovated and equipped with the latest state-of-the-art infrastructure and technology. We have added a middle school with a unique program (ELPILearn) developed by our own staff and consultants in the field. The ELPILearn is designed to prepare the students to compete in a changing world of technology, math and science. It provides a sophisticated method of teaching English resulting in students learning twice as fast. The ELPILearn was carried forward to the 9 th and 10 th grades this year, and in the final phase, it will be introduced in the 11 th and 12 th grades next year. Lydia Patterson is about touching lives. It takes students of very limited resources and with very little hope for a good education and provide them with the tools just described to become well prepared for a better life. Lydia Patterson is about serving. Students are prepared to serve their communities, the church, and their neighbor. Students in the Lay Ministry Program are serving in internships throughout the country. Many have chosen to go to seminary and others are already serving as local pastors. Challenges never seize to exist at LPI. Just as we bounced back from a slight drop in enrollment due to crime and violence across the border and changes in the student visa regulations, we are now faced with the daily devaluation of the Mexican peso. Parents struggle to meet tuition, and we depend on the generosity of our Methodist community to provide financial assistance through scholarship giving so students can remain in school. I wish to offer a word of appreciation for your apportionments paid for the daily operations of the school. Your support of our capital funds campaign will enable us to continue our service to those less fortunate and to the church in general for another century. Students travel for 2-3 hours from their homes to walk over the international bridge and walk to the school every day. If we manage to send 98% of these students to college, I believe the return on our investment is pretty high. At Lydia Patterson we are doing what the church has asked. We are forming bilingual, bicultural leaders and disciples of Jesus Christ for the transformation of the world. We are changing 435 lives daily, all for the glory of God. Thank you for being a part of this redemptive ministry. J - 60

61 2016 REPORTS METHODIST CHILDREN S HOME Tim Brown, President/CEO Greetings from Methodist Children s Home (MCH) and the children, youth and families we serve. Our ministry is possible thanks to the support of our many benefactors and friends, including those from the Northwest Texas Annual Conference. I am honored to report to you that MCH continues to be in compliance with and, in many cases, exceed best practice standards for childcare established by the states of Texas and New Mexico as well as the Council on Accreditation (COA), an international accrediting organization of child welfare, behavioral health, and communitybased social services. I invite each member of the annual conference to visit our website at to view our strategic plan, annual report or explore in more detail our mission. Guided by our core values of Christian Principles, Relationships, Responsibility, Growth, Service and Hope, MCH provides the services, programs and talented individuals needed to positively impact the lives of children, youth and families throughout Texas and New Mexico. This is happening every day through residential programs on our historic Waco campus and Boys Ranch, located just outside of Waco, as well as through 12 MCH Family Outreach offices, including offices in Abilene and Lubbock. The reasons children and youth arrive in our care are unique to each individual. They range from extreme trauma or a sudden change in the family structure to school issues or poor choices in a difficult and ever-changing world. Our collaboration with Texas Christian University s Institute of Child Development to incorporate Trust-Based Relational Intervention (TBRI) as well as other best-practices into our daily programs keeps MCH on the cutting edge of childcare. These proven and tested techniques and methods of interacting with children are impacting families in positive ways. Our vision remains to share what we learn in serving the children and families from hard places in life with pastors, youth ministers and concerned family members in the local church because MCH knows you are encountering similar situations as well. The lessons we are learning, coupled with spiritual development opportunities for all children in our care, make MCH a unique ministry of the United Methodist Church. Throughout the past year, MCH marked our 125th anniversary of ministry by commemorating the past, celebrating the present and creating the future. As we look back and see how far we have come since 1890, we are grateful for the clear way God has led MCH through these years in our mission to offer hope to children, youth and families in a nurturing, Christian community. Through the generosity of our benefactors, the prayers of our friends and supporters, and the commitment of a skilled community of MCH employees, here are some of the things you helped MCH accomplish for God s glory and those we serve: Celebrated 125 years of ministry through a number of special events, highlighted by our anniversary celebration on October 10 in Waco. Special guests Chip and Joanna Gaines, elected public officials, Board members, volunteers, alumni, staff, young people, and benefactors came together to honor the work God has done through MCH since Completed a bold five-year strategic plan that has helped chart a bright future for this ministry. Our leadership team is working on a new plan to further challenge MCH to serve the needs of more children, youth and families from Texas and New Mexico. Started building the first new home on our Waco campus in more than 50 years. Earned a four-star rating from Charity Navigator, their highest rating available. This designation comes as the result of our close oversight in areas of our fundraising, operations and financial management. Assisted 25 young people in graduating from our University of Texas University Charter School on the Waco campus and other public school systems. Thanks to our many friends who made annual gifts to our general scholarship fund or designated monies from their estates for scholarships, approximately $500,000 was available to assist more than 100 MCH alumni in pursuing advanced education degrees and certificates. Announced plans to open new MCH Family Outreach offices in Killeen and Bryan/College Station, Texas, and Las Cruces, N.M. Enjoyed a great year for our athletic programs, Ag Science/FFA and Environmental Studies programs and other extracurricular activities. Our MCH Bulldog football team reached the state finals and we enjoyed one of our best years on record at the Heart O Texas Fair & Rodeo. We believe these extracurricular activities are powerful ways to help teach our young people responsibility and enable them to gain a sense of belonging in our nurturing, Christian community. Our achievements in the past, and those yet to come, are directly related to the men and women who give their time, talents and resources to bless our children. The following individuals from the Northwest Texas Annual Conference serve on the MCH Board of Directors: Dr. Shera Atkinson, Lubbock Mrs. Barbara Bauernfeind, Amarillo Bishop W. Earl Bledsoe, Northwest Texas and New Mexico Conferences J - 61

62 2016 NORTHWEST TEXAS ANNUAL CONFERENCE These individuals, along with other Board members, MCH Commissioners and benefactors, enable our ministry to achieve its mission. On behalf of Methodist Children s Home, thank you for sharing our story in your churches and communities. If you would like to schedule a speaker, arrange a tour or request resources to help promote an offering, contact our development office by at development@mch.org, by phone at (254) or (800) , or by mail at 1111 Herring Avenue, Waco, Texas I again encourage you to visit our website at to download stories; identify resources to help educate your congregation on our ministry; view a transparent listing of our financial resources and services delivered; find out how you can refer a child for placement; or learn more about a call to serve our ministry as a home parent, foster parent or in another capacity as we seek to offer hope to those in our care. This year MCH asks the Annual Conference to once again review the content of our Statement of Covenant Relationship. This document is included at the end of this report. It defines how MCH and the Annual Conferences of Texas and New Mexico operate independently but also toward a common mission. MCH has a policy instituted by our Board of Directors requiring that we review the Statement of Covenant Relationship every four years. The only changes involve the realignment in the number of Annual Conferences from Texas and New Mexico which resulted in our Board membership decreasing by one member. The document also reflects the new name of the Rio Texas Conference. As we now celebrate our 126 th year of ministry, MCH knows our service to children and families is possible because of God s amazing grace and our generous benefactors. Thank you for your trust and support of our ministry. May God continue to bless you, the ministries of the Northwest Texas Annual Conference and Methodist Children s Home. STATEMENT OF COVENANT RELATIONSHIP BETWEEN METHODIST CHILDREN S HOME AND THE NORTHWEST TEXAS ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH This is a statement of the relationship between Methodist Children s Home (MCH) and the Northwest Texas Annual Conference, hereinafter referred to as The Conference. I. PURPOSE, MISSION, AND GOALS OF METHODIST CHILDREN S HOME The purpose of Methodist Children s Home is the charitable care and ministration for children residing within the bounds of the patronizing Annual Conferences of the United Methodist Church. To carry out this purpose the Board of Directors shall have the authority and responsibility to develop and direct a program of child care which shall effectively meet the needs of the children served. This program may include institutional care, foster home care, group home services, residential treatment for emotionally disturbed children and youth, social services for children in their homes, and any other services which the Board of Directors shall deem appropriate in meeting the needs of children and youth. METHODIST CHILDREN S HOME MISSION STATEMENT MCH offers hope to children, youth and families through a nurturing, Christian community. METHODIST CHILDREN S HOME GOALS In order to accomplish the above stated mission, Methodist Children s Home has an obligation to recognize and share the spiritual values that make Christian child care unique. Therefore, MCH shall strive to create a nurturing, Christian community for our young people, staff and benefactors that: 1. Applies the principles of the Christian faith which serve as the foundation for this ministry; 2. Builds healthy relationships through communication, respect, trust and love; 3. Fosters accountability for self and others; 4. Provides opportunities for spiritual, emotional, physical and intellectual development; 5. Shows compassion through generosity and care; and 6. Believes in the possibilities of the future. II. BOARD OF DIRECTORS AND MANAGEMENT Methodist Children s Home shall be governed and managed by a Board of Directors selected from members of the United Methodist Church in the following patronizing Conferences of the United Methodist Church, to wit: Texas Conference, North Texas Conference, Northwest Texas Conference, Central Texas Conference, Rio Texas Conference, and New Mexico Conference. All references herein to "patronizing Annual Conferences" shall be to those six Conferences, and such Annual Conferences as may hereafter become patronizing Annual Conferences. The Board of Directors shall govern and manage the MCH on the basis of the MCH s best interests. J - 62

63 2016 REPORTS Should any of the patronizing Conferences at any time desire to withdraw as such, then such patronizing Conferences shall cease to elect representatives as members of the Board of Directors and shall no longer be included in the definition of patronizing annual conference for purpose of the Statement of Covenant Relationship. Should any additional Conferences desire to become patronizing Conferences, they may become such by making application, in the manner prescribed by the Board of Directors, providing a majority of the Board of Directors shall vote to accept such Conferences. The Board of Directors of the corporation shall be constituted or elected as prescribed in the Bylaws. The Bylaws presently provide as follows: Tenure and Qualifications. The Board of Directors of the corporation (each member of which shall be entitled to vote) shall consist of nineteen members (unless changed by reason of a change in the number of patronizing Annual Conferences) and shall be appointed, elected or determined as follows: A. One representative, either a minister or a layperson, from each patronizing Annual Conference, shall be nominated by the Bishop of such patronizing Annual Conference and approved by such patronizing Annual Conference. Any vacancy occurring on the Board of Directors with respect to such a member shall be filled for the unexpired portion of the term by nomination by the Bishop of such patronizing Annual Conference and approval by such patronizing Annual Conference. B One active Bishop from among the patronizing Annual Conferences shall be elected by a majority vote of the Bishops of the patronizing Annual Conferences. Any vacancy occurring on the Board of Directors with respect to such position shall be filled for the unexpired portion of the term by a majority vote of the Bishops of the patronizing Annual Conferences. C. The serving chairperson of the MCH Commissioners, or any successor to such body, shall automatically serve. Any vacancy occurring on the Board of Directors by virtue of a vacancy in such position shall not be filled, but shall remain vacant until the successor to such vacant position is duly qualified, at which time such successor shall become a member of the Board of Directors. D. Eleven Directors At Large from the territory of the patronizing Annual Conferences, either ministers or lay members of the United Methodist Church, shall be elected by the Board of Directors of Methodist Children s Home after considering the nominations proposed by the Nominating Committee hereinafter described; provided, that the election of each Director At Large shall be effective only after approval or confirmation by the patronizing Annual Conference of the location in which such Director At Large resides. Such nominations and Board election with respect to expiring terms shall take place at the regular meeting of the Board of Directors of MCH held in February of the calendar year in which the terms of the Directors At Large which are to be filled expire, or if there is no such meeting in February of such year, then in the regular meeting in such year held nearest to February. Any vacancy occurring on the Board of Directors with respect to one or more of the members elected At Large whose term has not yet expired shall be filled for the remainder of the unexpired term by the Board of Directors at any regular meeting after considering nominations proposed by the Nominating Committee. E. Each Director shall be appointed or elected for a term of three years and shall hold office until his or her successor has been elected and qualified, or until his or her earlier death, resignation or removal from office by the Board of Directors. F. No Director shall be eligible to serve more than three consecutive three-year terms as a Director. Following a period of maximum service under this provision, the duration of that former Director s ineligibility shall last for three years. Former Directors may retain or be elected to membership on any one (but not more than one) committee of the Board without tenure limitations. G. Should any patronizing Annual Conference cease to be such, then the representative from such patronizing Annual Conference appointed in accordance with paragraph A above shall immediately cease to be a Director. The total number of Directors shall decrease accordingly and the affairs of MCH shall be governed and managed by the remaining members of the Board. III. RELATIONSHIP Methodist Children s Home is related through a common religious heritage and a common commitment to Christian service to The Conference. The Conference, recognizing this shared commitment, annually authorizes and promotes a special offering in each local church for the support of MCH. The Conference assumes no other financial responsibility for MCH. In return for the encouragement of financial support for MCH by the Conferences, MCH submits an annual audit to The Conference. Any time a gift is given directly to MCH and the gift is designated for credit to a local church, MCH shall forward notice to the Conference treasurer's office to ensure proper recording of the gift. The Conference supports the mission of Methodist Children s Home by approving directors to serve on the MCH Board of Directors. The Conference does not exercise any ownership or control over MCH and does not accept any legal or financial responsibility, other than the above-mentioned special offering, for MCH. MCH s Board governs and manages MCH on the basis of MCH's best interests. MCH does not exercise any ownership or control of the Conference and does not accept any legal or financial responsibility for the Conference. J - 63

64 2016 NORTHWEST TEXAS ANNUAL CONFERENCE To keep the Conference informed about activities at Methodist Children s Home, MCH presents an annual report at the Annual Conference to be published in the Conference Journal, provides updates and presentations at conference and district meetings, prepares appropriate news releases, publishes the Sunshine magazine, and encourages tours of MCH facilities by local church groups and appearances in local churches by MCH staff members and residents. MCH seeks accreditation of its program by outside accrediting bodies in order to assure the Conference of the quality of its program. Currently MCH is accredited by the Council on Accreditation of Services For Families and Children, Inc., and is licensed by the Texas Department of Family and Protective Services. Should Methodist Children s Home be dissolved, the assets would be distributed as set forth in the Distribution of Assets on Dissolution in ARTICLE XII of the Bylaws of MCH, revised, November 6, 2015, as follows: In conformity with the provisions of ARTICLE NINE of the Second Restated Articles of Incorporation of Methodist Children s Home, all assets of the corporation are pledged for use in performing the corporation's charitable functions, and upon discontinuance of the corporation by dissolution or otherwise, the assets that remain after the satisfaction of all liabilities and obligations shall be divided proportionately among the Annual Conferences of the United Methodist Church that are patronizing Annual Conferences of Methodist Children s Home at the time such distribution is made, and are also recognized as charitable organizations under Section 501(c)(3), Internal Revenue Code of 1986, as amended, such distribution to be based upon the membership of each conference at the last annual report preceding the dissolution. Any assets so distributed shall be dedicated for use by each patronizing Annual Conference for the charitable care and ministration for children. Provided, however, that if any patronizing Annual Conference is not, at the time of such distribution, an organization that is qualified as a charitable organization under Section 501(c)(3), Internal Revenue Code of 1986, as amended, then its share of such assets shall be distributed to one or more charitable organizations, recognized under Section 501(c)(3), Internal Revenue Code of 1986, engaged in child care or ministration and affiliated with the United Methodist Church. IV. PERIODIC REVIEW The provisions of this Covenant Relationship shall be reviewed and revised if needed every four years or more frequently if needed. The above Statement of Relationship has been approved by the respective bodies and its approval is attested: The Conference, Bishop for Methodist Children s Home, DATE Tim Brown President DATE MOUNT SEQUOYAH CENTER, INC. Lamar Pettus, Executive Director The future is bright: Mount Sequoyah has written commitments to provide facilities and pursue a partnership with UA Wesley ministries through December 31, The goal is to solidify a relationship with college age people and expand that relationship across the jurisdiction, making Mount Sequoyah's facilities a destination for religious training and spiritual formation. Mount Sequoyah completed an intensive review of its mission and future potential conducted by United Methodist Elders, Pamela J. Harris and Garrie F. Stevens of Run River Enterprises, a consulting firm. The review process included three-two day work sessions that were well attended by staff and Trustees. As a result Mount Sequoyah has undertaken the task of refocusing its purpose and mission in an effort to identify unique areas in which it can develop training programs to equip clergy and laity with the tools, technology and skills that will be necessary to reach the mission fields twenty or thirty years in the future and required to resolve conflicts likely to be faced by our clergy and within our churches. The future is secure: Mount Sequoyah is financially secure. In exchange for negotiated price increases, Mount Sequoyah orally committed to provide our largest corporate client training facilities, food service and housing through the year 2017 with full expectation to continue into The rents are fixed through A $550, payment is due from American Tower for a 30-year cell tower site lease. Fayetteville Cottage is leased from 1 August through 31 December 2019 and 1011 Skyline (former District Superintendent's House) is leased through January 2017 with a verbal commitment to extend through January Three Host Family houses are leased through May 31, A $100, increase in events and programming revenue and an increase of $75, in contributions are projected for A Development Officer has been hired. J - 64

65 2016 REPORTS Long-term debt is $275, and the Line of Credit is currently $105,000. Cash equivalent assets of $300, are held by the United Methodist Foundation of Arkansas. Mission accomplished: Witnessing through our actions, our words, and our presence, that is what Radical Christian Hospitality is all about. Mount Sequoyah extended Radical Christian Hospitality to Christian motorcycle groups, including two groups from Texas, attending Fayetteville s Annual Bikes, Blues, and Barbecue Festival. The Faith Riders shared the gospel with 1,063 persons and prayed with 90 persons who asked for forgiveness and to receive Christ as their Lord and Savior. By extending Radical Christian Hospitality to youth, Mount Sequoyah touched the lives of over 700 youth who participated in swimming lessons, swim teams, tennis lessons and tennis teams, Kanakuk KampOut, youth mission camps, and group events. Radical Christian Hospitality cemented a partnership between Mount Sequoyah and UA Wesley Ministries resulting in making our campus a second home to college students from across the South Central Jurisdiction. Our unprecedented family environment attracted over 415 parents, 200 from Texas, as overnight guests while visiting. Radical Christian Hospitality celebrated the marriage of thirty-two couples as they pledged their lives and hearts to each other on our beautiful campus under the Lord's ever-watchful eye. Radical Christian Hospitality welcomed 30,052 guests for overnight stays and provided 18,378 delicious meals prepared by our own chef. Included in the numbers were 61 different Church groups, 13 family reunions, and 29 groups from regional colleges and universities. Radical Christian Hospitality coupled with our Christian Education and Spiritual Formation Coordinator, a United Methodist Diaconal Minister, produced religious education programs and workshops that attracted jurisdiction wide participation and a Lay Servant Academy praised because of its structure and skilled presenters. Radical Christian Hospitality was the catalyst to reestablish our in house food se vice. Chef Curt Harcourt received rave reviews from all guests. Some refer to our Dining Hall as Curt s on the Hill" a takeoff on a well-known local restaurant, the Inn at the Mill. Radical Christian Hospitality resulted in year-end positive cash flow for the past three years and the receipt of over $710, in contributions during said period to remodel and upgrade facilities. Radical Christian Hospitality resulted in groups seeking Mount Sequoyah as a designation of choice resulting in events and programs already booked throughout the years 2017, 2018 and even one event in Closing: The future looks bright as Mount Sequoyah plants seeds that, with God's blessings, will in the near future transform the world for Jesus Christ. NOTE: Reverend Jess L. Schload was announced as the new Executive Director and he will assume his duties on May 16. PROVIDENCE PLACE Judith Bell, Interim President and CEO 6487 Whitby Rd, San Antonio, TX On behalf of our Board of Directors, staff, and those on our campus who are working hard to achieve their own personal levels of success, I thank you Bishop Earl Bledsoe and the members of the Northwest Texas Annual Conference for your dedication in partnership with the ministry of Providence Place. By God s grace, we celebrated our 120 th anniversary in 2015 thanks to the committed support from individual donors and United Methodist Churches. Providence Place provides a safe haven for those who have felt excluded. We offer adoption services to women who are in crisis and facing an unplanned pregnancy, as well as those who are looking to open their hearts and homes to a child in need of a forever family. We also have our Center for Higher Independence (CHI), which is a transitional program for young adults with cognitive or physical disabilities. Here, we offer independent living and vocational training to students who may not have realized their full potential and capabilities, believing that they will find themselves accomplishing things they never thought were possible. The past year has been a year of transitions for Providence Place. From a transition in leadership to transitions throughout our programs, we see God s hand at work. For example, we have transitioned our expectant mothers to an off-campus apartment around the corner for a more private and comfortable experience. We have seen a rise in post adoption inquiries, with past clients wanting to piece together their life story. The curriculum has been expanded in the CHI classrooms, with more vocational training tracks being offered to help students realize where they can excel. Texas state licensing standards requirements have changed so that there is now a lower instructor-to-student ratio, which allows for much more personal and specialized lessons. In June of 2015, twenty-six young adults graduated from CHI and begin applying all they had learned while either continuing to live here in San Antonio or after moving back to their hometown 80% of those students had found employment at the time of their graduation. A need to review our Mission, Vision and Core Values was felt across the campus. There was a calling to begin this ministry over 120 years ago, and I feel these accurately describe the way in which we wish deliver hope to those we connect with. I would love to share them with you now: J - 65

66 2016 NORTHWEST TEXAS ANNUAL CONFERENCE Mission Statement: Providence Place is a non-profit and for-purpose organization fostering opportunities. We empower adults with disabilities and people on the adoption journey by supporting independence and building bright futures with endless possibilities. Vision Statement: Imagining possibilities and eliminating barriers in an ever changing world. Core Values: Grace, Wholistic Care, Authentic Presence, Openness of Spirit and Value of Human Capital. In January of 2016, we introduced our new Chaplain, Carrie Land, to our Providence Place family. Carrie is currently on track to become an Elder in Full Connection in the United Methodist Church. She has worked with Providence Place in the past through her previous position as a DARS (Department of Assistive and Rehabilitative Services) Counselor, where she would refer young adults with disabilities to our program. Carrie has great plans for the spiritual community here on campus, with her first being to revitalize a worship service that welcomes all expectant mothers, students and staff during the week. We are beyond thrilled to have her join our team. I invite you to schedule a tour of our beautiful 23 acre campus, coordinate a volunteer mission trip, arrange a speaker for your congregation or church group, or request offering materials for an annual congregational offering, contact our Development Office at (210) or at info@provplace.org. Please visit our website at to learn more about this special ministry and to hear first-hand stories from those we have served. TEXAS METHODIST FOUNDATION Tom Locke, President Boulder Lane, Suite 100, Austin, TX TMF is committed to helping individuals, families, congregations, and organizations steward their potential in order to achieve lasting change that will help create a better world. We ended 2015 with approximately $505 million in assets under management. The measure of success, however, for all of our services investments, loans, leadership ministry, strategic discernment, grants ministry, stewardship services, and legacy giving, including gift planning and church endowments is in how effective they are at helping individuals and congregations fulfill God s purpose, as together we work to make Christ s love visible in the world. Dick Young retired at the end of 2015 as TMF Area Representative for the Northwest Texas Conference. We will welcome Richard Edwards in the fall of 2016 as the primary point of engagement between congregations (clergy and laity) and TMF. He will continue Dick s exceptional work to connect Northwest Texas Conference constituents to resources relevant to their unique goals for missional growth in their congregations and communities. TMF, headquartered in Austin, serves United Methodist individuals, churches and agencies within the six annual conferences in Texas and New Mexico. We appreciate the opportunity to report some of the ways we served United Methodists last year. Within the Northwest Texas Annual Conference: Loans from TMF to churches in the Northwest Texas Annual Conference totaled $5.3 million at the end of Churches, agencies, and individuals within the Northwest Texas Annual Conference had $18.1 million invested with TMF s Methodist Loan Fund/Individual Fund. Throughout Texas and New Mexico: As of December 31, 2015, total assets under management by the Foundation were approximately $505 million. Methodist Loan Fund investments ended the year at $323 million, and our loan portfolio at $314 million. TMF s Undesignated Endowment grew from $29.9 million to $31.8 million. Our Leadership Ministry Endowment grew from $5.6 million to $5.8 million. TMF s Leadership Ministry seeks to increase the effectiveness of church leadership by helping leaders gain a better perspective of their potential. The primary method by which we do this work is through facilitating transformational conversations; some take the form of on-going peer groups and others as stand-alone conversations around an adaptive issue. During 2015, TMF hosted 14 peer learning groups, involving 255 lay and clergy leaders, and has plans for at least four new groups in These groups include gatherings of the South Central Jurisdiction Bishops, District Superintendents, key cabinet leaders, Boards of Ordained Ministries, and groups focused on ministry with the poor, music in worship, senior pastors recently appointed to their first large church, transitions of leadership in tall steeple churches, as well as groups for Executive Pastors, tall steeple pastors and targeted groups to develop the next generation of leaders. In addition, TMF and the active Bishops of the South Central Jurisdiction hosted The Forum on Wesleyan Potential, a three-day conversation amongst leaders from different fields of experience and generations about the future of faith communities, a dialogue less constrained by what is, and more encouraged by what could be. J - 66

67 2016 REPORTS In 2015, TMF Grants continued efforts to identify and invest in financially sustainable ministries that are creating measurable, systemic change. New questions and conversations explored institutional and entrepreneurial ministries and how we can help grant applicants address key issues, such as strategic planning, funding sources, and methods for measuring outcomes and effectiveness. TMF held a workshop in Albuquerque, New Mexico, to equip outreach ministries and non-profits with grant writing skills. During 2015, TMF made grants totaling approximately $1.2 million. Of that total, an estimated $956,000 came from unrestricted endowments and $260,000 from TMF operations. The Grants Committee of the TMF Board of Directors determines distribution decisions for these discretionary funds. In 2015, 34% of grant funds were allocated to outreach ministries targeting systemic change; 27% targeted ministries which systemically benefit families living in poverty, particularly children; 27% of funds were granted to evangelism, especially those ministries connecting with segments of the population the church is not effectively reaching today; and the remaining 12% were used for scholarships. TMF distributed approximately $1 million from permanent endowments, predominantly to United Methodist causes. TMF Board members TMF has submitted the following candidates for election to the TMF Board of Directors from the Northwest Texas Annual Conference: Dr. Jim Hunt, Layperson, one-year term (Abilene) TMF Board members previously elected by the Northwest Texas Annual Conference include: Mr. Matt Bumstead, Layperson, currently serving through 2017 (Lubbock) Judge Ron Enns, Layperson, currently serving through 2017 (Dalhart) Dr. Jimmy Nunn, Clergy, currently serving through 2017 (Lubbock) TMF Board members from within the Northwest Texas Annual Conference who are currently serving in an otherwise elected or advisory capacity include: Bishop W. Earl Bledsoe, Advisory Member (Albuquerque) Dr. Jim Hunt, At-Large (Abilene) Rev. Jeff Lust, Clergy from New Mexico Conference (Abilene) Mr. Bynum Miers, Emeritus (Abilene) WESLEY COMMUNITY CENTER, INC. Liz Rascon, Executive Director 1615 S Roberts St, Amarillo, TX The Center was approved for $149,999 grant from the City of Amarillo, Community Development Block Grant. The Center will be remodeling 10 restrooms that will serve children, youth, adults, clients, and senior citizens. Currently, a monitored security system has been installed. 13 cameras have been placed around the Wesley for the protection of the clients and children that we serve. The National United Methodist Women's Office, A Call to Prayer Grant provided $15,000 for this much needed project. In addition, with this funding we were able to provide our 4 year old classroom with a SMART Board. The Center has updated its flooring with the help of an Anonymous Donor who contributed over $13,000. The childcare and offices received new carpet tiles that have given Wesley a new updated look. Our future goals are to continue to update and remodel the Wesley while still keeping its historic value. It is also important to ensure that the Center is a safe environment to all who walk through our doors. We hope to secure a new Wesley Recreational Center in order to provide a place for individuals to come and participate in activities regardless of their income level. The Amarillo Wesley Community Center continues to focus on serving the needs of our community through an array of programs. INVITE MINISTRY TEAM Rev. Marcy Garza, Chairperson Members of Invite Team who have served for : Rev. Gilbert Bela, Rev. Ryan Ford, Rev. Marcy Garza, Mr. Feller Hughs, Mr. Mikey Littau, Ms. Jean Marsh, Rev. Brad Reeves, Mrs. Bonnie Shrode, Mr. Mike Shrode, Mr. Dan Swanson, Ms. Debbie Trigo, Rev. Ross Whiteaker, Rev. Jeanie Williams, and Ms. Leia Williams Vision: The Northwest Texas Invite Ministry exists to create a culture within the Northwest Texas Conference where growing and dynamic churches are the norm and not the exception. The Invite Team Encompasses: Path 1 Training & Resource Team, Hispanic Ministries, Evangelism Team J - 67

68 2016 NORTHWEST TEXAS ANNUAL CONFERENCE Your Invite Team worked in 2015 to seek the will of God through prayer and scripture. The Conference Leadership Team asked the Invite Team to focus on studying conference gaps and one of the ways we have started this work was by reading Gil Rendle s white paper entitled Waiting on God s New Thing and Bishop Robert Schnase s book 7 Levers. These resources have helped the team consider the differences between creation and improvement, as well as to consider the most important work of a conference. Under the Invite Team umbrella several sub-teams are working towards their own initiatives: PATH I, Healthy Church Initiative, Hispanic/Latino Movement, and the Evangelism Team. PATH 1 Brad Reeves, Chairperson It is an exciting time for the Path 1 Committee of the NwTx Annual Conference. We currently have three new church starts, one in the Abilene area and two in Lubbock. The Path 1 committee is also looking at starting new churches in many areas, especially Amarillo and Midland. We continue to recruit new church pastors. I want to encourage all members of the Annual Conference to recruit new church pastors. What a joy it is to see the light of God s possibilities in others. Working with the Hispanic Ministries committee, we continue seeing rapid growth in Hispanic churches. Many of these churches are growing rapidly. We continue to see many new Hispanic persons training to be new church pastors. We are having to relocate and/or retool a few situations but continue to believe in the possibilities. In addition, the Path 1 committee is working with many churches to launch second services, new campuses, etc. Some of these new ventures are doing well, others need improvement, and all are a blessing to see as our churches are seeking new ways to make disciples of Jesus Christ for the transformation of the world. The Path 1 committee is also starting to look at our growing immigrant populations and what evangelism and church growth means among those populations. Because of these activities, we are rapidly using the Path 1 portion of the Build, Renew and Rejoice money. We believe that we will use up these funds in the next 2-3 years. Therefore, we are examining new ways to fund new churches in the future. Finally, we ask for prayers for our new churches. Without those prayers, we cannot move forward. Thank you. NURTURE MINISTRY TEAM Rev. Josh Kouri, Interim Chairperson Members of the Nurture Ministry Team for : Rev. Jack Dominguez, Rev. Jo Gay, Ms. Kay Hanna, Rev. David Johnson, Rev. Josh Kouri, Mr. Jerry Marshall, Rev. David McGaughy, Rev. Jimmy Nunn, Rev. Ken Peterson, Mrs. Marge Savage, and Rev. Karan Young Over the course of the year, the Nurture Team of the Northwest Texas Conference and its member ministries have worked hard to nurture the seed of faith and fruitfulness at the heart of every layperson, pastor, and local church. Nurture Team s ministry emphases are wide ranging, but all share the goal of empowering disciples with a spirit that is [not] timid, but one that is powerful, loving, and self-controlled. (2 Tim 1:7) In January, Nurture Team brought critically acclaimed pastor and author Philip Gulley to speak and offer encouragement at a conference-wide, Faith Talks event hosted by Oakwood UMC, Lubbock. Pastor Gulley is best known for the Harmony Series, a fictional but true-to-life account of small-town church life. Lay Servant Ministries continue to offer training and leadership for interested laypersons. Training events were held around the conference this year. In 2015, Nurture Team finished the process of adding COSROW (status and role of women) to its family of ministries. This important ministry team is required in each conference according to the Book of Discipline. One of the little-known opportunities offered by Nurture Team, are our Small Membership Church Grants. Churches may apply to receive up to $500 for any pioneering program or ministry opportunity. Churches receiving grants this year used funds to engage in community evangelism, service and mission, worship development, and other important areas. I encourage all clergy and lay-leaders of small membership churches to consider applying for a grant in the future. Self-care grants are also available to pastors and church staff to attend SonScape retreats. SonScape offers a wonderful opportunity for church leaders along with their spouses to be enriched and rediscover spiritual balance between work and personal life. Grants are still available for those wishing to attend SonScape in Young adult ministries continue to develop under leadership from David Johnson and Josh Kouri. This spring, a key-leadership retreat was sponsored by Nurture Team at the Heart of Texas Camp and Conference Center. We expect to offer a brand new Conference Young Adults Retreat beginning in Spring J - 68 The Nurture Team Encompasses Older Adult Ministries, Young Adult Ministries, UMW, UMM, Lay Servant Ministries, COSROW, Small Membership Churches, Clergy and Laity Spiritual Care

69 2016 REPORTS Lastly, on behalf of the Nurture Team, I wish to offer heartfelt thanks to Rev. Jo Gay who chaired the Nurture Team for 3 years and had to leave for reappointment midyear. Jo helped develop the Nurture Team in a number of critical areas, especially a yearly retreat in which the team visions and plans ministry opportunities for the year ahead. We wish her well in her new ministry setting UNITED METHODIST WOMEN Kay Hanna, President The 2016 year was busy and filled with excitement as each conference event consistently increased in attendance. Conference-wide United Methodist Women shirts helped to connect all members, regardless of the district. New members were added with the Amarillo District s outstanding total of forty new members, and twenty three new members in the other three districts. United Methodist Women realize the way to stay connected is through the reporting system. Two options for reporting were given to all local units. In every instance, statistics proved an increase in reports returned. Ideas gleaned from these reports were shared with other units. These ideas/events were for mission activities and projects that supported United Methodist Women missions locally, nationally, and globally. Reports keep United Methodist Women united, when feedback is shared among districts. Pastor/author Adam Hamilton, minister of United Methodist Church of the Resurrection, guest speaker at Annual Conference, several years ago, stressed that changes must be made, not only in The United Methodist Church, but in the organizations of the church. Calling United Methodist Women, by name, Hamilton said, without changes, the organization would be non-existent in fifteen years. Changes are being made, not only in the denomination, but in United Methodist Women. Changes are coming from the United Methodist Women National Office, in New York City, to the jurisdictions, conferences, and local units. These are both exciting and welcomed. The Northwest Texas Conference United Methodist Women year officially began on the final day of Annual Celebration, September 26, 2015, when new officers were installed. October 23-24, the Northwest Texas Conference Leadership Team gathered for the Fall Planning Meeting at Lubbock FUMC. The meeting set the tone for Agenda items included all major events, officer reports, plans and goals. In November, new officers attended National Leadership Development training. Other officers used the months of November/December to prepare for upcoming events. In January, eleven members from the NWTX Conference attended the annual Texas Legislative Event, in Austin. This social and economic forum educates women on issues that impact the well-being of Texans. United Methodist Women from every conference in Texas attend the event. The 2016 focus issues selected by the United Methodist Women were: Healthy Texas, Quality Education, Living Water, and Religious Liberty. These four issues were submitted to the Texas legislators requesting they be addressed in the next Legislative Session. Attendees met with their legislators. Lubbock FUMC hosted Leadership Development Day, February 6 th. The event, held annually, is an educational update for training, changes, and resources available. It is sponsored by the Northwest Texas Conference United Methodist Women. One hundred-four members attended the day of training, fellowship, and district meetings. The annual Spiritual Growth Retreat held at Ceta Canyon Camp, March 11-12,, featured Nancy Biffle, who led the workshop sessions. The theme was I Shall Praise Him: Hope in the Midst of Pain and Turmoil. Nineteen members of the Northwest Texas Conference United Methodist Women attended the Quadrennial South Central Jurisdictional Meeting, in Oklahoma City, April Theme for the event was A fresh wind is blowing taken from John 3:8. Members attended two workshops, heard excellent speakers, worship and fellowship with women from the eight states and fourteen conference which make up the South Central Jurisdiction. All United Methodist Women of the Northwest Texas Conference were asked to participate in the twenty-four hour Day of Prayer, April 28 th. This day was set aside by the Bishops for the Northwest Texas Conference to be in a Prayer Vigil for General Conference to be held in Portland, OR May 10-20, The month of May will be used to finalize plans for two major events: United Methodist Women and Friends Dinner held during the One Hundred Seventh Annual Conference Session of Northwest Texas Annual Conference of The United Methodist Church, and Mission u, to be held in July, at McMurry University, in Abilene. The Annual United Methodist Women and Friends Dinner will be held Friday, June 10, at 5:30, in the Christian Life Center of Lubbock First United Methodist Church. Rev. Karan Young will be the speaker. The Most Supportive Pastor for 2016 will be announced. Mission u will be held at McMurry University, Abilene July Two studies will be Climate Justice and The Bible and Human Sexuality. Teachers will be Rev. Steve Ulrey, Ellen Lipsey, Ralph Thompson, and Andrea Gibbud. All sessions and activities will be held in the newly renovated Old Main building. J - 69

70 2016 NORTHWEST TEXAS ANNUAL CONFERENCE On September 23-24, Northwest Texas Conference United Methodist Women will gather at First United Methodist Church, Levelland for the Forty-Third Annual Celebration. This major event, is the official end of the 2016 year and celebrates accomplishments for the year by districts, local units, and individuals. Special areas of note: membership, a memorial service, new members, mission studies, the reading program, UMW Sunday reports, Mission Today units, projects, and events. The two day event is truly a weekend of celebration, worship, singing, fellowship, and feasting. New officers are installed and the new year for Northwest Texas Conference United Methodist Women, begins. Although a new theme will be selected, it is my sincere hope members will continue: Living the Vision Making It Happen with High Expectations, Thinking BIG, Outside the Box because Northwest Texas Conference United Methodist Women can Transform Tomorrow by Starting TODAY TOGETHER!!! WHY? Because we are UNITED Methodist Women. EQUIP MINISTRY TEAM Ted Wilson, Chairperson Members of Equip Ministry Team for : Mr. Roman Asbill, Ms. Brenda Breeden,, Mrs. Kerry Kay Cook, Rev. Marv Gregory, Ms. Lauren Hughs, Ms. Esther Moses, Rev. Steve Patterson, Rev. Buddy Payne, Ms. Leia Williams, and Rev. Ted Wilson The Equip Team is charged with those ministries that equip people of all ages to grow as disciples of Christ Jesus. Primarily those entities and experiences that educate and promote growth are our responsibility. The two flagship ministries under Equip are Camping and College Ministries where the lives of many youth and young adults are impacted by the power of Christ through those venues. Through the Wesley Foundations, students from around the world become disciples and disciple makers. It is very exciting to see what God is doing through these ministries. Of course, for most of us the ongoing work of equipping disciples takes place in the local churches, or should we say, The Equip Team Encompasses Archives and History, Camping, CCYM, Church Education, Higher Education, RPF Trainings, Safe Sanctuaries, Spirit Wind, Youth Ministry, Wesley Foundations the local congregations of the Church, through Sunday School, children and youth ministries, small groups, and other educational and mentoring opportunities. The Conference Website has educational material and other resources available for use in the local church. Plans are being implemented for training and networking those working with children. The Conference Council on Youth Ministries (CCYM) is forming into a networking, training, and mentoring team for youth leaders in our Conference. They have seen great response and productivity in implementing this valuable tool. We had over 25 youth and leaders who attended Youth 2015 in Orlando this past July. Beryl Waddell our conference archivist is planning a weekend archivist training and gathering for the Jurisdiction this year. We are focused on the Relevant, Practical, Fruitful practices that will indeed equip our conference and its congregations and ministries to make disciples for Christ. We applaud those who are implementing those practices now. CONFERENCE CAMPING TASK FORCE Lloyd Stice Chairperson Wesley Holland, Vice Chairperson, and Lauren Hughs, Secretary The Northwest Texas Annual Conference is blessed with two wonderful camp sites which are well managed and staffed. Camp Butman in the southern region of the conference and Ceta Canyon in the northern area of the conference have long histories of reaching young and old alike for the kingdom of God. In addition, we have a dedicated and committed core of volunteer camp directors for the summer camps. Both camps had a very successful year in the 2015 summer camping season. Ceta Canyon had a total of 1,537 campers and volunteers at the NWTX camps which is an increase of 51 over Camp Butman welcomed 506 campers and volunteers, a small decrease from the 536 in the 2014 camping season. In addition, both camp sites offer other camps such as mother/daughter, father/son, young children events, and family camps. All camps combined brought 2,208 persons to Ceta an increase of 43 over Camp Butman had a decrease of 32 over The Camp Butman decrease was due in part to weather related events. The fact is both camp sites had to overcome several weather related events in the 2015 camping season. We want to say Thank You to the Staffs and volunteers who came together to deal with each of the events. J - 70

71 2016 REPORTS These numbers reflect the hard work of the Conference Camping Task Force (CCTF) and the camp site staffs in strengthening our programs. Both camps also host numerous groups for retreats and events throughout the year. In addition, pastors and church staff persons can take advantage of Rest and Relaxation at camps at no cost (space available). We are still in the process of implementing the recommendations of the consultant Kevin Witt s report. The two subcommittees that were formed to help with the implementation brought their recommendations and the CCTF took the recommendations under advisement and made the changes that could be made immediately and are moving forward as they can with the other recommendations. Team 1 looked at streamlining the CCTF. Team 2 looked at the vertical alignment and mission of conference camping. No other single conference ministry touches as many lives as conference camping. I want to encourage Pastors, churches, lay leadership, youth and children s directors to send your young people to summer camp. As this annual conference meets, camps are underway at both our facilities. We need volunteers to spend a week at camp. Churches can offer scholarships to send churched and unchurched kids to summer camp. Get involved. Give. Volunteer. Further information on camping can be found at or This is my first report as the chairperson of Conference Camping Task Force. I have enjoyed working with both camps and the task force as we have celebrated the successes and worked through the challenges of this camping season. I believe that camp is a place that both young and old have the opportunity to see the grace of God work in each other. Thank you for the opportunity to serve in the ministry of the LORD. COMMISSION ON ARCHIVES AND HISTORY Carl Edward Eddie Allsup, Chairperson BOOK of DISCIPLINE Purpose The purpose of the commission shall be to promote and care for the historical interests of the United Church at every level. It shall gather, preserve, and hold title to library and archival materials, and it shall disseminate interpretive materials on the history of the United Methodist Church and its antecedents. The Northwest Texas Conference Commission on Archives and History (A&H) supports the local churches through the District Historians & the Local Church Historians. They encourage them to celebrate their heritage, to update their histories, to gather the stories of clergy and laity alike. The Methodist stories in each church is not just about the number of members, baptisms, and the brick and mortar. It is the people called Methodists who bring life to the church buildings. The Archivist assists the Local Church Historians in gathering materials and information for milestone celebrations throughout the year. The Commission on Archives and History continues to be a ministry of memory for the NWTX Conference. Our mission is to gather, preserve, and share the heritage of the NWTX of the UMC. Currently there are fifteen members on the Conference A&H Commission. These include Chairperson, Rev. Eddie Allsup, and Archivist, Beryl Waddell. The Commission members continue to support the work of the clergy and laity in the Conference by collecting, preserving, and making available their stories, memorabilia, and the histories of each congregation and church. This history shows how God s people have struggled, failed, triumphed, and endured. The A&H Commission encourages all to celebrate our heritage because it is important to remember who we are, to honor those who went before us, to learn from history, and to show how our history impacts the world. Collections in the Archives are primarily documentary record material which includes manuscripts, maps, photographs, books, audiovisuals, sound recordings, magnetic or other tapes, electronic data processing records, artifacts, or any other documentary material. These are not just ministerial memories, but those of laity and the communities they reached. Pat Williamson, Archivist Emeritus, passed away December 12, Several members of the A&H Commission attended her funeral service. Mrs. Williams began as a volunteer working closely with Jewell Posey, the original Conference archivist. These two ladies dedicated many hours to create a comprehensive foundation for the Archives. Mrs. Williams was a priceless resource for David J. Murrah, Ph.D., as he researched for the Conference history published in 2010, to celebrate 100 years of NWTX Conference. Pat Williams retired in 2010 at the same time the new Conference Service Center & Archives was completed. J - 71

72 2016 NORTHWEST TEXAS ANNUAL CONFERENCE In December 2012 retired pastor, Reverend Milton Harold Jochetz ( ) contacted the Archives about donating his walking cane. The cane was given to Rev. Jochetz when he pastored Seymour United Methodist Church. He noted that his family would take care of this upon his death. Rev. Milton Jochetz died on May 3, In June 2015, the historic cane and a family prayer bench were brought to the NWTX Conference Office by Rev. Jochetz sister, Barbara J. Jones, and daughter, Paula J. Millhollon. The history of the brasshandled walking cane in Rev. Jochetz s own words is posted on the back of the beautiful glass and wood case: This cane was given to me by Mrs. Hartal Landry on Friday, May 21, This cane belonged to Rev. Ira Ellis, the great-great-grandfather of Mrs. Landry. Rev. Ellis attended the Christmas Conference of December 24, 1784 at Lovely Lane Chapel, Baltimore, Maryland which organized the Methodist Episcopal Church in America. There also is a small brass plaque on the back of the case indicating the significance of the cane. It reads: OWNED BY IRA ELLIS, A MINISTER WHO ATTENDED THE BALTIMORE CHRISTMAS CONFERENCE OF 1784 October 4-7, 2016 the Northwest Texas Conference will host the South Central Jurisdiction Convocation of Archivists in Lubbock. The Overton Hotel & Conference Center, named after a prominent doctor in Lubbock, will be the Convocation Headquarters. The Methodist Crossroads of NWTX is the theme of the event. Highlights will be learning about the history of the northwest Texas and the unique role that Methodists played in developing it. Methodism grew mightily, as did northwest Texas. There will be tours of several unique places in Lubbock: The American Wind Power Center, the Southwest Collection at TTU, and, of course, a trip to The Buddy Holly Center & Museum. We have four full days planned for guests to get to know THE HUB of the Plains. We will immerse them in cowboy culture with a chuck wagon meal at the National Ranching Heritage Center and a HANK (the Cowdog) in CONCERT program by John R. Erickson, a member of the Perryton FUMC. In addition, General Secretary of the General Commission on Archives and History, Rev. Alfred T. Day, III, will be presenting to the participants at the Convocation. The Texas United Methodist Historical Society s annual meeting (TUMHS) will held in conjunction with the Convocation. The Thursday evening banquet at the Overton will be dedicated to Pat Williamson & Jewell Posey for their years serving the Ministry of Memory in NWTX. After their business meeting on Friday, we will offer a Workshop facilitated by L. Dale Patterson, Archivist at GCAH, for the Local Church Historians in the Conference. Eleven Methodist churches were established in 1916 in NWTX. Today only two of those churches are still chartered and active. Idalou (Lubbock County) and McAdoo (Dickens County) celebrate 100 years in the NWTX Conference. Tulia FUMC (Swisher County) is celebrating 125 years. The A&H Commission is the Memory Keeper for the NWTX Conference year after year. It is as we LEARN FROM THE PAST that we can go forward to make disciples of Jesus Christ for the transformation of the world. This ministry can be a SHOW & TELL of people called United Methodist at work in the NWTX Conference and the world. MISSION: The A&H Commission serves the Church's Ministry of Memory so we may continue to learn from our past and anticipate our future. WESLEY FOUNDATION AT SOUTH PLAINS COLLEGE Chelsey Jones, Director This past year at South Plains College (SPC) Wesley Foundation has been a fruitful year, full of blessings. Throughout the week there are several different opportunities for the students of South Plains College to get plugged in. The schedule goes as follows. Tuesday: 11:00-1:00 Fifty Cent Lunch, this program serves between students throughout the year. There are several churches involved in this program that either come out and serve a meal or send donations to cover the meal. They are as follows. a. FUMC Levelland b. Christ United Methodist Levelland c. First Methodist Church, Littlefield d. First Methodist Church, Brownfield e. First United Methodist Church, Sudan f. First Methodist Church, Lockney g. First Methodist Church, Plains J - 72

73 2016 REPORTS h. First Methodist Church Tahoka i. First Methodist Church, Denver City j. First Methodist Church, Olton k. First Methodist Church, Muleshoe l. The District Leadership Team m. Aldersgate UMC, Lubbock n. First Methodist Church, Canadian o. First Methodist Church, Amherst There are countless individuals that are a huge support of SPC Wesley, through our friends of Wesley dinner as well, we thank you all for your support in the past and future thanks for your support in the future as well! Tuesday Evening 6:00-7:00 free dinner, serves approximately :30-9:00 Worship and Bible Study, Serves Wednesday: 12:00-1:00 Intern led Bible Study in the Student Cafeteria Saturday: 8:00-11:30 Free Pancakes for the students, there is also fellowship that comes with this. The idea behind this ministry is it is a good place for students to be spending their Saturday evenings. This ministry has between Students. Sunday: Two Sundays a month Chelsey Jones (Director) and students travel to churches to speak about SPC Wesley and what is happening. There are other nights that we schedule randomly to fellowship and worship together. WESLEY FOUNDATION AT TEXAS TECH UNIVERSITY Al Martin, Director th St, Lubbock, TX The past year at the Wesley Foundation at Texas Tech has been one that we hope has impacted lives both in the present and for eternity. We continue to strive to raise up a generation of Christians that lead. For the past 82 years the Wesley Foundation has been a presence on the campus of Texas Tech and the students that have participated in the ministry have literally transformed the world. I, Al Martin, manage the staff and oversee the ministry as the Director. Scott Latham and Hanna Lee make up the Ministry Director s Team while Penny Wilson is the Director of Development and Administration. Hunter Cooke, Beth Brooks and Weston Waldo are our fulltime interns and they help to oversee many of the ministries at the Wesley. We are blessed this year to have Ryan Marcum working with us in the area of missions. For those of you that support any of our interns or staff with your prayers or finances we gratefully thank you for your contributions. Lain is our Bookkeeper. Khalil Blaine is our office assistant and Dallas Stevens leads the worship team. Beth also does a great job cooking the meals for our Thursday Lunch and Last Lectures. Michael Wilson is back and does a great job keeping the building clean. Brad Shine helps us out with the techy stuff. We have been blessed to have Bethany Wilson, Chris Hall and Robby Wiginton intern with our GCF international ministries. Ryan and Robby added baby girls into their families and are suffering from an acute lack of sleep. We have an excellent staff that works hard and I am proud to have them on my team. Underground, our Thursday night worship gathering is consistently a place where students encounter the presence of God. Great messages are shared and the students are challenged with the truths of God. In the fall semester, the theme was the theology, what are your words for God. We went through Apostles Creed and looked at what have been the basic beliefs about God over the last 2000 years. Our aim was to equip our students in such a way that they could have their owns words about God and feel confident in living their life within those beliefs. This spring we had 3 sermon series. The first was Life Hacks a look at the book of James and the practical advice it shares. The second was around the table with Jesus. We looked at the sinners table, Matthew, the Pharisee s table, Zacchaeus table, the Lords table and the Heavenly table. We finished the semester with a series of Wesley Foundation TED talks. We average around 150 students in our worship services and small groups. We shifted our leadership program this year a little bit and raised the bar higher with expectations and lowered the number of participants. We are trying to focus on the most influential dominoes and push them over so they can have the greatest impact. We call those students our student interns and we were blessed to have 9 this year. Some highlights of the Wesley this year: We took mission trips to Haiti, Thailand, Mexico and the Philippines. Several students visited another 4 countries on their own mission trips. We are preparing to also lead trips to Haiti, Mexico, Cameroon and Spain. J - 73

74 2016 NORTHWEST TEXAS ANNUAL CONFERENCE Our Global Christian Fellowship has really taken off under the leadership of Hanna Lee. o Several people have accepted Christ and been baptized in the years through the ministry, most of them are from China. o Several people have gone back to their home countries as missionaries. o Weekly about international students gather in various groups including a new group for visiting scholars at St. Luke s UMC. o We had 200 international students attend our first event of the year. The Gospel was shared along with lots of great food, entertainment and fellowship. Several Bathos small groups and bible studies have met throughout the year. All of our student interns are required to meet in a discipleship relationship with staff and is encouraged to go and do likewise. We have over 80 one on ones or huddles taking place this semester. The intern academy has been a tremendous blessing to our interns. Scott Latham oversees the academy. Lunch and Last Lecture has been wonderful with special guests including Charles Perry and Chancellor Duncan. It has been greatly received. We have blitzed over 40 churches within the past year. We love to come and share what God is doing at the Wesley and how church can partner with us! Our worship team has really done a great job under the leadership of Dallas. Several of our students help lead worship at local congregations and gatherings. We have students working and volunteering at over a dozen local churches. I love when there are large youth gatherings in the area because I get to see how many of the Wesley students are pouring back into our churches right now! We have written several grants this past year with some success. Pray that we can find great foundations to partner with us. We are being very intentional on encouraging our students to pursue further theological education and consider working in full-time ministry. We are working in partnership with the Lilly Foundation on some neat things. As always we had a great time with these wonderful students. Many lives were changed because of what God is doing at the Wesley. There were retreats, lock-ins, dances and fellowship time as well. The community at the Wesley is as strong as ever. Keep us in your prayers and let us know if anyone in your community will be joining us at Tech. We would love to connect with them. In closing, thank you for supporting our ministry with your prayers and financial gifts. You really don t understand the difference they make in the kingdom. Those churches that paid 100% of their shared ministries, we notice. Thanks for all you do. WTA&M UNIVERSITY WESLEY FOUNDATION Mikey Littau, Director th St. Canyon This year we had great fall outreaches with 718 signed into our database -From that we had 396 people come to at least one of our worship services called Tupos and a total of 450 sign in to one of our 16 small groups. -Pastor Rick Enns and I baptized 8 students this spring at Canyon FUMC!!! -Our leadership Team is right at 120 right now. 40 new leaders joined us through interviews and screening in December, and more added in May. Leaders lead Fusion small groups, Resource Teams, and Mentoring Rings. -We have 103 apprentices in our Mentor Rings, with 29 mentors (staff, and upperclassmen mentors). Each mentor can take on 4 apprentices. -This year we started a new program called the Wesley Academy. The Academy s goal is to raise up future ministers for the NWTX Conference. It is an internship where graduates who are accepted into the program, work as mission staff at the Wesley. These interns are paired up with local churches and are trained how to be youth directors, children s ministry directors, media directors, and even shadow pastors to learn the practical side of pastoral ministry. We ve had Dr. Brad Reeves, Pastor Rick Enns, Pastor Tom Stribling, and professional consultants who are members of FUMC Canyon, Scott and Nikki Dillard, work with the staff and interns, teaching various modules of ministry. This year we had 2 interns and are looking forward to 4-5 next year. -The Wesley s goal is to Raise up the next generation of Christian leaders. Over the 9 years that I ve been a director at the WT Wesley, I am happy to announce that we have MANY people who have come through our ministry who are currently leading within the NWTX conference: J - 74

75 2016 REPORTS Full Time: 6 -Beau Niewoehner: Youth Director/Wesley Director at Big Spring (Denman Award Recipient 2015) -Amanda Jones: Youth Director in Lamesa -Levi McKay: NWTX Conference Office -Amanda Brookheart: Children s Director at Hereford UMC -David Pruitt: Youth Director at Snyder UMC -Trey Andrews: Associate Director at UT Tyler Wesley Foundation Part Time: 8 -Tre Calvin: Youth director at Stratford (current student at WT) -Aaron Beltran: White Deer UMC (graduated in May) -Ben Nabours: Happy UMC (graduated in May) -Jordan Molnar: Happy UMC (current student at WT) -Lupe Acevedo: Canyon UMC (graduated in May) -Dadrian Smith: Friona UMC (Wesley Academy Intern) -Scott Cooper: Kingswood UMC (Wesley Academy Intern) -Brook Brookheart: youth Director at Hereford UMC Asbury Seminary: 3 -Katy and Kendall McKee -Brandon Upton *Many people are looking forward to attending seminaries in the future and coming back to lead in the NWTX Conference!!! MCMURRY UNIVERSITY Dr. Sandra S. Harper, President S. 14 th & Sayles Blvd., McMurry Station, Abilene, TX McMurry s United Methodist heritage has historically provided the Church with strong, involved leaders in the pulpit, in lay ministry, and in our students future endeavors. After having the opportunity to participate in our robust Religious Life program and to learn the principles of servant leadership, McMurry graduates continue to minister as they take their places in society. Jack is planning on a lifetime spent in full-time mission work. Randi will enter business, but is preparing to be a strong and faithful laywoman in her church. Grace has plans to enter seminary and pursue ordained ministry. Elizabeth is working toward a career as a Christian counselor for children. These and other students engage in the ministries of Religious Life at McMurry to deepen their own faith and develop their sense of call to ministry, whether ordained or lay. Christian faith as the foundation of life is the first of the five core values of McMurry University. The Christian faith is central to our identity and mission, preparing young women and men to live lives of meaning and service. The work of the University Chaplain and the Religious Life leaders offer important opportunities and experiences to help students grow spiritually and to incorporate their academic studies with authentic expressions of faith. Key to the ministries at McMurry is the centrality of the love of God as expressed in Jesus Christ. Worship is a vital expression of this value and Chapel occurs on Tuesdays at 11:00 a.m. It is understood on campus that there are to be no classes or meetings or events scheduled during that time. Employees are given the opportunity to attend as well. Several students are involved in the planning of worship and also comprise most of the praise team. Themes from this year include I Wish Jesus Hadn t Said That, Be the Change, and Will the Real Jesus Please Stand Up. Relationships developed in college can last a lifetime, and ample opportunities are provided in the Religious Life ministries for students to form friendships and to experience authentic community. These relationships are not only among students, but also reflect the caring climate of the campus through involvement with various faculty and staff. Fall Retreat, progressive dinner, and participation in on-campus events foster these friendships that reflect Christ s love. McMurry is an experience-rich university and students have many opportunities to serve on campus, around Abilene, and beyond. In the past academic year teams were deployed to serve the Houchen Community Center in El Paso in December and in Haiti with Partners in Development during May. A team is scheduled to serve in July with Life Light Ministries in central India, near Mumbai. Locally, students volunteer at many agencies and churches. McMurry Chaplain Rev. Jeff Lust and the Religious Life staff coordinate McMurry Sunday events in local churches. These range from a simple bulletin insert and testimonial from a student to coordinating events with youth groups and/or leading entire worship services. This provides an important link between McMurry and the church that both grounds our campus ministry with the local church and also brings enthusiasm and energy to the local churches. J - 75

76 2016 NORTHWEST TEXAS ANNUAL CONFERENCE Another major emphasis on campus this year is to highlight the diversity on the McMurry campus through programmatic efforts that included adopting a three-year theme incorporating the ideals of Ubuntu ( I am because we are ), strengthening our international outreach, and becoming a Hispanic Serving Institution. Ubuntu is from the Bantu Nguni language group in southern parts of the African continent. The concept emphasizes interdependence and community over rugged individualism. McMurry is often described as a family. Ubuntu celebrates this familial environment. At the fall Ubuntu event, Dr. Robert Hunt (grandson of McMurry s founder and professor at Perkins School of Theology at SMU) led an all-day seminar on cultural intelligence. Dr. Hunt directs the Center for Global Theology at Perkins. The spring event was a two-day speaking engagement, February 17 and 18, featuring Shannon Sedgwick Davis 96, an honors graduate of McMurry, Baylor Law graduate and the CEO of the Bridgeway Foundation. The Foundation s mission is to work toward the prevention of oppression, genocide, and human rights violations. As part of our efforts to internationalize the McMurry campus, we have welcomed 24 international students to our campus this spring. We are excited about what these students will bring to our campus and we are working to ensure that we have the appropriate infrastructure in place to ensure that these students are properly supported. This fall, McMurry was selected to be one of 13 institutions of higher education in the American Council on Education Internationalization Laboratory Cohort, an initiative that will help position McMurry as a more globally oriented and internationally connected institution. This effort is being led by Dr. Mark Waters, associate professor of religion and servant leadership, and Dr. Robert Wallace, professor of sociology. One of the goals of McMurry Momentum was to achieve status as a Hispanic Serving Institution (HIS), which means that over 25% of our undergraduate population is Hispanic. We achieved this goal in Fall The McMurry Centennial Vision is to be an affordable, student-centered academic institution manifesting an approach to learning that empowers our students to deal with complexity, diversity, and change and enables them to contribute to our multifaceted society in meaningful ways. We believe that the programmatic efforts highlighted in this report will help us achieve the Centennial Vision. As we look toward the centennial celebration of our University in 2023, McMurry University s connection with the United Methodist Church will remain an important element in accomplishing our mission and we will continue to enhance and strengthen our relationship to our Annual Conferences and educate servant leaders for the future. As stated in the McMurry Centennial Vision, McMurry will continue to claim its church-related identity that affirms that God s grace and a life of service are foundational for all persons. GENERAL BOARD OF HIGHER EDUCATION 1001 Nineteenth Avenue South, Nashville, TN Preparing Leaders for a Vital Worldwide Church The General Board of Higher Education and Ministry (GBHEM) invites, equips and supports faithful and effective clergy and lay leaders for congregations and the world. In partnership with other agencies, higher education institutions and church leaders, GBHEM has shaped a new understanding of how to support emerging leaders discerning God s call in The United Methodist Church (UMC). Access to Education Clergy and lay leaders are formed in the United Methodist (UM) tradition through our network of institutions around the world. In Africa, we support hundreds of schools, 16 theological seminaries and 18 institutions of higher education. In Asia, our schools, colleges and theological seminaries in Cambodia, Philippines and Vietnam are part of the thriving Asia- Pacific Association of Methodist-related Educational Institutions. In Europe, nearly 20 theological seminaries are connected to GBHEM through the Methodist-related Theological Schools in Europe. In Latin America, we work closely with the Latin American Association of Methodist Educational Institutions. In the United States, there are 13 United Methodist theological schools. Our 97 UM-related schools, colleges and universities in the U.S. and 520 collegiate ministries expand the denomination s diversity and prepare the next generation of leaders from and for the worldwide community. In collaboration with Discipleship Ministries, GBHEM launched the E-Reader Project to offer affordable, reliable access to textbooks, reference books, the Bible and Wesleyan resources in English, French and Portuguese to faculty and students of 22 UM-related theological institutions in Africa and Asia and four seminaries in the Philippines. Visit The Office of Loans & Scholarships administers over 90 loan and scholarship programs and awards $5 million in financial assistance annually to UM undergraduate and theological students. Since 2013, $11.5 million (including $4 million to 1,895 seminarians and $680,000 to 285 international students) in scholarships has been awarded to 7,622 students enrolled in higher education institutions in the U.S. Overall, 40 percent of scholarships were awarded to students who identified as racial- ethnic. The Ministerial Education Fund (MEF) supports the 13 UM theological schools in the U.S. and the Course of Study theological education programs for elders, deacons and local pastors. MEF also supports continuing education for clergy, funds Boards of Ordained Ministry in clergy recruitment and education initiatives, and underwrites GBHEM ministry programming. J - 76

77 2016 REPORTS Creating a Culture of Call Almost every United Methodist lay and clergy can name a church member who inspired, influenced and encouraged them at some point in their journey, to consider a particular vocation or to pursue a gift. Congregational vitality begins in local churches, where faith is formed and nurtured in people of all ages, especially the young. GBHEM leads a multi-agency collaboration on a new resource Called: One Word, Many Ways that equips congregations to speak the language of call and move disciples of all ages to discover and nurture vocations. Focused attention to call will contribute to the health and vitality of the individual s faith, community and the Church. Visit Supporting Clerg y Leaders The Effective Ministry Assessment is a new GBHEM resource resulting from over a decade of broad, deep research across the Church. Through covenant-building, the pastor and congregational leaders assess the pastor s performance based on needs of their particular ministry context. This assessment fosters effectiveness, support and accountability for clergy and congregational lay leaders by providing the structure for a healthy, constructive conversation among the pastor, Staff-Parish Relations Committee and district superintendent. The United Methodist Candidate and Record Entry System (UMCARES) launched in February UMCARES tracks psychological assessments, reference forms and completed candidacy tasks for each candidate, with more than 5,000 users annually including Boards of Ordained Ministry officers, district superintendents and candidates. UMCARES is instrumental in determining qualifications for scholarships and MEF distribution to UM theological schools. Pastors who serve in a specialized environment benefit from Module III Workshops, a part of the National Plan for Hispanic/Latino Ministry, and other programs. GBHEM supports four U.S. Ethnic Centers Pacific/Asian American, Hispanic/Latino, Multi-Ethnic and Native America that recruit and prepare ethnic UM men and women for leadership positions in the Church. The UMC Cyber Campus is an online gateway for Wesleyan-based theological and higher education for lay and clergy. The website provides a single entry point to free and affordable high quality church- related leadership resources in a worldwide, multilingual Christian learning space. Visit The United Methodist Endorsing Agency (UMEA) validates credentials, advocates for and supports endorsed clergy in ministry beyond church walls. Currently, 1,670 clergy are in relationship with UMEA (1,263 endorsed; 407 ecclesiastically approved). Collaborating with the UMC s ecumenical officer and other church leaders, UMEA has worked to establish new ways to endorse and support the work of chaplains through a covenant established with Pan- Methodist denominations. Strengthening Higher Education in the UM Tradition The Africa University Fund supports the critical mission of Africa University. Currently, 1,475 students are enrolled full-time at the campus near Mutare, Zimbabwe. With the installation of Prof. Munashe Furusa as the university s fourth vice chancellor in March 2015, the institution is focused on increasing its relevance and impact. More than 6,000 graduates are participating in Africa s transformation and serving in significant leadership roles across Africa. Faithful connectional support has built a permanent endowment of more than $64 million, and the university is currently in a campaign to increase that total by $50 million. The University Senate is charged to provide an effective review process to ensure UM-related schools, colleges, universities and theological schools listed by the University Senate and qualifying for Church support have institutional integrity, well-structured programs, sound management and clearly defined Church relationships (Book of Discipline, 1415(3)). The Senate has updated its Guidelines and procedures to more faithfully carry out its consultative, collegial role with institutions by transitioning from a regulatory to a capacity-building agency focused more on church-relatedness and less on areas evaluated by regional accrediting bodies. The International Association of Methodist Schools, Colleges and Universities (IAMSCU) develops cooperative and supportive relationships among the approximately 800 educational institutions in the Methodist tradition worldwide so institutions can learn from and strengthen each other while sharing resources (e.g., student and faculty exchange). IAMSCU promotes the development of quality, value-centered education and increases the availability of educational opportunities throughout the world. IAMSCU s 2014 triennial meeting in Hiroshima, Japan, focused on Peace, Reconciliation and Human Rights with record attendance from nearly 50 countries. The Methodist Global Education Fund for Leadership Development (MGEFLD) offers technical assistance, scholarships and fundraising training. MGEFLD has established five regional hubs in Africa, Asia, Europe, Latin America and North America to share expertise and assistance. Visit methodistglobaleducation.org. The National Association of Schools and Colleges of the UMC, a 75-year-old network of presidents and deans of Methodist-related educational institutions in the U.S., gathers biannually to strengthen their institutions UM ties. At the February 2015 meeting, attendees unanimously adopted a resolution to give leadership on behalf of social justice and human dignity by developing new patterns and practices of communication and by attending to questions of justice within [their] institutions. J - 77

78 2016 NORTHWEST TEXAS ANNUAL CONFERENCE The Black College Fund supports 11 UM-related historically black colleges and universities and demonstrates the Church s continued commitment to access and empowerment through higher education. Church support allows these institutions to advance research, maintain facilities and create a nurturing environment for over 15,000 students (many, the first in their families to attend college.) Integration of Sustainable Environmental Practices GBHEM has implemented e-filing for the Loans and Scholarships, Clergy Lifelong Learning and Candidacy offices. GBHEM has increased the use of online seminars to reduce travel. The agency requires recycling in offices and meeting rooms. Initiatives Established by General Conference 2012 Find full reports on these initiatives at If current trends continue, the UMC will face a shortage of trained ordained elders to serve local congregations by The $7 million Young Clergy Initiative Fund, administered by GBHEM and designed to increase the number of young clergy among the jurisdictional conferences, awarded 76 grant recipients and doubled the investment in the quadrennium by encouraging grant recipients to secure additional funding. Administered by GBHEM, the Central Conference Theological Education Fund is overseen by a commission named by the Council of Bishops. The commission met annually to review grant proposals aimed at bolstering the work of theological education in central conferences and awarded $1 million each year of the quadrennium. The Seminary Indebtedness Task Force, charged with creating a denominational plan to reduce and eliminate seminary debt for ordained ministry candidates, presented report to the Council of Bishops and Connectional Table in AFRICA UNIVERSITY James H. Salley, Associate Vice Chancellor for Institutional Advancement Africa University celebrates the unstinting support of the local congregations of the Northwest Texas Conference with gratitude and appreciation. In 2015, the Northwest Texas Conference increased its investment in the Africa University Fund (AUF) apportionment to percent, up from percent in Thank you, Northwest Texas, for steadily growing your support for Africa University. This upward trend in giving puts your conference in an excellent position to invest 100 percent of the asking to the AUF in The students, faculty, staff, trustees and alumni of Africa University are grateful to all of the congregations of the Northwest Texas Conference for continuing to prioritize support for connectional ministries and for their immense generosity. Institutional Update: The United Methodist Church s investment to date, through the Africa University Fund apportionment and the World Service Special Gifts fund, has supported excellence in teaching, learning and community service and built a first-rate campus comprised of 45 buildings all debt-free. The university s permanent endowment now stands at more than $64 million, due in large part to the generosity and prayerful affirmation of United Methodist congregations, agencies and individuals. Enrollment: Currently, Africa University has a total enrollment about 1,500 full-time students who represent 26 of Africa s 54 countries. An additional 770 students are gaining new skills and knowledge as they pursue undergraduate and graduate degrees on a part-time basis. Alumni: In 2015, Africa University awarded degrees to its largest graduating class so far 674 young people from 14 African countries. Africa University s alumni now number more than 6,200. Graduates are at work in at least 29 African countries as well as in Australia, Asia, Europe, Latin America, and North America. Many serve The United Methodist Church and their nations in senior and strategic roles. Africa University is nurturing and sending forth leaders for new institutions and initiatives which expand the mission of our denomination. Africa University alumni include: Alfred Zigbuo, a Liberian graduate who is serving as a Global Ministries-supported missionary and administrator in the East Congo Episcopal Area. He brings experience as the country director of Operation Classroom and expertise in post-conflict healing/institution-building in Liberia to his new mission field, a recently formed and conflict-ravaged annual conference. Clare Paidamoyo Katiyo, a young mother who earned a degree in health services management with United Methodist scholarship support, is now the district administrator overseeing a network of four large hospitals and 37 health centers in rural Zimbabwe. Her skills and commitment have placed her on the frontlines of an ongoing national effort to improve health and save lives. Ilda Guambe, who was born in a remote rural village in Mozambique. She is the first woman in a family of nine to earn a degree. She mentors and inspires young people in her country to stay in school to realize their God-given potential and their dreams. J - 78

79 2016 REPORTS Pastor Mujinga Mwamba Kora who serves as a lecturer and registrar of Kabongo Methodist University; and the Rev. Dr. Kimba Kyakutala Evariste who is the president of Kabongo Methodist University, in the Democratic Republic of Congo. They are both two-time graduates of Africa University and represent a growing number of alumni who lead United Methodist higher education institutions on the continent of Africa. The United Methodist Church benefits greatly from the leadership of Africa University graduates at the general church level. These leaders include: The Rev. Manuel João André of West Angola and the Rev. Daniel Mhone of Malawi, who serve as board members of the United Methodist Boards of Church and Society and Global Ministries, respectively; the Rev. Dr. Laishi Bwalya of the Congo Central Conference, who serves on the Connectional Table; and the Rev. Dr. Kimba Kyakutala Evariste of North Katanga, who is the secretary of the Standing Committee on Central Conference Matters; and The Rev. Olga Choto Ranchaze of Mozambique, serves on the World Methodist Council s Standing Committee on Education. Increased and steadfast support for the Africa University Fund (AUF) apportionment and investment through the World Service Special Gifts fund over the next quadrennium are vital to Africa University s development and sustainability. Africa University s strategic plan for prioritizes student quality of life and success. The plan calls for a significant increase in the proportion of self-funded students and for achieving a level of at least 60 percent of the students coming from outside Zimbabwe. To do this, the university is working to add more on-campus student housing and recreational facilities. Measures to restructure academic programs, enhance fiscal accountability through costcutting and right-sizing; and increase the focus on African donors for resource mobilization, have already been implemented. Looking ahead: Thank you, Northwest Texas United Methodists, for helping Africa University to progress as a world-class university for ethical and transformational leadership development. Please pray without ceasing for Africa University. Continue to seek out ways to increase your giving to all of the apportioned funds of The United Methodist Church. Thank you for your continuing support for this ministry. As you journey with Africa University, know that you are part of a ministry that equips Africans to do for themselves and grow the experience of God s promised abundance in the world. BOSTON UNIVERSITY SCHOOL OF THEOLOGY Mary Elizabeth Moore, Dean of Boston School of Theology 745 Commonwealth Avenue, #110, Boston, Massachusetts Dear Colleagues in the Northwest Texas Conference: Greetings in the Spirit of Jesus Christ! The Boston University School of Theology (STH) walks with you on the journey of discipleship, seeking to love God and to love our neighbors with all our hearts, souls, minds, and strength. Thank you for your prayers that inspire and support the STH mission to love God, build knowledge, and equip leaders for the church and society. NEWS New faculty: This year, Boston University welcomed new faculty in ethics, psychology, theologies of spirituality, comparative theology, church renewal, Black church leadership, and mission studies. We welcomed: Nimi Wariboko (Walter G. Muelder Professor of Social Ethics); David Decosimo (Theology); Theodore Hickman-Maynard (Evangelism and Church Renewal); Andrea Hollingsworth (Theology); Barbod Salimi (Psychology and Peace Studies); and Daryl Ireland (Associate Director of the Center for Global Christianity and Mission). Spiritual life: STH continued to expand and deepen its spiritual life program, led by Charlene Zuill, Spiritual Life Coordinator and United Methodist elder. Bishop Susan Hassinger, Claire Wolfteich, and many others also offer a rich selection of courses in spirituality and leadership. Chaplaincy track: STH added a chaplaincy track to the MDiv degree, preparing students for hospitals, prisons, and military settings. ENGAGING IN DIALOGUE: STH spent much energy this year in hard conversations on violence, racism, and injustice, seeking to be honest and vigorously open to change, while honoring the dignity of all persons. Power, Privilege and Prophetic Witness is the STH theme for We engaged the theme in classes, lectures, retreats, and workshops, seeking to stretch our capacities to do justice, love mercy, and walk humbly with our God. Examining the intersection of theology and race. The opportunities this year included: a brilliant new documentary on North Korea; a dialogical viewing of Selma; dialogues on racism with Thandeka and Andrew Sung Park; a retreat on building race relations; circle worship; a student-led event Missing Voices, Daunting Choices: The Erasure of Black Women in Black American Movements; and events on interfaith understanding. J - 79

80 2016 NORTHWEST TEXAS ANNUAL CONFERENCE CARING FOR THE CHURCH through leadership and service. Serving the United Methodist Church. Students served local churches and church bodies as interns, staff, and volunteers. Faculty served with such bodies as: United Methodist Women, World Methodist Council, Ministry Study Commission, Women of Color Scholars and Mentors program, Pan Methodist Commission on Children in Poverty, and boards and agencies of the general church and annual conferences. Empowering young Latino/a leaders. Young leaders gathered with seasoned mentors to enhance their gifts and service as Christian leaders: Hispanic Youth Leadership Initiative (HYLA) and Raíces Latinas Leadership Institute Facilitating dialogues on church renewal. We launched a new initiative on Evangelism and Church Renewal. Reflecting on worship. We contributed to a special issue of Worship Arts Magazine, edited and written by STH faculty, alumni/ae, and students, and published by the Fellowship of United Methodists in Music and Worship Arts. CARING FOR THE WORLD Offering opportunities for engaged learning. Opportunities included the Doctor of Ministry program in Transformational Leadership; an urban ministry course; travel seminars to India, the Arizona-Mexico border, Israel-Palestine, Mexico, and Turkey (Ephesus); work with leaders in Ferguson, MO; and a travel seminar for UMC clergywomen to Cuba, co-sponsored by GBHEM and STH. Collaborating with the global church. Collaborations included sponsorship of the Dictionary of African Christian Biography; events and art exhibits on local and global ecology; and dialogues with global church leaders. As we at STH seek to be faithful and to partner with you in ministry, we give thanks for your witness. Thank you too for your continuing inspiration and contributions to our shared journey. Blessings and gratitude, CANDLER SCHOOL OF THEOLOGY Jan Love, Dean and Professor of Christianity and World Politics 500 S. Kilgo Circle, Atlanta, GA For more than 100 years, Candler School of Theology at Emory University has prepared real people to make a real difference in the real world. Since our founding in 1914, over 10,000 students have graduated from Candler, where they have been shaped as Christian leaders who put faith and love into action, transforming the world in the name of Jesus Christ. One of 13 official seminaries of The United Methodist Church, Candler is also one of seven graduate professional schools of Emory University, a top-tier research institution offering extensive resources and a rich context for study. Our location in Atlanta provides a learning environment that reflects the highly diverse communities of the 21st century. Simply put, there is no better place for ministry preparation that addresses our major denominational priorities: developing leaders, starting and growing churches, ministry with the poor, and improving global health. In order to keep pace with the needs of the church and the world, Candler now offers 17 degrees: seven single degrees and ten dual degrees pairing theology with bioethics, business, development practice, law, public health, or social work. One of our newest degrees is a retooled Doctor of Ministry that is 90 percent online, so students can remain in their places of ministry as they study and apply what they learn in real time. We ve also partnered with the University of Georgia s School of Social Work to create an MDiv/MSW where students learn to maximize their effectiveness by combining pastoral skills such as spiritual counseling with social work practices such as family therapy and community assessment. Our student body continues to reflect the diversity and breadth of the Christian faithful. 466 students are enrolled, with 48 percent women, 34 percent people of color (U.S.), and a median age of 29. Students represent 44 denominations, with 51 percent coming from the Methodist family. 82 percent of students are seeking a degree to prepare them as ministry professionals. Candler has a deep commitment to alleviating student debt and employs a multi-pronged approach to tackle this issue. In , we awarded nearly $5.5 million in Candler scholarships, with 92 percent of MDiv students and 84 percent of all students receiving support. And our comprehensive financial literacy program teaches money management skills that serve our students now and will continue to serve them and the churches they serve well into the future. At the end of the academic year, Candler says goodbye and Godspeed to a handful of noted faculty as they retire: Barbara Day Miller, Luke Timothy Johnson, Steve Tipton, and Bishop Woodie White. Yet even as these legends take their leave after distinguished careers of scholarship and service, we look forward to welcoming a new crop of scholar-leaders who will join us in the coming months and grow with us in the coming years. We are especially pleased to welcome Bishop Larry Goodpaster, who will join the faculty as bishop-in-residence in the fall of J - 80

81 2016 REPORTS Candler draws considerable strength and inspiration from its relationship with The United Methodist Church. Our ability to fulfill our mission of educating faithful and creative leaders for the church s ministries in the world depends upon your support, gifts, and prayers. Thank you for the countless ways you advance this vital ministry in the life of our denomination. Visit us in person in Atlanta or online at candler.emory.edu to see firsthand how Candler prepares real people to make a real difference in the real world. ILIFF SCHOOL OF THEOLOGY Rev. Dr. Thomas V. Wolfe, President and Chief Executive Officer 2201 S. University Blvd, Denver, CO Greetings from the Iliff School of Theology in Denver, Colorado. We wish you blessings as together we share the work of strengthening the Church and offering a compassionate presence to the World. The Iliff School of Theology s commitment to the Wesleyan ethos of providing hopeful, intellectually alive, and spiritually grounded theological education for each and every student over the course of their lifetime continues. Iliff s identity is focused on educating leaders for three primary publics: the world, the church, and the academy. At Iliff, we refuse to choose between being a training home only for ministerial candidates, a center only for activists and scholaractivists, or a school only for academics. We believe all three are inseparable and enhance one another as we deliberately situate ourselves in the world and critically operate out of the world s complexities. As such, we recognize that the world s religious landscape is changing and there is much at stake. Iliff recently completed its strategic plan, revised its curriculum, transformed its library, and initiated new relationships with other institutions. In collaboration with the people of Africa, we ve started a discussion with Africa University (AU) to foster an educational alliance that will benefit Iliff and AU students. We have also joined a multi-institutional collaboration facilitated by the General Board of Higher Education and Ministry and the HANA Scholarship to create a pipeline for Hispanic students from United Methodist related secondary schools and historically black colleges leading to graduate level theological education. Iliff s enrollment continues to be strong with 365 students joining us this academic year, 60% female and 40% male, 35% Methodist all actively engaged in a host of ministry contexts. Their interest continues to be strong in Iliff s online and hybrid classes. A concerted move by Iliff to reduce student debt and grow the ability of students to lead financially sound, engaged communities continues with many MDIV students participating in the Spiritually- Integrated Financial Resiliency Program, funded by a $250,000 grant from the Lilly Endowment. Iliff s numerous events for area clergy and supporters remains part of our foundation. Via forums and conferences on social justice, food justice, the role of faith in politics, environmental stewardship, theology and disability inclusion, and more. Campus speakers included Rev. Gerald Durley, nationally-known civil rights leader and this year s Jameson Jones Preacher, Heather Jarvis, student debt reduction advocate, and more. Our efforts were duly noted by McCormick Theological Seminary s Center for Faith and Service when we were named as one of the nation s Seminaries That Change the World and our Master s of Theology Program was ranked seventh in the nation by OnlineColleges.net. We welcomed two new scholars to our faculty this year, Rev. Dr. Jennifer Leath, Assistant Professor of Religion and Social Justice and ordained in the African Methodist Episcopal Church, and Rev. Michelle Watkins-Branch, Gerald L. Schlessman Professor in Methodist Studies and Assistant Professor of Theology and ordained in the United Methodist Church. We continue to look forward with a courageous theological imagination. We are sincerely grateful for your support of theological education and the Ministerial Education Fund PERKINS SCHOOL OF THEOLOGY William B. Lawrence, Dean and Professor of American Church History 5915 Bishop Blvd., Dallas, TX Perkins celebrates our vital connections with the Northwest Texas Annual Conference: Three students affiliated with the Northwest Texas Conference are enrolled at Perkins, all being Master of Divinity students. Eligible students from the Northwest Texas Conference each received a Perkins Annual Conference Endowment (PACE) grant of $8,000, with qualifying students receiving an additional $6,000 each in need-based aid. One Perkins student has been placed as an intern within the Northwest Texas Conference this year in the following setting: McMurry University. Enrollment at Perkins for the academic year totals 365 students, of which more than two-thirds are United Methodist and more than 40 percent are ethnic minority students. Master s degree programs comprise approximately 53 percent male and 47 percent female students. The D.Min. program includes students from southern Asia taking classes in Singapore and Dallas. Our Ph.D. program has 32 students. J - 81

82 2016 NORTHWEST TEXAS ANNUAL CONFERENCE Please note the following faculty additions: Dr. O. Wesley Allen Jr. (Ph.D., Emory) joined the Perkins faculty as the Lois Craddock Perkins Chair in Homiletics in August Dr. Evelyn L. Parker (Ph.D., Northwestern), Associate Dean for Academic Affairs at Perkins, was appointed to the Susanna Wesley Centennial Chair in Practical Theology at Perkins. Dr. Priscilla Pope-Levison (Ph.D., University of St. Andrew s) joined Perkins as the school s Associate Dean for External Programs. Dr. Tom Spann was named director of the Perkins Intern Program, succeeding Dr. Bill Bryan, who was named to the newly created position of Associate Dean of Student Affairs. Dr. Paul Barton (Ph.D., Southern Methodist University) was named director of the Mexican American and Hispanic-Latino/a Church Ministries Program. Highland Park United Methodist Church provided a $1.5 million gift to Southern Methodist University that endowed the Umphrey Lee Professorship in Methodist History at Perkins as well as support the HPUMC Future Church Leaders Program. The Center for the Study of Latino/a Christianity and Religions at Perkins was awarded a $500,000 grant by The Henry Luce Foundation s Theology program. The three-year grant will significantly expand the Center s work in promoting an understanding of the different religious expressions within the Latino/a communities in the United States and in Latin America. Perkins unveiled a new degree option, the Master of Theology (Th.M.), which began enrolling students in the Fall 2015 semester. The Th.M. degree is a second master s and requires 24 term hours within one of four divisions of study: The Biblical Witness, The Heritage and Context of Christianity, The Interpretation of the Christian Witness and The Theology and Practice of Ministry. Additionally, Perkins revealed that it will begin offering a Spanish-language Master of Theology (Th.M.) degree beginning in fall The degree, the first of its kind among the 13 United Methodist-related schools of theology, will be a nonresidential program designed for experienced full-time pastors or church/academic leaders. Perkins also announced the creation of a first-of-its-kind degree, the Doctor of Pastoral Music, which will begin enrolling students in Areas of focused study will include liturgy, congregational song, worship leadership, performance skills and the theological basis of church music. Perkins thanks our many colleagues, friends, and alumni/ae across the connection for generous support in many ways, including referrals of prospective students, as we continue our vital mission of preparing women and men for faithful leadership in Christian ministry. I will retire as Dean of Perkins School of Theology on May 31, It has been my privilege to serve in this capacity since In our mission to prepare women and men for faithful leadership in Christian ministry, the students who have passed through the halls of this school and into the world of ministry are the focus of our work. I am honored to have been a part of their journey. SAINT PAUL SCHOOL OF THEOLOGY Dr. Nancy Howell, Professor of Theology and Philosophy and Acting President 5123 East Truman Road, Kansas City, MO North Blackwelder, Oklahoma City, OK Saint Paul School of Theology is a seminary of the United Methodist Church that educates leaders to make disciples for Jesus Christ, renew the Church, and transform the world. We are one institution with two campuses, in Oklahoma and Kansas. This past academic year, Saint Paul enrolled 199 students from 14 annual conferences and 6 countries on both campuses. The Course of Study School at Saint Paul served 222 students in four Midwest locations. The Saint Paul Board of Trustees named Dr. Nancy Howell, Saint Paul Professor of Theology and Philosophy, as the Acting President this spring. Her term began March 2 as Rev. H. Sharon Howell retired. Dr. Nancy Howell brings multiple years of experience serving in administration. Saint Paul and Kansas Wesleyan University signed a Memorandum of Understanding for a 3+3 theological studies undergraduate-graduate program. The agreement is thought to be the first of its kind to be established between a United Methodist-based university and a United Methodist seminary. Under this arrangement, Kansas Wesleyan students condense the four-year course of study for the Christian Ministry major into three years, followed by the completion of the three-year Master of Divinity degree at Saint Paul. The 3 +3 program with Kansas Wesleyan will begin Fall collaborations with other undergraduate institutions are currently in discussion. Dr. Young-Ho Chun is serving as the Director of Asian Studies for Saint Paul. He is currently recruiting the 4th Korean Doctor of Ministry track of students. The model of theological education designed for this highly successful and unique program is currently being considered by other global communities. J - 82

83 2016 REPORTS Saint Paul will offer two fully online courses starting fall 2016 and two in the spring semester of We will continue to offer popular hybrid courses as well as video link every course between our two locations. Two new components in the MDiv program are practicums taught by ministry practitioners and off-campus spiritual formation retreats. Practicum offerings include such real-life skill areas as budgets and finance, funerals and ministry with children. Spiritual formation retreats deepen students spirituality for a lifetime of ministry. The Fellows program equips candidates called to full-time ministry with academic formation and real-life pastoral experience. The award covers tuition, books and fees for three years. Each Fellow will receive a pastoral mentor and a student appointment with a stipend to cover living expenses. The Oklahoma Campus had its second recognition dinner celebrating eight years of seminary excellence in Oklahoma. The Celebrate Saint Paul dinner has become an annual event including the Bishop Robert E. Hayes, Jr. Leadership Award The trustees, faculty, staff, and students of Saint Paul thank you for your interest, prayers and support. SOUTHERN METHODIST UNIVERSITY R. Gerald Turner, President 6425 Boaz Lane, Dallas, TX Over the past five years, Southern Methodist University has celebrated the centennial of its founding in 1911 by the Methodist Episcopal Church, South, and its opening in Highlights of recent developments follow: In fall 2015 SMU s total enrollment of 11,643 included 6,411 undergraduates and 5,232 graduate students. Ethnic minority students made up 26 percent of total enrollment. An international enrollment of 1,652 (14 percent of total enrollment) represented 92 foreign countries, with the largest numbers from China, India and Saudi Arabia. SMU ranks among the nation s top universities. In the 2016 U.S. News & World Report listings, SMU ranks 61st among 270 of the best national universities. Several individual schools and academic programs also earned national rankings. SMU received $26 million in external funding during for research in the U.S. and worldwide. Current research subjects include water quality, natural hazards, cyber security and treatments for cancer and other diseases. SMU Unbridled: The Second Century Campaign reached its $1 billion goal ahead of schedule in Sept It provided funds for 607 student scholarships; 62 endowed faculty positions, making a total of 114; 66 academic programs, including major endowment support for two schools; and 18 capital projects, including new and renovated facilities. The Meadows Museum at SMU celebrated its 50 th anniversary in 2015 with exhibitions never before seen in the U.S. The museum houses one of the largest and most comprehensive collections of Spanish art outside of Spain. SMU treasures its Methodist heritage, and we ask for your continued prayers and support ANNUAL REPORT OF SOUTHWESTERN UNIVERSITY, TEXAS FIRST INSTITUTION OF HIGHER LEARNING Dr. Edward Burger, President and Professor FEBRUARY 2016 As I complete my third academic year as President of Southwestern University, I am honored to turn one page of Southwestern s storied history and gaze upon the horizon of possibilities that is our next 175 years. Throughout this milestone year, we reflect on the expansive creativity, passionate pursuit of knowledge, and steadfast resilience of this University as a whole and as a composite of the many individuals who have contributed to Southwestern s success. In August, Southwestern welcomed 423 entering students bringing the total enrollment to 1,538. Highlights of this class include 15% from outside the state of Texas and 42% identifying as non-anglo. I was pleased to have had the opportunity to visit personally with prospective students and their families at the 21 events hosted on campus this year. On February 5, 2015, Southwestern University celebrated the 175th anniversary of its original 1840 charter in a big way! The day began by marking the 65th anniversary of the Lois Perkins Chapel with an organ concert and Chapel service followed by students, faculty, staff, alumni, trustees, and community members gathering on the Academic Mall to form a giant 175, captured in an aerial photograph. Finally, the crowd of nearly 1,100 enjoyed a huge birthday cake, live music by the SU Jazz Band, Congressional proclamations, the presentation by students of an empty time capsule that was filled and buried on February 5, 2016, and the announcement of Southwestern s largest-ever single gift of $5.1 million from Margaret S. Odiorne, the widow of Truman J. Odiorne 66. J - 83

84 2016 NORTHWEST TEXAS ANNUAL CONFERENCE Last year marked the completion of our Phase I renovation of the Fondren-Jones Science Building, which will pave the way for a remarkable future for our students. Southwestern s annual Research and Creative Works Symposium, From Every Voice, continues to yield a high level of participation and offers an undergraduate presentation experience that is second to none; and Paideia Connections invites our campus and local community to think, create, and connect ideas across disciplines in an exercise of reason and problem solving. Southwestern also inaugurated the President s Thinking Symposium on Living, Learning, and Leading. As part of my experimental course, Effective Thinking and Creative Puzzle-Solving, my class hosted noted guests from around the country who described the puzzles of their professional careers, the practices of mind they use to resolve them, and led thought-provoking conversations on the meaningful and life-changing experiences that have shaped their lives. As I reflect on this past year, I am honored to bear witness to the power of Southwestern: a catalyst of creative thinking and experience that occurs when engaged minds come together Accolades Three Fulbright Scholarship recipients were among our Southwestern family. Two students and one faculty member will have the opportunity to pursue their respective research interests around the globe. USA Today, US News, Washington Monthly, and World Report ranked Southwestern as the top national liberal arts college in Texas. Princeton Review ranks Southwestern in its Top 200 Colleges That Pay You Back. Southwestern s Career Services rank 12 th in the U.S. and best in Texas in The Princeton Review s latest book, The Best 380 Colleges: 2016 Edition. This is the fourth time since The Princeton Review began ranking career centers in 2008 that SU Career Services has been ranked in the top 20 nationally. Kiplinger s Personal Finance names Southwestern a Best College Value. Southwestern is one of 44 colleges and universities in the country to be a named a Best Buy school in the 2015 edition of the Fiske Guide to Colleges. EPA names Southwestern the College & University Green Power Conference Champion for the fifth year in a row. Academics Southwestern University s Paideia provides students with an educational experience that is interdisciplinary, integrative, and intentional. Eleven clusters are currently established to engage 900 first-year and sophomores students and 87 faculty members. Four Paideia Seminars are in process or have recently concluded, and three more are scheduled for the spring Eighteen faculty have developed courses that include community-engaged learning, 28 students have received support for intercultural learning in study abroad programs, and 12 students are participating in a living-learning community in our Global Engagement Hall. Faculty development sessions continue to be central to Paideia through campus-wide workshops, cluster retreats, and the Dean s Teacher/Scholar sessions. New students had the opportunity to participate in the First Symposium this past fall, which showcases work resulting from the First-Year and Advanced-Entry Seminar experience. For the 15th consecutive year, the King Creativity Fund supported innovative and visionary student projects across the disciplinary spectrum. This fall, eight Southwestern students will serve as Community-Engaged Learning Teaching Assistants (CELTAs) for the SU Garden and Paideia clusters. Faculty Achievements Numerous Southwestern Faculty members were honored this year: Four faculty members published books in Four faculty members received Sam Taylor Fellowship awards from the Division of Higher Education of the Board of Higher Education and Ministry of the United Methodist Church for 2015 to support their scholarly work. Assistant Professor of Music and Artist in Residence Hai Zheng-Olefsky has been invited to perform her fifth Asia concert tour. She will bring her long time pianist Kiyoshi Tamagawa, Associate Dean of the Sarofim School of Fine Arts and Professor of Music, to celebrate their 20th season performing together. Therese Shelton, Associate Professor of Math, was presented with The Ron Barnes Distinguished Service to Students Award by the Texas section of the Mathematical Association of America (MAA) at their April 2015 Meeting. The award represents both a teacher s commitment to students and the respect from the teacher s peers. For more than 20 years, Shelton has been preparing students to give math presentations at external conference and professional meetings, including seven recent national presentations, one of which won a national award. Professor of Religion Elaine Craddock received a Fulbright grant to fund her research on transgender communities and Hindu temples in Tamil Nadu, India, during her spring 2016 sabbatical. J - 84

85 2016 REPORTS Ben Pierce, Professor of Biology and holder of the Lillian Nelson Pratt Chair, was recently awarded a $27,691 grant from the Williamson County Conservation Foundation to carry out research on the ecology of the Georgetown salamander. In the past five years, Pierce has received a total of $131,557 for his research on the Georgetown salamander. Associate Professor of German Erika Berroth received a nationally competitive grant to participate in a faculty development summer seminar sponsored by the American Association of Teachers of German. Assistant Professor of History Jethro Hernandez Berrones was awarded the Hans-Walz prize by The Hans Walz Foundation at the Robert Bosch Stiftung for his doctoral dissertation titled Revolutionary Medicine: Homeopathy and the Regulation of the Medical Profession in Mexico, The institute awards the best monograph on the history of homeopathy every other year. Student Achievements Southwestern students also earned a variety of honors and awards in For example: Thirty-eight students were inducted into our chapters of the Phi Beta Kappa and Alpha Chi honor societies. Graduating seniors Shelby Beem and Lauren Gieseke were awarded Fulbright scholarships and selected to teach English in Germany and Bulgaria, respectively. Two first-year students, Deidre McCall and Matt Pagano, received Kemper scholarships in a year that saw the Kemper Corporation of Chicago cut the number of universities participating in its selective three-year program from 16 to 12; Southwestern not only remained in the program, but also received an extra scholarship. Students Grace Atkins, Riley Daniels, Hunter Jurgens, Savannah Medley, and Sosha Orbin all received twoyear Hutton W. Sumners scholarships from the Dallas foundation. Ryan Galloway, a senior education major, won a Texas Association of School Personnel Administrators (TASPA) scholarship. It is the 16 th year in a row that a Southwestern student has received the award no other university in Texas has accomplished this achievement. Senior Amber Wallour received an Award of Excellence at the 35th annual Central Texas Art Competition and Exhibition for her oil on canvas Lemming Season. Music majors Rachel Childers, Michael Martinez, and Caleb Martin have been accepted to the College Band Directors National Association Small College Intercollegiate Band. Joanna Hawkins, December 2014 graduate, received the 2015 Odum Award for Undergraduate Research for her capstone paper titled, A Risky Act of Social Justice: Health Care Workers Responding to Outbreaks of Ebola in Africa. This is the top award for an undergraduate paper at the annual meetings of the Southern Sociological Society, and the seventh time in 10 years that a student from Southwestern has won. Isabella (Belle) Jo is the fifth Southwestern student since 2008 to receive the Critical Languages Scholarship (CLS) for China. CLS is a full scholarship to study languages that the State Department deems critical to the U.S. diplomacy. Junior music major Mattie Kotzur won a chair in the World Association for Symphonic Bands and Ensembles International Youth Orchestra. Competing among a group of international musicians, Mattie s flute audition won her the spot in the prestigious ensemble. Hewlett Packard, along with the National Center for Women & Information Technology (NCWIT), selected Natalia Rodriguez 15 as one of three inaugural winners of the NCWIT Collegiate Award. The award recognizes three undergraduate women for completing outstanding technical projects at the junior level or above. The senior computer science major was also recently selected to be the new student board member on the Board of Trustees for the Anita Borg Institute, a global organization dedicated to women in technology. Senior Marianne Brown will begin her seminary studies at Brite Divinity School in Fort Worth immediately after graduation. She is a member of the Central Texas Conference. Athletics Accolades earned by Southwestern student-athletes and coaches in 2015 included: Approximately one-third of the student body (500+/-) student-athletes participate in the University's 20-sport NCAA Division III Intercollegiate Athletic Program. For the fall 2015, the Athletic Department generated 42% of the total deposits for the University. Additionally, the Athletic Department generated 64% of the deposits for incoming male students. The net tuition revenue for student-athletes has been consistently been higher than non-athletes; the rolling ten-year average differential is $1,567. The student-athletes cumulative grade point average is consistent with that of non-athletes, both of which are slightly above 3.0. In the fall of 2015, 51 members of the football team had GPAs over 3.0 with 13 of the players being named to the Dean's List. J - 85

86 2016 NORTHWEST TEXAS ANNUAL CONFERENCE The Athletic Department added several new head coaches in the fall of 2015, one of which is internationally renowned Women's Soccer Coach, Linda Hamilton. Coach Hamilton played for the United States World Cup Team for nine years including being a starter on the team that won the first World Cup for women. She joins five-time Olympian, Francie Larrieu Smith, in bringing world class expertise to the Athletic Department. The women's basketball team won the SCAC Championship last spring while the women's volleyball team won the championship this past fall. For volleyball, it marked their ninth trip to the NCAA National Tournament. The men's golf team is currently ranked 7th in the nation; last spring they finished 22nd in the nation at the NCAA National Men's Division III Golf Championships in Greensboro, NC. Late in the fall 2015 semester, the Athletic Department announced entering into a football-only affiliated membership with the America Southwest Conference, which will provide the football program with a guaranteed schedule in one of the strongest NCAA Division III football conferences in the country. Annie Bourne set a new SCAC Career Rebounding mark and was named SCAC Defensive Player of the Year. Lauren Boone comes from behind to win the 2015 SCAC Women s Golf Individual Title and is named SCAC Women's Golfer of the Year. Cozette Palmer posts the first ever no-hitter in SCAC Tournament history. Men s tennis makes its first-ever trip to the SCAC Championship match and sets new a SU record for wins in a season. Billy Porter earns SCAC Coach of the Year. Cody Taylor wins third consecutive Pole Vault championship as the first-ever athlete to accomplish this feat in SCAC history. Cody Hebert birdies the first hole of a three-man, sudden-death playoff to make the individual cut at the NCAA Championship. Will Cates was named SCAC Player of the Year; DIII Baseball All-America Honorable Mention, and CoSIDA Academic All-America Third Team. Speakers and Symposia For the first time, the Race and Ethnicity Studies program hosted an interdisciplinary symposium during Martin Luther King Week. The symposium featured six Southwestern faculty members and Southwestern alumna Tara Leday 14 and focused on the research on race and racial discrimination. The 2015 Brown Symposium focused on how 3-D printing is changing the fields of sculpture, music, and medicine. The Representing Gender Paideia Cluster will be hosting the 11 th annual ACS Gender Studies Conference on campus. The Conference will feature Dr. Banu Subramaniam, a professor of Women, Gender, and Sexuality Studies at the University of Massachusetts as the keynote speaker and 24 panel presentations from students and faculty across the globe. The Roy and Margaret Shilling Lecture Series will welcome Sister Helen Prejean to campus on April 19, 2016, as she presents Dead Man Walking The Journey Continues detailing her personal experience as the spiritual adviser to death row inmate, Patrick Sonnier, as he awaited execution. Southwestern is participating in the Dead Man Walking Project dedicated to raising awareness about the death penalty in colleges and secondary schools. The University will celebrate its 172 nd Commencement Convocation on May 7, Keynote speaker will be Janet H. Brown, Executive Director of the Commission on Presidential Debates (CPD). Ms. Brown has led the organization of 26 general election presidential and vice presidential debates at the CPD, a non-partisan, non-profit corporation that sponsors and produces televised presidential debates during each U.S. general election. In Conclusion I would like to take this opportunity to personally invite you to visit Southwestern and see first-hand this intellectual community that is thinking, creating, and connecting ideas to make meaning and make a difference. J - 86

87 2016 REPORTS TEXAS UNITED METHODIST COLLEGE ASSOCIATION Bishop Dan E. Solomon, President S. 14 th & Sayles Blvd., McMurry Station, Abilene, TX The mission of the Texas United Methodist College Association remains strong. Our total distribution to the TUMCA schools for their scholarship use reflects an increase over last year. It is important to note that TUMCA funds granted to SMU, Southwestern, Texas Wesleyan, and McMurry are restricted to scholarships for deserving students from United Methodist congregations in Texas. No funds can be used for bricks and mortar. Many TUMCA scholars are first generation college students. Thanks be to God and The United Methodist Church for TUMCA S privilege to serve at this remarkable intersection of faith and learning. John Wesley is surely smiling because of the way in which TUMCA has united the pair so oft disjoined, knowledge and vital piety. TUMCA students are profoundly grateful for these critical scholarship funds. Among the many letters from appreciative TUMCA scholars is this quote, I am the first of my brothers and sisters to go to college. My desire to go to a United Methodist school would not have been realized without my TUMCA scholarship. I love my school! The professors are terrific and chapel is really cool. While the TUMCA apportionment is modest for any congregation, the impact of these funds is enormous, beyond the financial assistance; the recipients of the TUMCA scholarships receive hope, affirmation, encouragement, and the development of leadership and servant ministry skills that will serve the church as future clergy, laity leaders, teachers, and responsible business and community leaders. TUMCA is an extension of a congregation s mission beyond its walls, affirming to our youth that their congregation will partner with them in the next chapter of their educational journey. TEXAS WESLEYAN UNIVERSITY Frederick G. Slabach, President 1201 Wesleyan Street, Fort Worth, TX Texas Wesleyan continues to lead a renaissance. With rigorous academics in the classroom and the revitalization of its surrounding community, the University is developing a critical thinking hub in southeast Fort Worth. Over the last four years, Texas Wesleyan has dedicated its time and resources to developing critical thinking and analytical reasoning skills in our students. By putting these skills first, the University is preparing students to ask questions, think for themselves, and lead change in their communities and beyond. Major Highlights: TUMCA funds awarded to Methodist students and Methodist ministers dependents greatly helps Methodist students obtain their education. A total of $113,709 was awarded to 27 Methodist students from Texas. Additionally, six John Wesley Scholar matching scholarships were awarded. Texas Wesleyan has awarded $40,397 in Templeton Scholars Awards in Religion and more than $32,708 in Lydia Patterson scholarships to two students, also majoring in Religion. More than 1,000 people gathered at Texas Wesleyan University on Oct. 22 to celebrate the Rosedale Renaissance and the transformation of campus and Southeast Fort Worth. The Central Texas Conference of the United Methodist Church brings 25 new jobs to the area with the relocation of the CTCUMC new office complex on the Wesleyan campus. $1.8 million investment in streets adjacent to campus that leverages $32 million in street improvements along the East Rosedale corridor Wesleyan s endowment continues to grow, and now it exceeds the 2020 goal of $50 million. Endowed funds provide permanent support for student scholarships and academic excellence. Continuing to build the endowment is crucially important to the university s long-term financial strength. Texas Wesleyan University announced that it will reestablish the University's football program with a red-shirt leadership class that will begin practicing during the season. Games are scheduled to begin in the season. Steve Trachier, athletics director, announced seven-time TAPPS state football champion Joe Prud homme as the new head coach of Texas Wesleyan s reinstated football program. Prud homme began his duties as coach Monday, Feb. 29. Enrollment continues to grow to the highest in a decade, and average SAT scores rose steadily to Updated campus security measures have created an even safer campus. New fencing, cameras and upgraded lighting continue to make Texas Wesleyan one of the safest campuses in North Texas. Net assets have increased from $60.9 million in 2012 to $114 million in 2015 an 88 percent increase. SACS, the university s accreditation body, had a metric of unrestricted assets (less plant and related debt) that remained positive in More than $1 million in earned public relations media from outlets like the Fort Worth Star-Telegram, The New York Times and every major TV news outlet in the Dallas-Fort Worth market. J - 87

88 2016 NORTHWEST TEXAS ANNUAL CONFERENCE The fastest-rising university in public perception and awareness among benchmark institutions (including UNT and UT-Arlington) in the North Texas region. More than 40 advertising awards from regional and national organizations, including two gold awards and one silver award at the 2015 Fort Worth Addy Awards, and an Emmy nomination at the Lone Star Emmy Awards. Highest possible financial ratio scores from the Department of Education. Launched in fall 2014, the StART program creates a robust communication network among campus partners to assist with identification and reporting of students of concern. StART is committed to a safe and healthy student experience and serves the community by assisting students who may be in crisis. U.S. Rep. Kay Granger 65 HON 92 (R-Texas), received the Law Sone Medal at Texas Wesleyan s 125th Anniversary Gala held Feb. 20 at the Worthington Renaissance Hotel in Downtown Fort Worth, where Lockheed Martin was the presenting sponsor. The Sooner Athletic Conference has named Basketball Head Coach Brennen Shingleton as the SAC Coach of the Year. Texas Wesleyan University and Mansfield ISD announced a new partnership that gives Mansfield ISD high school students the opportunity to get a jump start on their teaching career and college education. In the spring of 2017, Texas Wesleyan School of Education professors will be teaching college classes in MISD high school classrooms for students who enroll in the program. A new campus Combined Heat and Power (CHP) system that went online in March is projected to save the university $377,000 annually on utility costs. Ndaba Mandela, grandson of Nelson Mandela, and Naomi Tutu, daughter of Desmond Tutu, were the speakers at this year s Willson Lectureship. The event drew students, faculty, staff and guests from around North Texas. For the sixth year in a row, U.S. News & World Report ranks Texas Wesleyan University in the No. 1 tier of universities in the West. Academic programs that integrate high student engagement through faculty-student interactions, experiential learning, technology use, internships, study abroad and peer collaboration. Stella Russell Hall got a major makeover during the summer that included a complete renovation of the restrooms and showers, new flooring throughout and an updated kitchen, complete with cabinets and stonework. A Day with Tao, a documentary by professors Mark Hanshaw and Lili Zhang, earned a silver Remi for second place in the short documentary category at the 48 th annual WorldFest-Houston International Independent Film Festival. Campus improvements once dependent on money from the operating budget will now be funded by a capital improvement plan funded by the sale of the law school in About $11 million, or $1.75 million a year, will go toward technology improvements, facility improvements, new academic program plans and deferred maintenance. Best-selling author and journalist David Thomas kicked off the new Marjorie Herrera Lewis Speakers Series in March. Author of eight books including Foxcatcher, (which inspired the Oscar-nominated film) and All In, Thomas is an award-winning writer and former Fort Worth Star-Telegram sports columnist who covered sports for nearly three decades. Learning skills without risking patient health is easier now, thanks to the Texas Wesleyan Simulation Symposium, held in June. In this inaugural year, 110 first-year nurse anesthesia students rotated through 10 simulations, ranging from ultrasound to central lines to regional blocks. The Rambler Media Group won two awards from the Associated Collegiate Press in October. The Rambler Media Group (RMG) website, therambler.org, came in second in the Website Small School category at the 2015 National College Media Convention Best of Show competition. The Rambler came in eighth among Four-year Less Than Weekly newspapers. The East Fort Worth Business Association named Texas Wesleyan University as its Organization of the Year for The Texas Wesleyan School of Business Administration is ranked No. 12 in Online Accounting Degree Programs list of the Top 30 Small College Business Programs in the United States. Blessings abound at Texas Wesleyan University as we continue to educate our students in a Smaller. UNITED THEOLOGICAL SEMINARY Dr. Kent Millard, Interim President 4501 Denlinger Road, Dayton, OH United Theological Seminary along with the other 12 United Methodist Seminaries in the United States is committed to helping persons rekindle the gift of God that is within to provide educated, inspired and inspiring spiritual leaders for the United Methodist Church throughout the world. J - 88

89 2016 REPORTS United Theological Seminary in Dayton, Ohio continues to educate a significant number of pastors and local church leaders for the Northwest Texas Conference of the United Methodist Church. United has always focused on developing faithful, fruitful, inspired and inspiring pastors and local church leaders. 83% of the 2015 graduates of United are now serving in local congregations. 53% of the 2015 graduates from all other seminaries affiliated with the Association of Theological Seminaries are serving in local congregations. Furthermore, 44% of the current 449 students at United are African American which makes United one of the most racially diverse seminaries in the United States. An average of 12% of the student body at most seminaries in the United States are African American. 43% of the students at United are female compared to an average of 33% at other United States seminaries. United is one of the most racially and gender diverse seminaries in the United States and produces a higher percentage of local church pastors than most other seminaries in the United States. United is also in the process of leadership transition. In November, 2015 President. Wendy Deichmann resigned as President and, after a well-deserved sabbatical, will return to serving as a Professor of History and Theology. Under President Deichmann, United was listed as one of the 12 fastest growing seminaries in the United States largely because of the growing Doctor of Ministry program and our on line degree programs. 44% of United's students are in the Master of Divinity program, 41% are in the Doctor of Ministry program and 15% are in other degree or certificate programs. In January, 2016 The United Board of Trustees selected Dr. Kent Millard, former pastor at St. Luke s United Methodist Church in Indianapolis, as Interim President while they search for a new President. St. Paul wrote to his young friend Timothy these words of advice: I remind you to rekindle the gift of God that is within you through the laying on of my hands. Second Timothy 1:6 United Theological Seminary along with the other 12 United Methodist Seminaries in the United States is committed to helping persons rekindle the gift of God that is within to provide educated, inspired and inspiring spiritual leaders for the United Methodist Church throughout the world.. WESLEY THEOLOGICAL SEMINARY David McAllister-Wilson, President 4500 Massachusetts Ave NW, Washington, DC Called. Answered. Sent Wesley Theological Seminary has been equipping and sending forth prophetic preachers, teachers, and leaders into diverse ministries throughout the church and around the world. Near and far, our alumni point to God s love even as they join the Spirit in making disciples and shaping healthy communities. With more than 410 master s-level students preparing for leadership in the church and the world, Wesley remains one of the largest and most diverse theological schools in North America. The Lewis Center for Church Leadership informs more than 17,000 pastors and lay leaders on trends and ideas through its e-newsletter. The center has influenced more than 5,600 church leaders through leadership assessments, sexual ethics trainings, and fundraising trainings. The new Institute for Community Engagement is forwarding Wesley s mission of raising prophetic leaders in the public square through classes, partnerships, conferences, and resources. Wesley Students Are Answering God s Call Wesley provides more than $2 million dollars annually in scholarships to our students thanks to the consistent support of alumni, congregations and friends of the seminary. The Ministerial Education Fund and conference partners help us equip a broad range of students to serve the church as pastors and leaders. These include: - Two Master of Divinity students who are exploring ordination in the UMC that have created outreach opportunities for people who ordinarily would not consider going into a church. Zach Spoerl and Matt Wilke, working with three United Methodist Churches and Wesley, have started Pub Theology in downtown D.C., drawing spiritual-but-not-religious young adults into Christian community. - Master of Theological Studies student Jane Adams is working with denominations and congregations on issues of poverty and hunger in the U.S. As an intern at the Center for Faith-Based and Neighborhood Partnerships at the U.S. Department of Health & Human Services, she provides tools for building on charitable activities such as food pantries and backpack ministries. As a member of a local United Methodist congregation, she s putting her knowledge to work in her local church and neighborhood, too. Christian leadership must innovate for greater faithfulness and be able to engage the full diversity of people within our society even while holding true to the foundations of our faith and tradition. The people named above as well as so many more of our students exemplify these aims. Read more about our students at wesleyseminary.edu/stories. Mourning the Loss of a Christian Leader J - 89

90 2016 NORTHWEST TEXAS ANNUAL CONFERENCE The Rev. Clementa Pinckney was a Doctor of Ministry student at Wesley in the Leadership Excellence track. He was working on a research project on the combined role of pastor and statesman, when his life was taken along with eight others at Mother Emanuel AME Church in Charleston, S.C. Rev. Pinckney exemplified the spiritually powerful and prophetic leadership that is at the core of our mission. To ensure Pinckney s legacy continues, Wesley has established scholarships in his name for Doctor of Ministry candidates seeking to empower their congregations, engage their communities, and influence public discourse. Additionally, Wesley has developed a Doctor of Ministry track exploring the intersection between public life and church leadership. This degree focus amplifies Wesley s mission and location and, we hope, will raise up leaders to continue Pinckney s legacy. Seeking Connection We are on this journey of faith together. As you follow Jesus Christ, we pray and trust the Spirit will equip you to mentor future leaders and to help others identify God s call to ministry on their lives. Let us know about someone you feel has the potential for Christian leadership by ing us admissions@wesleyseminary.edu. And may God s transformative, creative Spirit lead all of us, as the body of Christ, to new and faithful ways of sharing God s grace and love with all God s people, for the redemption of the world. Learn more at wesleyseminary.edu. CONFERENCE BOARD OF PENSION AND HEALTH BENEFITS Natalie Hermes, Chairperson 4 Even to your old age and gray hairs I am he, I am he who will sustain you. I have made you and I will carry you; I will sustain you and I will rescue you. 1 Sustainability Focus In their most recent annual report, the General Board of Pension and Health Benefits (GBOPHB) leadership note that our foremost goal is the sustainability of the pension and benefit plans we administer. They further explain that sustainability means to have those plans in place, and able to provide benefits when they are expected, for as long as there are participants to be covered. The Northwest Texas Conference Board of Pension and Health Benefits has an identical focus. Everything we do is in service to our participants, to make sure that we are good stewards of the resources with which God has entrusted to us, upstanding and outstanding fiduciaries of the interests of the participants as well as those who help fund the benefits, and responsible citizens of God s kingdom. Financial Sustainability We continue to bring news of improvement in our financial position and stability. Over the last five years we have received performance dividends of $1.5 million from HealthFlex, our group health insurance provider. We received these dividends because of our favorable claims ratio and because of favorable investment results. Your Conference Board of Pension and Health Benefits voted to grant a one-month HealthFlex premium holiday in each of the past three years as well as again in And As further explained in the 2017 Comprehensive Funding Plan Summary section of this report, annual conferences are required to submit a Comprehensive Funding Plan to the GBOPHB. This is a formal funding plan that describes how a conference will pay for their benefit programs. The intent of the funding plan is to align benefit design expectations with conference funding patterns and realities. Our funding plan for 2014, 2015, 2016 and again for 2017 has been approved by GBOPHB as meeting their funding statndards. Sustainability and Health Care In 2013, the Conference partnered with OneExchange to offer Medicare Supplement and Medicare Advantage Plans to retired, medicare-eligible clergy and their spoiuses. Each clergy-person (and spouse) with at least 10 years of service receives an health reimbursement account to use to pay insurance premiums or any eligible medical expense. Moving to this model allowed retirees to obtain the health care that best fits their needs for a reasonable cost while making the plan more affordable, and thus sustainable to the Conference. Change is not limited to our retirees, however. The Affordable Care Act (ACA) directly affects the health plan of the Northwest Texas Annual Conference. For example, in 2011 HealthFlex expanded coverage to participants children up to age 26, removed co-payments from many preventive health services, removed lifetime limits from the plan and ended pre-existing conditions exclusions. In 2014, the ACA created health insurance marketplaces for individuals and small employers. Individuals without affordable employer-provided coverage will be able to purchase affordable coverage through these exchanges. In addition, those in low and moderate income groups will be eligible for government assistance to purchase that coverage. 1 The Holy Bible: New International Version. (1984). (Is 46:4). Grand Rapids, MI: Zondervan. J - 90

91 2016 REPORTS As further explained in the Health Insurance:HealthFlex Exchange portion of this report, the Conference Board of Pension and Health Benefits looked at the challenges as well as the opportunities for local churches and the annual conference that the changing health care environment presents. In 2014, an Insurance Task Force was formed to look at the sustainability of our current HealthFlex plan as well alternatives. At the same time, the GBOPHB established a HealthFlex Exchange. The fruit of the labors of both groups are discussed later in this report along with a resolution to move to the HealthFlex Exchange in As noted in Resolution III, the CBOPHB is proposing an increase of 2% in the Past Service Rate (PSR) for the Pre Pension Plan (see summary of that plan s provisions in the 2017 Comprehensive Funding Plan Summary which follows). For clergy who retired prior to 2000, the Pre-1982 benefits may make up 10% or more of their total pension from The United Methodist Church. However, for later retirees, the Pre-1982 benefits become less and less significant. In recognition of this reality, the CBOPHB has set aside $200,000 with which to make one-time grants to retirees receiving Pre-1982 benefits and who may be experiencing financial hardship and for whom the current or future increases, if any, in the PSR may prove to be inadequate COMPREHENSIVE FUNDING PLAN SUMMARY INTRODUCTION The 2012 Book of Discipline requires that each annual conference develop, adopt and implement a formal comprehensive funding plan for funding all of its benefit obligations. The funding plan shall be submitted annually to the General Board of Pension and Health benefits for review and be approved annually by the annual conference, following the receipt and inclusion of a favorable written opinion from the General Board of Pension and Health Benefits (GBPHB). This document is only a summary of the information contained in the actual signed funding plan and does not contain all the information required for a comprehensive view of the conference s benefit obligations. You may request the full contents of the 2017 comprehensive benefit funding plan from your conference benefit office. CLERGY RETIREMENT SECURITY PROGRAM (CRSP) Defined Benefit (DB) and Defined Contribution (DC) Program overview: The Clergy Retirement Security Program (CRSP) is an Internal Revenue Code section 403(b) retirement program providing lifetime income and account flexibility designed for those who serve as clergy of The United Methodist Church. The program is designed to provide participants with one portion of their overall retirement benefits. CRSP replaced the Ministerial Pension Plan (MPP) effective January 1, 2007, which had previously replaced the Pre-82 Plan for service rendered prior to January 1, CRSP consists of both a defined benefit (DB) plan, which provides a monthly benefit at retirement based upon years of credited service to The United Methodist Church, and a defined contribution (DC) plan, which provides a retirement account balance established and funded by the annual conferences. Current funding plan information: The Clergy Retirement Security Program (CRSP-DB) annuities total liability as of January 1, 2015 is $1.271 billion, while total plan assets are $1.407 billion, resulting in a current plan funded ratio of 111%. The Northwest Texas Conference portion of the liability is % with a 2017 contribution of $807,926. The conference anticipates that the amount will be funded by Direct Billing to each church with clergy under appointment: Additionally, General Conference 2012 approved a change to CRSP that provides each annual conference the discretion to determine whether to cover three-quarter and/or half-time clergy. The Northwest Texas Conference has elected to cover clergy serving at 50%+ appointments under CRSP. Provision CRSP (1/1/07-12/31/13) Modified CRSP (Effective 1/1/14) Defined benefit formula 1.25% of DAC per year of service 1.00% of DAC per year of service DC non-matching contribution 3% of participant compensation 2% of participant compensation DC matching contribution N/A 100% of participant UMPIP contributions up to a maximum 1% of participant compensation In the above table, DAC refers to Denominational Average Compensation. Effective January 1, 2014 the CRSP-DC plan was reduced from a 3% to a 2% of plan compensation non-matching contribution. Clergy have the opportunity to earn up to an additional 1% CRSP-DC contribution by contributing at least 1% of their plan compensation to UMPIP; therefore, if a participant contributes at least 1% of plan compensation to UMPIP, the individual will receive a contribution of 3%, which is unchanged from The 2017 CRSP-DC contribution is anticipated to be $194,898 and will be funded by Direct Billing to each church with clergy under appointment. The Conference Board of Pension and Health Benefits (CBOPHB) has elected to bill each church 3% of plan compensation regardless of the clergy-person s participation in UMPIP. Any such funds collected will be used to offset administrative costs. J - 91

92 2016 NORTHWEST TEXAS ANNUAL CONFERENCE A summary of the direct billin rates for CRSP-DB, CRSP-DC and CPP (discussed later) follows: Rates CRSP Defined Benefit 9% CRSP Defined Contribution 3% CPP 3% Total 15% MINISTERIAL PENSION PLAN (MPP) Plan overview: Supplement Three to the Clergy Retirement Security Program (CRSP), also known as the Ministerial Pension Plan (MPP), provides clergy with a pension benefit for their years of ministry with The United Methodist Church from 1982 through MPP is an Internal Revenue Code section 403(b) retirement plan. Effective January 1, 2014, exactly 65% of the account balance must be annuitized when the funds are to be distributed. The remainder may be rolled over to UMPIP, into an IRA or another qualified plan, or it may be paid out as a lump sum. Current funding plan information: The Ministerial Pension Plan (MPP) annuities total liability as of January 1, 2015 is $3.122 billion, while total plan assets are $3.509 billion, resulting in a current plan funded ratio of 112% and no required contribution for The Northwest Texas Conference s portion of the total liability is %. Future MPP annuitants have a total account balance of $4.145 billion and the Northwest Texas Conference s portion of that balance is $37,936,469 or 0.92% of the total. PRE-1982 PLAN Plan overview: Supplement One to the Clergy Retirement Security Program (CRSP), also known as the Pre-1982 Plan, provides clergy with a pension benefit for their years of ministry with The United Methodist Church prior to The Pre Plan was replaced by MPP effective January 1, If a clergy person retires within the Conference (and does not terminate), the minimum benefit payable is based on two factors: 1) years of service with pension credit and 2) the Conference Past Service Rate (PSR). Years of service with pension credit are approved by each Conference on the recommendation of the Conference Board of Pensions (CBOP) in accordance with plan provisions and The Book of Discipline. The PSR is the dollar amount chosen by the Conference as the amount payable for each approved year of service with pension credit. The PSR may change from year to year. The number of years of service with pension credit is multiplied by the PSR, and the product is the minimum annual benefit payable to those clergy eligible for Pre-1982 Plan benefits. In certain situations, the benefit received from the Pre-1982 plan may vary based on the applicability of what is referred to as Defined Benefit Service Money (DBSM), which is the defined contribution feature of the Pre-1982 Plan. At the time that a participant retires, the DBSM account is converted to a life based benefit and, at that point, the clergy s benefit is the greater of the PSR or DBSM benefit. If the conference increases the PSR, the clergy s benefit is recalculated; but the DBSM based benefit does not change. Current funding plan information: The 2017 PSR recommended to the Northwest Texas Conference will be $640.00, representing a 2.07% increase from the 2016 rate. The CBOPHB expects to increase the PSR in the future but to also consider one-time grants as the number of pastors receiving Pre-1982 Plan benefits decreases and/or those benefits become a smaller portion of the clergy person s overall retirement benefits. The contingent annuitant percentage is recommended to remain at the 75% level. Based on the final actuarial valuations from the General Board of Pension and Health Benefits as of January 1, 2015 for 2017, the portion of the Pre-1982 liability and assets attributable to the Northwest Texas Conference and its related funded status are as follows: Funding Plan Liability $(17,617,373) Assets, including In-Plan and Outside 17,618,000 Funded Status $627 Funded Ratio 100% ACTIVE HEALTH BENEFIT PROGRAM Program Overview: The Northwest Texas Conference offers the HealthFlex benefit plan through the General Board of Pension and Health Benefits (GBOPHB) a self-funded plan - to its active eligible participants. Current funding plan information: The total cost of the program for 2017 is anticipated to be $2,102,892 and will be funded by premiums that are Direct Billed to the salary-paying units of the eligible participants (local churches and extension ministries). It is anticipated that premium increases for future years will average 4.0%. However, the Conference Board of Pension and Health Benefits (CBOPHB) is proposing moving to the HealthFlex Exchange in 2017 which may mitigate future premium increases (see discussion of HealthFlex Exchange later in this report). J - 92

93 2016 REPORTS Claims Incurred But Not Reported (if applicable) As of 12/31/2015, the estimated IBNR claims total is $210,289 and will be funded through the Direct Billings to the salary-paying units. POST-RETIREMENT MEDICAL BENEFIT PROGRAM (PRM) Program Overview: The Northwest Texas Conference offers post-retirement medical benefits through OneExchange (formerly Extend Health). Current funding plan information: The conference s expectation for 2017 is to offer a Health Reimbursement Account (HRA) account funded up to a maximum of $1,200 per retiree and surviving spouse. The funding obligation for 2017 is anticipated to be $114,748 and will be funded through Shared Ministries (apportionments). On a longer term basis, the conference intends to ensure funding through Shared Ministries and reserves. Based on the most recent PRM valuation dated 12/31/2015, the following is the funded position of the postretirement medical benefits: Expected Post Retirement Obligation (EPBO) or net conference cost $5,584,123 Accumulated Post Retirement Obligation (APBO) or net conference cost $4,579,780 Assets designated for PRM $4,750,582 Service Cost (SC) or net conference cost $114,748 As a preview of the 2018 CBFP requirement, a new PRM Funding Contribution requirement will be mandatory for conferences requesting a full favorable CBFP opinion. This year the calculation for informational purposes only is as follows: Funded Status, [3. 2.] $170,802 Number of Annual Payments 20 Portion of Funded Status Payable $0 PRM Funding Contribution, Informational purposes only [ ] $114,748 These values are based on a 4.05% long term discount rate, a 4.05% long-term expected rate of return on assets, and a current medical trend rate of 6.50% with an ultimate medical trend rate of 5.0%, beginning in COMPREHENSIVE PROTECTION PLAN (CPP) Plan Overview: The Comprehensive Protection Plan (CPP) provides death, long-term disability and other welfare benefits for eligible clergy of The United Methodist Church and their families. It is an Internal Revenue Code 414(e) church plan funded by plan sponsor insurance premiums. Generally, clergy are eligible to participate in CPP if the conference or salary-paying unit sponsors the plan and they are able to satisfy the eligibility requirements which include full-time appointment with plan compensation equal to or greater than 60% of the Denominational Average Compensation (DAC) or the Conference Average Compensation (CAC), whichever is less. For 2017, the Northwest Texas Conference has an expected required contribution to the Comprehensive Protection Plan of $292,347, which is anticipated to be funded by Direct Billing to the salary-paying unit. The anticipated average increase in future years is expected to be 3.00% per year as a result of compensation increases. UNITED METHODIST PERSONAL INVESTMENT PLAN (UMPIP) FOR LAY AND CLERGY Plan Overview: The United Methodist Personal Investment Plan (UMPIP) is an Internal Revenue Code section 403(b) defined contribution retirement savings plan for clergy and lay employees of The United Methodist Church and affiliated organizations. Participants may make before-tax, Roth and/or after-tax contributions through payroll deductions. Participant contributions, various optional plan sponsor contributions and investment earnings comprise the individual s retirement account balance. Current funding plan information: Conference office lay employees working an average of 30 hours per week or more are eligible for a plan sponsor funded pension contribution of 6% of salary. Lay employees are encouraged to make contributions toward their retirement through payroll deductions to the UMPIP. The estimated contribution for the Northwest Texas Conference is anticipated to be $15,000 and will be funded via Shared Ministries. OTHER CONFERENCE BENEFIT OBLIGATIONS: DEFINED CONTRIBUTION (DC) TYPE Plan Overview: The Northwest Texas Conference currently offers the following DC benefit(s): Retiree Moving Expense. The funding obligation for 2017 is anticipated to be $7,500 with the funding sources to be: Apportioned. Cost is limited to $1,250 per retiree. Plan Overview: The Northwest Texas Conference currently offers the following DC benefit(s): UNUM. The funding obligation for 2017 is anticipated to be $3,500 with the funding sources to be: Apportionments. The anticipated average increase in future years is expected to be 2.0% per year due to inflation. J - 93

94 2016 NORTHWEST TEXAS ANNUAL CONFERENCE Plan Overview: The Northwest Texas Conference currently offers the following DC benefit(s): HealthFlex Premium Holiday. The funding obligation for 2017 is anticipated to be $180,000 with the funding sources to be: 2017 from 2016 HealthFlex dividend of $193K. This benefit is voted year-to-year and is dependent upon HealthFlex performance dividends. CONCLUSION The 2017 Comprehensive Benefit Funding Plan and the above Summary document incorporates, to the best of our understanding, the Northwest Texas Conference s obligations and funding requirements of the benefits provided to the clergy and laity of the Northwest Texas Conference. J - 94

95 2016 REPORTS HEALTH INSURANCE 2016 CENSUS Active members Particpant only 31 Participant Participant +family 60 Surviving spouse/family 1 Retirees under 65 5 OneExchange BILLING RATES: Clergy Couple/Family $1,472 monthly Clergy Single $1,062 monthly Please refer to HealthFlex Exchange section for proposed changes for 2017 ADMINISTRATIVE REQUIREMENTS. The following administrative procedures and requirements of the group insurance program, as published in the current report of the Board of Pension and Health Benefits, shall be observed as a rule of the conference and will be the official policy for the ensuing year. INTERPRETATION. Questions of interpretation of official policy coverage and limitations shall be decided by the Conference Board of Pension and Health Benefits. The executive committee may act for and in behalf of the Board in emergency situations by conference calls. MANDATORY PARTICIPATION. Mandatory participation in the insurance program shall include clergypersons appointed to full-time service to a local church or within the connectional structure of the conference who is: a provisional member a local pastor a retired clergy appointed as full-time retired supply an ordained clergyperson from another annual conference or another Methodist denomination an ordained clergyperson from another denomination, unless such clergyperson is covered through the group health plan of the denomination to which he or she belongs an associate member or clergy member in full connection granted sabbatical leave ** Please note: When a member of annual conference is no longer in a mandatory category, but does not fit in one of the optional categories as described below, they can choose to participate in continuation coverage for 9 months. MANDATORY COVERAGE: Every church with a full-time pastor must provide coverage for their pastor. Currently, the church must provide at least participant-only coverage. Under the proposed move to the HealthFlex Exchange (see below and Resolution IV) each church with a full-time pastor will be billed the identical, blended rate. The district superintendent shall inform all clergy of the provisions of the rule and shall notify the office of the Conference Benefits Officer of changes in status of clergy immediately before or immediately after such change becomes effective. Enrollment shall be completed within thirty (30) days of admission on provision, as associates, or by transfer into the conference. ELIGIBILITY. The following are eligible for the Conference health insurance program,. a. Full-time Lay Employees (including lay speakers and consecrated diaconal ministers) b. Full-time Lay Conference Staff Conditions for eligibility: They must work 30 or more hours per week. The church or agency must either offer the Conference Insurance Program to all full time there must be at least 75% participation of all persons eligible to participate. Each church is a separate small group and will have its own plan reviewed for lay coverage as permitted by state law. The premium will be paid at least ½ (or larger percentage as required by law) on a uniform nondiscriminatory basis by the church or employing agency with the employee or staff person responsible for payment of the balance. Coverage is offered through the Northwest Texas Conference group health plan. The local church or other Conference entity must adopt the group health insurance plan as a plan sponsor. The Northwest Texas Conference will bill each church or other entity the premiuns and these premiums will be remitted to the Conference office within 20 days of the billing date. J - 95

96 2016 NORTHWEST TEXAS ANNUAL CONFERENCE BILLING HOLIDAY The Conference Board of Pension and Health Benefits (CBOPHB) voted to extend a one-month billing holiday in August, This will be the fifth such billing holiday granted by the CBOPHB and is funded by the experience dividends (which are based on favorable claims experience) paid to the Conference by HealthFlex/GBOPHB. The billing holiday applies only to salary-paying-units with active participants. It does not apply to retired clergy and/or surviving spouses on the active plan. ADMINISTRATIVE RESPONSIBILITIES. It is the responsibility of the local church or director of the employing agency to notify the Conference Benefits Officer of newly eligible employees and dependents wanting to join the Conference insurance plan. Failure to notify the Conference Benefits Officer within thirty (30) days of employment will result in the employee not having coverage until the next election period. It is also the responsibility of the local church or director of the employing agency to notify the Conference Benefits Officer of terminations of employment. Notifications are required by the 20th of the month to become effective the 1st of the following month. Failure to inform the Conference Benefits Officer of termination makes the employing agency liable for premiums due for both clergy and lay persons enrolled in the Conference insurance program.. INCAPACITY LEAVE. When members of the Annual Conference are granted incapacity leave, such member may continue in the insurance program, provided the Board of Pension and Health Benefits receives written assurance that the current guidelines in the Book of Discipline have been followed, to be received prior to the effective date of the leave. He/She is required to pay ½ of the total premium and the balance will come from the Shared Ministries. If the member does not return to full active service by the end of the twelve (12) month period, he/she will be terminated from the plan. If the member applies for social security disability the conference will cover them for up to twenty-four (24) additional months if necessary or until they are old enough to apply for retired status. PAYMENTS. Payments of the premiums of active clergy participants are the financial responsibility of the salary-paying unit. Payment of the total premiums for all participants must be remitted monthly by, salary-paying unit (e.g. the local church) or the individual participant continuing on the active plan (see above), to the office of the Conference Benefits Officer. Premiums shall be due by the twenthieth calandar day of the month and coverage may terminate as of the first day of the subsequent month unless premiums are received on or before the 30th day of the month. HEALTHFLEX EXCHANGE: In 2009 Congress passed The Patient Protection and Affordable Care Act (PPACA), commonly called the Affordable Care Act (ACA). While some parts of this law have been phased in since 2010, many of the major provisions became effective in 2014 with other provisions delayed or effective over the period 2015 to There are a number of legal challenges to some of the provisions of the ACA currently in the court system and before the Supreme Court. Furthermore, some members of Congress as well as some 2016 presidential candidates want to repeal or amend the law. While the outcome of these court cases and possible legislation makes the future of the ACA somewhat uncertain, denominational leaders and legal counsel at the General Board of Pension and Health Benefits (GBOPHB) believe that amendment of the Affordable Care Act is probable but repeal is unlikely. What is more certain is the health care landscape in the United States has changed and is changing. Health care costs are projected to continue to rise at 5% or more per year. Many employees are being asked to contribute more towards the cost of health insurance and some smaller employers are discontinuing health care coverage. In The United Methodist Church three Conferences have ceased providing health care coverage and other Conferences are considering their options. As (or if) more Conferences opt out of the traditional HealthFlex plans, this may put greater strain on resources and rates for those Conferences that remain in the plan. So that we can be proactive rather than reactive with respect to the changes, challenges and opportunities facing us, the Conference Board of Pension and Health Benefits (CBPHB) formed a task force to research the health care insurance environment and to report back to the CBPHB with any recommendations. The task force members were Natalie Hermes, laity, St. James UMC, Abilene, Chair of CBPHB; Rev. Pam Lehman, FUMC Borger, member CBPHB; Charles Quisenberry, laity, LakeRidge UMC; Tom Mulkey, laity, Business Administrator, LakeRidge UMC; Rev. David Andersen, CFO & CBO, NWTX Conference; Rev. George Price, Abilene District Superintendent; Terry Shoemaker, Conference Liaison, GBOPHB; and Rev. Dr. Jimmy Nunn, Director of Mission and Administration, NWTX Conference. Also helping with the Task Force s work were Andy Hendren, General Counsel of the GBOPHB, and Kelly Wittich, Director of the Center for Health, GBOPHB. As their work progressed, the Task Force investigated a number of options that the Conference could pursue but arrived at a concensus that the option that seemed to hold the most promise was moving to the HealthFlex Exchange and provide participants with a non-taxable definced contribution with which to purchase health insurance. However, there were details yet to be finalized, i.e. (1) the amount of the defined contribution provided to the participants and, (2) the amount(s) to be billed to each church to fund the plan. J - 96

97 2016 REPORTS To help address these issues, the CBOPHB solicited input from the District Superintendents as well as clergy and lay representatives in each district. This feedback was presented to the Insurance Task Force which, in turn, recommended to the Conference Board of Pension and Health Benefits that the Northwest Texas Conference move to the HealthFlex Exchange effective January 1, At its meeting on April 1, 2016, the CBOPHB unanimously approved this recommendation and, accordingly has proposed Resolution IV for approval by the Annual Conference. The key provisions of the plan are: The HealthFlex Exchange is offered through the GBOPHB. Blue Cross/Blue Shield of Illinois will continue to administer our claims. The HealthFlex Exchange offers six (6) diverse plan choices for participants: 1. PPO B $1,000 per person in-network deductible ($2,000 per family); 20% in-network coinsurance after deductible: 2. CDHP C2000 Gold - $2,000 per person in-network deductible ($4,000 per family); $1,000/$2,000 Health Reimbursement Account (HRA) from HealthFlex; 20% in-network coinsurance after deductible; 3. CDHP C3000 Silver - $3,000 per person in-network deductible ($6,000 per family); $250/$500 HRA from HealthFlex; 50% in-network co-insurance after deductible; 4. HDHP H1500 Gold - $1,500 per person in-network deductible ($3,000 per family); $750/$1,500 Health Savings Account (HSA) from HealthFlex; 20% co-insurance after deductible; 5. HDHP H2000 Silver - $2,000 per person in-network deductible ($4,000 per family); $500/$1,000 HSA from HealthFlex; 30% co-insurance after deductible; 6. HDHP H3000 Bronze - $3,000 per person in-network deductible ($6,000 per family); $0 HSA from HealthFlex; 60% co-insurance after deductible. The participant will choose the coverage they want and need from the HealthFlex Exchange with decision support from the GBOPHB. In 2017 each active participant will be given a non-taxable defined contribution (DC) in an amount appropriate for their coverage type (participant, participant +1, participant +family) to purchase the PPO B1000 plan the most expensive plan offered - with no out-of-pocket cost. If a lesser-cost plan is chosen, any excess between the DC and the cost of insurance would go into a Health Reimbursement Account (HRA) or Health Savings Account (HSA) for that participant. If the participant chooses a plan (or plan options like dental or vision benefits) that cost more than the DC, then the participant would have to contribute the difference. In 2018 and thereafter the DC amount will be set by the CBOPHB and move independently from the cost of the HealthFlex Exchange plans. Each salary-paying-unit (e.g. local church) will be billed a set amount per active participant. This amount will be determined by taking the aggregate premium costs to be billed by HealthFlex/GBOPHB to the Conference divided by the number of participants. The initial rate will be determined as noted but is estimated to be approximately $1,400 per month per participant. The per-participant billing to each salary-paying-unit is the same regardless of the coverage type chosen by the participant (participant, participant +1, participant +family). As used in this summary, PPO means Preferred Provider Option, CDHP means Consumer-Driven Health Plan, HDHP means High-Deductible Health Plan. An HRA is a tax-advantaged account used to pay qualified medical expenses. Unused HRA balances carry-over year-to-year as long as employed by UMC and into retirement. A HSA is a tax-advantaged account established in connection with high-deductible plans used to pay qualified medical expenses. Unused HSA balances carry-over year-to-year regardless of UMC employment and into retirement. The Insurance Task Force and your Conference Board of Pension and Health Benefits believe moving to the HealthFlex Exchange provides many benefits that will help us offer sustainable, affordable health care plans for our clergy. Accordingly, the Board brings legislation Resolution IV - to the 2016 Annual Conference for its consideration. J - 97

98 2016 NORTHWEST TEXAS ANNUAL CONFERENCE RETIRED CLERGY MEDICAL BENEFITS: The Northwest Texas Annual Conference has partnered with OneExchange to provide a choice of Medicare Supplement and Medicare Advantage health insurance plans for our retirees who are Medicare eligible. These plans are combined with an individual Health Reimbursement Account (HRA) for each retiree and spouse, as applicable. The Conference shall fund the HRA for 2017 in the amount of up to $1, annually for each eligible participant (retiree, spouse or surviving spouse). The HRA amount will be recommended annually by the Board of Pension and Health Benefits for approval by the Annual Conference. Rules for HRA eligibility include: Must be eligible for Medicare Parts A & B due to age (at least age 65) or a Medicare eligible participant on Social Security Disability Must enroll in a medical plan with OneExchange and remain enrolled. If the retiree enrolls in a plan outside of OneExchange, s/he loses HRA eligibility. If the retiree s policy through OneExchange is cancelled for any reason, or is in arrears on premium, s/he loses HRA eligibility. Retirees and spouses who are under age 65 and not Medicare-eligible, may remain on the active health insurance plan until they reach Medicare eligibility. Any pastor who retired on or before June 30, 2013, and is under the age of 65 and therefore, still on our active plan, will be grandfathered under the old plan and will continue to receive a subsidy of ½ of the active premium between the ages of 62 and 65. For persons retiring on or after July 1, 2013, each retiree and or spouse will be eligible for the HRA according to the following schedule and age brackets: Under age 62: retired participant may remain on the active plan and pay 100% of the premium (see below) and the conference pays 0% Age 62 to 65: retired participant may remain on the active plan and pay the difference between the active premium and the HRA funding set for retirees based on years of service in any United Methodist conference at the time of retirement. The rate for the spouse under age 65 of a retired clergy shall be the actual premium cost of the plan chosen in the HealthFlex Exchange (see below), reduced by the monthly amount of the HRA, based on the clergyperson s years of service (see Vesting Schedule below). Age 65 and older: retired participant will be offered the opportunity to enroll in an open-market Medicare plan through OneExchange. The active plan will be whatever plan is adopted by the Annual Conference. If the Annual Conference approves the move to the HealthFlex Exchange as of 1/1/2017, all retirees still on the active plan will, likewise, move to the HealthFlex Exchange until they and/or their spouse reach age 65 and enroll in OneExchange. Under the HealthFlex Exchange, each active-plan retiree will be able to choose from the six (6) plans enumerated above (and subject to change as the HealthFlex Exchange adds, deletes or modifies its offerings). Each retiree on the active plan will be billed the actual cost of the premium for the plan chosen subject to the rules above. A contribution will be made to the retired participant s HRA account based on the following years of service in any United Methodist conference at the time of retirement. Years of service will be determined by the Total Years of Service Report at the General Board of Pension and Health Benefits. The percentage of the HRA funding available is shown below: Vesting Schedule 20+ years 100% of HRA amount years 50% of HRA amount 0 9 years 0% of HRA amount The amount of subsidy paid into a OneExchange HRA shall also apply to the clergy person s eligible spouse, surviving spouse, or dependent children age 26 and under. If a retired participant is appointed to serve a local church as full-time retired supply, and therefore falls under the mandatory participation rule in our active insurance plan, the retiree will not be required to enroll through OneExchange during such appointment. If, at the time of retirement, the member has other group insurance coverage, s/he may opt out of the conference health insurance plan and retain the right to rejoin the plan whenever they lose the other coverage. This is a one-time option at the time of retirement, only. Those who choose to opt out at any other time must request withdrawal in writing by the 15th of the month prior to the date of termination. PLEASE REALIZE that persons who choose to opt out of the Plan will not be able to re-enroll in the Retired Clergy Medical Benefits Program at a later date. J - 98

99 2016 REPORTS SURVIVING SPOUSES MEDICAL BENEFITS: A surviving spouse of a participant may continue in the insurance program. The surviving spouse of an active participant will pay 50% of the actual premium rate for the plan chosen. The surviving spouse of a retired participant, who is under the age of 65, will pay the same premium, as before the clergy person s death, according to the vesting schedule (see above), as calculated at the time of retirement. At age 65, the surviving spouse will be enrolled in OneExchange and receive an HRA contribution based on years of service as calculated at the time of the death of the participant. RETIRED LAY EMPLOYEES MEDICAL BENEFITS: Retired lay employees (as verified by the local church or salary paying unit) may continue in the Conference Insurance program until age 65 provided: 1. The participant has been on the insurance program for the past five (5) years. 2. The participant will pay the full-retired premium rate based upon the plan chosen. After the retired lay employee reaches Medicare-eligibility, they will be dropped from the active plan and may purchase an individual plan through OneExchange, but no contribution to an HRA account will be provided for lay employees. SHARED MINISTRIES. There will be apportioned to the pastoral charges for the period January 1 - December 31, 2017, the sum of $900,000, which together with income from other sources, will fund post-retirement benefits for the year of The Shared Ministries for Clergy Care apportioned to the local churches shall be considered a mandatory clergy support item related to the full payment of the salary of the pastor(s) regardless of whether the pastor(s) is enrolled in the conference pension or insurance programs. The Clergy Care Shared Ministries pay the HRA contributions for retired clergy, their spouses and surviving spouses, a percentage of the HealthFlex plans for all retirees/spouses still on the active plan due to age, and surviving spouses according to the vesting schedule above, ½ of the premiums for evangelists appointed by the conference, ½ of the premiums for those on incapacity leave, pension contributions for the unfunded liability for current and future retirees and administrative expenses of the Conference Benefits office. The Conference depository for Clergy Care funds will be the Prosperity Bank of Lubbock, Texas, the Texas Methodist Foundation and Wespath, the investment arm of the General Board of Pensions, Glenview, Illinois. However, the Conference Board of Pension and Health Benefits, upon the advice of the Investment Committee, may change depositories and report such changes to the next session of the Annual Conference. OTHER POLICIES AND PROCEDURES ANNUAL CONFERENCE EXPENSE FOR RETIRED CLERGY: The Conference will subsidize the cost of Annual Conference for retired clergy or surviving spouses at the following per diem rates (maximum of 3 days): Retired single clergy person - $65 per day Retired clergy person and spouse - $75 per day. Retired couple where both are clergy - $65 per person (total $130) per day Those persons living within the metropolitan area of where Annual Conference is being held will not be paid Annual Conference Expense nor will retired persons serving appointments or persons on disability leave. RETIREE MOVING EXPENSE: When a clergyperson of the Annual Conference, serving under Episcopal appointment at the time of retirement or disability, becomes a recipient of pension or disability benefits, the Conference Board of Pensions may pay the actual moving expenses within six months of the final appointment prior to entering a retired relationship, as a one time reimbursement, provided however, that such payment shall not exceed the conference approved moving rate. A surviving spouse of a deceased active or retired clergyperson may also receive a one time reimbursement, at the time of the clergyperson s death, provided however that such payment shall not exceed the conference approved moving rate. J - 99

100 2016 NORTHWEST TEXAS ANNUAL CONFERENCE RESOLUTIONS RESOLUTION I. ADOPTION OF COMPREHENSIVE FUNDING PLAN The Northwest Texas Conference (the Conference ) adopts the following resolution related to the Comprehensive Funding Plan for the Conference for 2017: WHEREAS, The United Methodist Church, of which the Conference is a part, maintains pension plans and health and welfare plans administered through the General Board of Pension and Health Benefits (GBOPHB) and in which clergy serving in and lay employees of the Conference participate either as active participants or retired participants; WHEREAS, the Conference is the sponsor or plan administrator or health and welfare and other defined contribution plans; WHEREAS, by virtue of the Conference s participation, administration, and adoption of the pension and health and welfare plans, a covenant is made with active and retired participants to provide pension benefits, health and welfare benefits, moving reimbursement, annual conference expense reimbursement and other benefits to them both during their active careers as well as in retirement; WHEREAS, such a covenant produces a financial obligation to fulfill this covenant that is ethically and legally binding such that the development of a Comprehensive Funding Plan is a necessary and prudent step to determine financial viability at the Conference level and at denominational level where benefit plan liabilities are concerned.; WHEREAS, the GBOPHB has been tasked with compiling conference information regarding funding for long-term obligations for clergy and staff across the denomination; WHEREAS, each conference is required to obtain a favorable opinion letter from the GBOPHB and approval from its respective Annual Conference of its Comprehensive Funding Plan; WHEREAS, the CBPHB has reviewed this plan in detail and the plan has been submitted to, reviewed and approved by the GBOPHB; NOW THEREFORE, BE IT RESOLVED: The 2017 Comprehensive Funding plan summarized in this report but available in its entirety at Annual Conference, on the Conference website ( or by contacting the Conference Benefit Officer, is hereby approved. RESOLUTION II: RENTAL/HOUSING ALLOWANCES FOR RETIRED OR DISABLED CLERGYPERSONS OF THE NORTHWEST TEXAS CONFERENCE The Northwest Texas Conference (the Conference ) adopts the following resolutions relating to rental/housing allowances for retired or disabled clergypersons of the Conference: WHEREAS, the religious denomination known as The United Methodist Church (the Church ), of which this Conference is a part, has in the past functioned and continues to function through ministers of the gospel (within the meaning of Internal Revenue Code section 107) who were or are duly ordained, commissioned, or licensed ministers of the Church ( Clergypersons ); WHEREAS, the practice of the Church and of this Conference was and is to provide active Clergypersons with a parsonage or a rental/housing allowance as part of their gross compensation; WHEREAS, pensions or other amounts paid to active, retired and disabled Clergypersons are considered to be deferred compensation and are paid to active, retired and disabled Clergypersons in consideration of previous active service; and WHEREAS, the Internal Revenue Service has recognized the Conference (or its predecessors) as the appropriate organization to designate a rental/housing allowance for retired and disabled Clergypersons who are or were members of this Conference and are eligible to receive such deferred compensation; NOW, THEREFORE, BE IT RESOLVED: THAT an amount equal to 100% of the pension or disability payments received from plans authorized under The Book of Discipline of The United Methodist Church (the Discipline ), which includes all such payments from the General Board of Pension and Health Benefits ( GBOPHB ), during the year 2017 by each active, retired or disabled Clergyperson who is or was a member of the Conference, or its predecessors, be and hereby is designated as a rental/housing allowance for each such Clergyperson; and THAT the pension or disability payments to which this rental/housing allowance applies will be any pension or disability payments from plans, annuities, or funds authorized under the Discipline, including such payments from the GBOPHB and from a commercial annuity company that provides an annuity arising from benefits accrued under a GBOPHB plan, annuity, or fund authorized under the Discipline, that result from any service a Clergyperson rendered to this Conference or that an active, retired or disabled Clergyperson of this Conference rendered to any local church, annual conference of the Church, general agency of the Church, other institution of the Church, former denomination that is now a part of the Church, or any other employer that employed the Clergyperson to perform services related to the ministry of the Church, or its predecessors, and that elected to make contributions to, or accrue a benefit under, such a plan, annuity, or fund for such active, retired or disabled Clergyperson s pension or disability as part of his or her gross compensation. J - 100

101 2016 REPORTS NOTE: The rental/housing allowance that may be excluded from a Clergyperson s gross income in any year for federal income tax purposes is limited under Internal Revenue Code section 107(2) and regulations thereunder to the least of: (1) the amount of the rental/housing allowance designated by the Clergyperson s employer or other appropriate body of the Church (such as this Conference in the foregoing resolutions) for such year; (2) the amount actually expended by the Clergyperson to rent or provide a home in such year; or (3) the fair rental value of the home, including furnishings and appurtenances (such as a garage), plus the cost of utilities in such year. RESOLUTION III: PAST SERVICE RATE (PSR) FOR THE CALCULATION OF BENEFITS UNDER THE PRE-1982 PENSION PLAN: The Northwest Texas Conference (the Conference ) adopts the following resolution relating to the Past Service Rate (PSR) for the Pre-1982 Defined Benefit Pension Plan ( Pre-82 Plan ): WHEREAS, clergy members and full-time local pastors who received pension credit under the Pre-82 Plan prior to January 1, 1982, are receiving, or will receive an annual pension benefit computed by taking the years of credited service times the PSR; WHEREAS, the current PSR is $627.00; WHEREAS, in accordance with legislation passed by General Conference 2012, the actuarial cost of any increase in the PSR must be funded before the increase can take effect; WHEREAS, the actuarial cost of each 1% increase in the PSR is approximately $100,612 for the Conference; WHEREAS, it is the desire of the CBPHB to adjust the PSR from time-to-time to reflect the economic realities of both the Conference as well as the participant; NOW, THEREFORE, BE IT RESOLVED: THAT the Past Service Rate (PSR) for the Pre-1982 Defined Benefit Pension Plan (Pre-82 Plan) be increased to $ (a 2% increase), and THAT the CFO/Conference Benefits Officer be authorized to make an Advance Funding payment to the General Board of Pension and Health Benefits of the actuarially determined cost of $178, on or before December 31, RESOLUTION IV: ADOPTION OF HEALTHFLEX EXCHANGE FOR ACTIVE CLERGY HEALTH BENEFITS: The Northwest Texas Conference (the Conference ) adopts the following resolution related to the health benefits offered through the HealthFlex Exchange for the Conference for 2017: WHEREAS, The United Methodist Church, of which the Conference is a part, maintains health and welfare plans administered through HealthFlex, a self-funded plan of the General Board of Pension and Health Benefits (GBOPHB) and in which clergy serving in and lay employees of the Conference participate either as active participants or retired participants; WHEREAS, the Conference is the sponsor or plan administrator of health and welfare plans; WHEREAS, the Conference Board of Pension and Health Benefits (CBOPHB) has researched, reviewed and sought the input of the Conference leaders and plan participants; WHERAS, the CBOPHB has voted to recommend to the Conference moving to the HealthFlex Exchange as of January 1, 2017: NOW THEREFORE, BE IT RESOLVED: THAT the Conference Board of Pension and Health Benefits (CBOPHB) is authorized to execute the appropriate and necessary plan adoption agreements with HealthFlex and the General Board of Pension and Health Benefits of The United Methodist Church (GBOPHB) to move to the HealthFlex Exchange effective January 1, 2017; THAT the CBOPHB is authorized to offer each clergy plan participant a Defined Contribution (DC) sufficient to purchase the most expensive plan (PPO B1000) offered consistent with the participant s coverage status participant, participant +1, or participant + family, THAT the CBOPHB is authorized to establish Health Reimbursement Accounts (HRA) and/or Health Savings Accounts (HSA) through HealthFlex and its vendors to receive contributions for each active clergy participant of the difference between the actual cost of the health benefit plan chosen among those offered through the HealthFlex Exchange and the Defined Contribution (DC) provided (as above); THAT the CBOPHB is authorized to fund this plan through monthly direct-billing to each salary paying unit for each participant in an amount equal to the total cost of the Defined Contribution (DC) offered (as above) divided by the actual number of particpants, i.e. the amount billed to each salary paying unit will be the same regardless of the coverage status (participant, participant +1, or participant + family) or the health benefit plan chosen by the participant through the HealthFlex Exchange; J - 101

102 2016 NORTHWEST TEXAS ANNUAL CONFERENCE THAT the CBOPHB is authorized to offer the HealthFlex Exchange plans to retirees, persons on incapacity leave, or surviving spouses who, due to age or circumstances, are in the active plan in accordance with the rules enumerated in the CBOPHB report as adopted and approved by the Annual Conference. Each such participant will be billed the actual cost of the premium of the HealthFlex plan chosen less any HRA or rate reduction that may apply in accordance with the rules enumerated in the CBOPHB report. BOARD OF TRUSTEES Wendell Horn, President The Conference Trustees are asking that all churches make sure they have liability insurance and that they are incorporated. The districts are in the process of becoming incorporated. We encourage districts, when closing churches, to revert the property to the Conference Trustees so that we know they are properly insured. COMMISSION ON EQUITABLE COMPENSATION Stan Cosby, Chairperson The purpose of the Commission on Equitable Compensation (COEC) is to support clergy under appointment in the Annual Conference by (1) recommending conference standards for clergy support; (2) administering funds to be used in base compensation supplementation; and (3) providing counsel and advisory material on clergy support to District Superintendents and Pastor-Parish Relations Committees (Discipline, 2012, 625.2). Primary responsibility for pastoral base compensation remains with individual pastoral charges (Discipline, 2012, 625.5). The COEC provides supplements when support from the appointment must fall below the minimum established by the Annual Conference. Consistent with the provisions cited above, the Northwest Texas Annual Conference Commission on Equitable Compensation works toward the realization of the following goals: (1) To establish a reasonable minimum compensation for pastors, considering their relationship to the Annual Conference (Members in full Connection and Probationary members, Associate Members, and Full-Time Local Pastors). (2) To request and distribute the United Methodist Family Fund to the local churches that is sufficient to guarantee the minimum level of compensation for appointed pastors. (3) To be stewards (effective Executive Directors) of funds derived from the United Methodist Shared Ministries to local churches. (4) To assist all appointments to become self-supporting within six (6) years in terms of providing minimum compensation to appointed pastors. (5) To assist Mission Station appointments, which are defined as any ministry setting where the Kingdom of God is actively being built through: (a) making new Disciples of Jesus Christ (b) maturing Disciples of Jesus Christ, and (c) evidence that the surrounding community is being transformed by the mission and ministry of the church. The following benchmarks or structures of accountability are established for a church to achieve and maintain Mission Station designation: a. demonstrate evidence of its inability, alone, to meet its financial needs. (i.e. where a large percentage of the worshiping congregation is at or below the poverty line) b. show a commitment to paying 100% of its Equitable Compensation apportionment c. show an increase in worship attendance by a minimum of 2% annually d. show a minimum of three (3) Professions of Faith annually e. detail its ministries of transformation f. make an annual written report of the above to the District Superintendent and the COEC g. the District Superintendent must sign off on each Mission Station church s annual review and application h. The funding timeline for Mission Station settings is subject to the above annual review with a possible three (3) year limit i. The application process for Mission Station designation include completion of the standard request (6) To assist pastors in development of ministerial skills through continuing education grants where they have demonstrated: need, opportunity and potential for growth. With the above considerations, we present the following: J - 102

103 2016 REPORTS MINIMUM COMPENSATION SCALE FOR 2017 Minimum compensation refers to line 13 of the Northwest Texas Annual Conference Pastor s Compensation Form The minimum compensation figure will be based on the Cost of Living Adjustment (COLA) as announced by the Social Security Administration each year with a maximum increase of 5%. The Social Security Administration has not announced an increase for 2017 so therefore there will be no increase the minimum compensation for Below is the Minimum Compensation for 2017: 1. Full Connection (Elders and Permanent Deacons) and Provisional Members... $35, Associate Conference Members... $32, Ordained Clergy serving less than full time (¾, ½, ¼)... See D (below) 4. Full-Time Local Pastors... $29,791 Churches receiving assistance through the Northwest Texas Annual Conference s United Methodist Shared Ministries will be listed in the final copy of the Conference Journal. OPERATING PROCEDURES A. The Pastor Parish Relations Committee and the Church Council of the local church are responsible for ensuring the pastor s salary is in line with the Minimum Compensation Scale set by the Annual Conference. In the event the salary does not meet minimum requirements, the Church Council should submit an application to the Chairperson of COEC and send a copy to their District Superintendent. Deadlines for submitting applications are: November 1 for the new year or May 1 for changes to be made at the following session of the Annual Conference. All applications for support will include all items detailed on the Equitable Compensation Request Form. The Request Form will be approved by the Church Council and signed by the appropriate individuals from all charges served by the pastor. B. Every church or charge is expected to become self-supporting within a period of six years by assuming the full salary and benefits package of the church or charge. No church will receive assistance from Equitable Compensation for more than six (6) consecutive years. C. COEC will not pay more than 50% of the minimum compensation for a charge. This rate will be reduced by 1/6 th of the eligible amount each year thereafter. (e.g., first year up to 100% of amount requested, second year 5/6 of eligible amount, etc.). Salaries are not limited to the Minimum Compensation amount, but COEC salary awards will not exceed 50% of the established minimum compensation and will be subject to the 1/6 th annual reduction provision. D. A church/appointment served by clergy appointed to less than full time is eligible to receive equitable compensation support according to the percent of full time devoted to the work. The Cabinet, in consultation with the local church, determines, in quarter time increments, the percent of full time service. It is the opinion of the Commission on Equitable Compensation that a church needs an average attendance of fifty (50) or more to justify being a full time charge. E. The COEC pays for each eligible participant that part of the required contribution to the Clergy Retirement Security Program (CRSP) and the Comprehensive Protection Plan (CPP) that relates to the salary benefit. F. Pastors receiving COEC support while serving multiple point charge appointments receive an additional mileage reimbursement at the rate set by the IRS (currently $0.56 per mile) on fifty (50) round trips between charges annually. The mileage rate will automatically be adjusted based on changes to federal business travel reimbursement rates. Some business travel and professional expenses may not be reimbursed by the charge or the Conference. Documentation of non-reimbursed business expenses for tax purposes is the responsibility of the person incurring the expense. G. Churches with multiple clergy staff must ensure that all clergy, including deacons in full connection and elders in full connection under appointment to that charge receive at least minimum compensation as established by the Annual Conference. COEC does not help multiple staff churches. H. Equitable compensation is distributed monthly to the participating churches/appointments by the Conference Service Center. I. There shall be an annual meeting of the COEC with the Bishop and the Cabinet at a date announced by the Bishop. J. The names of churches/appointments receiving equitable compensation support and the amount received shall be published in the Conference JOURNAL as a part of the COEC report. K. In consultation with the District Superintendent, churches receiving Equitable Compensation Funds shall have their charge conference before October 15 each year. Requests for support are due to the COEC Chairperson by November 1 for the upcoming year. Requests for support may be made any time circumstances warrant. J - 103

104 2016 NORTHWEST TEXAS ANNUAL CONFERENCE L. The pastor is expected to send a written statement requesting COEC funds with supporting application, stewardship, and budget information and the reasons s/he believes this church needs to receive assistance from the COEC. The church s Mission Statement and Goals should be included with the pastor s statement. An assessment of progress toward achieving goals should be included. The statement and application should be made in full consultation with the District Superintendent. M. Grants 1. Grants provide support for compensation related items. 2. The purpose of the request must be stated clearly. The terms of the grant are negotiated at the beginning and will be reviewed for compliance annually by the COEC and the District Superintendent. 3. Salaries are not limited to the minimum compensation level established by the Annual Conference; however, the maximum the COEC will grant will not exceed 50% of the salary for the pastor for the first year and will decrease 1/6 th of the first year s total each year thereafter. 4. Because limited funds are available for grants, it is necessary that the District Superintendent apply for grants and have the approval of the COEC before making appointments based on grant funds. EQUITABLE COMPENSATION FUND DISBURSEMENT TO CHURCHES January 1, 2015 to December 2015 Church District Salary Pension Special Travel Total Benefit Grants Bethel, Abilene Abilene 11, ,744 25,479 First UMC, Hamlin Abilene 5, ,372 12,437 St. Matthew, Amarillo Amarillo 8,115 8,115 LaTrinidad, Lamesa Big Spring 20,000 3,000 23,000 El Divino Salvador, Muleshoe Lubbock 12,000 12,000 San Juan, Plainview Lubbock 23, ,550 TOTAL 60,070 4,781 39, ,582 J - 104

105 2016 REPORTS EQUITABLE COMPENSATION REQUEST FORM Pastor s Name Charge (Each church s name) Item Detail Status or Amount Church(es) current on all Episcopal Fund Yes No Shared Ministry items District Superintendent s Fund Yes No Equitable Compensation Fund Yes No Board of Pensions Yes No Insurance for Retirees Yes No Insurance premiums Payments Current for Pastor Yes No Pension contributions Current for Pastor (CPP, CRSP) Yes No District Superintendent DS consulted on this request Yes No Worship Attendance Average attendance this year Worship Attendance Report Attach Budget Summary Current Total income projected (excluding COEC) $ Year (all churches in charge) Total Operating Expenses (excluding Pastor Compensation) $ Total Debt Expenses $ Other Expenses $ Total Basis for Appointment (Line 13 from Pastor s Compensation and Expenses Form) $ Pastor s Insurance $ Budget Net Surplus (Deficit) $ Pastor s Compensation and Expenses Form, Charge Conference Approved, all churches in charge Attach Goals and Mission Statement, Congregational Goals Attach Pastor s Statement of Need for COEC Support Attach Annual Budget Attach Year-end Financial Statement Attach List of debts and unpaid liabilities Attach Stewardship Date Last Campaign completed Value Total pledges made $ Amount Requested from Salary $ COEC Other (Detail in Pastor s Statement) $ Submitted (for multiple point charges, from all charges): Signatures of: Chair(s), Church Finance Committee Chair(s), Church/Administrative Council Pastor Date Date Date J - 105

106 2016 NORTHWEST TEXAS ANNUAL CONFERENCE For 2017 Charge Conferences Held: Autumn of 2016 Due Date: 1/15/2017 Northwest Texas Annual Conference Pastor's Certification of Payment By The Local Church The following certification is required from each pastor each year. This certification is to be signed by the pastor and either SPRC Chairperson or the Treasurer after the final end-of-year check has been paid to the pastor reflecting that a full year's compensation has been paid. NOTE: No pastor shall be entitled to any claim for unpaid base compensation against any church or charge served after pastoral connection with the church or charge has ceased. (2012 Book of Discipline 342.4). If a pastor is serving more than one church (i.e. two point Charge) please complete a separate form for each church served during the calendar year. Pastor's Name Check one: Senior Pastor Associate Pastor Church This report covers the period of January 1 to December 31 of the year Have you received any salary subsidy from a Conference entity during this year? yes City no Salary Item Pensions (CRSP-CPP) UMPIP Contribution Accountable Reimbursement Housing Exclusion Declaration Health Insurance Utilities Housing Allowance TOTAL Amount Received Amount Due (if any) Remarks If there is an arrearage noted above, please include a statement explaining how the arrearage occurred and when you first became aware of the arrearage. (Use separate sheet) I HEREBY CERTIFY THAT I HAVE BEEN PAID AS NOTED ABOVE FOR ALL PASTORAL COMPENSATION OWED TO ME OR MY ACCOUNT AS OF THE DATE OF THIS REPORT: Signature of Pastor THE ABOVE STATEMENT IS HEREBY VERIFIED AS BEING ACCURATE: Date Signature of Staff/Pastor Chair Signature of Treasurer J - 106

107 2016 REPORTS SOUTH CENTRAL JURISDICTIONAL CONFERENCE Dr. David Severe, Executive Director 3160 W Britton Rd, Suite F, Oklahoma City, OK The time for the 2016 Jurisdictional Conference is near. The thirteenth session of the South Central Jurisdictional Conference since unification in 1939 will be in Wichita, Kansas, July Business sessions are at the Hyatt Regency Hotel and worship services at First United Methodist Church. There are three bishops to be elected. Fifty-two bishops have been elected since The opening worship on Wednesday evening, July 12, will be a memorial service and Holy Communion. There will be 216 voting delegates to this Conference. That is fifty fewer than Election of a bishop requires sixty-percent of valid ballots cast to be elected. That would be 130, if all delegates vote on a ballot. Any elder in good standing in The United Methodist Church is eligible for election. The Conference will hear reports from the institutions and agencies of the Jurisdiction, including Southern Methodist University, Lydia Patterson Institute, and Mount Sequoyah Retreat Center. Trustees for these groups will also be elected. The Mission Council, with a representative from each of the Annual Conferences, will report, and will nominate Rev. Brian Bakeman as the new Executive Director of the Mission Council. Dr. David Severe, after eleven years in that position, is retiring after this conference. The public is welcome to come and observe the conference. Registration will be open in March, and the link to it will be on the Jurisdiction website at RESOLUTION REQUESTING THAT BISHOP W. EARL BLEDSOE BE REASSIGNED TO THE NORTHWEST TEXAS/NEW MEXICO AREA Northwest Texas Committee on the Episcopacy: Don Carl Boren, Steve Thomas Chappell, Jeff Fisher, Jennifer Horn, Terrill Littlejohn, Ruby L Moultrie, Murray Murphy, Jimmy Gregg Nunn, Debbie Trigo, Tim Crawford Walker, Craig Young WHEREAS the Northwest Texas Annual Conference needs episcopal leadership that thrives within a largely rural and small church context, and WHEREAS Northwest Texas Annual Conference requires episcopal leadership adept at addressing issues that relate to both ordained and licensed clergy, and WHEREAS over ten years have passed since the Northwest Texas Annual Conference engaged in visioning and strategic planning, and WHEREAS the Northwest Texas Annual Conference/New Mexico Annual Conference Area consists of two unique conferences of vast diversity, and WHEREAS the Northwest Texas Annual Conference possesses a positive attitude, emphasizes spiritual growth, and is blessed with an episcopal leader who is a great preacher, and WHEREAS Leslie Bledsoe is a blessing to her husband, and the churches and communities of the Northwest Texas Annual Conference, NOW, THEREFORE, LET IT BE RESOLVED at its One Hundred Seventh Session, the Northwest Texas Annual Conference requests the South Central Jurisdictional Committee on Episcopacy reassign Bishop W. Earl Bledsoe to the Northwest Texas/New Mexico Area for the next quadrennium. J - 107

108 2016 NORTHWEST TEXAS ANNUAL CONFERENCE RESOLUTION TO WORK TOWARD THE REPEAL OF THE DEATH PENALTY IN TEXAS Ross Whiteaker, The Branch United Methodist Church WHEREAS, The United Methodist Church, according to its Social Principles ( 164. G), believes that the death penalty denies the power of Christ to redeem, restore, and transform all human beings, and opposes the death penalty and urge(s) its elimination from all criminal codes, and WHEREAS, in the state of Texas: 536 persons have been put to death since the state resumed executions in According to the Texas Department of Criminal Justice, more than 20% of the 263 inmates on death row in Texas are diagnosed with some type of mental illness; among the persons executed since 1982, fourteen were juveniles when their crimes were committed. Race appears to play a significant role in application of the death penalty; of states with more than 10 people on death row, Texas (70%) has the largest percentage of minorities on death row; among those executed since 1982, more than eighty African Americans were put to death for crimes against white victims, and only one white person was executed for crimes against African Americans. Twelve persons sentenced to die have later been proven innocent and removed from death row. The cost of an average death penalty case is nearly three times higher than imprisoning some one in maximum security for forty years. The use of the death penalty throughout the state is fraught with inefficiency and inequality. BE IT THEREFORE RESOLVED that the 2016 Annual Conference of the Northwest Texas Conference of The United Methodist Church meeting in Lubbock, Texas: Encourages all clergy members of the Annual Conference to sign the Clergy Sign-On Letter sponsored by the Texas Coalition to Abolish the Death Penalty which can be found at tcadp.org Encourages all local churches and lay members of the Annual Conference to call upon their local and state representatives to work toward the abolition of the death penalty in Texas. Calls upon the Texas Legislature either to abolish the death penalty completely or to stop executions in the State until such a time as all capital cases can be tried in a completely equitable way. Calls upon the Texas Pardon and Parole Board and the Governor to commute the sentences of persons currently on death row to life in prison without parole or to life in prison. Instructs the secretary of the Annual Conference to have copies of this resolution sent immediately to all candidates for, and members of, the Texas Legislature, to each member of the Pardon and Parole Board, to the Governor of Texas, to the Lieutenant Governor of Texas, to Texas IMPACT, and to the Texas Coalition to Abolish the Death Penalty. J - 108

109 2016 REPORTS RESOLUTION CONCERNING THE CLOSING OF THE ROARING SPRINGS UNITED METHODIST CHURCH Richard W. Edwards, Lubbock District Superintendent WHEREAS the Roaring Springs United Methodist Church in Roaring Springs, Motley County, Texas has faithfully served the people of Roaring Springs and the surrounding area, and WHEREAS the members have prayerfully considered their ability to continue as a viable congregation and decided, due to declining population and membership, they can no longer continue, in a called church conference, held Sunday, April 24, 2016 following the morning worship service and conducted by Rev. Richard W. Edwards, DS; the membership has voted to close effective June 19, 2016, and WHEREAS the Lubbock District Superintendent has recommended discontinuance of the Roaring Springs United Methodist Church and the transfer of membership (unless otherwise requested) to the Matador United Methodist Church and will collect and deposit the churches records for safekeeping of the Roaring Springs United Methodist Church and historical records to the NWT Conference Archives in Lubbock, Texas, and WHEREAS the consent to discontinue has been granted by the presiding bishop, a majority of the superintendents, and the Lubbock District Board of Church Location and Building and all proper Disciplinary requirements have been complied with, BE IT THEREFORE RESOLVED the One Hundred Seventh Session of the Northwest Texas Conference meeting in Lubbock, Texas June, 2016, declare that the Roaring Springs United Methodist Church be discontinued, effective June 19, 2016, the Roaring Springs United Methodist Church and that the building, furniture and land be sold to the Cap Rock Cowboy Church of Roaring Springs for $ Roaring Springs United Methodist Church members, Mr. K. D. Abbott, current Trustee chairperson, Mrs. Suzanne Abbot, current Lay Leader, and Mr. A. B. Crowder, III current Church Council chairperson, are given authority by the Annual Conference to act as the legal agents/signatures for the transfer/sale of this property. The remaining monetary assets (after all financial obligations and bills of the closing church are met) will be divided equally (20% of remaining total) between the following five entities: Motley County EMS Motley County Senior Citizens Motley County Library Matador Volunteer Fire Department South Plains Food Bank RESOLUTION CONCERNING THE CLOSING OF THE HEREFORD, WESLEY UNITED METHODIST CHURCH Richard W. Edwards, Lubbock District Superintendent WHEREAS the Wesley United Methodist Church in Hereford, Deaf Smith County, Texas has faithfully served the people of Hereford and the surrounding area, and WHEREAS the members have prayerfully considered their ability to continue as a viable congregation and decided due to declining population and membership they can no longer continue, in a called church conference, held Sunday, June 5, 2016 following the morning worship service and conducted by Rev. Richard W. Edwards, DS; the membership has voted to close effective June 19, 2016, and WHEREAS the Lubbock District Superintendent has recommended discontinuance of the Hereford, Wesley United Methodist Church and the transfer of membership (unless otherwise requested) to the Hereford, First United Methodist Church and will collect and deposit the churches records for safekeeping of the Hereford, Wesley United Methodist Church and historical records to the NWTX Conference Archives in Lubbock, Texas, and WHEREAS the consent to discontinue has been granted by the presiding bishop, a majority of the superintendents, and the Lubbock District Board of Church Location and Building and all proper Disciplinary requirements have been complied with; BE IT THEREFORE RESOLVED the One Hundred Seventh Session of the Northwest Texas Conference meeting in Lubbock, Texas June, 2016, declare that the Hereford, Wesley United Methodist Church be discontinued, effective June 19, 2016 and that the building, parsonage, furniture and land be transferred to the San Pablo United Methodist Church of Hereford, Texas. Hereford, Wesley United Methodist Church members, Mr. Don Rieves, current Trustee chairperson, Ms. Jennifer Eggen, current Lay Leader and Church Council chairperson, are given authority by the Annual Conference to act as the legal agents/signatures for the transfer/sale of this property. The remaining monetary assets (after all financial obligations and bills of the closing church are met) will be divided in equal halves to the Hereford Big Brothers and Big Sisters and Kings Manor Retirement System. J - 109

110 2016 NORTHWEST TEXAS ANNUAL CONFERENCE RESOLUTION CONCERNING THE SALE OF THE HEREFORD, SAN PABLO UNITED METHODIST CHURCH AND PARSONAGE (KIBBE STREET PROPERTY) Richard W. Edwards, Lubbock District Superintendent WHEREAS, the called church conference of the Hereford, Wesley United Methodist Church meeting on June 5, 2016, request that the Annual Conference discontinue, effective June 19, 2016, the Hereford, Wesley United Methodist Church and that the building, parsonage, furniture and land be transferred to the San Pablo United Methodist Church of Hereford, Texas, WHEREAS, the One Hundred Seventh Session of the Northwest Texas Conference meeting in Lubbock, Texas June, 2016, declare that the Hereford, Wesley United Methodist Church be discontinued, effective June 19, 2016 and that the building, parsonage, furniture and land be transferred to the San Pablo United Methodist Church of Hereford, Texas, WHEREAS, the Lubbock District Superintendent has recommended, due to the transfer of the Hereford Wesley UMC property to the Hereford San Pablo UMC, the sale of the Hereford, San Pablo church and parsonage (Kibble Street property), WHEREAS, the consent to sell the Hereford, San Pablo church and parsonage (Kibbe Street property), has been granted by the presiding bishop, a majority of the superintendents, and the Lubbock District Board of Church Location and Building and all proper Disciplinary requirements have been complied with, BE IT THEREFORE RESOLVED the One Hundred Seventh Session of the Northwest Texas Conference meeting in Lubbock, Texas June, 2016, approve the sale of the Hereford, San Pablo church and parsonage (Kibbe Street property), and that the proceeds of this sale go to the Path 1 Funds of the Northwest Texas Conference for Hispanic Ministries (Hereford, San Pablo in particular). And that Hereford, San Pablo United Methodist Church members, Mr. Jose Angel Perez, current Trustee chairperson and Ms. Daniella Espinosa, current Finance Chairperson are given authority by the Annual Conference to act as the legal agents/signatures for the transfer/sale of this property. RESOLUTION CONCERNING THE CLOSING OF THE LUEDERS UNITED METHODIST CHURCH George C. Price, Abilene District Superintendent WHEREAS, the Lueders United Methodist Church, located in Lueders, Jones County, Texas was founded in 1907 and has faithfully served the people of the Lueders area, and WHEREAS, the membership, having prayerfully considered their ability to continue as a viable congregation due to the declining number of members and dwindling population of the area, decided to close. The final worship service was held May 15, 2016 with the Charge Conference and the De-consecration Service following, and WHEREAS, the district superintendent has recommended the closure of the Lueders United Methodist Church and will collect and deposit the historic records of the church in the Northwest Texas Conference Archives and WHEREAS, the consent to disband the congregation has been granted by the presiding bishop, Bishop Earl Bledsoe, and the district superintendents of the Northwest Texas Conference, and WHEREAS, all property and assets of the congregation have been duly given away to various organizations in the Lueders community and various Methodist organizations; BE IT THEREFORE RESOLVED the One-Hundred Seventh Session of the Northwest Texas Conference meeting in Lubbock, Texas on June 9-11, 2016; declare the Lueders United Methodist Church be discontinued effective May 15, J - 110

111 2016 REPORTS RESOLUTION CONCERNING DISCONTINUING THE TENTH AVENUE UNITED METHODIST CHURCH, AMARILLO, TEXAS Paul E. Bauernfeind, Amarillo District Superintendent WHEREAS, the Tenth Avenue United Methodist Church (Tenth Avenue UMC) of Amarillo, located in Potter County, Texas, faithfully served and engaged its mission field since the year 1909; and WHEREAS, Tenth Avenue UMC prayerfully considered its ability to continue as a viable congregation due to no longer having an active membership nor financial resources large enough to sustain its facilities and ministries; and WHEREAS, the members and friends of Tenth Avenue UMC gathered at 10:30 a.m. on Sunday, January 10, 2016, to celebrate their life and ministry together during a final worship service disbanding the congregation, thus going on to serve the Lord in other parts of God s Kingdom here on earth; and WHEREAS, for the sake of the future outreach and growth of the United Methodist Church, the members of Tenth Avenue UMC voted, in a Called Church Conference held on Sunday, January 10, 2016, and conducted by Rev. Paul E. Bauernfeind, Amarillo District Superintendent, to discontinue the church as a chartered United Methodist Church effective the date on which the title to the property of the church is conveyed to the Northwest Texas Annual Conference of The United Methodist Church (NWTX Conference); and WHEREAS, the Amarillo District Superintendent, after prayerful consideration and working with the congregation as to possibilities for the church s future, has recommended the discontinuance of the Tenth Avenue UMC and has collected and is depositing the historic records with the Northwest Texas Conference Archives at the Conference Service Center in Lubbock, Texas, and has transferred the church s membership to Trinity United Methodist Church of Amarillo, Texas (unless otherwise specified); and WHEREAS, the consent to discontinue has been granted by the presiding bishop, Bishop W. Earl Bledsoe, a majority of the district superintendents and the Amarillo District Board of Church Location and Building, and all proper Disciplinary requirements have been complied with; and WHEREAS, the work associated with the outstanding insurance claims for the property has been completed; and WHEREAS, after consultation with the Chair of the Northwest Texas Conference Board of Trustees by the Amarillo District Superintendent and by prior church conference action, the title to all real and personal, tangible and intangible property of Tenth Avenue UMC, property including but not limited to the church building, parsonage, land, equipment, furniture, physical assets, monetary assets, etc., was conveyed to the NWTX Conference on May 27, 2016, in order that the church might be sold or used for missional purposes of the Conference; NOW, THEREFORE BE IT RESOLVED, that the One Hundred Seventh Session of the Northwest Texas Annual Conference meeting in Lubbock, Texas on June 9-11, 2016, declares that the Tenth Avenue United Methodist Church is discontinued and closed effective May 27, 2016; and BE IT FURTHER RESOLVED, that the NWTX Conference has the authority to sell the real and personal property of the former Tenth Avenue UMC to any interested party, preferably a church, or use it for missional purposes, the proceeds from any sale of the property being transferred to the Amarillo Area Board of Missions Fund for use in new church starts, church revitalization, missions and/or outreach for the benefit of ministry in the Amarillo District. RECOMMENDATION FROM THE MINISTRY CABINET CONCERNING THE MEETING PLACE FOR ANNUAL CONFERENCE. The Northwest Texas Annual Conference has had a long tradition of being held in four of the great cities in each of the four districts within the bounds of the annual conference as we have met together each year. In recent years, a new tradition has been emerging in that we have enjoyed the hospitality and the facilities of the Overton Hotel and FUMC in Lubbock as we have gathered in this part of God's Kingdom in our Conference for the past two years, with the Big Spring District last year and this year the Lubbock District hosting us here in Lubbock. Part of the reason for this change has been the non-availability and expense of hotel space in Midland two years ago during the then oil boom and the desire of Conference Leadership to plan two, three, even four years in advance for annual conference themes and logistics, especially for the reservation of space here at the Overton Hotel, as well as the desire by many to hold annual conference in a more central location within the bounds of the annual conference. In dialogue with the Conference Leadership Team, who has expressed a desire to seriously consider holding annual conference in Lubbock each year with each of the districts hosting us on a rotating basis here in Lubbock and the Ministry Cabinet's feeling that each district hosting annual conference within its bounds allows for that district to give witness to its life and ministry more fully than is possible here in Lubbock, the following recommendation is made to the annual conference for your consideration: J - 111

112 2016 NORTHWEST TEXAS ANNUAL CONFERENCE The Ministry Cabinet recommends that Annual Conference be held in Lubbock at the Overton Hotel each year, hosted by one of the four Districts on a rotating basis, and then approximately every fourth or fifth year, annual conference would be hosted within the bounds of one of the Districts in the cities of Abilene, Amarillo or Midland. With this recommendation, annual conference would be held in Lubbock next year in 2017 hosted by the Abilene District and in Amarillo in 2018, and then possibly in Abilene in 2023, coinciding with the 100 th anniversary of McMurry University. We also recommend some flexibility in this guide for the hosting and location of annual conference to provide for other possibilities, such as having a joint annual conference with our sister annual conference, the New Mexico Annual Conference, as we continue to share an episcopal leader, which we have been blessed in doing in the past. RESOLUTION SUPPORTING THE SECOND 100 YEARS CAPITAL CAMPAIGN OF LYDIA PATTERSON INSTITUTE BY THE NORTHWEST TEXAS ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH Northwest Texas Annual Conference Ministry Cabinet and Northwest Texas Annual Conference Council on Finance and Administration WHEREAS, Lydia Patterson Institute (La Lydia) has been providing quality education for Hispanic students from its ministry campus in the Segundo Barrio of El Paso, Texas since 1913; and WHEREAS, La Lydia is a ministry of the South Central Jurisdiction of The United Methodist Church; and WHEREAS, the Northwest Texas Annual Conference (NWTX) supports annually the ministry of La Lydia through the Shared Ministries of the NWTX Conference as part of our connectional ministry as United Methodists; and WHEREAS, La Lydia has entered into its The Second 100 Years Capital Campaign (Campaign), so that its educational ministry with over 400 Hispanic students each year, most of whom live in Ciudad Juárez, México, might continue to grow into the next 100 years through the upgrading and addition to its campus facilities in order that La Lydia might continue its tradition of sending 98% of its graduates to college; and WHEREAS, the Campaign, the total goal of which is $15,000,000, expects to raise approximately equal amounts from The United Methodist Church and the communities of El Paso, Texas and Ciudad Juárez, México; and WHEREAS, La Lydia extended an invitation to the NWTX and New Mexico Annual Conferences in 2014 to join together to help support the construction of a new, larger chapel with a goal of $500,000, while also joining together with other sister annual conferences, who are also being invited to support the construction of the chapel, the total cost of which will be approximately $3,000,000; and WHEREAS, Bishop Bledsoe and the NWTX Conference Ministry Cabinet, along with the NWTX Conference Council on Finance and Administration, fully support the ministry of La Lydia; and WHEREAS, the NWTX Conference is filled with churches that have a heart and love for their neighbor as they support ministries engaged in making disciples of Jesus Christ for the transformation of the world; NOW, THEREFORE BE IT RESOLVED that The Second 100 Years Capital Campaign of Lydia Patterson Institute continue to be supported by the Northwest Texas Annual Conference through our prayers and through the financial resources of its churches, support that began by action of the NWTX Annual Conference in 2014; and BE IT FURTHER RESOLVED that by action of the One Hundred Seventh Session of the Northwest Annual Conference meeting in Lubbock, Texas on June 9-11, 2016, representatives of La Lydia, or their named agent, Horizons Stewardship, or any other future agent, are authorized to engage in seeking capital funding for the construction of a new chapel, or other facility, directly from the churches in the NWTX Conference in order that the $500,000 combined goal from the NWTX and New Mexico Annual Conferences might be realized; and BE IT FURTHER RESOLVED that La Lydia or its agent be given the opportunity to recruit laity and clergy who have a love and passion for the ministry of La Lydia to help, if needed, in its capital fund raising efforts within the NWTX Conference; and BE IT FURTHER RESOLVED that this capital fund raising opportunity continues in effect, upon adoption of this resolution, until June 30, 2020, unless otherwise extended or terminated by action of the NWTX Annual Conference prior to that time, as the original expiration of this fund raising opportunity will expire on June 30, 2016; and FINALLY, BE IT FURTHER RESOLVED that recognition be given to the individual churches who choose to support this Campaign, as well as a collective recognition of Bishop Bledsoe and the Northwest Texas Conference as to the total amount provided by the churches of the NWTX Conference, whose support has been extended to La Lydia in compliance with the Policies of the Conference Council on Finance and Administration, Paragraph IV.F.1,2, as found on Page J-45 of the 2015 Journal of the NWTX Conference, as well as in Paragraph IV.E.1,2 on Page 38 of the Pre Conference Report: 2016 Annual Conference. 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113 2016 REPORTS Closing Resolution Ron Enns, Chairperson of the Committee on Bylaws, Resolutions, and Rules Bishop, Brother Murphy and members of the Annual Conference. It is my privilege to present this final resolution. WHEREAS the 107 th session of the NWTX Annual Conference met in Lubbock, Texas on June 9-11 under the able and inspired leadership of Bishop W. Earl Bledsoe and our beloved Conference Lay Leader, Murray Murphy, and WHEREAS, we were reminded that in the past three years we have been UPROOTED like the Bishop s strawberries, REDEEMED like Green Stamps, and have RISEN like the lame beggar in Acts, and WHEREAS, in 2016, we have been challenged to become REFINED like that flawed lump of clay on the Potter s wheel, and WHEREAS, we have been further challenged by the reality of the lack of growth in our conference, and WHEREAS, we have celebrated the vitality and growth of our Hispanic and Latino churches, and WHEREAS, because of the overwhelming response from 2015, Dave Anderson did not sing the Report of the Treasurer (even though it was good news), and WHEREAS, the Reverend Olu Brown brought inspiring and challenging preaching and teaching to us all, and WHEREAS, Leia Williams and the Communications Team wowed us with another job well done (backdrop, videos and reports), and WHEREAS, we reported, licensed, commissioned, ordained, retired, memorialized and awarded, and WHEREAS, because of our great love and respect for Leslie Bledsoe, we resolved to keep her husband around for another four years, and WHEREAS, we celebrated 60 years of women in ministry in the UMC, and WHEREAS, we pray that, come July, Brother Jimmy Nunn s pronoun be changed from Reverend to Bishop. THEREFORE BE IT RESOLVED: That we the members of the NWTX Annual Conference shall be REFINED; That we will stay on the wheel; That we shall allow the hands of the Potter to refine and shape and form us into the church that God wants us to be; That we, like Mary, will sit at the feet of Jesus and spend time listening to Him and receiving His Word, and then; That we get up and follow Him in obedience and do what He calls us to do; That we become the conference that opens more churches than we close; and That we become the church for the 21 st century. Amen, Amen, and Amen J - 113