District Secretary-Treasurer
Jay A Herndon
2022 Annual Business Report
I’ve been thinking lately about the words of Mordecai to Queen Esther, “for such a time as this.” God’s people were in danger—spiritual forces manipulated popular opinion and government factions against them, resulting in a writ of condemnation. It was “open season” against God’s people. But God had strategically placed Esther in a position to intervene.
We are living in a similar time. Admittedly, many have given up, depleted and in despair. But I believe we need to cultivate a different response—God is doing something new, and we were born and prepared for this moment. We are strategically placed in these positions…for such a time as this!
2022 was a year of great victories, and some challenges too. On the victory side—many of our churches are experiencing miracles and supernatural events each week! On the challenging side—we have experienced a decline in our ministerial roster and felt the resulting stress on our revenue. But God has been faithful, and we were able to end the year in the black (in operational expenses) AND see a tremendous increase on our balance sheet!
Ministerial Roster
Our roster number changed to 1,380 due to a net loss of twenty. Over the past five years, our roster decreased 9 % (137 ministers).
The reduction is a combination of three factors:
1) Transfers—over the past five years we’ve experienced a net loss of 74 ministers due to transfer. This phenomenon is “unique to California” and it has affected all aspects of our state. For example, over the last five years, the number of CPAs in CA has dropped by 36%.
2) Deaths - the number of deaths has increased—our roster is subject to the same waves and troughs found in the general population.
3) Reduced New Ministers—over the past ten years, new credential applications have dropped from an average of 62/year to 43/year. This trend is not unique to our district: stats indicate a 25% reduction in new credential applicants nationwide.
Other districts on the west coast have experienced similar or greater declines. Obviously, we have little control over deaths and transfers. But we do have some control over the new minister numbers. To that end, we have stepped up our scholarship support for new ministers, we’ve launched the Called program and connected it with an Associate Minister Commission, and the credential application and exams are internet accessible. But these efforts will take time, and they will be ineffective without local church and pastor support.
The reality is that the most significant factor affecting new credentials is always the attitude of the lead pastor—if the pastor preaches about the call, gives young people an opportunity to respond to the call, and encourages their preparation and credentialing, we would be flooded with recruits.
But let’s make sure our motive is correct—the roster is merely the measurable part of the overall mission. Our motive should not be “increase the roster” our motive should be, “send forth laborers into the harvest.”
Changes to the Minister Roster
Additions
New: 42
Reinstated: 12
Subtractions
Resigned: -6
Deceased: -29
Lapsed: -23
Dismissed: -2
Not Renewed: 2
Transfers: Net Loss: -12
Net Change to Roster: -20
Final Roster: 1,388
Resulting Change to Roster: -20
Finance
Our Ministerial Tithe contributions totaled $2,346,839, which was $70K (2.3%) less than the prior year. Our One Fund contributions totaled $631,563, which was $24K (3.6%) less than the prior year.
Despite the reduced revenue, our General Admin ended in the black with $20,227, and overall Operations ended in the black with $26,095.
As of this writing, our CPA has not completed the audit (with all of the required adjustments). However, indications are that our balance sheet will increase by $1.5M.
The increase on the balance sheet is a result of several victories: the liquidation of vacant or ill-fated properties which allowed for debt reduction and the transfer of assets to endowments. (Proceeds of property sales are generally used to reduce debt and fund endowments and are not used to fund operations, except that some funds were used to offset minister’s retreat expenses.)
Budget Report
Our district’s support for benevolence has increased in these past few years.
General Benevolence = $50, 571
Counseling Funds = $4,054
Disaster Relief = $45,009
Mission Villa Repairs = $119,613
This does not include the many intangible ways that we have assisted district churches that have appealed for organizational assistance or have requested to be placed with a patron church.
Endowment
Our endowments now total over $5M in eight endowments! Chart is listed in tab below.
Missions Support
As of this writing, the General Council has not completed the Missions Giving report. However, our departments succeeded in raising a considerable amount of support (these amounts only reflect funds donated via the DRC, and do not reflect funds sent directly to AGWM):
Women’s Ministries = $139,130.
Speed the Light (Youth) = $155,199.
BGMC (Children) = $145,027.
Light for the Lost (Men) = $63,469.
Total: $502,825.
NCN Regional Connections
Church Statistics: 452
We added 18 new churches, but closed 20. Of the closed churches:
· Two were trans-district PACs that were closed by their parent.
· Three were “closed-and-immediately-relaunched.” (Which likewise inflated the “churches opened” number.)
· One withdrew.
· One transferred to another district.
First Hybrid District Council
Minister’s Retreat - Tahoe, Vegas & Scotts Valley
Scholarships:
Under 25 Education Assistance Program
Our district reimburses students under the age of 25, $100 for every course that satisfies credential requirements (regardless of the school). Most of these students are enrolled at Global University or Pathway, although any school that satisfies credential requirements will qualify. In 2022 we assisted 17 future ministers a total of $9,800.
Bethany Legacy Scholarship
The Bethany Legacy Scholarship Endowment is now $634,051. In 2022, we awarded $12,500 to six AG students enrolling full-time at AG colleges. Nathan Daniel, Aleigha Fitzhugh, Kassidi Noonan, Chaz Noonan, Emma Cartwright, and Maggie Cartwright.
Memoriam and Minister's Memorial Fund:
27 ministers and 7 spouses passed away in 2022. We paid a total of $18,250 to the families of these ministers, as an expression of our affection and respect.
DRC Board Training - Hybrid Seminar
The next DRC Board Training Seminar is scheduled for Saturday, May 13th from 10 AM to 2:30 PM. This training is open to pastors, staff pastors, and current or prospective board members. Pastors are encouraged to bring individuals who are "in training." You have the option of attending in-person or online.
Register today!
Click here for In-person Board Training
Click here for Virtual Board Training
Conclusion
Finally, I want to acknowledge the wonderful people who have helped me this year! To my fellow officers, Superintendent Allen and Assistant Superintendent Huddleston—it is a joy to serve with these tremendous leaders.
To my Executive Administrative Assistant: Sondra Miller
To my three Secretary-Treasurer teams:
Legal Records
Leanna Sheley, Legal Records Supervisor
Karla Cantu, Database Assistant
Rosal Galindo, Properties Administrator
Teri Herndon, Legal Records Administrative Assistant and Presbytery Meeting Hostess
Accounting Team
John Kim, Accounting Supervisor
Jerry Hannay, Accounting Supervisor
Karen Carstens, Accounting Assistant
Credentials Team
Darryn Fisher, Credentialing Director
Erica Barrera, Credentials Administrative Assistant & Bethany Records
Respectfully submitted,
Dr. Jay A. Herndon
District Secretary-Treasurer