The AM QUARTERLY NEWSLETTER

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THE AM QUARTERLY NEWSLETTER | 2020

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OUR VISION FOR 2020 Dear Bishop President, John Fortino, members of the General Board of Directors, Episcopal Body, Presidents of the Missionary Countries, Regional Bishops and hardworking pastoral body of our beloved Apostolic Assembly of the Faith in Christ Jesus, Paz de Cristo. In the great wisdom assigned by God, King Solomon commented, “To every thing there is a season, and a time to every purpose under the heaven…” Ecclesiastes 3:1. We are in a time where God’s blessing is pouring out on the Apostolic Assembly throughout the world. Apostolic Mutual is one of those channels that is blessing our Church. Allow me to inform you that the edict of our 2019 Constitution Article 42 requires us to report on the financial status of the entity known as Apostolic Mutual Inc. From its inception, the purpose of Apostolic Mutual was to be a blessing to all the congregations of our Church. Today, I inform you that this purpose is becoming a reality. The financial condition is and continues to be very solid.

LEFT TO RIGHT, BOTTOM ROW SANTIAGO CALDERON, Marketing Director ESTEBAN ROBLEDO, Loan Officer GLADIA PACHECO, Business Relations

We are grateful to God and to our Bishop President John Fortino for all the backing and support, and to the entire episcopal and pastoral body that has faithfully supported this work that God has entrusted to us. As you can see in the report, there are many congregations that have benefited from the Apostolic Mutual Loan Program.

BACK ROW DOMINIC MOSCHETTI, Creative Director FELIPE LUGO, Vice Chairman EDDIE CAMPA, Executive Director

Today, I feel grateful to be able to inform you that we already have ten (10) congregations with mortgages in our books. These are congregations that have received the blessing of reducing the high interest rates from banking institutions to low interest rates with Apostolic Mutual.

LOAN COMMITTEE FELIPE LUGO AMRAMIREZ QUARTERLY NEWSLETTER ELISEO GEORGE LOPEZ MARTIN AMADOR CELEDONIO SALDAÑA FINANCE COMMITTEE GIL AGUILAR SUZANNE VALENCIA ISAI BAEZA COMPLIANCE COMMITTEE JORGE MONTES YVONNE VASQUEZ

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Our vision for 2020 is that many congregations will continue to benefit and be a part of this program. In addition, we can all invest in the savings plan and receive better interest - than many banks offer at the moment - within the program and expand the blessing to the entire Assembly. The short-term plan is to establish pastoral retirement programs available also for our missionaries. The future is encouraging, the vision is strong and the entire team has committed to work to serve the pastoral body with better financial programs that bless our Church throughout the world. I am praying for the progress of the Apostolic Assembly and that together we can Expand the Kingdom of God with Power. Bishop Felipe Lugo Vice Chairman

THE AM QUARTERLY NEWSLETTER | 2020


FINANCIAL STATEMENT 2019 was groundbreaking for Apostolic Mutual (AM) as we experienced our first full year of operations. With the grace of God, we successfully funded new loans which comprised of the complete closing process and added new depositors investing in Certificates of Deposits. At the end of the calendar year, AM ended with a total of $2,242,115 in assets which includes Cash and Interest & Loans Receivable. REVENUES The total revenues into the Loan Fund for 2019 was $293,516 which is primarily made of the 5% District Contributions and Interest Revenue. Please note that loan principal payments are not shown as revenue but reduce the loan balances on the Balance Sheet. In addition, deposits made by the investors are not shown as revenue, but appear as a liability on the Balance Sheet. EXPENSES The total expenses for AM was $83,160 yielding us a healthy net profit of $210,355 at the end of the year. Highly concentrated expense areas are Travel & Conferences, Accounting Services, Legal, and Management & Consulting Fees. EDDIE CAMPA EXECUTIVE DIRECTOR

TRAVEL & CONFERENCES – Most of the expenses involved with this category is focused on training. Apostolic Mutual attended two major training sessions that were both held in Indianapolis, Indiana. ACCOUNTING SERVICES – This category reflects the professional finance system that has been implemented for the loan fund to track loan and investment balances. LEGAL – This is the highest concentrated expense category due to the state registrations, formulation of the offering circular and assistance with the legal framework of AM. MANAGEMENT & CONSULTING FEES – This line item reflects professional services required to run Apostolic Mutual. BALANCE SHEET The Balance Sheet reflects the total assets and liabilities of AM. Currently, we are posting $545,446 in Cash and $1,690,423 in Loans Receivable. At the end of December, we had over $359,906 in deposits to fund new loans. These deposits are in the form of Investment Certificates and appear as a liability because these are funds that are owed back to the depositor upon maturity of their investment. SUMMARY As we begin 2020, we are optimistic that Apostolic Mutual will become a viable lending and investing option for the Apostolic Assembly. With your prayers and support, we will continue to move forward in growing our loan fund with the goal of assisting the church to expand the kingdom.

THE AM QUARTERLY NEWSLETTER | 2020

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FINANCIAL STATEMENT INCOME STATEMENT January - December 2019

INCOME STATEMENT JANUARY - DECEMBER 2019

REVENUES Interest on Loans Receivable Interest Expense on Investments Loan Fees Contributions TOTAL REVENUES EXPENSES Travel & Conferences Other Travel Expenses Office Supplies Communications Bank Service Charges Marketing & Promotions Loan Servicing Fees Accounting Services Legal Management Consulting Fees Recognition & Appreciations

$

65,668 (1,023) 200 228,671

$

293,516

$

8,772 670 61 24 460 4,463 3,510 11,030 29,364 19,307 5,500

TOTAL EXPENSES

$

83,160

NET INCOME

$

210,355

STEWARDSHIP WITH EXCELLENCE BE ACCOUNTABLE The word accountable means to be able to justify, explain or give a report of your actions or decisions. In the corporate world, managers are held accountable for projects, budgets, resources, and personnel. This is to ensure that goals are being met and that both financial and human resources are being used wisely. In the same manner with the Kingdom, how we use the resources and talent that God has allowed us to manage, is important. Are you achieving your goals? Are you using resources wisely? We will be accountable to God for everything that he has entrusted to us. “Yes, each of us will give a personal account to God.” Romans 14:12 (NLT) A. Everything belongs to God even if it has your name on it. 4

BALANCE SHEET As of December 31, 2019

BALANCE SHEET AS OF DECEMBER 31, 2019 ASSETS Checking Account Interest Receivable Loans Receivable TOTAL ASSETS

LIABILITIES & FUND BALANCE Accounts Payable Accrued Interest Investment Certificates - 1 Year

$

545,446 6,247 1,690,423

$

2,242,115

$

1,023 358,884

TOTAL LIABILITIES

359,906

Unrestricted Net Assets TOTAL NET ASSETS

1,882,209 $

2,242,115

“A psalm of David. The earth is the LORD’s, and everything in it. The world and all its people belong to him.” – Psalm 24:1 (NLT) B. We are to administrate or manage wisely the resources that God has given us (look out for the best interest of the Kingdom, the Church, and others). “Each of you should use whatever gift you have received to serve others, as faithful stewards of God’s grace in its various forms.” – I Peter 4:10 (NIV) C. We are to give account to God for what He has placed under our care. “His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’” – Matthew 25:21 (NIV)

THE AM QUARTERLY NEWSLETTER | 2020


LOAN SUMMARY REPORT DECEMBER 31, 2019 Number of AM Loans in the District 2 3 1 3 1 2 4 2 1 2 2 1 1 1 1

District Central Texas East Los Angeles Florida District Interior District Los Angeles Mid America District Midwest District National Missions New Mexico North Central North Pacific Coast North Texas South Texas Southern California Washington TOTALS

Interest Rate 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5

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Original Balance $ 65,000 $ 466,780 $ 93,000 $ 205,939 $ 158,286 $ 125,324 $ 225,000 $ 265,000 $ 50,000 $ 74,000 $ 60,000 $ 135,000 $ 100,000 $ 60,000 $ 26,533

Outstanding Balance $ 40,665 $ 385,770 $ 62,686 $ 184,988 $ 117,611 $ 104,600 $ 164,214 $ 235,866 $ 30,659 $ 54,560 $ 30,919 $ 129,032 $ 78,680 $ 59,188 $ 10,985

$

$ 1,690,423

2,109,862

5% CONTRIBUTIONS

5% CONTRIBUTIONS AS OF31,DECEMBER 31, 2019 AS OF DECEMBER 2019 DISTRICT ARIZONA CENTRAL EAST COAST CENTRAL TEXAS COLORADO EAST LOS ANGELES EAST TEXAS FLORIDA GREAT LAKES INTERIOR CALIFORNIA LOS ANGELES MID-AMERICA MIDWEST NEW MEXICO NORTH CENTRAL CALIFORNIA NORTHEAST COAST NORTH PACIFIC COAST NORTH TEXAS NORTHWEST TEXAS NORTHERN GOLDEN VALLEY OREGON SOUTH CENTRAL CALIFORNIA SOUTH TEXAS SOUTHERN CALIFORNIA UTAH & IDAHO WASHINGTON STATE WEST TEXAS APOSTOLIC ASSEMBLY TOTAL

JAN 368 427 73 550 310 290 1,069 501 270 * 150 291 * 432 240 240 * * 141 215 * 193 281 * 6,041

FEB 388 75 577 151 184 108 1,327 * 262 * 150 324 367 304

MAR * 353

APR 855 447

MAY 1,348 262

74 1,242 206 229 * 1,116 1,487 239 * 150 362 125

91 598 155 248 * 1,197 536 274 870 150 370 79 342 228

JUNE * 519 150 66 606 146 174 458 1,170 * 172

JUL * 287 137 81 630 130 276 200 1,099 * 231

150 340 136 254 348

292 388 120 * * 383 421 515 204 228 * 10,000

* 339 397 500 209 260 800 10,000

10,000

10,000

10,000

TOTAL 5,705 4,598 803 1,005 7,319 1,743 2,515 1,262 14,158 5,243 2,753 870 1,500 3,461 1,268 3,320 3,780 1,080 2,338 1,703 3,060 3,813 6,164 1,744 2,802 800 110,000

16,784

16,613

21,597

16,404

15,186

194,807

120 * * 499 473 1,370 156 208 * 10,000

64 * 148 * * 1,279 * 191 * 150 386 139 484 315 120 * * * 237 450 179 129 * 10,000

442 120 1,035 * 654 422 460 111 294 * 10,000

* * 373 352 460 149 246 * 10,000

* * 326 * 510 121 244 * 10,000

150 241 62 389 316 120 * * 345 603 520 134 279 * 10,000

17,043

14,624

20,070

18,328

15,890

16,228

AUG * 259 137 76 587 160 * 1,312 1,291 261

SEPT * 391 199 96 500 169 * * 1,393 331 209

150 241 99

THE AM QUARTERLY NEWSLETTER | 2020

359 120

OCT 1,677 510 180 132 639 134 643 206 1,070 700 366

NOV 547 431

DEC 910 324

83 765 200 224

94 626 144 227

1,128 397 108

998

150 * 186 374 526 120 1,303 1,299

150 679 75

401 515 147 318

276

270 * 293 464

170

227 449 341

134

400 141

316

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FEATURED ARTICLE LOWER INTEREST RATE = SHORTER LIFE OF LOAN The Apostolic Church in Santa Paula, California has had the opportunity to benefit by participating in the loan program provided by Apostolic Mutual. The following article is provided as a testament of how God can work through Apostolic Mutual.

Pastor and the local congregation never suffered from last minute issues. Pastor Celedonio Saldaña states, “The Apostolic Mutual Committee works with ethics; they know what they are doing, the process was fast and efficient and no points were added for making the change.” The impact of Apostolic Mutual on the church was a great blessing to the congregation because the interest has dropped 3.5%, and now they can rest assured that the property will be paid off sooner. Pastor Saldaña highly recommends for any pastors who are currently in the situation he was in to consider Apostolic Mutual as a viable option. He further states, “I thank God for visionary men like Bishop Felipe Lugo, who was the one who proposed the formation of this purely Apostolic institution, from which several pastors are now benefiting. Rather than throwing our interest payment to another secular bank, we can invest in it so that more pastors benefit from a lower interest.”

The Fountain of Grace Church had over 19 years with a loan on the property located at 116 North Davis Street in the city of Santa Paula. The loan was made by a private foundation lender with an interest of 8% on $140,000. Although this bank was recommended, the principal on the property’s loan remained the same. When Pastor Celedonio Saldaña and his leadership learned that Apostolic Mutual had a 4.5% interest rate, they decided to submit a request for a refinance. Thankfully, their loan application was approved and the local congregation managed to refinance their loan. The pastor and the church smoothly transitioned from a secular bank to Apostolic Mutual. Due to the mechanisms that are implemented by the Apostolic Mutual team, the

WHEN STEWARDS INVEST CHURCHES GROW

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With the new Apostolic Mutual loan, the local congregation will be able to pay off their loan within the next five years. Close to the heart of the city, the local congregation of Santa Paula, California now has more funds available to preach the gospel of Jesus Christ due to paying less interest on their loan. Apostolic Mutual not only sees what it can do for you today but also for the future of this organization and the Apostolic Assembly. You have nothing to lose but interest on your next payment. Remember, a lower interest rate equals a shorter life of loan. Santiago Calderon Marketing Director

You want to be a wise steward of your resources. You also want to invest in helping churches grow. Your dollars are used to provide loans for the expansion, building, and growth of churches while also earning interest for you.

THE AM QUARTERLY NEWSLETTER | 2020


BOARD OF DIRECTORS & OFFICERS

JOHN FORTINO CHAIRMAN

FELIPE LUGO VICE CHAIRMAN

EDDIE CAMPA EXECUTIVE DIRECTOR

JOSEPH A. RODRIGUEZ DIRECTOR

JORGE MONTES DIRECTOR

LEOBARDO MAFFEY DIRECTOR

ABEL RODRIGUEZ DIRECTOR

GIL AGUILAR DIRECTOR

DIRECTOR SPOTLIGHT - Attorney Jorge Montes The principal at Montes & Associates, Jorge Montes, earned a bachelor’s degree in journalism in 1985 from Loyola University of Chicago and a doctorate in jurisprudence in 1988 from Loyola School of Law. He has served as supervising litigation attorney at the Cook County State’s Attorney’s Office; as editor for Passport, an American Bar Association publication; and as spokesman for the Office of the Illinois Attorney General. Having received appointments by various governors, he worked for the Illinois Prisoner Review Board for over 16 years, becoming the first Latino and youngest Chairman of the Board in 2004. He worked in that position until 2010, when he resigned to return to law practice.

Mr. Montes has served on a number of bar association, college and medical clinic boards. He has been counsel for the Illinois Association of Hispanic State Employees for over 15 years. He is a frequent public speaker and often makes appearances on radio and television programs and is often quoted in newspapers. For his dedication to the legal community and contributions to society, Mr. Montes has earned numerous awards and honors from the Illinois State Bar Association, Chicago Bar Association, Hispanic lawyer’s Association of Illinois and its predecessor organization and numerous public interest groups that Mr. Montes has assisted.

Currently, Mr. Montes combines a rich political background and a solid law career to reach creative solutions for his clients’ legal problems, particularly in commercial and business matters.

THE AM QUARTERLY NEWSLETTER | 2020

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AM QUARTERLY NEWSLETTER


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THE AM QUARTERLY NEWSLETTER | 2020


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