United Methodist Committee on Relief (UMCOR)

According to the United Methodist Committee on Relief (UMCOR) consolidated audit of December 31, 2019 (Note 1, Nature of the organization and principles of consolidation):

"During the year ended December 31, 2018, United Methodist Committee on Relief of the General Board of Global Ministries of The United Methodist Church, a New York Corporation changed its name to United Methodist Committee on Relief of Global Ministries, Inc. a Domestic Nonprofit Corporation in the state of Georgia. United Methodist Committee on Relief of Global Ministries ('UMCOR'), a tax-exempt, not-for-profit organization, was established by the General Conference of The United Methodist Church to provide assistance to persons in need through programs of relief, rehabilitation, service to refugees, and renewal of life.

"The [audited] consolidated financial statements of UMCOR include the accounts of UMCOR and its wholly-owned subsidiary, National Justice for Our Neighbors, Inc. ('NJFON'). NJFON is a tax-exempt, not-for-profit organization which was established to administer immigration programs. UMCOR provides shared services to NJFON.

"In January 1998, UMCOR and the General Board of Global Ministries of The United Methodist Church, Inc. ('Global Ministries') organized UMCOR at Sager Brown ('Sager Brown') as a material relief program of UMCOR. The purpose of Sager Brown is to operate the facilities of Sager Brown and the UMCOR depot in support of worldwide ministries, as well as continued development of community ministries. Sager Brown operates as a division of UMCOR and is supported primarily through funding by UMCOR and revenues generated from ministries carried out related to volunteer depot staffing and disaster relief projects."

According to the United Methodist Committee on Relief (UMCOR) consolidated audit of December 31, 2019 (Note 15, Subsequent events):

"Management has evaluated subsequent events through July 23, 2020, the date the [audited] financial statements were available for issuance...

"The Protocol of Reconciliation and Grace Through Separation was introduced as legislation in early 2020 for the upcoming General Conference. This joins other legislative proposals that if adopted by the General Conference would provide an alternative way for churches to separate from the United Methodist Church. These proposals include a provision for new denominations to receive financial payments from the United Methodist Church and retain their real estate. The scheduled General Conference has been delayed until 2021, and the financial impact resulting from these potential separations on the General Funds is unknown at this time.

"As a result of the spread of COVID-19 in early 2020, economic uncertainties have arisen, which are likely to negatively impact operating results of UMCOR. Other financial impacts could occur though such potential impact is unknown at this time.

"In accordance with...the Coronavirus Aid, Relief, and Economic Security Act (the 'CARES Act')...Global Ministries applied for and received a Paycheck Protection Program loan on May 12, 2020, totaling $1,974,740 of which $426,448 was paid towards qualifying expenses of UMCOR. ...[T]he CARES Act provides for forgiveness of up to the full principal amount of qualifying loans including accrued interest to the extent Global Ministries incurs certain qualifying expenses and maintains a certain level of average full-time equivalent employees during the measurement period following closing of the loan. Any portion of the loan that is not forgiven has a term of five years with an interest rate of 1%."