Rio Texas Conference UMC — Audited Financial Statements

December 31, 2024 (comparative 2023) · audited · all figures in US dollars

Where the conference's assets are

$40.2M total assets
$35.9M total net assets
$4.2M total liabilities
Asset (2024)Amount% of total
Other Assets - Contributed (closed-church property held)13,195,51232.9%
Investments9,862,47724.6%
Cash and Cash Equivalents8,880,77122.1%
Property and Equipment, net6,681,94916.6%
Apportionments and Other Giving Receivable769,3131.9%
Accounts Receivable - Other, net312,1170.8%
Grants Receivable240,3830.6%
Prepaid Expenses178,1420.4%
Finance Lease Right-of-Use Asset, net38,4830.1%

The largest single pool of net assets is the board-designated Trustees Property Transition fund ($13,120,950), reflecting closed-church property held by the conference. See the Designated Net Assets table for the full breakdown.

Statement of Financial Position

Balance sheet — what the conference owns and owes

Line item20242023
ASSETS
Current Assets
Cash and Cash Equivalents8,880,77110,905,755
Apportionments and Other Giving Receivable769,313359,884
Accounts Receivable - Other, net312,117394,708
Grants Receivable240,383214,851
Prepaid Expenses178,142216,370
Total Current Assets10,380,72612,091,568
Long-Term Assets
Investments9,862,4778,523,601
Other Assets - Contributed (closed-church property held)13,195,51212,136,291
Property and Equipment, net6,681,9496,879,608
Finance Lease Right-of-Use Asset, net38,48384,663
Total Long-Term Assets29,778,42127,624,163
TOTAL ASSETS40,159,14739,715,731
LIABILITIES AND NET ASSETS
Current Liabilities
Accounts Payable - Apportionments and Other Giving564,679579,258
Accounts Payable - Vendors131,887494,429
Accounts Payable - Other18,363—
Accrued Expenses86,34095,789
Deferred Apportionments71,6381,216,754
Deferred Rental Income - Current34,67834,678
Finance Lease Payable - Current42,05351,420
Total Current Liabilities949,6382,472,328
Long-Term Liabilities
Deferred Rental Income - Long-Term3,294,4173,329,095
Finance Lease Payable - Long-Term—39,236
Total Long-Term Liabilities3,294,4173,368,331
TOTAL LIABILITIES4,244,0555,840,659
Net Assets
Net Assets Without Donor Restrictions — Undesignated9,915,17710,029,057
Net Assets Without Donor Restrictions — Designated19,583,01118,052,109
Total Without Donor Restrictions29,498,18828,081,166
Net Assets With Donor Restrictions — Time/Purpose Restricted5,187,9044,564,906
Net Assets With Donor Restrictions — Perpetually Restricted1,229,0001,229,000
Total With Donor Restrictions6,416,9045,793,906
TOTAL NET ASSETS35,915,09233,875,072
TOTAL LIABILITIES AND NET ASSETS40,159,14739,715,731

Statement of Activities

Income statement — revenue in, expenses out (2024; 2023 comparative)

Line item20242023
OPERATING SUPPORT AND REVENUE
Apportionments (church remittances)6,014,6877,095,948
Other Church Giving337,417332,187
Grants2,454,6432,333,408
Other Special Causes Support2,225,541812,375
Insurance Program Income1,283,1177,309,818
Interest Income126,767136,562
Service Fee Income67,38742,049
Total Operating Support and Revenue12,509,55918,062,347
OPERATING EXPENSES
Program9,285,97915,842,336
General and Administrative1,789,4171,849,392
Total Operating Expenses11,075,39617,691,728
Change in Net Assets Before Non-Operating Activity1,434,163370,619
NON-OPERATING ACTIVITY
Investment Income605,857749,253
Settlement Expense (disaffiliation litigation)—(682,324)
Total Non-Operating Activity605,85766,929
Change in Net Assets After Non-Operating Activity2,040,020437,548
Net Assets, Beginning of Year33,875,07233,437,524
NET ASSETS, END OF YEAR35,915,09233,875,072

Statement of Cash Flows

Where cash moved during the year

Line item20242023
OPERATING ACTIVITIES
Change in Net Assets2,040,020437,548
Depreciation267,687266,490
Loss on Sale of Other Assets - Contributed65,519158,169
Non-Cash Contribution of Other Assets(1,454,500)(328,805)
Gain on Investments(605,857)(749,253)
Amortization46,18046,180
Change in Accounts Receivable - Apportionments and Other Giving(409,429)321,653
Change in Accounts Receivable - Other, net82,591(189,299)
Change in Grants Receivable(25,532)159,764
Change in Prepaid Expenses38,22846,840
Change in Accounts Payable - Apportionments and Other Giving(14,579)(128,472)
Change in Accounts Payable - Vendors(362,542)348,095
Change in Accounts Payable - Other18,363—
Change in Accrued Expenses(9,449)11,692
Change in Deferred Apportionments(1,145,116)1,216,754
Change in Deferred Rental Income(34,678)(34,678)
Net Cash (Used) Provided by Operating Activities(1,503,094)1,582,678
INVESTING ACTIVITIES
Purchase of Property and Equipment(70,029)(8,480)
Purchase of Investments(733,019)(2,297,845)
Proceeds from Sale of Other Assets - Contributed, net of expense329,760689,315
Net Cash Used by Investing Activities(473,288)(1,617,010)
FINANCING ACTIVITIES
Payments on Finance Lease Obligation(48,602)(46,649)
Net Cash Used by Financing Activities(48,602)(46,649)
Net Decrease in Cash Flows(2,024,984)(80,981)
Cash and Cash Equivalents, Beginning of Year10,905,75510,986,736
Cash and Cash Equivalents, End of Year8,880,77110,905,755
Supplemental Disclosure — Interest Paid2,8174,771

Note 14 — Investments (Fair Value)

How the conference's $9.86M investment portfolio is held (all valued at NAV)

Line item20242023
Wespath — U.S. Equity Fund3,557,1812,911,288
Wespath — International Equity Fund2,801,7592,483,641
Wespath — Fixed Income Fund1,443,9101,250,044
Wespath — Inflation Protection Fund478,116411,199
Wespath — Multi Asset Fund300,160299,625
Texas Methodist Foundation — TMF Impact Certificates / Investment Notes1,281,3511,167,804
Total Investments9,862,4778,523,601

Note 6 — Other Assets: Contributed Church Property

Property of closed/combined churches that reverted to the conference, held pending sale

Line item20242023
Beginning Balance12,136,29112,654,970
New Churches Assumed1,454,500328,805
Proceeds from Sale of Churches(329,760)(689,315)
Loss on Sale of Churches(65,519)(158,169)
Ending Balance (contributed church property held)13,195,51212,136,291

Note 7 — Property and Equipment

Conference-owned real property

Line item20242023
Building19,14219,142
Methodist Conference Center — Land, Building, and Equipment5,148,4505,188,190
Mt. Wesley — Land, Building, and Equipment8,141,5488,141,548
Subtotal (gross)13,309,14013,348,880
Less Accumulated Depreciation(6,627,191)(6,469,272)
Total Property and Equipment, net6,681,9496,879,608
Depreciation Expense for the year267,687266,490

Note 23 — Undesignated Net Assets

The conference's unrestricted, undesignated reserves

Line item20242023
General Fund2,469,7192,385,941
Land, Building and Equipment7,445,4587,643,116
Total Undesignated9,915,17710,029,057

Note 23 — Designated Net Assets (Without Donor Restrictions)

Board-designated funds — where the conference has set its undesignated assets aside

Line item20242023
2 Year Academy4,6654,665
2014 Austin Flood TARG 003161161
2018 Floods5,6445,644
Academy for Spiritual Formation7,6927,770
Administrative Fund Treasurers Office7,32934,463
Agency Services25,88751,805
Audit Fund22,34422,344
Bishop's Convocation10,38714,344
Bishop's Discretionary Travel12,80312,803
Border Convocation5,0005,000
Border Relief205205
Cabinet Emergency9,0813,581
Conference Camping Fund950950
Conference Disaster Fund188,065206,435
Child Youth Safety144,065128,012
Clergy Women1,8871,887
Director's Discretion HCI2,4667,466
District Superintendent Fund329,248359,527
District Superintendent Fund - RGC17,72317,723
Emmaus Scholarships - RGC9,8509,850
Episcopal Residence Fund306,323300,470
Episcopal Support67,74244,931
Equitable Compensation164,504322,199
Equitable Compensation - RGC18,00683,464
Equitable Compensation Endowment - RGC169,450169,450
Ethnic Local Church6,6366,636
Ethnic Local Church - RGC2,9602,960
Four Ministry Focus - RGC48,38447,716
Fund for Peace32,08929,514
General Jurisdictional Conference Delegation24,20233,211
Golden Cross13,79713,547
Golden Cross - RGC1,7161,716
Harvest Sunday1,634968
Hispanic Ministries1,4161,416
Hispanic Research & Publish Project300300
Hurricane Harvey Conference446,707463,125
Internship Fund23,63223,632
Kingdom Kamp19,89819,286
Labrinth1,2051,205
Lily - Thriving Congregations90,5981,079
Lily - Implementation84,3731,153
Local Pastors - RGC685685
MEF Scholarships - RGC718718
Methodist Healthcare Ministry23,0237,937
Ministerial Education131,421196,632
Minister's Wives Luncheon2,9372,937
Mission Breakfast322347
Moving Expense74,93673,822
Nancy Miller's Children's15,39013,540
Native American38,92037,439
New Church433,637449,436
New Church Planters - RGC158,709158,709
New Church Starts - RGC4,9284,928
NCD - Capital District Strategy - LHM521,619521,619
NCD - Capital District Strategy - Urban148,323168,323
NCD - Coastal Bend Strategy - LHM150,131150,131
NCD - Coastal Bend Strategy - Non-Urban258,923265,423
NCD - Coastal Bend Strategy - Urban90,98394,983
NCD - Crossroads District Strategy - Non-Urban30,13130,131
NCD - Crossroads District Strategy - Urban163,366194,318
NCD - Cong Vitality & Dev Strategy - Urban182,01685,386
NCD - Cong Vitality & Dev Strategy - LHM38,72159,985
NCD - El Valle District Strategy - Urban541,081273,240
NCD - El Valle District Strategy - LHM531531
NCD - Hill County District Strategy - Non Urban27,66627,666
NCD - Las Misiones District Strategy - Urban57,85990,073
NCD - Las Misiones District Strategy - LHM1,26033,431
NCD - West District Strategy - Non-Urban72,47677,476
NCD - West District Strategy - Urban13,64217,642
Onboarding Certification500500
PAL - Insurance Program364,254349,093
Peace with Justice21,24421,244
Program Emergency245,709245,709
Rio Texas UM Historical Society1,1981,198
Russia Initiative2,737612
Trauma & Stress Workshop20,000—
Trustees Property Transition13,120,95011,696,729
UMC Board of Trustees217,597154,631
United Methodist Men100100
Vision Team Support RGC Women's Leadership531531
Volunteers In Mission5,8265,826
Women Clergy - RGC1,5501,550
WSCB Clergy47,25547,255
Youth & Young Adult Ministry—856
Youth Ministry Leadership Development12,33120,323
Youth Service774774
Youth Service - RGC5,0775,077
Total Designated19,583,01118,052,109

Note 22 — Donor-Restricted Net Assets

Funds the conference may use only as the donor directed

Line item20242023
Perpetually Restricted
Kerr Estate - Construction for New Hispanic Ministries100,000100,000
Skinner Estate - Mt. Wesley Retreat Center129,000129,000
Boone Chaplain Endowment1,000,0001,000,000
Total Perpetually Restricted1,229,0001,229,000
Time/Purpose Restricted
Bishop's Discretionary Fund - Harvey82,00082,000
Bishop's Discretionary Fund - University5,0005,000
Boone Chaplain207,285155,021
Boone Innovation914,7371,046,150
Candler School of Theology355355
DCMP Grant - Hurricane Harvey950950
Diana Sosa Scholarship28,706—
Discipleship Leadership Grant20,25615,510
Hurricane Hanna Conference358358
Lily Grant - Growing Families Together1,249,8331,169,073
Lily Grant - Implementation1,014,671—
Lily Grant - Thriving Congregations1,042,2191,250,000
MHM Grant - TCN Anti-Racism13,0514,957
MHM Grant - Addressing Migrant Needs13,41314,603
OCTA Education and Training645645
OCTA Land Acquisition24,59524,595
OCTA Sharyland53,00053,000
Offering Christ to All366,127498,623
RGC Clergy Scholarships30,50730,507
Soma Foundation – Uvalde Fund12—
UMCOR Disaster Fund16,36016,360
UMCOR Valley Storm Solidarity—532
UMCOR: RGV Windstorm Recovery103,824196,667
Total Time/Purpose Restricted5,187,9044,564,906
Total Net Assets With Donor Restrictions6,416,9045,793,906

Note 17 — Endowment

Donor-restricted endowment, changes during 2024

Line item20242023
Endowment Net Assets, Beginning of Year (2024)2,387,2832,205,723
Investment Income3,5482,333
Net Gains — Realized and Unrealized145,440258,727
Distributions(225,527)(79,500)
Endowment Net Assets, End of Year2,310,7442,387,283
of which Without Donor Restrictions188,721186,111
of which Purpose Restricted1,122,0231,201,172
of which Perpetually Restricted1,000,0001,000,000

Note 18 — Liquidity and Availability

Financial assets available to meet cash needs within one year

Line item20242023
Cash and Cash Equivalents8,880,77110,905,755
Investments9,862,4778,523,601
Apportionments and Other Giving Receivable769,313359,884
Accounts Receivable - Other, net312,117394,708
Grants Receivable240,383214,851
Total Financial Assets, Excluding Noncurrent Receivables20,065,06120,398,799
Less: Board Designations (Net of Trustees Property Transition)(6,462,060)(6,355,380)
Less: Donor Restrictions(6,416,904)(5,793,906)
Financial Assets Available to Meet Cash Needs Within One Year7,186,0978,249,513

Notes to the Financial Statements

Note 1 — Summary of Significant Accounting Policies

The Rio Texas Conference UMC is a 501(c)(3) nonprofit whose mission field spans South Texas — from Austin to McAllen and San Angelo to Victoria. All assets are held in trust by the UM Rio Texas Conference Board of Trustees (incorporated in Texas, effective January 1, 2015). The Conference shares office space and accounting with the Board of Pensions, the Las Misiones District, and the UM Mission Board of Metropolitan San Antonio. Statements are on the accrual basis using fund accounting, with two net-asset classes (with and without donor restrictions). Property and equipment are capitalized above $2,500. Mt. Wesley buildings were recorded at 50% of their insured value as of December 31, 1985, depreciated straight-line over 40 years; Mt. Wesley land is at a 1985 appraised value. Assets subject to operating leases totaled $7,234,612 at Dec 31, 2024 and 2023 (held for sale, not depreciated, included in other assets - contributed).

Note 2 — Apportionments and Other Giving Receivable

$769,313 (2024) / $359,884 (2023). Adjusted to the amounts actually received by the second week of January following year-end, so no allowance for doubtful accounts is required.

Note 3 — Grants Receivable

$240,383 (2024) / $214,851 (2023). Program-related and disaster-recovery grants due from various organizations, considered fully collectible.

Note 4 — Accounts Receivable - Other, net

$312,117 (2024) / $394,708 (2023), consisting of amounts due from churches and others for insurance billings and miscellaneous items, net of an allowance for doubtful accounts of $164,391 / $389,015.

Note 5 — Investments

Held with the Texas Methodist Foundation (TMF), measured at net asset value, with no investment fees. Dividends, interest, gains/losses, and other investment income flow through the statement of activities. Investments totaled $9,862,477 (2024) / $8,523,601 (2023). (See the Investments table for the fund-by-fund breakdown.)

Note 9 — Right-of-Use Finance Lease

A copier finance lease entered July 2020, payable in 63 monthly installments of $4,285, expiring October 2025. The right-of-use asset is carried at cost of $242,445 less accumulated amortization of $203,962 / $157,782. Equipment lease payable was $42,053 (2024) / $90,656 (2023); interest expense $2,817 / $4,771. The remaining 2025 minimum payment is $42,850 less interest ($797) = $42,053.

Note 10 — Pension Plan

Two classes of persons. Clergy appointed to the Conference are covered by a plan administered by the Board of Pensions; the Conference contributed $110,563 (2024) / $110,054 (2023). Lay employees are covered through annuity contracts, with employer contributions of $66,123 / $67,977. Both are 'church plans' under IRC section 414(e).

Note 11 — Contingent Liability for Unfunded Post-Retirement Benefits

Before 1982, the predecessor Southwest Texas and Rio Grande Conferences ran a defined-benefit clergy program; the liability persists for decades, but in 2024 and 2023 the Board of Pensions held assets in excess of its liabilities, so no unrecorded liability exists — the plan is fully funded and fully reserved.

Note 12 — Deferred Apportionments

$71,638 (2024) / $1,216,754 (2023), being apportionments collected from disaffiliating churches for the following fiscal year's budget (2025 and 2024 respectively; see Note 21). Treated as contributions and recognized as revenue when expended. Under strict GAAP recognition in the year received, revenue and net assets would change by ($1,145,116) for FY2024 and +$1,216,754 for FY2023.

Note 13 — Contingent Liability Energy Contract

In October 2020 the Conference renewed a fixed-rate electricity purchase contract effective May 1, 2021 for 60 months. The Conference is contingently liable for the full contracted amount and if a participating church cannot pay for electricity used; management expects full utilization and payment, so no amount is accrued.

Note 15 — Concentration of Credit Risk

Cash is held at several financial institutions; the FDIC insures up to $250,000 per bank, and TMF funds are not FDIC- or SIPC-insured. Uninsured cash balances were $8,796,559 (2024) / $10,303,545 (2023); uninsured investment balances were $9,861,938 / $8,994,925.

Note 16 — Settlement (Boy Scouts of America)

The UMC participated in a mediation tied to the Boy Scouts of America bankruptcy over sexual-abuse claims since 1940, some alleged to have occurred in UM-chartered Boy Scout troops and Cub Scout packs. In FY2023 the Conference paid its allocated portion of $682,324 to the General Council on Finance and Administration, to be held in trust until final settlement.

Note 17 — Endowment (origin)

The Conference's endowment consists of one fund established by the former Rio Grande Conference plus two funds established in 2022 with donations from Methodist Healthcare Ministries. Their purpose is to help the Conference become self-sufficient in ministerial support, program, and administration, focusing on evangelism, stewardship, leadership development, hospital-chaplain support, and innovative ministries. (See the Endowment table for balances and activity.)

Note 19 — Lease Agreements

The conference holds triple-net and commercial leases on properties it has assumed through church closures (see Note 6), letting it avoid maintenance and improvement costs while the properties are used for district and other non-profit ministries. At Dec 31, 2024 there were triple-net leases on seven properties and commercial leases on two (three in 2023). Lease income was $82,437 (2024) and $121,041 (2023), included in other special causes support.

Note 20 — Deferred Rental Income

In December 2021 the Conference executed a 99-year ground lease with another Texas non-profit for an affordable-housing complex on Conference-owned land in Austin, receiving a one-time rental payment of $3,450,000. After title, recording, and escrow fees, deferred rental income of $3,433,129 was recognized, to be earned over the 99-year life of the lease; the land and any structures revert to the Conference at lease end. $34,678 per year is recognized in revenue. Current deferred rental income was $34,678; long-term deferred rental income was $3,294,417 (2024) / $3,329,095 (2023).

Note 21 — Disaffiliation

In FY2024 and FY2023, churches disaffiliated from the UMC over reasons of conscience related to human sexuality, following the 'Discerning Pathways' (Book of Discipline ¶2553) process with a 2/3 professing-member vote. Each church paid the prior 12 months and next 12 months of apportionments plus its unfunded pension liability. FY2024: 10 churches completed — $43,318 collected for 2024 apportionments, $71,638 for 2025 (deferred), and $249,849 in pension liabilities forwarded to the Board of Pensions; the Conference paid $201,204 in legal fees and was reimbursed $100,601. FY2023: 84 churches completed — $2,350,314 collected for 2023 apportionments, $1,216,754 for 2024 (deferred), and $3,592,210 in pension liabilities; the Conference paid $188,461 in legal fees and was reimbursed $94,540.

Note 24 — Subsequent Events

As a result of recent disaffiliations, in 2025 the Conference plans to realign its district structure, consolidating the current seven districts into three geographical districts: North, Central, and South, anticipated to start in summer 2025 and complete by year-end. In May 2023 the Conference entered a lawsuit against 28 churches that stated intent to disaffiliate but did not follow the Book of Discipline ¶2553 process; the outcome remains undeterminable. Subsequent events were evaluated through May 20, 2025, the date the financial statements were available to be issued.