UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                  Form 10-KSB/A

      |X|   Annual report under section 13 or 15(d) of the  Securities  Exchange
            Act of 1934 For the fiscal year ended December 31, 2002

      |_|   Transition  report  under  section  13 or  15(d)  of the  securities
            exchange act of 1934 For the transition period from to

                        Commission file number 333-93475

                    Cornerstone Ministries Investments, Inc.
                 (Name of small business issuer in its charter)

            Georgia                                         58-2232313
(State or other jurisdiction of                           (IRS Employer
incorporation or organization)                          Identification No.)

2450 Atlanta Highway, Suite 904, Cumming, GA                   30040
  (Address of principal executive offices)                   (Zip Code)

Issuer's telephone number (678) 455-1100

         (Former name or former address, if changed since last report.)

Securities registered under Section 12(b) of the Exchange Act:

      Title of each class           Name of each exchange on which  registered
Common stock, without par value    Chicago Stock Exchange (approved for listing)

Securities registered under Section 12(g) of the Exchange Act:

(Title of class) Not applicable (Section 15(d) filing)

      Check  whether  the issuer (1) filed all  reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing  requirements  for the past 90 days.
Yes |X| No |_|

      Check if there is no disclosure  of delinquent  filers in response to Item
405 of  Regulation  S-B  contained  in  this  form,  and no  disclosure  will be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. |X|

      State issuer's revenues for its most recent fiscal year $6,909,340

      State the  aggregate  market  value of the  voting and  non-voting  common
equity held by  non-affiliates  computed by  reference to the price at which the
common  equity  was sold,  or the  average  bid and asked  price of such  common
equity,  as of a specified date within the past 60 days. As of February 28, 2003
the aggregate  market value held by  non-affiliates  was  $3,383,267  based upon
current public offering price.

      State the number of shares  outstanding of each of the issuer's classes of
common equity, as of the latest practicable date. 531,136 shares of common stock
as of February 28, 2003.

      Documents  incorporated  by  reference:  Portions  of  Issuer's  Form SB-2
Registration Statement, No. 333-91564, effective July 3, 2002.

      Transitional Small Business Disclosure Format: Yes |_|; No |X|
<PAGE>

                                     Part I

Item 1. Description of Business.

The  information  required by this item is  incorporated  by reference  from the
section  "Business" on pages 9 through 13 of the final  Prospectus  contained in
the Issuer's Form SB-2, as it became  effective  with the  Commission on July 3,
2002.

Item 2. Description of Property.

The  information  required by this item is  incorporated  by reference  from the
section "Business:  Facilities" on page 13 of the final Prospectus  contained in
the Issuer's Form SB-2, as it became  effective  with the  Commission on July 3,
2002.

Item 3. Legal Proceedings.

The  information  required by this item is  incorporated  by reference  from the
section  "Business:  Legal  proceedings"  on  page  13 of the  final  Prospectus
contained in the Issuer's Form SB-2, as it became  effective with the Commission
on July 3, 2002.

Item 4. Submission of Matters to a Vote of Security Holders.

No  matters  were  submitted  to a vote of  security  holders  during the fourth
quarter of the fiscal year covered by this report,  through the  solicitation of
proxies or otherwise.

                                     Part II

Item 5. Market for Common Equity and Related Stockholder Matters.

(a)(1) The Issuer's  common stock has been approved for Tier II  registration on
the Chicago Stock Exchange,  subject to meeting certain numerical  requirements.
There has not yet been any public trading in the Issuer's common stock.

      (2) (i) The Issuer has 235,000  shares of Series A  Convertible  Preferred
Stock outstanding, which is convertible, after December 2004, into shares of its
common  stock,  on an adjustable  formula.  The formula would have been equal to
76,923 shares at December 31, 2002. (ii) There are an aggregate 75,976 shares of
the Issuer's common stock owned by its directors and executive officers, and any
shareowner it knows to own beneficially 5% or more of the outstanding  shares of
its common stock.  These shares could be sold under Rule 144. The Issuer has not
agreed to  register  any shares  under the  Securities  Act for sale by security
holders.  (iii) The Issuer  proposes to  publicly  offer  250,000  shares of its
common stock in the second quarter of 2003, at the same $6.50 price per share as
in its initial  public  offering.  There is no public  trading and  therefore no
market price of the common stock that could be affected.

(b) There are 121 holders of record of the Issuer's common stock.

(c) For the last  two  fiscal  years,  the  issuer  has  paid  semi-annual  cash
dividends on its common stock,  at annual rates of 10% to 11% on the $6.50 share
purchase price.  The amount of earnings is the only  restriction  that may limit
the ability to pay dividends in the future.

Item 6. Management's Discussion and Analysis or Plan of Operation.

Overview of  operations.  We have  always  focused on serving  only  faith-based
organizations,  mostly  churches  and  their  related  schools.  We  also  offer
specialized  programs for church and other nonprofit  sponsors of senior housing
and affordable/moderate  income housing programs.  Nearly all of our earnings in
the past came from financing church facilities. During the last quarter of 2000,
we began to realize  revenues from investment in senior and  affordable/moderate
income housing projects. We generate revenue from:

o     interest on loans
o     origination and renewal fees on loans
o     gains on the sale of property securing loans
o     interest on securities
o     consulting fees

<PAGE>

We currently charge a 5% to 10% fee on new loans,  based upon expected term, and
renewal fees of as much as 5% of the  outstanding  balance of the renewing loan.
Our interest  rate on all new loans is currently  from 5% to 10%. Some loans are
participating loans, enabling us to receive income from the gains on the sale of
property for which we have  provided  financing.  The  participation  percentage
varies between 25% and 33% of the gains on the sale of real estate.

Comparison of years ending December 31, 2001 and December 31, 2002

General.  Assets increased from $41,041,001 at the end of 2001 to $71,776,839 at
the end of 2002 as a result of the sale of our certificates.  Total revenues for
2001 were $4,362,214 and were $6,909,340 for 2002. Net income for these periods,
before dividends but after taxes, was $247,120 for 2001 and $612,608 for 2002.

Our investments in loans  outstanding  were $30,576,660 on December 31, 2001 and
$64,667,610  on December 31, 2002.  Our other assets at the end of 2002 included
$2,571,250 in  investments  in bonds and  $1,500,499 in cash.  The amount of our
investor  certificates  and  accrued  interest  increased  from  $37,643,733  at
December 31, 2001 to $67,977,382 a year later.

Loan interest and fees Earned. We received  $6,018,879 in loan interest and fees
earned  during  2002,  compared  to  $3,868,429  in  2001,  for an  increase  of
$2,150,450, or 56%. This increase resulted from 16 new loans originated in 2002,
for a total of  $30,383,224,  and a  $3,707,726  increase in funding of existing
loans.  The  increase  is the result of  additional  loans being made during the
course of the year out of increased funds arising from the sale of certificates,
and from  refinancing of existing loans by third parties.  The weighted  average
interest  rate on the loan  balances at December 31, 2002 was 9.46%  compared to
9.30% at December 31, 2001. This increase  resulted from a higher  proportion of
our  loan  portfolio  being  in  senior  housing  loans,  which  earn  a  higher
origination fee.

Real estate and other income. We own two office  condominiums that are leased to
others.  We have  disposed of all but one of the  investment  properties  we had
acquired before the year 2000. None of our participating loans had sold property
during the course of the two years.  Most of our other  income is interest  from
our  purchase of bonds used as  permanent  financing  for projects we had funded
during their development and initial operations. We owned $2,571,250 of bonds at
December 31, 2002 and $5,172,500 at December 31, 2001.

Investor interest expense.  Interest expense increased $1,428,473,  or 52%, from
$2,726,524  in 2001 to  $4,154,997  in 2002.  The  increase in interest  expense
resulted from the sale of $30,333,649 of investor certificates  throughout 2002.
The weighted average interest rate for all the investor certificates at December
31, 2002 was 8.60%  compared to 8.74% at December  31,  2001.  The  decrease was
attributable to the favorable certificate mix of 5%, 7% and 9% rates.

Marketing  expenses.  Total expenses for marketing our certificates in 2002 were
$494,042  versus  $229,154 in 2001.  The  increase is due to an increase in debt
issue  cost  amortization  of  $165,151,  an  increase  in legal and  consulting
expenses of $53,465, and an increase in other marketing costs of $46,272.  These
increases were due to an 80.6% increase in investor certificates  outstanding at
the end of 2002 versus 2001.  Although our expenses  increased 216% in 2002, our
costs as a percent of new certificates  sold decreased from 2.3% in 2001 to 1.5%
in  2002.   Marketing  expenses  will  continue  to  increase  as  new  investor
certificates are sold.

Selling commissions paid to brokers for selling investor  certificates and costs
incurred to register  investor  certificates  are paid in cash and charged as an
expense over the term of the related  certificates,  generally  five years.  The
unamortized  balance  is  classified  as  an  asset  on  the  Balance  Sheet  as
"Unamortized  debt issue costs".  The balance was  $1,004,705 and $576,470 as of
December 31, 2002 and 2001,  respectively.  Debt issue cost amortization expense
was  $295,096 and  $129,945  for 2002 and 2001,  respectively.  We have not paid
significant  amounts  for  marketing  our  lending  capabilities  because of the
continuing requests for financing with which we have been approached.

Operating and personnel expenses.  Personnel expenses (salaries,  payroll taxes,
and  benefits)  were  $674,384  in 2002,  which was  $203,915  or 43.3% over the
$470,469  in  expenses  for 2001.  This  increase  was due to the hiring of five
additional employees which were needed to handle the Company's growth. Also, the
Company  increased its contribution to the profit sharing plan by $22,459 due to
increased profits and additional employees in 2002 versus 2001.

<PAGE>

Starting in 2003, the Company has contracted with  Cornerstone  Capital Advisors
("CCA") to provide all administrative  services.  The Company will reimburse CCA
for its  expenses  (estimated  at $750,000  over the next 12 months),  which are
expected  to be similar to the  expenses  incurred  had the  Company  elected to
continue its administrative support under current arrangements.

Operating expenses increased $217,647 or 34.5% from $631,458 to $849,105 for the
years' ending December 31, 2001 and 2002,  respectively.  The increase is due to
higher  occupancy  expenses  related to the increased number of employees and an
increase in  record-keeping  and trustee  services for our securities.  Also, in
2002,  we took steps  toward  creating  a  registered  securities  broker-dealer
subsidiary to market our securities.  We terminated the effort when we concluded
that, under rules of the National  Association of Securities  Dealers,  it would
not be  feasible  for a  subsidiary  to market our own  securities.  We incurred
start-up  expenses of $129,885  related to this  effort,  which are  included in
operating expenses for 2002.

Income tax  (provision)  benefit.  Income  tax  expense  for the  period  ending
December 31, 2002 was $124,204  compared to an expense of $57,489 for the period
ending December 31, 2001. This change resulted from an increase in the Company's
pre-tax income in 2002,  partially  offset by a $256,786  increase  ($401,234 in
2002 and $144,448 in 2001) in tax-exempt bond interest income. The effective tax
rate for 2002 was  16.9%,  compared  to 18.9% for 2001 and  37.5%  for  2000.  A
reconciliation of the Company's effective tax rate to the federal statutory rate
is as follows:

                                                     2000      2001      2002
                                                     ----      ----      ----
Statutory federal rate                               35.0%     35.0%     35.0%
Effect of graduated federal rates                    (1.4%)    (3.9%)    (1.0%)
State taxes, net of federal benefit                   3.7%      3.7%      3.7%
Effect of tax-exempt bond interest                     --      (16.1%)   (20.6%)
Other, net                                             .2%       .2%      (.2%)
                                                     ----      ----      ----
Effective tax rate                                   37.5%     18.9%     16.9%

Dividends.  We paid  $363,371 in  dividends  on our common  stock  during  2002,
compared to $360,735 in 2001.

Comparison of years ending December 31, 2000 and December 31, 2001

General.  Assets increased from $30,674,246 at the end of 2000 to $41,041,001 at
the end of 2001 as a result  of the sale of our stock  and  certificates.  Total
revenues  for  2000  were  $489,023,   which  did  not  include   revenues  from
Presbyterian Investors Fund, Inc. before the December 29, 2000 merger.  Revenues
for the merged  entity were  $4,362,214  for 2001.  Net income  (loss) for these
periods,  before  dividends but after taxes, was ($61,212) for 2000 and $247,120
for 2001.  Total loans  outstanding  were  $26,896,502  on December 31, 2000 and
$30,576,660  on December 31, 2001.  Major  components of our other assets at the
end of 2001 included  $5,172,500  in  investments  in church bonds,  $576,470 in
unamortized  debt issue costs and  $454,584  of loans in process.  We also had a
cash balance of $2,907,457.

Loan interest and fees earned.  The increase in interest  income on loans during
the year 2001 reflected our December 29, 2000 merger with Presbyterian Investors
Fund,  increasing  from $469,023 in 2000 to  $3,868,429 in 2001.  Pro forma loan
interest  income for the full year 2000 for the  combined  companies  would have
been  $2,244,862.  The additional  increase in loan interest income and fees was
from  the  increased  funds  arising  out of the sale of  certificates  and from
refinancing of existing loans.  The weighted  average  interest rate on the loan
balances at December 31 was 9.37% in 2001 compared to 9.77% in 2000.

Real estate and other income. Other than two office condos we owned and used for
office space,  we had disposed of all but two  properties to which we held title
before the year 2000.  We sold one, in  Douglasville,  Georgia,  in 2001 and the
gain is shown as revenue  for that year.  We expect to sell the other,  in Soddy
Daisy, TN, during 2004. None of our participating loans had sold property during
the course of the year. In 2001, we received  $64,635 in consulting  revenue for
assisting non-profit entities in securing financing from sources other than us.

Investor interest  expense.  Interest expense increased from $314,871 in 2000 to
$2,726,524 in 2001. This results from paying interest in 2001 on the much larger
amount of certificates that resulted from the merger with Presbyterian

<PAGE>

Investors  Fund,  Inc. and from our continuing  sales of investor  certificates.
Presbyterian Investors Fund, Inc. had $21,720,888 in certificates when we merged
on  December  29,  2000.  We  began  sales  of  our  Series  B  certificates  of
indebtedness  in May  2000 and  continued  through  2001.  The net  increase  in
outstanding  certificate  principal  during 2001 was  $9,121,904.  The  weighted
average  interest cost for all of the  outstanding  certificates at December 31,
2001 was 8.77%,  compared to 8.90% in 2000.  This  decrease was from a favorable
mix of certificate rates.

Marketing  expenses.  Total  marketing  expenses  in  2001  were  $229,154.  The
increase, from $92,239 in 2000, results from an increase in our staff for direct
sales of our certificates to investors.  Selling commissions to brokers are paid
in cash but are charged as an expense over the term of the certificates  sold by
the brokers and are  reflected on the balance  sheet as  Unamortized  Debt Issue
Costs  We  have  not  paid   significant   amounts  for  marketing  our  lending
capabilities  because of the  continuing  backlog of projects with which we have
been approached.

Operating and personnel expenses. Operating expenses totaled $50,817 in 2000 and
$881,864  in  2001.  This  increase  reflects  our  December  2000  merger  with
Presbyterian  Investors Fund. Since Presbyterian Investors Fund had no employees
before the merger, our 2000 statement of income shows no personnel expenses. The
$180,302 of  operating  expenses in 2000 is the  administrative  services fee we
paid  Presbyterian  Investors Fund, Inc., equal to 1.5% of our assets before the
December 29, 2000 merger. The 2001 amount is all of the administrative  expenses
of the now combined  operation,  including  Presbyterian  Investors Fund, Inc.'s
much larger asset base and expenses. Other 2001 expense increases resulting from
the merger were:  accounting,  audit and tax services,  from $12,373 to $86,422;
legal  expense,  from $10,925 to $52,655;  travel  expense from $684 to $32,454;
trust  service  fees from $9,363 to $62,123 and  telephone  expense  from $52 to
$33,826.  Our  depreciation  and  amortization  expense  for 2001  increased  to
$124,013  from  2000's  $31,045,  due to the  amortization  of debt issue  costs
associated with securities  issuance and increases in depreciation  due to fixed
asset  additions.  Selling  commissions  are paid in cash but  capitalized  over
three,  five,  and seven years  depending on whether a  three-year  certificate,
five-year  certificate  or  common  stock is sold.  Commissions  increased  from
$36,716 in 2000 to $68,060 in 2001 as  certificates  and common  stock have been
sold in the current offering,  which commenced in May 2000.  Commission  expense
and the accompanying  capitalized assets will increase as securities continue to
be sold.  Amortized legal expenses  increased as a result of the new offering in
the year 2000.  Legal  expenses  associated  with both the 1998 offering and the
2000  offering  are  capitalized  and  amortized.  We also  capitalized  and are
amortizing the costs  associated  with the transfer of registrar,  paying agent,
and trustee services.

Income tax  (provision)  benefit.  The income tax  expense  for the year  ending
December  31, 2001 was  $57,489  compared to a benefit of $36,767 for the period
ending  December  31,  2000.  This  change  resulted  from  net  changes  in the
components  of  deferred  tax assets and  liabilities,  all from  temporary  tax
differences  associated  with unearned  loan fees and permanent tax  differences
from tax exempt bond  interest  received.  The  effective  tax rate for 2001 was
18.9% compared to 37.5% for the same period in 2000.

Dividends

We paid  $360,735 in dividends  on our common  stock  during  2001,  compared to
$224,019 in 2000.  Payment in both years was at an annual rate of 12%,  based on
the initial stock offering price.  The increase is from  additional  shares sold
during 2001.

Item 7. Financial Statements.

For the  information  required  by this item,  please see  Financial  Statements
beginning on page F-1.

Item 8. Changes In and Disagreements With Accountants on Accounting and
        Financial Disclosure.

As reported on the Issuer's Form 10-Q for the period ending June 30, 2002, filed
August 13, 2002, its independent accountant, a sole practitioner,  died suddenly
and  unexpectedly  on July 20, 2002. As reported on the Issuer's Form 8-K, filed
February 12, 2003,  the Issuer  engaged,  on February 10, 2003,  an  independent
accountant, Robert N. Clemons, CPA, PA, as the principal accountant to audit the
registrant's financial statements.

Prior to engaging  Mr.  Clemons,  the  registrant  did not consult him about the
application  of  accounting  principles  to  a  specified  transaction,   either
completed  or proposed,  or the type of audit  opinion that might be rendered on
the  registrant's  financial  statements.  The  registrant  did consult with Mr.
Clemons about the application of accounting principles to its

<PAGE>

business  generally,  such as the  amortization  of loan fees. Mr. Clemons' oral
advice  was that  SFAS No.  91 would be  followed.  The  former  accountant  was
deceased  and  therefore  not  consulted.  Mr.  Clemons was asked to review this
disclosure  before  it  was  filed  with  the  Commission.  He has  advised  the
registrant that he will not be furnishing the registrant with a letter described
in Item 304(a)(2)(i)(D).

                                    Part III

Item 9. Directors, Executive Officers, Promoters and Control Persons; Compliance
        with Section 16(a) of the Exchange Act.

The  information  required by this item is  incorporated  by reference  from the
section  "Management"  on  page  14 of the  final  Prospectus  contained  in the
Issuer's Form SB-2, as it became effective with the Commission on July 3, 2002.

Item 10. Executive Compensation.

This summary compensation table shows all compensation paid to our two executive
officers during 2001 and 2002:

<TABLE>
<CAPTION>
                                                                         Annual compensation
                                                                         -------------------
Name and principal position                                            Year              Salary
---------------------------                                            ----              ------
<S>                                                                    <C>              <C>
Cecil A. Brooks, Chairman of the Board, President and CEO              2001             $150,000
                                                                       2002              150,000
John T. Ottinger, Vice president, Secretary, Treasurer and COO         2001              100,000
                                                                       2002              100,000
</TABLE>

Our executive  officers were  compensated by PIF through 2000 and their services
were included in the  administrative  services  agreement we had with PIF. Their
services for 2003 will be included in the administrative services agreement with
Cornerstone Capital Advisors, Inc. Neither we nor CCA have employment agreements
with them or any other employees.

Item 11. Security Ownership of Certain Beneficial Owners and Management.

The following table shows the beneficial  ownership of the Issuer's common stock
as of December 31, 2000 owned by each of CMI's directors and executive officers,
each  shareowner  known  by the  Issuer  to own  beneficially  5% or more of its
outstanding  shares and (iii) all directors and officers as a group.  We believe
that  the  beneficial  owners  of  the  common  stock  listed  below,  based  on
information  they  furnished,  have sole  investment and voting power over their
shares, subject to community property laws where applicable.

<TABLE>
<CAPTION>
Name of  Beneficial Owner                Number of Shares         Percentage of Total Common
                                        Beneficially Owned         Stock Beneficially Owned
<S>                                          <C>                            <C>                   <C>
Cecil A. Brooks                               1,953                           *                   *
John T. Ottinger                              1,719                           *                   *
Taylor McGown                                 1,538                           *                   *
Irving B. Wicker                              1,538                           *                   *
Church Growth Foundation, Inc.               69,228                          13%                  *
All directors and executive officers
as a group (4 Persons)                        6,659                         1.6%                  *
</TABLE>

* Amounts to less than one percent.

Item 12. Certain Relationships and Related Transactions. Furnish the information
         required by Item 404 of Regulation S-B.

The  information  required by this item is  incorporated  by reference  from the
section "Certain  Transactions" on page 16 of the final Prospectus  contained in
the Issuer's Form SB-2, as it became  effective  with the  Commission on July 3,
2002.

<PAGE>

Item 13. Exhibits and Reports on Form 8-K.

(a) (Item 601 of Regulation S-B)

       Exhibit
        Number                           Description
        ------                           -----------

         1.1      Sales Agency  Agreement  with Huntleigh  Securities  Corp. and
                  Medallion  Equities,  Inc.  (Incorporated  by  reference  from
                  Exhibit 1.1 of  Pre-Effective  Amendment No. 2 to Registrant's
                  Registration  Statement  on form SB-2,  No.  333-93475,  filed
                  April 26, 2000.)
         1.2      Certificate of  Indebtedness  Purchase  Agreement,  for direct
                  sales  by  the  Registrant  (Incorporated  by  reference  from
                  Exhibit 1.2 of the  Issuer's  Registration  Statement  on form
                  SB-2, No. 333-91564, filed June 28, 2002.)
         3.1      Amended  and  Restated   Articles  of   Incorporation  of  the
                  Registrant  (Incorporated  by  reference  from  Exhibit 3.1 of
                  Registrant's   Registration   Statement  on  Form  SB-2,   No.
                  333-93475, filed January 14, 2000.)
         3.2      Amended and Restated  By-laws of the Registrant  (Incorporated
                  by  reference  from Exhibit 3.2 of  Registrant's  Registration
                  Statement  on Form SB-2,  No.  333-93475,  filed  January  14,
                  2000.)
         4.1      Article III.A., page 1 of the Amended and Restated Articles of
                  Incorporation  and Article  III of the  Amended  and  Restated
                  By-laws (Reference is made to Exhibits 3.1 and 3.2)
         4.2      Form of Graduated Rate Redeemable  Certificate of Indebtedness
                  (Incorporated  by reference  from Exhibit 3.2 of  Registrant's
                  Registration  Statement  on Form SB-2,  No.  333-70474,  filed
                  September 28, 2001)
         4.3      Form of  Seven  Day  Redeemable  Certificate  of  Indebtedness
                  (Incorporated  by reference  from Exhibit 3.2 of  Registrant's
                  Registration  Statement  on Form SB-2,  No.  333-70474,  filed
                  September 28, 2001)
         4.4      Form of five-year term certificates (Incorporated by reference
                  from  Exhibit 4.4 of the  Issuer's  Registration  Statement on
                  form SB-2, No. 333-91564, filed June 28, 2002.)
         4.5      Trust   Indenture   for  Series  B  and  C   Certificates   of
                  Indebtedness  (Incorporated  by reference  from Exhibit 4.4 of
                  Registrant's   Registration   Statement  on  Form  SB-2,   No.
                  333-93475, filed January 14, 2000.)
         4.6      Trust Indenture  dated June 14, 2002 Registrant  (Incorporated
                  by reference  from  Exhibit 4.8 of the  Issuer's  Registration
                  Statement on form SB-2, No. 333-91564, filed June 28, 2002.)
         21       Subsidiaries  of the Issuer (filed with initial report on Form
                  10-KSB.)
         24       Power of Attorney  (included in the Signatures section of this
                  report)
         99.1     Certifications  pursuant to Section 906 of the  Sarbanes-Oxley
                  Act of 2002

(b) No  report on Form 8-K was  filed  during  the last  quarter  of the  period
covered by this report.

Item 14. Controls and Procedures.

(a) Evaluation of Disclosure  Controls and Procedures.  The Company  maintains a
system of "disclosure controls and procedures" (as defined in Rules 13a -- 14(c)
and 15d -- 14(c) under the Securities  Exchange Act of 1934) designed to provide
reasonable assurance as to the reliability of the financial statements and other
disclosures  included  in  this  report,  as well as to  safeguard  assets  from
unauthorized use or disposition. The Company's Chief Executive Officer and Chief
Financial  Officer  evaluated  the  effectiveness  of the  Company's  disclosure
controls within 90 days prior to the filing date of this report. Based upon that
evaluation,  the Chief Executive  Officer and Chief Financial  Officer concluded
that the Company's  disclosure controls and procedures are effective in alerting
them in a timely manner of material  information  required to be included in the
Company's periodic Securities and Exchange  Commission  filings.  (b) Changes in
Internal Controls.  Since the evaluation date, no significant  changes were made
to the Company's  internal  controls or other  factors that could  significantly
affect these controls.

<PAGE>

                                   SIGNATURES

In  accordance  with Section  15(d) of the Exchange  Act, the Issuer caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.

CORNERSTONE MINISTRIES INVESTMENTS, INC. (Issuer)

By /s/ Cecil A. Brooks                            November 11, 2003
----------------------------------------
Cecil A. Brooks, Chief Executive Officer

         Each person whose  signature  appears below  appoints  Cecil A. Brooks,
John T.  Ottinger,  or either of them,  his or her  attorney-in-fact,  with full
power of substitution and resubstitution, to sign any and all amendments to this
report on Form 10-KSB of Cornerstone Ministries  Investments,  Inc., and to file
them, with all their exhibits and other related  documents,  with the Securities
and   Exchange   Commission,   ratifying   and   confirming   all   that   their
attorney-in-fact  and agent or his or her substitute or substitutes may lawfully
do or cause to be done by virtue of this appointment.

In  accordance  with the Exchange  Act, this report has been signed below by the
following persons on behalf of the Issuer and in the capacities and on the dates
indicated.

<TABLE>
<CAPTION>
      Signature                            Title                                      Date
      ---------                            -----                                      ----
<S>                        <C>                                                  <C>
 /s/Cecil A. Brooks        Chief Executive Officer, President and               November 11, 2003
    Cecil A. Brooks        Chairman of the Board of Directors

 /s/John T. Ottinger       Vice President, Chief Operating Officer,             November 11, 2003
    John T. Ottinger       Chief Financial Officer, Secretary, Treasurer
                           and Director
                           (Principal financial and accounting officer)

*/s/Taylor McGown          Director                                             November 11, 2003
    Taylor McGown

*/s/Jayme Sickert          Director                                             November 11, 2003
    Jayme Sickert

*/s/Henry Darden           Director                                             November 11, 2003
    Henry Darden

*/s/Irving B. Wicker       Director                                             November 11, 2003
    Irving B. Wicker

By: ____________________________, attorney-in-fact                              November 11, 1003
    Cecil A. Brooks
</TABLE>

                                 CERTIFICATIONS

I, Cecil A. Brooks, certify that:

1.    I  have  reviewed  this  annual  report  on  Form  10-KSB  of  Cornerstone
      Ministries Investments, Inc.;

2.    Based on my  knowledge,  this  annual  report  does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the  circumstances  under which such
      statements were made, not misleading with respect to the period covered by
      this annual report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information included in this annual report, fairly present in all material
      respects the financial condition,  results of operations and cash flows of
      the  registrant  as of, and for,  the  periods  presented  in this  annual
      report;

4.    The  registrant's  other  certifying  officers and I are  responsible  for
      establishing  and  maintaining  disclosure  controls  and  procedures  (as
      defined in Exchange  Act Rules 13a-14 and 15d-14) for the  registrant  and
      have:

      a)    designed  such  disclosure  controls and  procedures  to ensure that
            material  information  relating  to the  registrant,  including  its
            consolidated  subsidiaries,  is made  known to us by  others  within
            those entities,  particularly during the period in which this annual
            report is being prepared;

      b)    evaluated the effectiveness of the registrant's  disclosure controls
            and  procedures as of a date within 90 days prior to the filing date
            of this annual report (the "Evaluation Date"); and

      c)    presented  in  this  annual   report  our   conclusions   about  the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The registrant's other certifying officers and I have disclosed,  based on
      our most recent  evaluation,  to the  registrant's  auditors and the audit
      committee of  registrant's  board of directors (or persons  performing the
      equivalent functions):

      a)    all significant  deficiencies in the design or operation of internal
            controls which could adversely  affect the  registrant's  ability to
            record,  process,  summarize  and  report  financial  data  and have
            identified for the registrant's  auditors any material weaknesses in
            internal controls; and

      b)    any fraud,  whether or not  material,  that  involves  management or
            other  employees  who have a  significant  role in the  registrant's
            internal controls; and

6.    The registrant's  other  certifying  officers and I have indicated in this
      annual report  whether or not there were  significant  changes in internal
      controls or in other  factors  that could  significantly  affect  internal
      controls  subsequent to the date of our most recent evaluation,  including
      any  corrective  actions  with  regard  to  significant  deficiencies  and
      material weaknesses.

Date: November 11, 2003             /s/Cecil A. Brooks_
                                    ------------------
                                    Cecil A. Brooks,
                                    Chairman of the Board, President,
                                    Chief Executive Officer

<PAGE>

I, John T. Ottinger, certify that:

1.    I have  reviewed  this  annual  report on Form  10-KSB of  PIF/Cornerstone
      Ministries Investments, Inc.;

2.    Based on my  knowledge,  this  annual  report  does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the  circumstances  under which such
      statements were made, not misleading with respect to the period covered by
      this annual report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information included in this annual report, fairly present in all material
      respects the financial condition,  results of operations and cash flows of
      the  registrant  as of, and for,  the  periods  presented  in this  annual
      report;

4.    The  registrant's  other  certifying  officers and I are  responsible  for
      establishing  and  maintaining  disclosure  controls  and  procedures  (as
      defined in Exchange  Act Rules 13a-14 and 15d-14) for the  registrant  and
      have:

      a)    designed  such  disclosure  controls and  procedures  to ensure that
            material  information  relating  to the  registrant,  including  its
            consolidated  subsidiaries,  is made  known to us by  others  within
            those entities,  particularly during the period in which this annual
            report is being prepared;

      b)    evaluated the effectiveness of the registrant's  disclosure controls
            and  procedures as of a date within 90 days prior to the filing date
            of this annual report (the "Evaluation Date"); and

      c)    presented  in  this  annual   report  our   conclusions   about  the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The registrant's other certifying officers and I have disclosed,  based on
      our most recent  evaluation,  to the  registrant's  auditors and the audit
      committee of  registrant's  board of directors (or persons  performing the
      equivalent functions):

      a)    all significant  deficiencies in the design or operation of internal
            controls which could adversely  affect the  registrant's  ability to
            record,  process,  summarize  and  report  financial  data  and have
            identified for the registrant's  auditors any material weaknesses in
            internal controls; and

      b)    any fraud,  whether or not  material,  that  involves  management or
            other  employees  who have a  significant  role in the  registrant's
            internal controls; and

6.    The registrant's  other  certifying  officers and I have indicated in this
      annual report  whether or not there were  significant  changes in internal
      controls or in other  factors  that could  significantly  affect  internal
      controls  subsequent to the date of our most recent evaluation,  including
      any  corrective  actions  with  regard  to  significant  deficiencies  and
      material weaknesses.

Date: November 11, 2003                 /s/John T. Ottinger
                                        -------------------
                                        John T. Ottinger, Vice President,
                                        Chief Operating Officer
                                        and Chief Financial Officer

<PAGE>

           Supplemental Information to be Furnished With Reports Filed
       Pursuant to Section 15(d) of the Act by Registrants Which Have Not
             Registered Securities Pursuant to Section 12 of the Act

The report on Form 10-K is the only annual report sent or to be sent to security
holders covering the registrant's last fiscal year.

No proxy  soliciting  material  has been sent or is to be  furnished to security
holders with respect to any annual or other meeting of security holders.
<PAGE>

                           ROBERT N. CLEMONS, CPA, PA
                                  PO BOX 1670
                           DELAND, FLORIDA 32721-1670


To The Board of Directors
Cornerstone Ministries Investments, Inc.

                          Independent Auditor's Report

We have audited the  accompanying  consolidated  balance  sheets of  Cornerstone
Ministries Investments,  Inc. (formerly PIF/Cornerstone  Ministries Investments,
Inc.) &  Subsidiaries  as of  December  31,  2000,  2001 & 2002 and the  related
consolidated statements of income (loss) & retained earnings (deficit),  changes
in stockholder's equity and cash flows for the years then ended. These financial
statements   are  the   responsibility   of  the   Company's   management.   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 includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,   the  financial  position  of  Cornerstone  Ministries
Investments,  Inc. & Subsidiaries  as of December 31, 2000,  2001 & 2002 and the
results of their  operations,  changes in their  stockholder's  equity and their
cash  flows  for the year  then  ended in  conformity  with  generally  accepted
accounting principles.



/s/ Robert N. Clemons, CPA, PA
DeLand, Florida
April 7, 2003


                                                                             F-1

<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2000, 2001 & 2002
<TABLE>
<CAPTION>
                                                                   Restated        Restated
                                                                   12/31/00        12/31/01        12/31/02
<S>                                                            <C>             <C>             <C>
ASSETS
Cash in banks                                                  $  2,181,280    $  2,907,457    $  1,500,499
Loans in process                                                     67,085         454,584         609,020
Real estate loans, net                                           26,896,502      30,576,660      64,667,610
Bond holdings                                                       273,500       5,172,500       2,571,250
Fixed assets, net                                                     6,689         266,655         320,337
Deferred tax asset                                                  144,110         243,478         274,233
Goodwill                                                            500,000         450,997         450,997
Unamortized debt issue costs                                        303,043         576,470       1,004,705
Real estate held for sale                                           295,499         331,513         340,000
Other assets                                                          6,538          60,687          38,188
                                                               ------------    ------------    ------------
TOTAL ASSETS                                                   $ 30,674,246    $ 41,041,001    $ 71,776,839
                                                               ============    ============    ============

LIABILITIES & SHAREHOLDER'S EQUITY
Investor certificates & accrued interest                       $ 27,696,741    $ 37,643,733    $ 67,977,382
Bond fund certificates                                              474,145               0               0
Accounts and other payables                                         196,412         132,178         282,120
Common dividends payable                                            151,974         171,834         168,640
Building mortgage                                                         0         197,194         189,226
                                                               ------------    ------------    ------------
TOTAL LIABILITIES                                                28,519,272      38,144,939      68,617,368
                                                               ------------    ------------    ------------
SHAREHOLDER'S EQUITY
Series A Convertible Preferred Stock, no par
  value; 235,000 shares authorized, no
  shares issued & outstanding                                             0               0               0
Common Stock, $0.01 Par Value, 10 million
  shares authorized; shares issued & outstanding:
  12/00 - 397,227; 12/01 - 528,721; 12/02 -                           3,972           5,287           5,309
                                                                                                    530,944
Paid in capital                                                   2,426,103       3,279,491       3,293,641
Retained earnings (deficit)                                        (275,101)       (388,716)       (139,479)
                                                               ------------    ------------    ------------
TOTAL SHAREHOLDER'S EQUITY                                        2,154,974       2,896,062       3,159,471
                                                               ------------    ------------    ------------
TOTAL LIABILITIES &
  SHAREHOLDER'S EQUITY                                         $ 30,674,246    $ 41,041,001    $ 71,776,839
                                                               ============    ============    ============
</TABLE>

SEE ACCOMPANYING NOTES

                                                                             F-2
<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) & RETAINED EARNINGS (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2000, 2001 & 2002
<TABLE>
<CAPTION>
                                                              Restated       Restated
                                                              12/31/00       12/31/01       12/31/02
<S>                                                         <C>            <C>            <C>
REVENUES
Loan interest & fees earned                                 $  469,023     $3,868,429     $6,018,879
Real estate & other income                                      20,410        493,785        890,461
                                                           -----------    -----------    -----------
TOTAL REVENUES                                                 489,433      4,362,214      6,909,340
                                                           -----------    -----------    -----------
Investor interest expense                                      314,871      2,726,524      4,154,997
Marketing expenses                                              92,239        229,154        494,042
Salaries, wages, payroll taxes and benefits                          0        470,469        674,384
Operating expenses                                             180,302        631,458        849,105
                                                           -----------    -----------    -----------
TOTAL EXPENSES                                                 587,412      4,057,605      6,172,528
                                                           -----------    -----------    -----------
Operating income (loss)                                        (97,979)       304,609        736,812
Income tax (provision) benefit                                  36,767        (57,489)      (124,204)
                                                           -----------    -----------    -----------
NET INCOME (LOSS)                                          ($   61,212)    $  247,120     $  612,608
Beginning retained earnings (deficit)                           10,130       (275,101)      (388,716)
Dividends                                                     (224,019)      (360,735)      (363,371)
                                                           -----------    -----------    -----------
Ending retained earnings (deficit)                         ($  275,101)   ($  388,716)   ($  139,479)
                                                           ===========    ===========    ===========
Basic & Diluted Earnings (Loss) Per Common Share                ($0.27)         $0.51          $1.16
</TABLE>


SEE ACCOMPANYING NOTES                                                       F-3

<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2000, 2001 & 2002
<TABLE>
<CAPTION>
                                                                                                       RETAINED
                                                 COMMON STOCK:            PAID-IN       PREFERRED      EARNINGS          TOTAL
                                            SHARES         AMOUNT         CAPITAL         STOCK        (DEFICIT)         EQUITY
<S>                                         <C>          <C>             <C>            <C>            <C>             <C>
BALANCE, DECEMBER 31, 1999                  119,103      $    1,191      $1,189,839     $        0     $   10,130      $1,201,160
Correction of stock issuance costs         (152,183)       (152,183)
Net income (loss) for year 2000             (61,212)        (61,212)
Dividends declared                         (224,019)       (224,019)
Capital contributed                         278,124           2,781       1,388,447      1,391,228
                                         ----------      ----------      ----------     ----------     ----------      ----------
BALANCE, DECEMBER 31, 2000, RESTATED        397,227           3,972       2,426,103              0       (275,101)      2,154,974
Net income                                  247,120         247,120
Dividends declared                         (360,735)       (360,735)
Capital contributed                         131,494           1,315         853,388        854,703
                                         ----------      ----------      ----------     ----------     ----------      ----------
BALANCE, DECEMBER 31, 2001, RESTATED        528,721           5,287       3,279,491              0       (388,716)      2,896,062
                                         ----------      ----------      ----------     ----------     ----------      ----------
Net income                                  612,608         612,608
Dividends declared                         (363,371)       (363,371)
Capital contributed                           2,223              22          14,150         14,172
                                         ----------      ----------      ----------     ----------     ----------      ----------
BALANCE, DECEMBER 31, 2002                  530,944      $    5,309      $3,293,641     $        0     ($ 139,479)     $3,159,471
                                         ==========      ==========      ==========     ==========     ==========      ==========
</TABLE>


SEE ACCOMPANYING NOTES                                                       F-4

<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2000, 2001 & 2002
<TABLE>
<CAPTION>
                                                             Restated        Restated
                                                             12/31/00        12/31/01        12/31/02
<S>                                                      <C>              <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                        ($    61,212)    $   247,120    $    612,608
Adjustments to reconcile net income to cash
from operations-
Depreciation & amortization                                    31,945         124,014         154,384
Changes in-
Loans in process                                              (31,741)       (387,499)       (154,436)
Accrued loan interest & deferred loan fees                    391,471         101,449         (99,823)
Deferred taxes                                               (156,482)        (99,368)        (30,755)
Unamortized debt issue costs                                   (2,788)       (286,310)       (561,990)
Investor interest payable                                     109,252         825,088        (270,523)
Accounts & other payables                                      (6,833)        (64,234)        127,443
Other items, net                                                5,000         (54,149)         22,499
                                                          -----------     -----------    ------------
NET CASH PROVIDED (USED) BY OPERATIONS                        278,612         406,111        (200,593)
                                                          -----------     -----------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate loans made                                     (4,032,721)    (23,327,367)    (38,174,217)
Loan principal payments received                            2,051,509      19,545,760       4,183,090
Bonds purchased                                                            (5,025,000)
Bonds redeemed                                                                126,000          88,750
Undivided interest in bonds sold                            2,512,500
Real estate purchased                                        (295,499)
Fixed assets purchased                                                       (124,900)        (74,311)
Cash received in acquisition                                  636,433
Real estate costs capitalized                                                 (36,014)         (8,487)
                                                          -----------     -----------    ------------
NET CASH (USED) BY INVESTING                               (1,640,278)     (8,841,521)    (31,472,675)
                                                          -----------     -----------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Investor certificates issued                                1,769,922       9,888,651      33,099,017
Investor cerfiticates redeemed                                (70,000)       (766,747)     (2,494,845)
Bond fund redemptions                                                        (474,145)
Building mortgage principal payments                                                           (7,968)
Stock issued                                                1,239,045         854,703          14,172
Dividends paid                                               (102,056)       (340,875)       (344,066)
                                                          -----------     -----------    ------------
NET CASH PROVIDED BY FINANCING                              2,836,911       9,161,587      30,266,310
                                                          -----------     -----------    ------------
Net Change in Cash                                          1,475,245         726,177      (1,406,958)
Cash at beginning of period                                   706,035       2,181,280       2,907,457
                                                          -----------     -----------    ------------
CASH AT END OF PERIOD                                     $ 2,181,280     $ 2,907,457    $  1,500,499
                                                         ============    ============    ============

Supplemental Information-
Interest paid during the period                           $   259,411     $ 1,916,134    $  4,499,470
Income taxes paid during the period                       $     9,200     $   234,460    $          0
Non-cash transactions:
Investor certificates matured & re-issued                 $         0     $ 4,025,418    $ 13,926,147
</TABLE>





SEE ACCOMPANYING NOTES                                                       F-5
<PAGE>

            CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The  accompanying  Consolidated  Financial  Statements  include the  accounts of
Cornerstone  Ministries  Investments,  Inc.,  Wellstone  Communities,  Inc.  and
Wellstone  Financial  Group,  LLC  (collectively  "The  Company").  The  Company
originates and purchases mortgage loans made to faith-based  organizations.  The
Company offers  specialized  programs for churches,  not-for-profit  sponsors of
senior  housing and  affordable  housing  programs.  The Company also invests in
similar real estate projects for the purpose of selling at a profit, or leasing.
Substantially all of the Company's loans and investments are in projects located
in the Southeastern United States.

Loans are stated at unpaid principal balances, less an allowance for loan losses
and net deferred loan fees and unearned discounts. Interest income is recognized
monthly  as it is  earned,  in  accordance  with  loan  terms.  Interest  income
generally is not recognized on specific  impaired loans unless the likelihood of
further loss is remote.  Interest payments received on such loans are applied as
a reduction of the loan  principal  balance.  Interest  income on other impaired
loans is  recognized  only to the extent of  interest  payments  received.  Loan
origination fees are deferred and amortized as a yield adjustment over the lives
of the related loans using the interest  method.  Amortization  of deferred loan
fees is discontinued when a loan is placed on nonaccrual status.

Loans in process are amounts  advanced or expended on behalf of borrowers  prior
to completion of the loan documentation.  Generally,  interest is not accrued on
these  amounts  until  the  loan  documentation  is  complete  and the  borrower
acknowledges  the  debt  and  associated  interest.  Substantially  all of these
expenditures are converted to loans within one year or less.

Unamortized  debt issue  costs  subject to  amortization  include  the costs and
commissions associated with issuing investor certificates. These costs are being
amortized  on a  straight-line  basis over the term of the debt,  principally  5
years.

The allowance for loan losses is  maintained at a level which,  in  management's
judgment,  is adequate to absorb credit losses  inherent in the loan  portfolio.
The  amount  of  the  allowance  is  based  on  management's  evaluation  of the
collectibility  of the loan  portfolio,  including the nature of the  portfolio,
credit concentrations,  trends in historical loss experience,  specific impaired
loans,  economic  conditions,   and  other  risks  inherent  in  the  portfolio.
Allowances  for impaired  loans are  generally  determined  based on  collateral
values or the present value of estimated cash flows.  Although  management  uses
available  information to recognize  losses on loans,  because of  uncertainties
associated with local economic  conditions,  collateral  values, and future cash
flows on impaired loans, it is reasonably  possible that a material change could
occur in the allowance for loan losses in the near term. However,  the amount of
the change that is reasonably  possible  cannot be  estimated.  The allowance is
increased  by a  provision  for loan  losses,  which is charged  to expense  and
reduced by charge-offs, net of recoveries.  Changes in the allowance relating to
impaired  loans are charged or credited to the provision for loan losses.  As of
the balance  sheet dates no loans were in arrears;  therefore,  no allowance for
loan losses is reflected in the accompanying statements.


                                                                             F-6
<PAGE>

Cash and cash equivalents  include checking accounts and short term certificates
with original maturities of 90 days of less.

Bond holdings  consist  tax-free  local  government  securities and local church
bonds that are  classified as  available-for-sale  when the Company  anticipates
that the securities could be sold in response to rate changes,  prepayment risk,
liquidity,  availability of and the yield on alternative investments,  and other
market and economic  factors.  These  securities are reported at fair value, and
unrealized  gains  and  losses  on these  securities  are  recognized  as direct
increases or decreases in other comprehensive income. Cost of securities sold is
recognized using the specific identification method.

Property  and  equipment  are  valued at cost when  purchased.  Depreciation  is
provided on the  straight-line  method over the  estimated  useful  lives of the
assets,  which are generally  three to five years for furnishings and equipment,
and 40 years for the Company's owned offices.

Interest on Investor Certificates is accrued from the date of issuance,  and may
be paid semi-annually.  Investors holding five year certificates in multiples of
$10,000 may receive interest monthly.

Income taxes are provided  for the tax effects of  transactions  reported in the
financial  statements  and consist of taxes  currently due plus  deferred  taxes
related  primarily  to the  difference  between  the methods of  accounting  for
depreciation  and loan  fees  for  financial  and  tax-reporting  purposes.  The
deferred  taxes  represent  the  estimated  future  tax  consequences  of  those
differences,  which  will be either  taxable or  deductible  when the assets and
liabilities  are  recovered  or settled.  Accelerated  depreciation  methods and
shorter asset lives are used for tax reporting,  and straight-line  depreciation
is used for financial statement reporting. The Company calculates deferred taxes
under the  provisions of SFAS No. 109 which provides for deferred tax assets and
liabilities to be carried on the balance sheet at current tax rates.

Basic earnings  (loss) per common share are calculated by dividing net income or
net loss by the weighted average number of common shares  outstanding during the
year.  Diluted  earnings  (loss) per common  share are  calculated  by adjusting
weighted  average  outstanding  shares,  assuming  conversion of all potentially
dilutive shares of Series A Convertible Preferred Stock.

The   Financial   Accounting   Standards   Board  has  issued   several   recent
pronouncements,  none of which are expected to  materially  affect the financial
statements of the Company:

SFAS No. 144,  Accounting for the  Impairment or Disposal of Long-Lived  Assets,
effective  for fiscal years  beginning  after  December 15, 2001.  The Statement
establishes a single  accounting  model,  based on the framework  established in
Statement  121, for  long-lived  assets to be disposed of by sale. The Statement
also resolves  significant  implementation  issues related to Statement 121. The
Statement  retains the  requirements of Statement 121 to recognize an impairment
loss only if the carrying amount of a long-lived  asset is not recoverable  from
its  undiscounted  cash flows and measure an impairment  loss as the  difference
between the carrying amount and fair value of the asset.


                                                                             F-7
<PAGE>

SFAS No. 145,  Recision of FASB Statements No. 4, 44, and 64,  Amendment of FASB
Statement No. 13 and Technical Corrections, effective for fiscal years beginning
after May 15,  2002.  The  Statement  eliminates  an  inconsistency  between the
required accounting for sale-leaseback  transactions and the required accounting
for certain lease  modifications  that have economic effects that are similar to
sale-leaseback transactions.

SFAS No.146,  Accounting for Costs Associated with Exit or Disposal  Activities,
effective for  transactions  initiated  after December 31, 2002.  This Statement
improves financial reporting by requiring that a liability for a cost associated
with an exit or disposal  activity be recognized and measured  initially at fair
value only when the liability is incurred. The accounting for similar events and
circumstances  will  be  the  same,  thereby  improving  the  comparability  and
representational faithfulness of reported financial information.

SFAS No. 147,  Acquisition  of Certain  Financial  Institutions,  effective  for
transactions  after  October 1, 2002.  The  Statement  removed  acquisitions  of
financial  institutions  from the scope of  Statement  No.  72,  "Accounting  of
Certain  Acquisitions  of Banking or Thrift  Institutions,"  which permitted the
recognition  and  subsequent  amortization  of any  excess of the fair  value of
liabilities assumed over the fair value of tangible and identifiable  intangible
assets acquired as an unidentifiable intangible asset. For a transaction that is
a  business   combination,   the  Statement  requires  that  the  unidentifiable
intangible  asset  acquired be  recognized  as goodwill and  accounted for under
Statement No. 142. The Statement also amended Statement No. 144, "Accounting for
the  Impairment  or  Disposal  of  Long-Lived  Assets,"  to include in its scope
long-term borrower-relationship intangible assets of financial institutions such
as  depositor-and-borrower-relationship  intangible assets and credit cardholder
intangible assets. Consequently, those intangible assets are subject to the same
undiscounted cash flow  recoverability  test and impairment loss recognition and
measurement  provisions  that  Statement  No. 144  requires of other  long-lived
assets that are held and used.

SFAS No. 148,  Accounting  for  Stock-Based  Compensation,  effective for fiscal
years ending after  December 15, 2002. The Statement  amends  Statement No. 123,
"Accounting for Stock-Based  Compensation,"  to provide  alternative  methods of
transition for an entity that voluntarily changes to the fair value based method
of  accounting  for  stock-based  employee  compensation.  It  also  amends  the
disclosure  provisions of SFAS No. 123 to require prominent disclosure about the
effects on reported net income of an entity's  accounting  policy decisions with
respect to  stock-based  employee  compensation.  The Company has no stock-based
compensation.

FASB  Interpretation No. 45, Guarantor's  Accounting and Disclosure  Requirement
for  Guarantees,  Including  Indirect  Guarantees  of  Indebtedness  of  Others,
recognition  and  measurement is effective for  transactions  after December 31,
2002 and  disclosure  requirements  are  effective for fiscal years ending after
December 15,  2002.  The  Interpretation  improves  disclosures  to be made by a
guarantor about its obligations under certain  guarantees that it has issued. It
also  clarifies  that a guarantor is required to recognize,  at the inception of
the guarantee,  a liability for the fair value of the obligation  undertaking in
issuing the guarantee.

Management   uses  estimates  and   assumptions  in  preparing  these  financial
statements in accordance with generally accepted  accounting  principles.  Those
estimates and assumptions


                                                                             F-8
<PAGE>

affect the  reported  amounts  of assets  and  liabilities,  the  disclosure  of
contingent  assets and  liabilities,  and the reported  revenues  and  expenses.
Actual results could vary from the estimates that are used.

Certain report classifications used in prior year financial statements have been
reclassified to conform to current year presentation.

NOTE 2 - CORRECTION OF PREVIOUS FINANCIAL STATEMENTS

The Company has retroactively  restated prior period's financial  statements for
corrections to it's method of recognizing  fees  associated with mortgage loans.
As of December 31, 2000 the Company deferred previously recognized unearned loan
fees of $442,373 less related taxes of $166,933,  together  aggregating $275,440
($1.22 per share).  As of December 31, 2001 the Company  deferred an  additional
$299,  927 of  unearned  loan  fees less  related  taxes of  $110,486,  together
aggregating  $189,441 ($0.39 per share).  Restatement prior to the year 2000 was
not required as fees then were recognized generally in the same periods that the
loans were  outstanding.  The following  table  reconciles  previously  reported
amounts with the restated amounts presented in these financial statements:

<TABLE>
<CAPTION>
                                                               12/31/00        12/31/01
                                                             ------------    ------------
<S>                                                          <C>             <C>
Loan interest & fees earned as previously reported           $    911,396    $  3,898,356
Deferral of previously recognized fees                           (442,373)       (299,927)
                                                             ------------    ------------
Loan interest & fees earned as restated                      $    469,023    $  3,598,429

Income tax expense as previously reported                    $   (130,166)   $   (167,975)
Tax effect of fee deferral                                        166,933         110,486
                                                             ------------    ------------
Income tax (expense) benefit as restated                     $     36,767     $ ( 57,489)

Income as previously reported                                $    214,228    $    436,561
Deferral of previously recognized fees, net of taxes             (275,440)       (189,441)
                                                             ------------    ------------
Net Income (Loss) as restated                                $    (61,212)   $    247,120

Earnings per share, basic & diluted as previously reported   $        .95    $       0.90
Deferral of previously recognized fees, net of taxes                (1.32)          (0.39)
                                                             ------------    ------------
Earnings per share, basic & diluted as restated              $      (0.27)   $       0.51

Loans receivable as previously reported                      $ 26,469,809    $ 30,251,416
Accrued interest receivable as previously reported                869,066       1,067,544
Deferral of previously recognized fees, cumulative               (442,373)       (742,300)
                                                             ------------    ------------
Real estate loans, net as restated                           $ 26,896,502    $ 30,576,660

Deferred income taxes as previously reported                 $    (22,823)   $    (33,941)
Tax effect of fee deferral, cumulative                            166,933         277,419
                                                             ------------    ------------
Deferred tax asset as restated                               $    144,110    $    243,478
</TABLE>

Additionally, costs associated with its stock offerings ($152,183 with $0 income
tax effects) have been  reclassified  as of December 31, 2000 from an intangible
asset classification on the


                                                                             F-9
<PAGE>


balance sheet to a reduction of the associated  paid-in capital  account.  There
was no income  statement  effect.  The  following  table  reconciles  previously
reported  amounts  with the  restated  amounts and  accounts  presented in these
financial statements:

                                                      12/31/00       12/31/01
                                                    -----------    -----------
Intangible assets, net as previously reported       $   955,226    $ 1,179,650
Less: Goodwill reported on separate line               (500,000)      (450,997)
Stock offering costs reclassified                      (152,183)      (152,183)
                                                    -----------    -----------
Unamortized debt issue costs as restated            $   303,043    $   576,470

Paid in capital as previously reported              $ 2,578,286    $ 3,431,674
Stock offering costs reclassified                      (152,183)      (152,183)
                                                    -----------    -----------
Paid in capital, as restated                        $ 2,426,103    $ 3,279,491

NOTE 3 - SUBSEQUENT EVENTS

On February  12, 2003 the Board of Directors  approved  amending the Articles of
Incorporation  and changed  the name of the  Corporation  from  "PIF/Cornerstone
Ministries Investments, Inc." to "Cornerstone Ministries Investments, Inc.". The
Company  closed on a $522,459  contract to purchase  additional  office space in
Forsyth County, Georgia on February 28, 2003.

NOTE 4 - FIXED ASSETS

At December 31, the Company's fixed assets are composed of:

                                      2000         2001           2002
                                    ------      ---------       ---------
Office Condominiums                 $  -0-      $ 252,922       $ 252,922
Office Computers, Furnishings,
Software & Equipment                 6,689         14,554          62,485
Vehicles                               -0-         11,351          37,730
Less: Accumulated Depreciation        (-0-)       (12,171)        (32,800)
                                    ------      ---------       ---------
Fixed Assets, Net                   $6,689      $ 266,656       $ 320,337


Depreciation   expense  totaled  $-0-,   $12,171  and  $20,630  for  each  year,
respectively.

NOTE 5 - COMMITMENTS

The Company has no material lease  commitments at December 31, 2002. The Company
has entered into an Administrative  Services Agreement with Cornerstone  Capital
Advisors,  Inc. (CCA) to provide loan administration,  including the application
and  closing  process  and  loan  accounting;   investor  relations;   marketing
collateral;  administration  of  computers,  computer  networks  and  management
information systems; photo copying; and, maintenance of records, record keeping,
bookkeeping and accounting  after 2002. The Company is obligated to pay directly
or  reimburse  actual  expenses to be billed  monthly by CCA.  The base for good
performance is expected to be that all bond interest and other  obligations  are
current and the common stock  shareholders  have received  dividends equal to an
annual rate of at least 10% on the price paid in a public  offering  for all the
time the shares were outstanding. The factors above that base, and the amount of
incentive  compensation will relate to the director's  judgment on the extent to
which CCA's services will have contributed to the results.  The agreement is for
renewable  one-year terms and it may be terminated by either party upon 60 days'
written notice. It is anticipated that after 2002, the Company will not have any
employees of its own and


                                                                            F-10

<PAGE>

accordingly,  CCA will be subject to the  supervision of the Board of Directors.
As of December 31, 2002, CCA had not incurred any material expenses to be billed
to the Company.

NOTE 6 - REAL ESTATE LOANS RECEIVABLE

At December  31,  2002 the  Company  had Real  Estate  Loans on church and other
not-for-profit properties as follow:


                   Mortgage Loans               $ 64,242,543
                   Accrued Interest                1,203,384
                   Unearned Loan Fees               (778,317)
                                                ------------
                   Total Real Estate Loans      $ 64,667,610


These loans mature as follow: 2003, $56,997,295;  2004, $5,045,454;  2005, $-0-;
2006, $20,886;  2007, $186,935;  beyond 2007,  $1,991,973.  Loan maturity may be
accelerated  in accordance  with loan terms,  generally  upon certain  events of
default such as non-payment of scheduled payments or bankruptcy.

NOTE 7 -GOODWILL

The  Company  has  adopted  SFAS 142  "Goodwill  and  Other  Intangible  Assets"
effective January 1, 2002. Goodwill associated with the Company's acquisition of
Presbyterian  Investor's  Fund,  Inc. in 2000 is carried at $450,997  and is not
subject to further amortization. Goodwill is tested for impairment at the end of
each  calendar  year using the present  value of  expected  future cash flows to
determine  the value of  Goodwill.  At  December  31,  2002,  the fair  value of
Goodwill  exceeded it's carrying value;  therefore,  no provision for impairment
loss has been recorded. No goodwill was acquired or sold in 2001, 2002 or 2003.

NOTE 8 - UNAMORTIZED DEBT ISSUE COSTS

Unamortized debt issue costs consist of costs incurred to register the Company's
debt securities and commissions  paid or accrued on the sale of debt securities.
These  costs  are  amortized  on a  straight-line  basis  over  the  period  the
securities are outstanding, generally five years.


At December 31, 2002, Unamortized debt issue costs consist of:
Costs incurred to register the Company's debt securities            $   431,215
Commissions paid on the sale of debt securities                       1,118,690
Less: Accumulated Amortization                                         (545,200)
                                                                    -----------
                                                                    $ 1,004,705

Amortization  expense was  $183,850,  $61,885  and  $31,945 in the years  ending
December  31,  2002,  2001 & 2000,  respectively,  and is included in  marketing
expenses in the accompanying Consolidated Statements of Income (Loss) & Retained
Earnings (Deficit).

Estimated amortization expense for the next five years:

2003 - $287,346      2006 - $195,917
2004 - $248,162      2007 - $ 57,269
2005 - $216,011

                                                                            F-11

<PAGE>

NOTE 9 - BOND HOLDINGS
<TABLE>
<CAPTION>
Bond holdings at year end consist of-                2000           2001             2002
                                                   --------      -----------      -----------
<S>                                                <C>           <C>              <C>
St. Lucie Co., FL Subordinated Revenue Bonds:
    Maturity 7/1/2036                              $    -0-      $ 2,325,000      $ 2,325,000
    Maturity 10/1/2036                                  -0-        2,700,000        2,700,000
Undivided 50% interest sold to investor                 -0-              -0-       (2,512,500)
Local Church Bonds, maturing 2002 & 2003            273,500          147,500           58,750
                                                   --------      -----------      -----------
Totals                                             $273,500      $ 5,172,500      $ 2,571,250
</TABLE>

In  2002,  the  Company  transferred  all of its bond  holdings,  with a cost of
$5,110,500, from "held to maturity" to "available for sale" securities. This was
the result of an  unanticipated  opportunity to utilize an investor's  funds and
the Company sold an undivided  50%  interest in the St,  Lucie  County,  Florida
Bonds for $2,512,500, which equals book value. No gain or loss was recorded as a
result  of the  transaction,  nor  when  transferred  as the  cost of the  bonds
approximated their fair value. The Company reinvested the funds from the sale in
a real estate loan,  which  management  believes will provide greater  long-term
returns than the bonds.

These bonds are not traded on any exchange,  however  management  estimates that
the fair value of the individual  securities,  based on discounted expected cash
flows,  approximate their original cost.  Accordingly,  no gain or loss has been
recorded in other comprehensive income in the accompanying financial statements.

NOTE 10 - INCOME TAXES

The net  deferred tax benefit in the  accompanying  balance  sheet  includes the
following amounts of deferred tax assets and liabilities:


                                2000             2001            2002
                              ---------       ---------       ---------
Deferred tax asset            $ 166,933       $ 277,419       $ 286,787
Deferred tax liability          (22,823)        (33,941)        (12,554)
                              ---------       ---------       ---------
Net deferred tax benefit      $ 144,110       $ 243,478       $ 274,233


The  deferred  tax  liability  results  from the use of  accelerated  methods of
depreciation  of property and  equipment.  The deferred tax asset results from a
difference in reporting income from loan fees and represents taxes already paid.
As such, no valuation allowance has been provided since the Company will realize
the benefit of these  prepaid  taxes by reducing  its federal and state  taxable
income in the  future.  The  Company  has  pending  with the  Department  of the
Treasury,  a request to change its  accounting  method with respect to loan fees
which would approximate the book treatment under SFAS Nos. 65 and 91.

Components of income tax expense (benefit) for the years ended December 31, are:

                          2000            2001           2002
                       ---------       ---------      ---------
Current:  Federal      $ (33,727)      $  33,122      $ 108,308
          State          (13,491)         13,249         19,240
Deferred: Federal          7,465           9,450         (2,840)
          State            2,986           1,668           (504)
                       ---------       ---------      ---------
                       $ (36,767)      $  57,489      $ 124,204


                                                                            F-12

<PAGE>

The tax  provision  differs  from the expense  that would  result from  applying
statutory rates to income before income taxes due to the graduated corporate tax
rates for the first  $100,000  of taxable  income and tax exempt  interest  from
bonds totaling approximately $-0-, $145,000, $401,000 respectively.

NOTE 11 - CASH CONCENTRATION

A cash  concentration  risk arises when the Company has more cash in a financial
institution than is covered by insurance.  At December 31, 2002, the Company had
cash in excess of insured limits totaling $1,081,672.

NOTE 12 - INVESTOR CERTIFICATES

During 2001, the Company filed two Form SB-2  Registration  Statements under the
Securities Act of 1933. Under these Registration Statements,  the Company issued
3 separate  securities.  Under the first of the SB-2 filings the Company  issued
securities  identified  as "Access  Certificates".  These  certificates  have no
stated maturity, are purchased in $100 increments and bear a rate of interest as
determined  by the  Company's  board of directors on the first of each  January,
April,  July and October.  The directors may also change the rates between these
dates if market  conditions  warrant  such a change.  Under this same filing the
Company  issued  5  year  "Graduated   Certificates"  which  require  a  minimum
investment of $500. Under the terms of the offering as filed, these certificates
carry a graduated interest rate based on how long the certificate is held by the
investor,  up to 5  years.  These  certificates  are not  collateralized  and no
sinking fund is required for paying the certificates upon maturity.  Also during
the year ended December 31, 2001 the Company offered up to $17,000,000 of Series
B Certificates of  Indebtedness.  Of the $17,000,000  offered,  $3,000,000 has a
March 13, 2003  maturity  date and bears an interest  rate of 7%. The  remaining
$14,000,000  will have a March 15, 2005  maturity  date and bear interest at 9%.
These  certificates  are not  collateralized  and no sinking fund for paying the
certificates on maturity is required.

Following are the are the 5 year  maturities of  certificates  outstanding  each
year end:

Years to Maturity              12/31/00         12/31/01         12/31/02
                             -----------      -----------      -----------
On demand & 1 year           $ 3,156,832      $ 8,886,314      $12,588,839
2                              9,849,576        5,015,552          838,115
3                              5,256,331        2,955,225        4,938,456
4                              2,515,343        7,929,711       10,941,275
5+                             5,175,114        9,818,153       35,902,441
                             -----------      -----------      -----------
Total Principal              $25,953,196     $ 34,604,955    $ 65,209,126


At December 31, 2000,  2001 & 2002,  accrued  interest  payable was  $2,213,690,
$3,038,778 and  $2,768,255,  respectively.  Interest rates for the  certificates
outstanding at December 31, 2002 are:

5.0%      $3,081,099
7.0%       5,964,859
7.5%         191,824
8.0%       1,847,974
9.0%      54,123,370


                                                                            F-13

On February 21, 2003  Wellstone  Communities,  Inc., a wholly owned  subsidiary,
filed a Form SB-2  Registration  Statement under the Securities Act of 1933 with
the Securities and Exchange Commission to sell up to $50,000,000 of its Series A
Preferred  Stock. Net proceeds from the offering are expected to be used to make
and purchase  loans  secured by  properties,  start or acquire a bank and add to
working capital.

NOTE 13 - LOAN GUARANTEES

At  December  31,  2002  the  Company  was  guarantor  for  potential  total  of
$34,776,000 of loans secured by retirement  facilities  owned by  not-for-profit
entities. Certain acquisition and development loans in which we choose to secure
outside financing may require a guarantee as a condition of the extension of the
loan by the financial  institution.  The guarantee is solely  limited to amounts
drawn under credit facilities and only cover  outstanding  principal and accrued
interest and terminate  upon maturity and principal  repayment.  At December 31,
2002,  actual amounts drawn and therefore  guaranteed to a commercial bank total
$19,157,179.  The guaranteed  loans mature between May 31 and November 18, 2004.
Only  upon  an  uncured  payment  default  and  upon  demand  by  the  financial
institution  would the  Company  be  required  to  perform  under its  guarantee
obligations.  The Company's  recourse  would be limited to  repossession  of the
underlying  collateral and subsequent  resale of the facilities.  As of December
31,  2002,  all loans which had a guarantee  were  current  and  accordingly  no
obligation is recognized in the financial statements.

NOTE 14 - PROFIT SHARING PLAN

During 2001,  the Company  established a Profit  Sharing Plan for its employees.
The Plan allows for entry into the plan after one year of service, and immediate
vesting  of  contributed  amounts.  All  contributions  are  to be  made  at the
discretion  of the Company  after  approval by the board of  directors.  For the
years  2001 & 2002  the  Company  elected  to  contribute  $40,691  and  $63,150
respectively.

NOTE 15 - BUILDING MORTGAGE

In connection with the  acquisition of office space,  the Company has a mortgage
requiring monthly payments of $2,068 including principal reductions and interest
at 8.5%.  The loan  matures  March 1, 2006 at which  time a balloon  payment  of
$158,637 will be required. Estimated principle reductions are: Year 2003 $8,274;
Year 2004 $9,791; Year 2005 $10,658; Year 2006 $160,503.

NOTE 16 - SERIES A CONVERTIBLE PREFERRED STOCK

In 2001, the Company  amended its Articles of  Incorporation  to provide for the
issuance of up to 235,000 shares of Series A Convertible  Preferred  Stock.  The
shares do not accrue  dividends  unless such dividends are declared by the Board
of Directors.  The shares entitle the preferred shareholder to have one vote per
share,  presently equal to the voting rights of Common shareholders.  Each share
is  convertible,  after 3  years,  into  shares  of  Common  Stock  based  on an
adjustable formula.

During 2001, as part of the formation  and initial  capitalization  of Wellstone
Financial Group, LLC (WFG),  shares of the Series A Convertible  Preferred Stock
with a value of $500,000 were issued in exchange for a 100% ownership  interest.
As WFG is a 100% owned subsidiary and its


                                                                            F-14

<PAGE>

financial results are included in these consolidated  financial statements,  the
shares have been eliminated in  consolidation.  Accordingly,  if the shares were
converted  at the balance  sheet date herein,  an  additional  76,923  shares of
Common  Stock could be issued,  however  those  shares  would be  eliminated  in
consolidation.

NOTE 17 - ACQUISITION
On December 29, 2000 Presbyterian Investors Fund, Inc., a Georgia not for profit
corporation,  was acquired by the Company.  The name of the merged entity became
PIF/Cornerstone  Ministries  Investments,  Inc.  The Georgia  Secretary of State
approved the Plan of Merger on December 29, 2000. The  transaction  was recorded
as an asset purchase and operating results from the date of the acquisition have
been included in the  accompanying  financial  statements.  The  $23,256,257  in
assets transferred by Presbyterian  Investors Fund, Inc., consisted primarily of
performing  church  loans  and  cash  held in  money  market  accounts  awaiting
distribution  according to  outstanding  loan  commitments.  Its  $23,256,257 in
liabilities  assumed  by  the  merged  entity  were  primarily  Certificates  of
Participation in three loan funds.  These fixed term, fixed rate securities were
either unsecured,  or  collateralized by specific loan assets. In addition,  the
Company agreed to a premium of $500,000 for the acquisition which is included in
Goodwill in the  accompanying  Consolidated  Balance Sheets.  There were no fair
value  adjustments  recorded  as of the date of the  merger.  The amount of cash
received by the Company  exceeded the $500,000  acquisition  premium by $636,433
which is shown in the accompanying Consolidated Statement of Cash Flows as "Cash
received in acquisition".

NOTE 18 - EARNINGS PER SHARE

Basic earnings per share have been calculated as follow-
2000             Net Income (Loss)                      ($  61,212)
                 Average Common Shares Outstanding         225,198
                 Earnings (Loss) per Common Share           ($0.27)
2001 Net Income (Loss)                                   $ 247,120
                 Average Common Shares Outstanding         487,769
                 Earnings (Loss) per Common Share            $0.51
2002 Net Income (Loss)                                   $ 612,608
                 Average Common Shares Outstanding         529,833
                 Earnings (Loss) per Common Share        $    1.16


Diluted  earnings  per share are the same as basic  earnings  per share  because
there are no shares of Series A Convertible  Preferred Stock  outstanding  after
elimination of the shares owned by Wellstone  Financial Group, LLC (a 100% owned
subsidiary) in these consolidated financial statements.  Other than the Series A
Convertible Preferred Stock, there are no other potentially dilutive securities,
stock options or warrants outstanding.


                                                                            F-15