SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                   Form 10-KSB

     [X]  Annual  report  pursuant  to  section  13 or 15(d)  of the  securities
          exchange act of 1934 For the fiscal year ended December 31, 2001

                                       or

     [X]  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

                  PIF/Cornerstone Ministries Investments, Inc.
        (Exact name of small business issuer as specified in its charter)

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


               6030 Bethelview Road, Suite 203, Cumming, GA 30040
               (Address of principal executive offices) (Zip Code)

           Issuer's telephone number, including area code 678.455.1100


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

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

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  $4,474,507

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, 2002 the  aggregate
market value 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. 528,975 shares of common stock as of
February 28, 2002

Documents incorporated by reference: Portions of Issuer's Form SB-2 Registration
Statement,  effective  December 28, 2001.  (Issuer has not  furnished any annual
reports to shareowners or proxy solicitation materials.)

<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 14 of the final  Prospectus  contained in
the Issuer's Form SB-2, as it became  effective  with the Commission on December
28, 2001.

Item 2. Description of Property.

The  information  required by this item is  incorporated  by reference  from the
section "Business:  Facilities" on page 14 of the final Prospectus  contained in
the Issuer's Form SB-2, as it became  effective  with the Commission on December
28, 2001.

Item 3. Legal Proceedings.

The  information  required by this item is  incorporated  by reference  from the
section  "Business:  Legal  proceedings"  on  page  14 of the  final  Prospectus
contained in the Issuer's Form SB-2, as it became  effective with the Commission
on December 28, 2001.

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.

The Issuer is in the process of its initial  public  offering.  Its common stock
has been  approved  for Tier II  registration  on the  Chicago  Stock  Exchange,
subject to completion of the offering within certain numerical requirements.

There have been no recent sales of unregistered securities.

Following is information on the use of the proceeds  received  through  February
28, 2001 from the Issuer's ongoing initial public offering of its common stock:

(1)  The effective date of the Securities Act registration  statement was May 1,
     2000 and the file number assigned is 333-93475.
(2)  The offering commenced May 1, 2000.
(3)  The offering has not terminated.
     There are no underwriters.

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

Overview of operations

Since inception, we have been focused on serving only faith-based organizations,
principally  churches.  We also offer  specialized  programs  for  churches  and
non-profit sponsors of senior housing and affordable housing programs. While our
earnings have  historically come from financing  churches,  that began to change
during the last quarter of 2000 as we began to realize  revenues from investment
in senior and affordable housing projects.

PIF/CMI generates  revenue from origination and renewal fees on loans,  interest
on these  loans,  gains on the sale of property  and  interest  on money  market
accounts.  We also receive limited lease income, but we are no longer

<PAGE>
pursuing a lease/purchase  strategy.  We currently charge a 10% fee on new loans
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 10% to 12%.  Some
loans are participating loans, enabling PIF/CMI to receive income from the gains
on the sale of property for which it has provided  financing.  The participation
percentage varies between 25% and 33% of the gains on the sale of real estate.

Comparison of Periods Ending December 31, 2000 and December 31, 2001

Income
         General.  Assets  increased  from  $31,124,693  at the  end of  2000 to
$42,149,226  at the end of 2001.  This  increase is due primarily to the sale of
securities and net revenue generated from operations. Total revenue was $931,806
for 2000 and $4,474,507 for 2001. Net income for these periods, before dividends
but after taxes, was $214,228 and $436,561. The increase in gross and net income
is the result of increased  investable  assets  resulting  from the December 29,
2000 merger with  Presbyterian  Investors  Fund, Inc. and the sale of shares and
certificates.

Total loans outstanding on December 31, 2000 were $26,469,809 and $30,251,416 on
December 31,  2001.  Our other  assets at the end of 2001  included  $147,599 in
investments in church bonds,  5,025,000 in tax-exempt  bonds issued in the State
of Florida and  $1,067,544 in interest  receivable.  We also had  investments in
liquid securities of $2,216,693, as required by PIF's financing terms.

         Interest  Income.  Interest income on loans  increased  during the year
2001,  from  432,590  to  2,582,431,  largely  as a  result  of the  merger  and
additional  loans made during this  period.  The loan balance as of December 31,
2001, was $30,251,416.
..
         Fee Income.  Fee income for the twelve months ending  December 31, 2001
was $1,315,925  versus $478,806 for the same period in 2000. 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 stock and certificates, as well as some
limited  refinancing  of  existing  loans  by  third  parties,   providing  some
additional loanable assets.

         Income from the sale of property.  CMI realized income from the sale of
property during the year 2001 of $183,429. Other than two office condos owned by
PIF/CMI and used for office space at December 31, 2001 PIF/CMI held title to one
real estate  invesment  property,  in Soddy Daisy,  TN, which it expects to sell
during the year 2002.

Expenses

         Interest Expenses. As a result of its growth in assets, CMI experienced
an increase in interest  expense from  $314,871 in 2000 to  $2,726,524  in 2001.
This increase in interest  expense is a result of a net increase in  outstanding
certificate principal of $8,647,759,  from $25,483,051 in 2000 to $34,604,955 in
2001.

         Marketing  and  Selling  Expenses.  To  date,  CMI  has  not  committed
substantial  resources  for marketing  its lending  capabilities  because of the
continuing  backlog  of  projects  with  which  it has  been  approached.  Total
promotional  expenses in 2001 were $52,649, an increase of $31,214 over expenses
in 2000.

         Operating  and  Administrative  Expenses.  Operating  expenses  totaled
$50,817 in 2000 and $881,864 in 2000.  This increase can be attributed to having
a larger asset base to  administer  and a larger  payroll due to an expansion of
personnel necessitated by the increase in asset base Prior to 2001, PIF/CMI paid
an administrative management fee. During the year 2001 PIF/CMI brought essential
administrative functions in house. This caused an increase in personnel expenses
from a  management  fee in 2000 of $76,125 to a payroll  expense of  $470,469 in
2001. Other areas of expense increase 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,  telephone
expense from $52 to $33,826 as well as other  smaller  increases.  Additionally,
due to the  amortization  of  costs  associated  with  securities  issuance  and
increases in depreciation due to fixed asset additions,  PIF/CMI's  depreciation
and amortization expense for 2001 increased to $124,013 from 2000's 31,045.

<PAGE>

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
2001.  Legal expenses  associated  with both the 1998, the 2000 offering and the
2001 offering are capitalized  and amortized.  We capitalized and are amortizing
the costs  associated with the transfer of registrar,  paying agent, and trustee
services.

         Taxes.  CMI paid income taxes of $119,098 in 2000's  pre-tax  income of
$344,394.  We  estimate  income  taxes for the year  2001 will be  approximately
$175,000 on pre-tax income of $622,267.

Dividends

         We paid quarterly cash and or stock dividends of approximately $.78 per
share during 2001, for an annual rate based on the stock offering price of 12%.

Liquidity and Capital Resources

         Cash from  Operations.  Net cash provided from operating  activities in
2000 was $1,540,958 and for 2001 was $274,598.

         Cash from  Financings.  CMI began  operations  in 1996 with an  initial
investment of $510,000 from  individuals  and PIF. CMI's first offering of stock
and certificates in 1998 raised a total of $3,747,306.

         Current  Offering.  CMI  is  currently  seeking  new  capital  of up to
$19,275,000,  consisting of  $2,275,000 in common stock (shares  priced at $6.50
per share) and  $17,000,000 in unsecured  debt. This offering began in May 2000.
During the year ended December 31, 2001,  131,500 shares had been sold,  raising
$854,703,  and an additional $9,121,904 in certificates had been sold. The total
realized  from this  offering  in 2001 was  $9,976,607.  A portion  of these new
investments came from maturing investments in PIF/CMI.

We believe that additional sales of new investments from the current and planned
offerings,  as well as cash on hand, expected refinancings and sales of existing
loans,  will be sufficient  to meet our capital needs for the next quarter.  The
amount and timing of our future capital requirements will depend on factors such
as the  origination  and  funding of new  investments,  the costs of  additional
underwriting and marketing efforts, and general expenses of operations.

Effects of Inflation

Inflation,  which has been limited  during the course of our operating  history,
has had  little  effect  on  operations  and we do not  believe  it will  have a
significant  effect on our cost of capital or on the rates that we charge on our
loans. Inflation resulting in increased prices for real estate could potentially
increase the gains  realized  from the sale of property,  while at the same time
decrease the ability of some potential clients to purchase,  finance, or lease a
property.

Item 7. Financial Statements.

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


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

None.


<PAGE>

                                    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 December 28,
2001. .

Item 10. Executive Compensation.

During the fiscal year ended  December 31, 2000,  Cecil Brooks and John Ottinger
were the Issuer's only executive  officers.  Cecil Brooks,  serving as President
and Chief Executive Officer,  received  compensation  totaling $125,000 and Jack
Ottinger,  serving  as Vice  President  and  Chief  Operating  Officer  received
compensation totaling $75,000 for the year ended December 31, 2001.


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.

Name of  Beneficial Owner               Number of      Percentage of Total
                                        Shares         Common Stock
                                        Beneficially   Beneficially Owned
                                        Owned

Cecil A. Brooks                          1,953               *                *

John T. Ottinger                         1,719               *                *

Taylor McGown                                                *                *
                                         1,538
Irving B. Wicker                         1,538               *                *

Church Growth Foundation                69,228              13%               *

All directors and executive officers     6.659             1.6%               *
as a group (4 Persons)

* 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 17 of the final Prospectus  contained in
the Issuer's Form SB-2, as it became  effective  with the Commission on December
28, 2001.

<PAGE>

<TABLE>
<CAPTION>
Item 13. Exhibits and Reports on Form 8-K.

  Exhibit Number                         Description                                      Incorporated
  -----------------------------------------------------                                   ------------
 (Part III, Form 1-A)                                                                    by reference to
                                                                                         ---------------

<S>   <C>    <C>                                                                             <C>
A.           Amended and Restated Articles of Incorporation of the Issuer                     3.1*
      2.2    Amended and Restated By-laws of the Issuer                                       3.2*
      3      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 2.1 and 2.2)
      6.1    Administrative Services Agreement with Presbyterian Investors Fund, Inc.        10.1*
      6.2    Plan of Merger                                                                  7(c)^
</TABLE>

*    Exhibit  number in Part II, Item 27 of the Issuer's Form SB-2, as it became
     effective with the Commission on May 1, 2000.

^    Exhibit number in Form 8-K Report for December 29, 2000,  filed January 16,
     2001.

No reports on Form 8-K were filed during the last quarter of the period  covered
by this report.


<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.

                           PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC. (Issuer)

                           By /s/ Cecil A. Brooks                 March 29, 2002
                             ------------------------------------
                             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  PIF/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            March 29, 2002
-------------------------------     Chairman of the Board of Directors
    Cecil A. Brooks

/s/ John T. Ottinger                Vice President, Chief Operating Officer,          March 29, 2002
-------------------------------     Chief Financial Officer, Secretary, Treasurer
    John T. Ottinger                and Director
                                    (Principal financial and accounting officer)

/s/ Theodore R. Fox                 Director                                          March 29, 2002
-------------------------------
    Theodore R. Fox

/s/ Richard E. McLaughlin           Director                                          March 29, 2002
-------------------------------
    Richard E. McLaughlin

/s/ Jayme Sickert                   Director                                          March 29, 2002
-------------------------------
    Jayme Sickert

/s/ Irving B. Wicker                Director                                          March 29, 2002
-------------------------------
    Irving B. Wicker

/s/ Taylor McGown                   Director                                          March 29, 2002
-------------------------------
    Taylor McGown

/s/ Henry Darden                    Director                                          March 29, 2002
-------------------------------
    Henry Darden
</TABLE>

<PAGE>


                           Certified Public Accountant
                               1439 McLendon Drive
                                     Suite C
                                Decatur, GA 30033
                                 (770) 491-0609




To the Board of Directors
Cornerstone Ministries Investments, Inc.


I  have  audited  the  accompanying  balance  sheet  of  Cornerstone  Ministries
Investments,  Inc.  as of  December  31,  2001,  2000 and  1999 and the  related
statements  of  income,  retained  earnings,  and cash  flows for the years then
ended.  These  financial  statements  are the  responsibility  of the  Company's
management.  My  responsibility  is to express  an  opinion  on these  financial
statements based on my audit.

I conducted my audit in accordance with generally  accepted auditing  standards.
Those standards  require that I 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.
I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Cornerstone Ministries Investments,
Inc. as of December 31, 2001,  2000 and 1999 and results of its  operations  and
its cash flows for the years then ended in conformity  with  generally  accepted
accounting principles.





/s/   T. JACKSON McDANIEL III


March 29, 2002


<PAGE>
PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
BALANCE SHEET
December 31, 2001 and December 31, 2000 and December 31, 1999
<TABLE>
<CAPTION>
ASSETS
                                                          12/31/99           12/31/00           12/31/01
                                                       -------------      -------------      -------------
CURRENT ASSETS
<S>                                                     <C>               <C>                <C>
 CASH                                                   $   706,035       $  2,181,280       $  2,806,042
 ACCOUNTS RECEIVABLE                                              -             67,085            448,584
 ACCRUED INTEREST RECEIVABLE                                 46,167            869,066          1,067,544
                                                       -------------      -------------      -------------

                 TOTAL CURRENT ASSETS                       752,202          3,117,431          4,322,170


REAL ESTATE LOANS RECEIVABLE                              3,412,979         26,469,809         30,251,416

FIXED ASSETS-NET OF ACCUMULATED
 DEPRECIATION                                                     -              6,689            266,655

INTANGIBLE ASSETS-NET OF ACCUMULATED
  AMORTIZATION                                              332,200            955,226          1,179,650

INVESTMENTS
 REAL ESTATE HELD                                                 -            295,499            331,513

OTHER ASSETS
 BOND HOLDINGS                                                    -            273,500          5,172,500
 LIMITED LIABILITY COMPANY INTEREST                                                  -            564,635
 PREPAID INCOME TAXES                                             -                  -             48,392
 PREPAID INSURANCE                                                -              5,507              9,495
 DEPOSIT                                                      5,000              1,031              2,800
                                                       -------------      -------------      -------------

                 TOTAL  ASSETS                          $ 4,502,381       $ 31,124,693       $ 42,149,226
                                                       =============      =============      =============


LIABILITIES AND SHAREHOLDER'S EQUITY

CURRENT LIABILITIES
 ACCOUNTS PAYABLE                                       $    87,537       $     26,337       $     78,223
 INTEREST PAYABLE                                            83,750          2,213,690          3,038,778
 INCOME TAXES PAYABLE                                        30,810            112,264                  -
 PAYROLL TAX LIABILITIES                                          -             34,871             11,175
 DIVIDENDS PAYABLE                                           29,776            151,974            171,834
 DUE TO CHURCH GROWTH FOUNDATION                                  -             22,240                  -
 RENT DEPOSITS HELD                                             700                700                  -
                                                       -------------      -------------      -------------

                 TOTAL CURRENT LIABILITIES                  232,573          2,562,076          3,300,010

LONG TERM LIABILITIES-INVESTOR CERTIFICIATES
 LOAN FOR BUILDING                                                -                  -            197,194
 INVESTOR CERTIFICATES                                    3,056,276         25,483,051         34,604,955
 BOND FUND CERTIFICATES                                           -            474,145                  -
                                                       -------------      -------------      -------------

                 TOTAL LONG TERM LIABILITIES              3,056,276         25,957,196         34,802,149

 DEFERRED INCOME TAXES                                       12,372             22,823             33,941
                                                       -------------      -------------      -------------

                 TOTAL LIABILITIES                        3,301,221         28,542,096         38,136,100

COMMON STOCK, .01 PAR VALUE,
 10,000,000 SHARES AUTHORIZED,
 528,720  ISSUED AND OUTSTANDING                              1,191              3,972              5,287

PREFERRED STOCK                                                   -                  -            500,000

PAID IN CAPITAL                                           1,189,839          2,578,286          3,431,674

RETAINED EARNINGS (DEFICIT)                                  10,130                339             76,165
                                                       -------------      -------------      -------------

                 TOTAL SHAREHOLDER'S EQUITY               1,201,160          2,582,597          4,013,126
                                                       -------------      -------------      -------------

TOTAL LIABILITIES AND MEMBER'S EQUITY                   $ 4,502,381       $ 31,124,693       $ 42,149,226
                                                       =============      =============      =============

</TABLE>

<PAGE>
PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC
STATEMENT OF INCOME AND RETAINED EARNINGS
For the years December 31, 2001, December 31, 2000 and December 31, 1999

<TABLE>
<CAPTION>

                                                      12/31/99          12/31/00           12/31/01
                                                   -------------      -------------      -------------

REVENUES
<S>                                                <C>                <C>                <C>
 Interest Income-Loans                             $   148,758        $   432,590        $ 2,582,431
 Fees Earned                                           263,162            478,806          1,315,925
 Rental Income                                           1,452                  -             20,096
 Other income                                                -              1,000             24,657
 Gain on Sale of Real Estate                            86,513                  -            183,429
                                                   -------------      -------------      -------------

 TOTAL REVENUES                                        499,885            912,396          4,126,538

OPERATING EXPENSES
 Interest Expense-Investor Certificates                209,541            314,871          2,726,524
 Interest on Line of Credit                                  -             53,360                  -
 Interest Expense-Other                                      -                  -             14,698
 Management Fees                                        47,400             76,125                  -
 Marketing Expenses                                     33,876             92,239            229,154
 Operating Expenses                                     70,816             50,817            881,864
                                                   -------------      -------------      -------------

 TOTAL OPERATING EXPENSES                              361,633            587,412          3,852,240

NET INCOME FROM OPERATIONS                             138,252            324,984            274,298


OTHER INCOME (EXPENSE)
 Interest Income-Banks                                  34,453             19,410            121,155
 Tax Free Income                                             -                  -            144,448
 Limited Liability Company Income                            -                  -             64,635
 Income Tax Refund                                           -                  -             17,731
 Income Tax Expense                                    (56,567)          (130,166)          (185,706)
                                                   -------------      -------------      -------------

 TOTAL OTHER INCOME (EXPENSE)                          (22,114)          (110,756)           162,263

NET INCOME                                         $   116,138        $   214,228        $   436,561

RETAINED EARNINGS (DEFICIT)-BEGINNING OF PERIOD          5,884             10,130                339

DIVIDENDS                                             (111,892)          (224,019)          (360,735)
                                                   -------------      -------------      -------------
RETAINED EARNINGS (DEFICIT)-END OF PERIOD          $    10,130        $       339        $    76,165
</TABLE>


<PAGE>

PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
For the years ended December 31, 2001, 2000 and 1999
<TABLE>
<CAPTION>

                                                                                                      Retained             Total
                                                Common            Paid-In           Preferred         Earnings             Owner's
                                                Stock             Capital             Stock           (Deficit)            Equity
                                            -------------      -------------      -------------     -------------      -------------
<S>                                         <C>               <C>                <C>               <C>                <C>
      Balance at December 31, 1998            $     730         $  729,140         $        -        $    5,884         $   735,754

      Net Income (Loss) for the year
       ended December 31, 1999                        -                  -                  -           116,138         $   116,138

      Dividends declared                              -                  -                  -          (111,892)           (111,892)

      Capital contribution                          461            460,699                  -                 -             461,160
                                            -------------      -------------      -------------     -------------      -------------

      Balance at December 31, 1999            $   1,191         $1,189,839         $        -        $   10,130         $ 1,201,160

      Net Income (Loss) for the year
       ended December 31, 2000                        -                  -                  -           214,228             214,228

      Dividends declared                              -                  -                  -          (224,019)           (224,019)

      Capital contribution                        2,781          1,388,447                  -                 -           1,391,228
                                            -------------      -------------      -------------     -------------      -------------

      Balance at December 31, 2000            $   3,972         $2,578,286         $        -        $      339         $ 2,582,597

      Net Income (Loss) for the year
       ended December 31, 2001                        -                  -                  -           436,561             436,561

      Dividends declared                              -                  -                  -          (360,735)           (360,735)

      Capital contribution                        1,315            853,388            500,000                 -           1,354,703
                                            -------------      -------------      -------------     -------------      -------------

      Balance at December 31, 2001            $   5,287         $3,431,674         $  500,000        $   76,165         $ 4,013,126
                                            =============      =============      =============     =============      =============
</TABLE>


<PAGE>

PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
STATEMENT OF CASH FLOWS
For the years ended December 31, 2001, December 31, 2000, and December 31, 1999
<TABLE>
<CAPTION>



                                                                      12/31/99           12/31/00           12/31/01
                                                                   -------------      -------------      -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash from Operations:
<S>                                                                 <C>                <C>               <C>
   Net income (loss)                                                $   116,138        $  214,228        $    436,561

  Items that do not use
    Cash:
       Depreciation &Amortization                                        14,332            31,945             124,013
       Pass Through Limited Liability Company Income                          -                 -             (64,635)
  (Increase) Decrease in
    Accounts Receivable                                                       -           (67,085)           (381,499)
  (Increase) Decrease in
    Accrued Interest Receivable                                         (44,219)         (822,899)           (198,478)
  (Increase) Decrease in
    Intangible Assets                                                  (147,022)         (154,971)           (336,267)
  (Increase) Decrease in
    Prepaid Income Taxes                                                      -                 -             (48,392)
  (Increase) Decrease in
    Other Assets                                                         (5,000)           (1,538)             (5,757)
  Increase (Decrease) in
    Accounts Payable                                                    (59,997)          (61,200)             51,886
  Increase (Decrease) in
    Interest Payable                                                     81,053         2,129,940             825,088
  Increase (Decrease) in
    Dividends Payable                                                    29,776           122,198              19,860
  Increase (Decrease) in
    Rent Deposit Payable                                                 (5,080)                -                (700)
  Increase (Decrease) in
    Income taxes payable                                                 30,810            81,454            (112,264)
  Increase (Decrease) in
    Payroll Tax Liabilities                                                   -            34,871             (23,696)
  Increase (Decrease) in
    Other Liabilities                                                         -            23,564             (22,240)
  Increase (Decrease) in
    Deferred tax liability                                                8,424            10,451              11,118
                                                                   -------------      -------------      -------------
Net Cash Provided (Used) by
  Operating Activities                                                   19,215         1,540,958             274,598

Cash Flows From Investing Activities:
  Real Estate Purchased                                                       -          (295,499)                  -
  Real Estate Costs Capitalized                                               -                 -             (36,014)
  Effect of PIF Asset Acquisition                                             -          (308,966)                  -
  Limited Liability Company Interest Acquired                                 -                 -            (500,000)
  Plant, Property & Equipment Purchased                                       -                 -            (272,136)
  Loans purchased                                                             -       (21,720,888)                  -
  Loans made                                                         (3,552,450)       (3,387,451)        (23,327,367)
  Loan principal repayments received                                    764,874         2,051,509          19,545,810
  Bond investment liquidated                                                  -                 -             126,000
  Bonds purchased                                                             -                 -          (5,025,000)
                                                                   -------------      -------------      -------------
Net Cash Provided (Used) by
  Investing Activities                                               (2,787,576)      (23,661,295)         (9,488,707)

Cash Flows From Financing Activties:
  Stock subscriptions sold                                              461,160         1,391,228             854,703
  Preferred Stock Issued                                                      -                 -             500,000
  Certificates of Indebtedness Issued                                         -         1,699,922           9,121,904
  Certificates of Indebtedness Acquired                               2,417,776        20,726,853                   -
  Bond Fund Certificates Redeemed                                             -                 -            (474,195)
  Loan-PIF                                                                    -                 -                   -
  Loan for Building                                                           -                 -             197,194
  Dividends Paid                                                        (82,116)         (222,421)           (360,735)
                                                                   -------------      -------------      -------------
Net Cash Provided by Financing Activities                             2,796,820        23,595,582           9,838,871

Net Increase (Decrease)
  in Cash:                                                               28,459         1,475,245             624,762
Cash-Beginning of Period                                                677,576           706,035           2,181,280
                                                                   -------------      -------------      -------------

Cash-End of Period                                                  $   706,035        $2,181,280        $  2,806,042
                                                                   =============      =============      =============
</TABLE>

During the year ended December 31,  2001 the Company
 paid cash interest of $1,916,134


<PAGE>
                  PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001



NOTE 1 - Summary of Significant Accounting Policies

(A) Conformity  with  Generally  Accepted  Accounting  Principles and Accounting
Method

The accounting  policies of the Company conform to generally accepted accounting
principles  consistent to its industry.  The Company uses the accrual  method of
accounting.


(B) Description of Company's Operations

The Company is in the business of originating  and purchasing  Mortgage loans on
Church and Church related  properties.  Costs associated with loan  applications
received directly from borrowers are expensed as period costs.

The Company is also in the business of  investing  in Church and Church  related
real estate for the purpose of 1)selling at a profit,  2)leasing to Churches and
Church related activities.

(C) Organizational Information

The Company is a corporation organized under the laws of the State of Georgia.

(D) Organizational Expenses

The expenses  associated with organizing the corporation and beginning  business
have been capitalized and are being amortized over 60 months.

(E) Provision for Loan Losses

Management  is of the opinion that losses  arising from the default of Church or
Church related loans are not probable or reasonably estimated. Management has an
aggressive  policy of working out any potential  problem loans before they reach
the  default  stage.  As of the  balance  sheet  date no loan is in arrears in a
material  amount.  Therefore,  no allowance  for loan losses is reflected in the
accompanying statements.



<PAGE>


                  PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001


(F) Accrued Interest Income

Interest  income  is  accrued  monthly  on  the  outstanding  balance  of  loans
receivable.

(G) Accrued Interest Expense

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

(H) Cash and Cash Equivalents

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

NOTE 2 - LEASE COMMITMENTS

The Company currently has no lease commitments at September 30, 2001.

NOTE 3 - REAL ESTATE LOANS RECEIVABLE

At December 31, 2001 the Company had Real Estate Loans  Receivable from Churches
and Church related properties  totaling  $30,251,416.  These loans mature over a
period  beginning in 2001 and ending in 2012.  Of the total loans  receivable at
December 31, 2000,  $21,720,888 were acquired as a result of the PIF Acquisition
(See NOTE 11)

NOTE 4 - INTANGIBLE ASSETS

Intangible assets consist of costs incurred to 1)organize the Company,  2) costs
of  registering  the Company's  equity and debt  securities,  3) developing  the
Prospectus for registering of the Company's securities,  and 4) commissions paid
and/or  accrued  on the sale of debt  securities  and  equity  securities.  Also
included in intangible assets is the premium of $500,955 paid as part of the PIF
acquisition  (SEE NOTE 10). These  intangibles  are amortized on a straight line
basis periods of 5 to 40 years.



<PAGE>




                  PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001


NOTE 5 - INCOME TAXES

Income taxes payable and the  corresponding  expense on The Company's net income
for the 12  months  ended  December  31,  2001 and  December  31,  2000 has been
computed as follows:



                                12/31/2001         12/31/2000
                              --------------     --------------

Current:     Federal           $   141,033        $  101,519
             State                  33.555
                                                      18,195

Deferred     Federal                 9,450             9,058
             State                   1,668             1,394
                              --------------     --------------

                               $   185,706        $  130,166
                              ==============     ==============



Deferred  income taxes arise  because of timing  differences  between  financial
accounting  and  tax  accounting  rules  for  the  deductibility  of  intangible
amortization expense.


NOTE 6 - CASH CONCENTRATION

A cash concentration risk arises when the Company has more cash in one financial
institution  then is covered by insurance.  At December 31, 2001 The Company had
cash in banks in excess of FDIC insured amounts totaling $552,653.


NOTE 7-NAME CHANGE

Prior to the year ended  December 31, 1998,  the Company was named  "Cornerstone
Ministries  Fund,  Inc.".  During the year ended  December 31, 1998, the Company
changed its name to "Cornerstone  Ministries  Investments,  Inc." to allow it to
register its securities in all 50 states and to more correctly  identify it with
its mission.

At the end of the year ended  December  31, 2000 the Company  again  changed its
name as a result of the  acquisition  of assets  of the  Presbyterian  Investors
Fund, Inc. (See NOTE 10).  Effective December 29, 2000 the Company's name became
PIF/Cornerstone Ministries Investments, Inc.



<PAGE>


                  PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001



NOTE 8-SECURITIES OFFERINGS

In the year ended  December 31, 1999 the Company filed a Form SB-2  Registration
Statement under the Securities Act of 1933. Under this Registration Statement it
is the  Company's  intent  to  raise  approximately  $19,275,000  in  additional
capital.  This is to be  accomplished  through  the  issuance of  $2,275,000  in
additional Common Stock and $17,000,000 in new Certificates of Indebtedness.  As
of the date of the accompanying  accountant's report the company sold all shares
and debt certificates authorized under the filing.

During  the  year  ended  December  31,  2001  the  Company  filed  2 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 bears 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". These
certificates  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  for  paying  the
certificates on maturity is required.

Also  during  the year  ended  December  31,  2001  the  Company  offered  up to
$17,00,000 of Series B Certificates of  Indebtedness.  Of the $17,000,000  being
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.

NOTE 9-LOAN GUARANTEES

At December 31, 2001 the Company was  guarantor  for loans secured by retirement
facilities owned by non-profit  entitites.  The total of such loan guarantees is
approximately  $20,310,000  at December  31, 2001 with an  additional  potential
guarantee of approximately $3,445,000.

<PAGE>


                  PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC.
                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001


NOTE 10-STOCK SPLIT

In December of 1999 the board of  directors  authorized a stock split in a ratio
of  approximately  1.53 to 1. This split was effected for shareholders of record
on January 2, 2000, and effected as of January 15, 2000. The split has no effect
on the earnings or cash position of the company at December 31, 2001



NOTE 11-ACQUISITION OF ASSETS OF PRESBYTERIAN INVESTORS FUND, INC.

On October 11, 2000 the Board of Directors  agreed to acquire  certain assets of
the  Presbyterian  Investors  Fund,  Inc.  (PIF).  PIF  was in the  business  of
originating  and  purchasing  loans  made to  churches  that are  members of The
Presbyterian Church in America (PCA). The acquisition price was determined by an
evaluation of the loan  portfolio of PIF and was to be paid by the assumption of
certain liabilities of PIF plus a premium to be paid for the assets that was not
to be less than  $500,000.  This  acquisition  was closed on  December  29, 2000
effective as of that date. The financial statements to which these footnotes are
a part include the results of that acquisition.



NOTE 12-PROFIT SHARING PLAN

During the year ended  December  31,  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. The Plan does
not have an employee contribution component. All contributions are to be made at
the discretion of the Company after approval by the board of directors.  For the
year ended  December  31, 2001 the Company  determined  that a  contribution  of
approximately $41,000 was to be made.



NOTE 13-ACQUISITION OF INTEREST IN LIMITED LIABILITY COMPANY

During the year ended December 31, 2001, the Company  acquired a 99% equity/100%
profits  interest in Wellstone  Financial  Group,  LLC (WFG), a Georgia  Limited
Liability  Company.  WFG was formed  for the  purpose  of  assisting  non-profit
entities  secure  financing  from sources other than the Company for  retirement
facilities,  childcare facilities and church and church related facilities.  WFG
receives  a fee for  assisting  these  non-profit  entities  secure  non-Company
financing.