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

                                   Form 10-KSB

[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

                  PIF/Cornerstone Ministries Investments, Inc.,
               6030 Bethelview Road, Suite 203, Cumming, GA 30040
         (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,  principally  churches.  We also offer  specialized  programs for
church and other non-profit  sponsors of senior housing and  affordable/moderate
income  housing  programs.  While  our  earnings  have  historically  come  from
financing churches, that began to moderately increase during the last quarter of
2000  as  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 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 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 $41,074,942 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 investment 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 fee Income.  We received  $6,018,879 in loan interest and fees
earned  during  2002,  compared to  $3,868,429  in 2001.  The  weighted  average
interest rate on the loan balances at February 28, 2003 was 9.48%.  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.

Real  estate and other  income.  Other than two office  condominiums  we own and
lease to others,  we had  disposed  of all but two  properties  to which we held
title before the year 2000. We sold one in 2001 and the other in 2002.  (?) Gain
is shown as revenue for those years.  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 from $2,726,524 in 2001 to
$4,154,997  in 2002.  This  results  from paying  interest in 2002 on the larger
amount of  certificates  that  resulted  from our  continuing  sales of investor
certificates.  The weighted  average  interest  cost for all of the  outstanding
certificates at February 28, 2003 was 8.60%.

Marketing  expenses.  We have not paid  significant  amounts for  marketing  our
lending capabilities because of the continuing backlog of projects with which we
have been approached. Total expenses for marketing our certificates in 2002 were
$494,042  versus  $229,154  in 2001.  Selling  commissions  paid to brokers  for
selling certificates are paid in cash but charged as an expense over the term of
the certificates  they sold. The unamortized  balance is on the Balance Sheet as
part of "Other Intangible Assets, net."

Operating and personnel expenses.  Operating and personnel expenses increased to
$1,393,604 in 2002 from  $1,101,927 in 2001. This increase  reflects  additional
employees and  compensation  added to handle growth in our business,  as well as
the support facilities for the increased number of employees.  For 2003, we have
contracted with Cornerstone  Capital Advisors to provide all our  administrative
services.  We will  reimburse CCA for its expenses,  which are expected to be no
more than if we continued to provide our own administration. There is no set fee
to CCA but we may pay a fee for good performance.

Impairment loss.  During 2002 we charged as an expense the $129,885  incurred to
create a structure for marketing our certificates.

Income tax (provision)  benefit. All income tax benefit is due to changes in our
deferred tax assets and liabilities.

Dividends

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

Liquidity and Capital Resources

Cash flows from operations. Net cash used by operations was $200,593 in 2002 and
net cash  provided by  operations  was  $1,028,147  in 2001.  The  difference is
principally from differences in the amounts of payables and other intangibles.


<PAGE>

Cash  Flows  from  investing  activities.   We  used  $31,472,675  in  investing
activities in 2002, up from $9,488,708 for the year-earlier period. The increase
resulted primarily from approximately $15 million more real estate loans made in
2002,  approximately $15 million more loan principal  payments received in 2001,
offset  by the  purchase  of bonds  in 2001  and the  sale of bonds in 2002.  We
currently have  commitments  and  applications  sufficient to invest the cash on
hand.

Cash from Financings.  During 2002,  $30,604,172 was raised from the sale of new
certificates,  after subtracting the amount of outstanding  securities redeemed.
The net new capital raised from  certificate  sales in 2001 was $9,121,904.  Our
experience  since 1985 has been that  approximately  95% of the maturing amounts
are immediately  reinvested in new certificates,  so that we do not actually pay
back that principal in cash. This past experience may not be repeated for future
maturing  certificates  and we may be required to raise cash, from borrowings or
selling assets, to pay back more of the maturing certificates.

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.  We also expect to have a
bank line of credit in place on each of these certificate maturity dates.

The amount  and  timing of our  future  capital  requirements  will  depend,  in
addition to repaying maturing  certificates,  on factors such as the origination
and funding of new investments, potential acquisitions of related businesses and
the overall  success of our marketing  efforts for  certificates,  notes and any
other securities.

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
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.

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  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.

<PAGE>


Item 10. Executive Compensation.

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


                                                                  Annual
                                                               compensation
                                                              ---------------
Name and principal position                                   Year     Salary
---------------------------                                   ----     ------
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

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.

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, Inc.          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 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

         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>

                           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

<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2000, 2001 & 2002


<TABLE>
<CAPTION>
                                                                             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
Pre-funded project costs                                                       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                                                            166,933                277,419                274,233
Goodwill                                                                            0                450,997                400,901
Other intangible assets, net                                                  955,226                576,470              1,054,801
Real estate held for sale                                                     295,499                331,513                340,000
Other assets                                                                    6,538                 60,687                 38,188
                                                                         ------------           ------------           ------------
TOTAL ASSETS                                                             $ 30,849,252           $ 41,074,942           $ 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
Deferred income taxes                                                          22,823                 33,941                      0
                                                                         ------------           ------------           ------------

TOTAL LIABILITIES                                                          28,542,095             38,178,880             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; 530,944 shares issued
  & outstanding                                                                 3,972                  5,287                  5,309
Paid in capital                                                             2,578,286              3,279,491              3,293,641
Retained earnings (deficit)                                                  (275,101)              (388,716)              (139,479)
                                                                         ------------           ------------           ------------

TOTAL SHAREHOLDER'S EQUITY                                                  2,307,157              2,896,062              3,159,471
                                                                         ------------           ------------           ------------

TOTAL LIABILITIES &
  SHAREHOLDER'S EQUITY                                                   $ 30,849,252           $ 41,074,942           $ 71,776,839
                                                                         ============           ============           ============
</TABLE>


SEE ACCOMPANYING NOTES & AUDITOR'S REPORT


<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>
                                                                                 12/31/00             12/31/01             12/31/02
<S>                                                                           <C>                  <C>                  <C>
INCOME
Loan interest & fees earned                                                   $   469,023          $ 3,868,429          $ 6,018,879
Real estate & other income                                                         20,410              493,785              890,461
                                                                              -----------          -----------          -----------
TOTAL INCOME                                                                      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
Operating & personnel expenses                                                    180,302            1,101,927            1,393,604
                                                                              -----------          -----------          -----------
TOTAL EXPENSES                                                                    587,412            4,057,605            6,042,643
                                                                              -----------          -----------          -----------
Operating income (loss)                                                           (97,979)             304,609              866,697
Impairment loss                                                                         0                    0             (129,885)
Income tax (provision) benefit                                                     36,767              (57,489)            (124,204)
                                                                              -----------          -----------          -----------
NET INCOME (LOSS)                                                            ($    61,212)         $   247,120          $   612,608
                                                                              ===========          ===========          ===========
Retained earnings as previously reported                                      $    10,130          $       339
Correction of error, Note 2                                                                           (275,440)
                                                                              -----------          -----------
Beginning retained earnings (deficit) as restated                                  10,130             (275,101)        ($   388,716)
Net income (loss)                                                                 (61,212)             247,120              612,608
Dividends                                                                        (224,019)            (360,735)            (363,371)
                                                                              -----------          -----------          -----------
Ending retained earnings (deficit)                                           ($   275,101)        ($   388,716)        ($   139,479)
                                                                              ===========          ===========          ===========
</TABLE>

SEE ACCOMPANYING NOTES & AUDITOR'S REPORT


<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          PAID-IN        PREFERRED       EARNINGS         TOTAL
                                                         STOCK          CAPITAL          STOCK         (DEFICIT)        EQUITY
<S>                                                   <C>             <C>             <C>             <C>             <C>
BALANCE, DECEMBER 31, 1999                            $     1,191     $ 1,189,839     $         0     $    10,130     $ 1,201,160
Net income (loss) for year 2000 as restated                                                               (61,212)        (61,212)
Dividends declared                                                                                       (224,019)       (224,019)
Capital contributed                                         2,781       1,388,447                                       1,391,228
                                                      -----------     -----------     -----------     -----------     -----------
BALANCE, DECEMBER 31, 2000                                  3,972       2,578,286               0        (275,101)      2,307,157
Correction of error, Note 2                                              (152,183)                                       (152,183)
                                                      -----------     -----------     -----------     -----------     -----------
BALANCE, DECEMBER 31, 2000 AS RESTATED                      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                                         1,315         853,388                                         854,703
                                                      -----------     -----------     -----------     -----------     -----------
BALANCE, DECEMBER 31, 2001                                  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                                            22          14,150                                          14,172
                                                      -----------     -----------     -----------     -----------     -----------
                                                      $     5,309     $ 3,293,641     $         0     ($  139,479)    $ 3,159,471
                                                      ===========     ===========     ===========     ===========     ===========
</TABLE>

SEE ACCOMPANYING NOTES & AUDITOR'S REPORT


<PAGE>

CORNERSTONE MINISTRIES INVESTMENTS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2000, 2001 & 2002


<TABLE>
<CAPTION>
                                                                             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-
Pre-funded project costs                                                      (67,085)              (387,499)              (154,436)
Accrued loan interest & deferred loan fees                                   (380,526)               101,499                (99,823)
Deferred taxes                                                               (156,482)               (99,368)               (30,755)
Other intangibles                                                            (154,971)               378,756               (478,331)
Investor interest payable                                                   2,129,940                825,088               (270,523)
Accounts & other payables                                                      78,689                (64,234)               149,942
Dividends payable                                                             122,198                 19,860                 (3,194)
Other items, net                                                               (1,538)              (117,089)               (80,465)
                                                                         ------------           ------------           ------------
NET CASH PROVIDED (USED) BY OPERATIONS                                      1,540,958              1,028,147               (200,593)
                                                                         ------------           ------------           ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Real estate loans made & purchased                                        (25,108,339)           (23,327,367)           (38,174,217)
Loan principal payments received                                            2,051,509             19,545,810              4,183,090
Bonds purchased                                                                                   (5,025,000)
Bonds sold or redeemed                                                                               126,000              2,601,250
Fixed assets purchased                                                       (295,499)              (272,137)               (74,311)
Goodwill acquired                                                                                   (500,000)
PIF merger                                                                   (308,966)
Real estate costs capitalized                                                                        (36,014)                (8,487)
                                                                         ------------           ------------           ------------
NET CASH (USED) BY INVESTING                                              (23,661,295)            (9,488,708)           (31,472,675)
                                                                         ------------           ------------           ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Investor certificates                                                      22,426,775              9,121,904             30,604,172
Bond fund redemptions                                                                               (474,145)
Building mortgage                                                                                    197,194                 (7,968)
Stock issued                                                                1,391,228                702,520                 14,172
Dividends                                                                    (222,421)              (360,735)              (344,066)
                                                                         ------------           ------------           ------------
NET CASH PROVIDED BY FINANCING                                             23,595,582              9,186,738             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
</TABLE>


SEE ACCOMPANYING NOTES & AUDITOR'S REPORT

<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.

The Company recognizes interest income from loans (both interest and fees) as it
is earned in accordance with SFAS Nos. 65 & 91.

The Company has adopted  SFAS No. 142  effective  January 1, 2002.  The expenses
associated  with  organizing the  corporation  and beginning  business have been
capitalized and are being amortized over 60 months.

Management  is of the opinion that losses  arising from the default of church or
not-for-profit loans are not probable nor reasonably  estimated.  Management has
an  aggressive  policy of working out any  potential  problem  loans before they
reach the default stage. Therefore, no allowance for loan losses is reflected in
the accompanying statements.

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

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.

<PAGE>

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.

Management   uses  estimates  and   assumptions  in  preparing  these  financial
statements in accordance with generally accepted  accounting  principles.  Those
estimates and assumptions 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
required by SFAS 91. As of December 31, 2000 the Company deferred  unearned loan
fees net of related taxes,  together aggregating  $275,440.  In addition,  costs
associated  with its stock  offerings  have been  reclassified  from  intangible
assets to a reduction of the associated paid-in capital account.

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.

<PAGE>

NOTE 4 - 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 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 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 5-REAL ESTATE LOANS RECEIVABLE

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

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 over a period beginning in 2003 and ending in 2012.

NOTE 6 - INTANGIBLE ASSETS

The  Company  has  adopted  SFAS 142  AGoodwill  and  Other  Intangible  Assets@
effective January 1, 2002. Goodwill associated with the Company's acquisition of
Presbyterian Investor's Fund, Inc. (PIF) is carried at $450,997. Management does
not believe impairment of this asset has occurred and accordingly,  no provision
for impairment loss has been recorded.  Other Intangible Assets consist of costs
incurred to register the  Company's  debt  securities  and  commissions  paid or
accrued on the sale of debt  securities.  These are amortized on a straight line
basis over the period the securities are outstanding, generally 5 years.

NOTE 7 - INCOME TAXES

Income tax expense  (benefit)  consists of  estimated  federal and state  income

<PAGE>

taxes on the company's taxable income,  and the change in components of deferred
tax assets and  liabilities.  The deferred tax asset is comprised of  provisions
for deductible temporary differences,  principally depreciation and amortization
methods and accelerated lives, and reporting of loan fees earned.  Components of
income tax expense for the years ended December 31, are:

                                 2000             2001              2002
                               --------         --------          --------
Current:   Federal             $101,519         $141,033          $108,308
           State                 18,195           33,555            19,240
Deferred:  Federal                9,058            9,450            (2,840)
           State                  1,394            1,668              (504)
                               --------         --------          --------
                               $130,166         $185,706          $124,204

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.

NOTE 8 - 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 9-SECURITIES OFFERINGS

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

<PAGE>

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.

Amounts outstanding and their maturities are-

5.0%            $3,081,099                  2003            $ 7,800,907
7.0%             5,964,859                  2004              3,729,938
7.5%               191,824                  2005              4,938,456
8.0%             1,847,974                  2006              8,431,814
9.0%            54,123,371                  2007             40,308,012

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 10-LOAN GUARANTEES

At December 31, 2002 the Company was guarantor for approximately  $34,776,000 of
loans secured by retirement facilities owned by not-for-profit entities.

NOTE 11-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 12 - BUILDING MORTGAGE

In  connection  with the  acquisition  of office space,  the Company  obtained a
mortgage  and pledged  the real  estate as  collateral.  The  mortgage  requires
monthly payments of principle and interest totaling $2,068.  Estimated principle
reductions are-

Year 2003 $7,017             Year 2004 $7,717              Year 2005 $8,487
Year 2006 $9,333             Year 2005 & Beyond $156,672

<PAGE>

NOTE 13 - 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.  Shares with a value of $500,000  were issued to  Wellstone
Financial Group, LLC (WFG) during 2001. As WFG is included in these consolidated
financial statements,  the shares have been eliminated in consolidation.  If the
shares were convertible at the balance sheet date herein,  an additional  76,923
shares of Common Stock could be issued.

<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
                                 ---------------------------     March  28, 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          March 28, 2003
---------------------------------    Chairman of the Board of Directors
  Cecil A. Brooks


S/John T. Ottinger                   Vice President, Chief Operating Officer,        March 28, 2003
---------------------------------    Chief Financial Officer, Secretary,
  John T. Ottinger                  Treasurer and Director (Principal
                                     financial and accounting officer)

S/Taylor McGown                      Director                                        March 28, 2003
---------------------------------
  Taylor McGown

S/Jayme Sickert                      Director                                        March 28, 2003
---------------------------------
  Jayme Sickert

S/Henry Darden                       Director                                        March 28, 2003
---------------------------------
  Henry Darden

S/Irving B. Wicker                   Director                                        March 28, 2003
---------------------------------
  Irving B. Wicker
</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:


<PAGE>

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:  March 28, 2003               s/Cecil A. Brooks
                                    -------------------
                                    Cecil A. Brooks, Chairman of the Board,
                                    President, Chief Executive Officer


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: March 28, 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

This  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.