2020-11-13T17:48:03-06:00 2019-12-31 930623286 ALDRICH CPAS AND ADVISORS LLP 680 HAWTHORNE AVE SE 140 SALEM OR 97301 990 2019-01-01 350914373 HANCOCK RURAL TELEPHONE CORPORATION DBA NINESTAR CONNECT HANC 3173263131 2243 E MAIN GREENFIELD IN 46140 SCOTT HIATT CHIEF FINANCIAL OFFICER 3173263131 2020-11-12 1 KATHY A GORDON CPA P00016213 5035857774 2020-11-12 50.203.206.43 2020-11-12 10:33:18 PS P 942B566DD0D5655DF5CE1C5404DEA6D8596BECC8 85D255705ED9A239162D310397C4AF9D77298858 2019 2022-01-07 14:23:13Z NINESTAR CONNECT SCOTT HIATT 2243 E MAIN GREENFIELD IN 46140 51827727 0 X WWW.NINESTARCONNECT.COM X 1950 IN PROVIDING SUPERIOR ELECTRIC AND VARIOUS TELECOMMUNICATION PRODUCTS AND SERVICES TO OUR CUSTOMERS. 14 14 21 0 36757 0 0 0 51314687 50651808 379100 494126 67141 84624 51760928 51230558 14000 17500 1022192 945368 752924 1486635 0 0 0 45147541 45354397 46936657 47803900 4824271 3426658 127347102 147768424 32217856 36034783 95129246 111733641 PROVIDE VARIOUS ELECTRIC, TELECOMMUNICATIONS, WATER, AND SEWER PRODUCTS AND SERVICES TO COOPERATIVE CUSTOMERS IN A 8-COUNTY AREA OF EAST CENTRAL INDIANA. 0 0 PROVIDE VARIOUS ELECTRIC, TELECOMMUNICATIONS, WATER, AND SEWER PRODUCTS AND SERVICES TO COOPERATIVE CUSTOMERS IN A 8-COUNTY AREA OF EAST CENTRAL INDIANA. AS OF DECEMBER 31, 2019, THE NUMBER OF ELECTRIC SERVICES TOTALED 16,004, THE NUMBER OF TELECOMMUNICATIONS ACCESS LINES TOTALED 4,545, THE NUMBER OF BROADBAND CUSTOMERS TOTALED 9,131 AND THE NUMBER OF WATER AND SEWER CUSTOMERS TOTALED 725. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 1 0 0 0 0 0 1 1 0 0 1 119 0 21 1 1 1 0 0 0 0 40678498 4500943 0 0 0 X 14 14 0 0 0 0 1 1 1 1 1 0 0 1 1 0 1 1 1 1 1 0 IN X SCOTT HIATT 3173263131 2243 E MAIN STREET GREENFIELD IN 46140 MIKE BURROW PRESIDENT & CEO 51.00 X 302322 0 111691 SCOTT HIATT CHIEF FINANCIAL OFFICER 48.00 X 196810 0 69821 REGINA BEVER VP OF ADMINISTRATION 45.00 X 155071 0 45158 JEFF CONLEY VP OF OPERATIONS 51.00 X 155757 0 45290 ROSS FERSON CHIEF TECHNOLOGY OFFICER 43.00 X 149949 0 50164 PHIL HAYES CHAIRMAN 9.00 X X 16000 0 0 STEPHEN VAIL VICE CHAIRMAN 8.00 X X 16200 0 0 RAYMOND KERKHOF SECRETARY/TREASURER 7.00 X X 14800 0 0 JAMES CHERRY DIRECTOR 6.00 X 15000 0 0 CHRIS JETER DIRECTOR 3.00 X 14400 0 0 KIM CRONK DIRECTOR 6.00 X 14400 0 0 MARK EVANS DIRECTOR 5.00 X 14400 0 0 BEVERLY GARD DIRECTOR 5.00 X 13000 0 0 DAVID HELLER DIRECTOR 4.00 X 14400 0 0 SHELLY KLEIMAN DIRECTOR 7.00 X 14400 0 0 RONNIE MOHR DIRECTOR 7.00 X 14400 0 0 JOE PAXTON DIRECTOR 5.00 X 14400 0 0 DON SHAW DIRECTOR 8.00 X 14400 0 0 DARRELL THOMAS DIRECTOR 7.00 X 14400 0 0 BRYAN GIDDINGS LEAD LINEMAN 51.00 X 142674 0 33713 JAMIE BELL CONSTRUCTION ENGINEER 54.00 X 121451 0 45085 MATTHEW HUCK LINEMAN 51.00 X 120729 0 39922 SHIRA DANKNER NETWORK SECURITY MANAGER 42.00 X 114737 0 35918 JUSTIN NOLEN LINEMAN 47.00 X 113510 0 34140 1777610 0 510902 14 0 1 0 5 STAR ELECTRIC LLC 170 BEAN CEMETERY ROAD MADISONVILLE KY 42431 CONTRACT LABOR AND MATERIALS 819861 ELECTRICOM LLC PO BOX 319 PAOLI IN 47454 CONTRACT LABOR AND MATERIALS 554676 MARK-IT-RIGHT LLC PO BOX 309 DANVILLE IN 46122 CONTRACT LABOR - LOCATES 414460 TREECORE LLC PO BOX 353 HARBERT MI 49115 CONTRACT LABOR 367377 ALDRICH SERVICES LLP 680 HAWTHORNE AVE SE 140 SALEM OR 97301 AUDIT AND TAX 131775 5 ELECTRIC SERVICES 221100 37501576 37501576 TELECOMMUNICATIONS SERVICES 517000 12532790 12532790 WATER REVENUE 221100 497002 497002 SEWER REVENUE 221100 120440 120440 50651808 494126 494126 603394 597169 6225 6225 6225 POLE CONTACT RENTALS 532000 47867 47867 ADVERTISING 541800 30532 30532 78399 51230558 50651808 36757 541993 17500 945368 1486635 1293311 6302460 PURCHASED POWER 24310806 ELECTRIC OPERATIONS AND 3454219 PLANT SPECIFIC 3113203 CUSTOMER SERVICE & ASSI 2534852 4345546 47803900 5937840 9138693 5400000 3917579 5378508 5669911 300852 380215 149075218 71430406 74140550 77644812 32858234 47084060 3331118 3933154 127347102 147768424 6064035 7026048 0 7830 22830480 25631374 3323341 3369531 32217856 36034783 X 0 0 0 0 95129246 111733641 95129246 111733641 127347102 147768424 X 3426658 13177737 X X 0 1 X 1 0 342392 342392 1136446 796776 339670 147596380 70633630 76962750 77644812 CENTRAL INDIANA COMMUNICATIONS 35869928 C NATIONAL TELCOM CORP COMMON STOCK 750800 C RTFC PATRONAGE CREDITS 2078 C PATRONAGE CAPITAL 9436575 C OTHER INVESTMENTS 355615 C CFC INVESTMENTS 669064 C 47084060 POST RETIREMENT BENEFITS 3369531 3369531 X 66538474 15307916 15307916 51230558 0 51230558 48701862 1843330 1843330 46858532 945368 945368 47803900 PART X, LINE 2: THE COOPERATIVE FOLLOWS ACCOUNTING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA RELATED TO THE RECOGNITION OF UNCERTAIN TAX POSITIONS. THE COOPERATIVE RECOGNIZES ACCRUED INTEREST AND PENALTIES ASSOCIATED WITH UNCERTAIN TAX POSITIONS AS PART OF THE INCOME TAX PROVISION, WHEN APPLICABLE. THERE WERE NO AMOUNTS ACCRUED IN THE CONSOLIDATED FINANCIAL STATEMENTS RELATED TO UNCERTAIN TAX POSITIONS. PART XI, LINE 2D - OTHER ADJUSTMENTS: INCOME FROM SUBSIDIARY 13,464,586. UNRELATED BUSINESS EXPENSES - RENTAL EXPENSE 597,169. INCOME NETTED WITH EXPENSES 1,246,161. PART XII, LINE 2D - OTHER ADJUSTMENTS: UNRELATED BUSINESS EXPENSES - RENTAL EXPENSE 597,169. EXPENSES NETTED WITH REVENUES 1,246,161. PART XII, LINE 4B - OTHER ADJUSTMENTS: PAYMENT OF CAPITAL CREDITS 945,368. 1 SCHOLARSHIPS 18 17500 PART I, LINE 2: PROOF OF SCHOOL ENROLLMENT MUST BE SUBMITTED TO THE COOPERATIVE PRIOR TO AWARD DISBURSEMENT. SCHOLARSHIP FUNDS WILL BE APPLIED DIRECTLY TOWARD SCHOOL-RELATED COSTS (TRAVEL AND HOUSING EXCLUDED). DISBURSEMENT OF AWARDS WILL BE MADE DIRECTLY TO THE EDUCATIONAL INSTITUTION UPON RECEIPT OF VERIFICATION OF ENROLLMENT. IN THE EVENT THE SCHOLARSHIP FUNDS ARE NOT AWARDED/CLAIMED WITHIN ONE YEAR FROM THE AWARD DATE, FUNDS WILL BE RETAINED FOR FUTURE SCHOLARSHIP CONSIDERATION. RELATIVES OF DIRECTORS AND OFFICERS ARE NOT CONSIDERED FOR AWARD DISBURSEMENT. X X X 0 0 0 MIKE BURROW PRESIDENT & CEO 250000 0 35000 0 17322 0 56957 0 54734 0 414013 0 0 0 SCOTT HIATT CHIEF FINANCIAL OFFICER 183769 0 8041 0 5000 0 38592 0 31229 0 266631 0 0 0 REGINA BEVER VP OF ADMINISTRATION 136577 0 13494 0 5000 0 29480 0 15678 0 200229 0 0 0 JEFF CONLEY VP OF OPERATIONS 136577 0 13100 0 6080 0 29366 0 15924 0 201047 0 0 0 ROSS FERSON CHIEF TECHNOLOGY OFFICER 137577 0 7372 0 5000 0 28944 0 21220 0 200113 0 0 0 BRYAN GIDDINGS LEAD LINEMAN 92206 0 2727 0 47741 0 19038 0 14675 0 176387 0 0 0 JAMIE BELL CONSTRUCTION ENGINEER 121166 0 285 0 0 0 24123 0 20962 0 166536 0 0 0 MATTHEW HUCK LINEMAN 87672 0 2727 0 30330 0 18448 0 21474 0 160651 0 0 0 SHIRA DANKNER NETWORK SECURITY MANAGER 100965 0 13614 0 158 0 21467 0 14451 0 150655 0 0 0 PHILIP M HAYES BOARD MEMBER 24302997 PHILIP M. HAYES IS THE CHAIRMAN OF THE BOARD FOR HANCOCK RURAL TELEPHONE CORPORATION DBA NINESTAR CONNECT. HE ALSO SERVES ON THE WABASH VALLEY POWER ALLIANCE BOARD OF DIRECTORS. NINESTAR CONNECT PURCHASED $24,302,997 OF PURCHASED POWER FROM WABASH VALLEY POWER DURING 2019. THE SUPPLY CONTRACT WITH WABASH VALLEY POWER WILL EXPIRE IN 2028. 0 FORM 990, PART VI, SECTION A, LINE 6 EACH MEMBER HAS THE RIGHT TO PARTICIPATE IN THE ORGANIZATION'S GOVERNANCE OR RECEIVE DISTRIBUTIONS OF INCOME OR ASSETS. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER OF THE COOPERATIVE HAS ONE VOTE. THE VOTE ALLOWS THEM TO ELECT THE BOARD AS WELL AS VOTE ON ANY ISSUE THAT COMES BEFORE THE MEMBERSHIP AT A SPECIAL OR ANNUAL MEETING. FORM 990, PART VI, SECTION A, LINE 7B LIMITED TO APPROVING ANY CHANGES MADE TO THE BY-LAWS. FORM 990, PART VI, SECTION B, LINE 11B THE BOARD RECEIVED AND REVIEWED A COPY OF THE FORM 990 PRIOR TO ITS FILING AND THE CFO SEPARATELY REVIEWS THE FORM 990 BEFORE IT IS FILED WITH IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS ESTABLISHED A CODE OF BUSINESS ETHICS WHICH, AMONG OTHER THINGS, CONTAINS PROHIBITIONS OF CONFLICT OF INTEREST FOR ALL EMPLOYEES AS DETERMINED BY THE PRESIDENT, CEO, VICE PRESIDENT, GENERAL COUNSEL, AND THE CHAIRMAN OF THE BOARD OF DIRECTORS OF THE COMPANY. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION REGULARLY EMPLOYS A SALARY CONSULTANT WHO COMPLETES A SURVEY OF COMPARABLE JOBS WITHIN THE INDUSTRY AND AREA, AND PREPARES SALARY RANGES FOR EACH POSITION IN THE COMPANY. THE BOARD, WITH MANAGEMENT RECOMMENDATION, THEN DETERMINES THE PERCENTILE IN WHICH IT WILL OPERATE WITHIN A SALARY RANGE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: NET EQUITY INCOME - SUBSIDIARY 13,464,586. AMORTIZATION ACCRUED PENSION BENEFIT OBLIGATION -379,284. EXCISE TAX REFUNDS RECEIVED 10,435. CAPITAL CONTRIBUTIONS TO CONSOLIDATED SUBSIDIARY 82,000. FORM 990, PART XII, LINE 2C NO CHANGE FROM THE PRIOR YEAR. 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