2017-11-14T13:21:27-06:00 2016-12-31 751044330 LANE GORMAN TRUBITT LLC 2626 HOWELL ST SUITE 700 DALLAS TX 75204 990 2016-01-01 237379267 PIPE LINE INDUSTRY ADVANCEMENT FUND PIPE 2149692700 1700 PACIFIC AVENUE NO 4100 DALLAS TX 752014675 J PATRICK TIELBORG MANAGING DIRECTOR 2149692700 2017-11-13 1 DAVID OVESEN P00740904 2148717500 74.202.44.50 2017-11-13 21:52:19 CS P A83ED1E1FAE8BE60F2FFDD10CC0B79844D1BFAED 108C02F116BD3889D49AA26304DB2FB20DC6DB70 2016 2017-02-10 21:41:12Z J PATRICK TIELBORG 1700 PACIFIC AVE STE 4100 DALLAS TX 752014675 1426160 0 X N/A X 1974 TX TO ADVANCE THE BEST INTERESTS OF THE MAIN LINE PIPE LINE CONSTRUCTION INDUSTRY. 3 3 4 3 0 0 0 0 1486278 1417449 1214 8711 0 0 1487492 1426160 0 0 0 0 852798 880172 0 0 0 2519545 2578364 3372343 3458536 -1884851 -2032376 6341413 4294399 205629 190991 6135784 4103408 X PIPE LINE INDUSTRY ADVANCEMENT FUND ("PLIAF OR THE "FUND") WAS FORMED TO ADVANCE THE BEST INTERESTS OF THE MAIN LINE PIPE LINE CONSTRUCTION INDUSTRY THROUGH GOOD PUBLIC RELATIONS, MARKET DEVELOPMENT, EDUCATION AND RESEARCH GRANTS, COLLECTIVE BARGAINING NEGOTIATIONS, PROMOTION OF INDUSTRY SAFETY, SCHOLARSHIPS, AND THE PROMOTION OF CONTRACTORS FOR THE CONSTRUCTION OF ALL MAIN LINE PIPE LINES. 0 0 LABOR NEGOTIATIONS AND OTHER MEETINGS PRINTING OF LABOR AND SAFETY MANUALS CONVENTION AND MEETINGS FOR PIPE LINE CONTRACTORS 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 1 X 1 0 1 4 1 0 0 0 0 0 0 X 3 3 0 0 0 0 0 1 0 1 1 0 0 1 0 0 0 1 1 0 X J PATRICK TIELBORG 2149692700 1700 PACIFIC AVE STE 4100 DALLAS TX 752014675 JOHN ALLEN TRUSTEE 1.00 1.00 X 0 0 0 BRIAN GANSKE CHAIRMAN 1.00 1.00 X X 0 0 0 CHRISTOPHER T LEINES TRUSTEE 1.00 1.00 X 0 0 0 J PATRICK TIELBORG MANAGING DIR. & GEN. COUNSEL 12.00 29.00 X 360500 154500 250000 KEVIN BARRETT EXECUTIVE DIRECTOR 15.00 35.00 X 186445 79905 0 546945 234405 250000 2 0 1 1 AKIN GUMP STRAUSS HAUER & FELD LLP 1700 PACIFIC AVE SUITE 4100 DALLAS TX 75201 LEGAL SERVICES 1942322 1 MEMBER CONTRIBUTIONS 900099 1417449 1417449 1417449 8711 8711 1426160 1417449 0 8711 721945 99278 32364 26585 1948698 11900 39549 8348 15047 320103 5288 PROXY TAXES 156570 DUES AND SUBSCRIPTIONS 36850 LABOR MATTERS 11737 MARKET DEVELOPMENT 9515 14759 3458536 58924 333580 6282489 3960819 6341413 4294399 205629 190991 205629 190991 X 0 0 0 0 6135784 4103408 6135784 4103408 6341413 4294399 -2032376 0 X 0 1 X 1 0 0 EXPENSE DEPOSIT WITH PLCA 190991 190991 X 1426160 0 1426160 0 1426160 3458536 0 3458536 0 3458536 PART X, LINE 2: FIN 48 (ASC 740) FOOTNOTE FOLLOWING IS THE TEXT FROM THE FOOTNOTES OF THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS: THE FUND IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C) OF THE INTERNAL REVENUE CODE (THE "CODE"), EXCEPT TO THE EXTENT IT HAS UNRELATED BUSINESS INCOME. IN ADDITION, THE FUND HAS BEEN DETERMINED BY THE INTERNAL REVENUE SERVICE NOT TO BE A PRIVATE FOUNDATION WITHIN THE MEANING OF SECTION 509(A) OF THE CODE. FOR THE YEAR ENDED DECEMBER 31, 2016, THE ASSOCIATION HAD NO MATERIAL NET UNRELATED BUSINESS INCOME. ACCORDINGLY, NO PROVISION FOR FEDERAL INCOME TAX HAS BEEN RECORDED IN THE ACCOMPANYING FINANCIAL STATEMENTS. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES REQUIRE THE EVALUATION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE COURSE OF PREPARING THE FUND'S FINANCIAL STATEMENTS TO DETERMINE WHETHER THE TAX POSITIONS ARE MORE LIKELY THAN NOT OF BEING SUSTAINED BY THE APPLICABLE TAX AUTHORITY. TAX POSITIONS NOT DEEMED TO MEET THE MORE LIKELY THAN NOT THRESHOLD WOULD BE RECORDED AS A TAX BENEFIT OR EXPENSE IN THE CURRENT YEAR. MANAGEMENT EVALUATED THE FUND'S TAX POSITIONS AND CONCLUDED THAT THE FUND HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE AN ADJUSTMENT TO THE FINANCIAL STATEMENTS. HOWEVER, THE CONCLUSIONS REGARDING ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES WILL BE SUBJECT TO REVIEW AND MAY BE ADJUSTED AT A LATER DATE BASED ON FACTORS INCLUDING, BUT NOT LIMITED TO, ONGOING ANALYSIS OF TAX LAWS, REGULATIONS, AND INTERPRETATIONS THEREOF. WITH FEW EXCEPTIONS, THE FUND IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS BEFORE 2013. TRADE ASSOCIATIONS MAY SUPPORT LEGISLATION FAVORABLE TO THEIR INDUSTRIES AND OPPOSE DETRIMENTAL LEGISLATION WITHOUT LOSING EXEMPTION UNDER SECTION 501(C)(6) OF THE CODE. A 501(C)(6) ORGANIZATION MAY PERMISSIBLY ENGAGE IN ANY AMOUNT OF LEGISLATIVE ACTIVITY GERMANE TO THE COMMON BUSINESS INTEREST OF THE ORGANIZATION'S MEMBERS. THE FUND HAS ELECTED TO PAY A PROXY TAX AT THE HIGHEST FEDERAL CORPORATE RATE (35%) IN LIEU OF TELLING MEMBERS THAT DUES ARE NON-DEDUCTIBLE. THE PROXY TAX IS IMPOSED ON LOBBYING EXPENSES FOR THE YEAR, UP TO THE DUES RECEIVED. THE PROXY TAX IS CONSIDERED AN INCOME TAX, AND MUST BE REPORTED ON FORM 990-T. THE PROXY TAX WAS $156,570 FOR THE YEAR ENDED DECEMBER 31, 2016. X X 0 1 0 J PATRICK TIELBORG MANAGING DIR. & GEN. COUNSEL 360500 154500 0 0 0 0 175000 75000 0 0 535500 229500 0 0 KEVIN BARRETT EXECUTIVE DIRECTOR 186445 79905 0 0 0 0 0 0 0 0 186445 79905 0 0 SCHEDULE J, PART I LINE 4(B) J. PATRICK TIELBORG $175,000 J PATRICK TIELBORG PARTNER AT LAW FIRM 15047 RENT 0 J PATRICK TIELBORG PARTNER AT LAW FIRM 186445 SALARIES - EXECUTIVE DIRECTOR 0 J PATRICK TIELBORG PARTNER AT LAW FIRM 88164 SECRETARIAL COMPENSATION 0 J PATRICK TIELBORG PARTNER AT LAW FIRM 25271 GROUP MEDICAL 0 J PATRICK TIELBORG PARTNER AT LAW FIRM 11113 SUPPORT STAFF 0 J PATRICK TIELBORG PARTNER AT LAW FIRM 15913 PAYROLL TAXES 0 J PATRICK TIELBORG PARTNER AT LAW FIRM 1948698 FEES LEGAL 0 J PATRICK TIELBORG PARTNER AT LAW FIRM 26288 OTHER ADMINISTRATIVE EXPENSES 0 SCHEDULE L, PART IV: BUSINESS TRANSACTIONSTHE MANAGING DIRECTOR OF THE ORGANIZATION, J. PATRICK TIELBORG, IS A PARTNER AT AKIN GUMP STRAUSS HAUER & FELD, LLP. VARIOUS OPERATIONAL EXPENSES, AS DETAILED IN SCHEDULE L, PART IV, ARE PAID TO THIS LAW FIRM FOR EXPENSE REIMBURSEMENT AND SERVICES PROVIDED. FORM 990, PART V, LINE 2A: NUMBER OF EMPLOYEES THE ORGANIZATION DOES NOT HAVE ANY EMPLOYEES WHO RECEIVE FORM W-2. INSTEAD, THE ORGANIZATION REIMBURSES THE MANAGING DIRECTOR'S COMPENSATION PAID BY THE PIPE LINE CONTRACTORS ASSOCIATION, A RELATED ORGANIZATION, AS REPORTED ON SCHEDULE R, PART II. THE ORGANIZATION ALSO REIMBURSES COMPENSATION OF THE EXECUTIVE DIRECTOR AND STAFF PAID BY AKIN GUMP STRAUSS HAUER & FELD, LLP, AN UNRELATED TAXABLE ORGANIZATION, AS REPORTED ON SCHEDULE L, PART IV. THEREFORE, AS PER FORM 990 INSTRUCTIONS, THE ORGANIZATION IS REPORTING THE NUMBER OF EMPLOYEES DEEMED AS THE ORGANIZATION'S EMPLOYEES. FORM 990, PART VI, SECTION A, LINE 7A ORGANIZATION WITH MEMBERS ELECTING GOVERNING BODY THERE IS A PROGRESSION FLOW CHART FOR THE APPOINTMENT OF THE PIPE LINE INDUSTRY ADVANCEMENT FUND TRUSTEES (THE CURRENT TRUSTEES ARE THE PAST PRESIDENTS OF THE PIPE LINE CONTRACTORS ASSOCIATION FROM 2010, 2011 AND 2012). FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW THE FORM 990 IS REVIEWED BY THE MANAGING DIRECTOR, WHO IS ALSO THE GENERAL COUNSEL TO THE ENTITY. DRAFT COPIES OF THE FORM 990 ARE PROVIDED TO THE GOVERNING BOARD BEFORE FILING. IF FURTHER REVIEW IS NEEDED, IT WOULD DEPEND ON THE ADVICE FROM THE INDEPENDENT AUDITOR FIRM. FORM 990, PART VI, SECTION B, LINE 12 WRITTEN CONFLICT OF INTEREST POLICY THE ORGANIZATION CURRENTLY DOES NOT HAVE A WRITTEN CONFLICT OF INTEREST POLICY IN PLACE. HOWEVER, THE ORGANIZATION IS MANAGED BY AN ATTORNEY WHO MONITORS ALL ORGANIZATIONAL ACTIVITIES TO ENSURE THERE ARE NO CONFLICTS. FORM 990, PART VI, SECTION B, LINE 15 DETERMINATION OF COMPENSATION AS REPORTED IN THE FOOTNOTES OF THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS, PLIAF AND PLCA HAVE A THREE-YEAR EMPLOYMENT AGREEMENT WITH THEIR CURRENT MANAGING DIRECTOR AND GENERAL COUNSEL, (THE EMPLOYEE) BEGINNING JANUARY 1, 2016. THE AGREEMENT PROVIDES FOR A THREE PERCENT SALARY INCREASE EACH YEAR IN ADDITION TO BENEFITS PROVIDED BY AN ADDITIONAL PRODUCTIVITY BONUS FOR PURCHASE OF AN ANNUITY. DURING JANUARY 2016, PLIAF AND PLCA PAID THE EMPLOYEE AN ADDITIONAL PRODUCTIVITY BONUS BASED UPON A PRESCRIBED FORMULA INVOLVING THE NUMBER OF UNITED ASSOCIATION MAN HOURS WORKED UNDER THE NATIONAL PIPE LINE AGREEMENT BETWEEN THE UNITED ASSOCIATION AND THE PIPE LINE CONTRACTORS ASSOCIATION FOR THE PREVIOUS 12 MONTHS. DURING JANUARY OF EACH CALENDAR YEAR AFTER 2015, DURING THE TERM OF THE EMPLOYMENT AGREEMENT, PLIAF AND PLCA ARE TO PURCHASE FOR AND ON BEHALF OF THE EMPLOYEE, A NON-QUALIFIED IMMEDIATE DEFERRED ANNUITY CONTRACT FOR AN AGGREGATE PREMIUM EQUAL TO THE AMOUNT OF THE PRODUCTIVITY BONUS FOR THE PREVIOUS TWELVE MONTHS. PAYMENT OF ANNUITY BENEFITS UNDER THE CONTRACT SHALL COMMENCE ON THE DEFERRED ANNUITY DATE SPECIFIED IN THE ANNUITY CONTRACT, WHICH SHALL BE SEVEN YEARS AFTER THE DATE OF PURCHASE. THE EMPLOYEE IS THE OWNER OF THE ANNUITY CONTRACT, SUBJECT TO A RISK OF FORFEITURE. THE VESTING REQUIREMENTS APPLICABLE TO ANY ANNUITY CONTRACT PURCHASED PROVIDES FOR A RISK OF FORFEITURE THAT REQUIRES THE EMPLOYEE TO TRANSFER THE ANNUITY CONTRACT BACK TO PLIAF AND PLCA IF THE EMPLOYEE IS INVOLUNTARILY TERMINATED FOR CAUSE OR VOLUNTARY TERMINATES OTHER THAN FOR GOOD REASON. THE MAXIMUM VESTING PERIOD MAY NOT EXCEED THE LESSER OF TWO YEARS FROM THE EFFECTIVE PURCHASE DATE OF SUCH ANNUITY CONTRACT OR THE DIFFERENCE BETWEEN THE EFFECTIVE DATE OF THE PURCHASE OF SUCH ANNUITY CONTRACT AND THE DATE OF THE EXPIRATION OF THE TERM OF THE EMPLOYMENT AGREEMENT. IF THE EMPLOYEE IS INVOLUNTARILY TERMINATED WITHOUT CAUSE, DIES, BECOMES INCAPACITATED, OR VOLUNTARILY TERMINATES FOR GOOD REASON PRIOR TO THE END OF THE TERM OF THE EMPLOYMENT AGREEMENT, OR RETIRES AT THE END OF THE TERM OF THE EMPLOYMENT AGREEMENT, ALL UNVESTED ANNUITY CONTRACTS SHALL BECOME 100% VESTED, PROVIDED THAT THE RIGHT TO RETAIN ANY ANNUITY CONTRACT PURCHASED WITHIN LESS THAN TWO YEARS OF THE RETIREMENT OR EXPIRATION OF THE TERM OF THE AGREEMENT IS CONDITIONED ON THE EMPLOYEE REFRAINING FROM EMPLOYMENT OR PROVIDING SERVICES TO ANY TRADE ASSOCIATION OR SIMILAR ORGANIZATION THAT COMPETES WITH OR PROVIDES SERVICES SIMILAR TO PLIAF AND PLCA FOR A PERIOD THAT ENDS TWO YEARS FROM THE EFFECTIVE DATE OF THE PURCHASE OF ANY SUCH ANNUITY CONTRACT. PLIAF AND PLCA HAVE A TWO-YEAR EMPLOYMENT AGREEMENT WITH THEIR CURRENT EXECUTIVE DIRECTOR BEGINNING MAY 16, 2015. THE AGREEMENT PROVIDES FOR A FIVE PERCENT SALARY INCREASE EACH YEAR. KEVIN BARRETT, THE EXECUTIVE DIRECTOR, RECEIVES COMPENSATION BASED ON HIS EXPERIENCE AND DETERMINATION BY THE BOARD OF DIRECTORS, WHICH HAS EXCLUSIVE CONTROL OVER ALL COMPENSATION AND REVIEWS STAFF COMPENSATION EACH YEAR. HE IS AN EMPLOYEE OF AKIN GUMP STRAUSS HAUER & FELD, LLP, AN UNRELATED TAXABLE ORGANIZATION, AND PROVIDES MANAGEMENT SERVICES TO THE FILING ORGANIZATION. THERE IS A COMPENSATION ARRANGEMENT BETWEEN THE TWO ORGANIZATIONS, WHEREBY, THE FILING ORGANIZATION REIMBURSES HIS COMPENSATION TO THE UNRELATED TAXABLE ORGANIZATION FOR HIS SERVICES AS EXECUTIVE DIRECTOR, AS REPORTED ON SCHEDULE L, PART IV. FORM 990, PART VI, SECTION C, LINE 19 DOCUMENTS AVAILABLE TO THE PUBLIC THE ORGANIZATION'S DOCUMENTS PERTAINING TO GOVERNANCE, CONFLICTS OF INTEREST, AND FINANCIAL STATEMENTS ARE MADE TO THE PUBLIC UPON REQUEST. PIPE LINE CONTRACTORS ASSOCIATION 1700 PACIFIC AVENUE STE 4100 DALLAS TX 75201 750756831 INUSTRY ADVANCEMENT TX 501(C)(6) N/A N/A 0 PIPE LINE CONTRACTORS ASSOC SCHOLARSHIP 1700 PACIFIC AVENUE STE 4100 DALLAS TX 75201 752744096 SCHOLARSHIPS TX 501(C)(3) PF N/A 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 0 0 NA