2020-06-11T10:46:53-05:00 2019-12-31 161117932 BUFFAMANTE WHIPPLE BUTTAFARO PC 201 WEST THIRD STREET JAMESTOWN NY 14701 990 2019-01-01 240548304 CLAVERACK RURAL ELECTRIC COOPERATIVE CLAV 5702652167 32750 ROUTE 6 WYSOX PA 18854 BOBBI J KILMER PRESIDENT & CEO 5702652167 2020-06-11 1 JAMES C ALEXANDER IV CPA P01384001 7166645104 208.105.187.210 2020-06-11 11:46:15 ED P 0F8E2851FD416ACFB00AA7630511EF29DE290C73 CE10A116B00708B007C897AFDAEC18C6948C9B2F 2019 2020-11-19 02:30:22Z BOBBI J KILMER 32750 ROUTE 6 WYSOX PA 18854 34534699 0 X WWW.CLAVERACK.COM X 1936 PA PROVISION OF ELECTRICAL SERVICE IN RURAL PENNSYLVANIA. 9 4 0 0 0 0 0 0 0 0 41997 47047 17759527 19064447 17801524 19111494 0 0 1744732 1691464 582415 584615 0 0 0 13759579 14854845 16086726 17130924 1714798 1980570 94143044 94290372 40653325 39862853 53489719 54427519 PROVISION OF ELECTRIC SERVICE IN RURAL PENNSYLVANIA. 0 0 PROVISION OF ELECTRIC SERVICE TO MEMBER/OWNERS IN RURAL PENNSYLVANIA USING THE COOPERATIVE FORM OF OWNERSHIP. 0 0 0 0 0 0 0 0 0 1 0 1 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 0 0 0 1 92 0 1 0 0 0 0 0 0 0 0 0 0 32816025 627479 0 0 0 X 9 4 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 X SHELLEY YOUNG 5702652167 32750 RT 6 WYSOX PA 18854 JAMES E LUCE - DIED 42519 DIRECTOR - CHAIRMAN 5.20 X X 5632 0 0 CHARLES R BULLOCK DIRECTOR - CHAIRMAN 4.80 X X 19000 0 0 STEVEN T SLIWINSKI DIRECTOR - TERM ENDED IN JULY 2019 1.50 X 12600 0 0 DANISE C FAIRCHILD DIRECTOR - SECRETARY/TREASURER 3.20 X X 15800 0 0 ROBERT R FAUX DIRECTOR - VICE CHAIRMAN 5.40 X X 16400 0 0 GARY L HENNIP DIRECTOR 3.90 X 15000 0 0 ANGELA S JOINES DIRECTOR 4.00 X 16600 0 0 CHARLES R MCNAMARA DIRECTOR - VICE SECRETARY/TREASURER 4.80 X X 17800 0 0 ROBERT W FEARNLEY DIRECTOR - TERM BEGAN IN FEBRUARY 2.80 X 12334 0 0 ANTHONY J VENTELLO DIRECTOR - TERM BEGAN IN JULY 5.00 X 6965 0 0 TIMOTHY T TWEKSBURY DIRECTOR - TERM BEGAN IN OCTOBER 4.50 X 3899 0 0 BOBBI J KILMER PRESIDENT AND CEO 50.00 X 206156 0 81687 SHELLEY R YOUNG DIRECTOR OF FINANCIAL SERV 45.00 X 100382 0 54360 STEVEN ALLABAUGH DIRECTOR OF ENGINEERING 45.00 X 135756 0 71390 ALLEN SCOTT CREW CHIEF 40.00 X 119308 0 61118 JOHN MCKERNAN CREW CHIEF 40.00 X 125890 0 60914 DOUGLAS J NICHOLS DIRECTOR OF OPERATIONS 45.00 X 122245 0 54670 JOHN CAMBURN MANAGER OF FIELD OPS 40.00 X 134091 0 38891 1085858 0 423030 7 0 1 0 ASPLUNDH TREE EXPERTS 708 BLAIR MILL RD WILLOWGROVE PA 19090 TREE CUTTING SERVICE 1351883 TREE MD LLC 206 ACE LANE TUNHANNOCK PA 18657 TREE CUTTING SERVICE 1136677 BNF POWERLINE CONST 361 BRUMBAUGH RD ROARING SPRINGS PA 16673 LINE CONSTRUCTION SERVICES 427056 PROGRESSIVE SOLUTIONS LLC PO BOX 1130 MARSHALL AR 72650 ROW SPRAYING SERVICE 148860 BROWN HILL TREE CO 2706 SR 3001 MESHOPPEN PA 18630 TREE CUTTING SERVICE 123800 6 47047 47047 38747 38747 32655725 15423205 17232520 17232520 EQUITY INCOME FROM AFFILIATE 221000 1393737 1393737 G&T AND OTHER CAPITAL CREDITS 221000 375432 375432 OTHER NON-OPERATING 221000 24011 24011 1793180 19111494 19001689 0 109805 X 1691464 584615 11819 22481 2614904 52511 446629 213393 115370 184819 113843 1306319 4824428 3939833 17670 MEMBERSHIP DUES/PUBLICA 265291 725535 17130924 2028190 852163 796951 259056 3993650 4992007 749313 773059 691378 697820 118231930 55065362 63457028 63166568 40059 46587 21024433 22292408 1362042 1210704 94143044 94290372 4163377 4256914 32449605 30364753 4040343 5241186 40653325 39862853 X 136705 132390 0 0 53353014 54295129 53489719 54427519 94143044 94290372 X 1980570 -915723 -127047 X X 0 1 X 1 0 6390631 2372564 4018067 111250012 52692798 58557214 591287 591287 63166568 PATRONAGE CAPITAL IN ASSOCIATED COOPERATIVES 7430732 C CAPITAL CERTIFICATES ISSUED BY NRUCFC 1119631 C INVESTMENTS IN ASSOCIATED ORGANIZATIONS 206724 C INVESTMENT IN C&T ENTERPRISES 13535321 C 22292408 ACCUMULATED POST RETIREMENT BENEFITS 3280174 DEFERRED INSTALLATION CHARGES 144100 DEFERRED COMPENSATION 663336 MEMBERSHIP ASSISTANCE FUND 1118425 OTHER 35151 5241186 X 34534699 15423205 15423205 19111494 0 19111494 30862665 15423205 15423205 15439460 1691464 1691464 17130924 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM TAXES ON INCOME PURSUANT TO SECTION 501C12 OF THE INTERNAL REVENUE CODE. CONSEQUENTLY, THE FINANCIAL STATEMENTS REFLECT NO PROVISION FOR TAXES ON INCOME. INCOME TAX RETURNS THAT REMAIN OPEN FOR EXAMINATION BY TAXING AUTHORITIES INCLUDE 2016 AND LATER YEARS. PART XI, LINE 2D - OTHER ADJUSTMENTS: PURCHASED POWER PART XII, LINE 2D - OTHER ADJUSTMENTS: PURCHASED POWER PART XII, LINE 4B - OTHER ADJUSTMENTS: NET RETIREMENT OF CAPITAL CREDITS PART XII, LINE 4B CLAVERACK HAD A NET RETIREMENT OF $1,691,464 OF CAPITAL CREDITS TO ITS MEMBERS IN 2019. THIS AMOUNT IS INCLUDED IN BENEFITS PAID TO OR FOR MEMBERS AS INDICATED ON SCHEDULE O. X X X X 0 0 0 BOBBI J KILMER PRESIDENT AND CEO 206156 0 0 0 0 0 57743 0 23944 0 287843 0 0 0 SHELLEY R YOUNG DIRECTOR OF FINANCIAL SERV 100382 0 0 0 0 0 28490 0 25870 0 154742 0 0 0 STEVEN ALLABAUGH DIRECTOR OF ENGINEERING 135756 0 0 0 0 0 37599 0 33791 0 207146 0 0 0 ALLEN SCOTT CREW CHIEF 92303 0 0 0 27005 0 26159 0 34959 0 180426 0 0 0 JOHN MCKERNAN CREW CHIEF 92371 0 0 0 33519 0 26159 0 34755 0 186804 0 0 0 DOUGLAS J NICHOLS DIRECTOR OF OPERATIONS 122245 0 0 0 0 0 33878 0 20792 0 176915 0 0 0 JOHN CAMBURN MANAGER OF FIELD OPS 99103 0 0 0 34988 0 27076 0 11815 0 172982 0 0 0 BOBBI KILMER DIRECTOR 6061711 REIMBURSE OF MAN. CONTRACT 0 CHARLES BULLOCK DIRECTOR 6061711 REIMBURSE OF MAN. CONTRACT 0 JAMES LUCE PRIOR DIRECTOR 6061711 REIMBURSE OF MAN. CONTRACT 0 STEVEN SLIWINSKI PRIOR DIRECTOR 6061711 REIMBURSE OF MAN. CONTRACT 0 GARY HENNIP DIRECTOR 6061711 REIMBURSE OF MAN. CONTRACT 0 ROBERT FAUX DIRECTOR 6061711 REIMBURSE OF MAN. CONTRACT 0 DENISE FAIRCHILD DIRECTOR 6071711 REIMBURSE OF MAN. CONTRACT 0 SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS (A) NAME OF PERSONS: BOBBI KILMER; CHARLES BULLOCK; DANISE FAIRCHILD; ROBERT FAUX; GARY HENNIP; JAMES LUCE AND STEVEN SLIWINKSI(B) DESCRIPTION OF TRANSACTION; REIMBURSEMENT OF CHARGES UNDER A MANAGEMENT CONTRACT TO C&T ENTERPRISES OF WHICH BOBBI KILMER; CHARLES BULLOCK; DANISE FAIRCHILD; ROBERT FAUX; GARY HENNIP; JAMES LUCE AND STEVEN SLIWINKSI ARE DIRECTORS.ADDITIONAL COMMENTS: DUE TO STEVEN SLIWINSKI RESIGNING HIS SEAT ON THE CLAVERACK BOARD IN JULY 2019 AND JAMES LUCE PASSING AWAY IN APRIL 2019, DANISE FAIRCHILD AND ROBERT FAUX WERE APPOINTED AS THEIR REPLACEMENTS TO THE C&T BOARD. FORM 990, PART VI, SECTION A, LINE 6 CLAVERACK RURAL ELECTRIC COOPERATIVE IS OWNED BY THOSE WHO RECEIVE ELECTRIC SERVICE FROM THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A THE ENTIRE BOARD OF DIRECTORS IS ELECTED BY THE MEMBERSHIP OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7B THE COOPERATIVE MAY SELL, LEASE OR OTHERWISE DISPOSE OF ALL OR SUBSTANTIALLY ALL OF ITS ASSETS ONLY WHEN AUTHORIZED BY THE AFFIRMATIVE VOTE OF TWO THIRDS OR THE ENTIRE MEMBERSHIP OF THE COOPERATIVE. ALSO, THE BYLAWS OUTLINE THE PROCESS BY WHICH MEMBERS COULD PETITION FOR THE REMOVAL OF A BOARD MEMBER. FORM 990, PART VI, SECTION B, LINE 11B THE DRAFT OF THE FORM 990 IS REVIEWED WITH THE AUDIT, RATE & BUDGET COMMITTEE. THE FORM 990 IS THEN DISTRIBUTED AND REVIEWED AT THE MEETING OF THE BOARD OF DIRECTORS. THE BOARD, UPON THEIR SATISFACTION WITH THE FORM, WILL TAKE ACTION, AUTHORIZING THE CEO TO SIGN AND FILE THE FORM 990 FORM 990, PART VI, SECTION B, LINE 12C THE POLICY AND COMPLIANCE ARE REVIEWED ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15A THE COMPENSATION OF THE CEO IS NEGOTIATED AFTER A REVIEW OF COMPARABLE POSITIONS ON A NATIONAL, REGIONAL, AND LOCAL LEVEL. VARIOUS SURVEY DATA IS USED TO INCLUDE A NATIONAL COMPENSATION SURVEY OF ELECTRIC COOPERATIVES. THE SALARY IS THEN INCLUDED AS A CONTRACTUAL ITEM IN THE CEO'S EMPLOYMENT CONTRACT. THE CONTRACT IS A THREE WAY AGREEMENT BETWEEN THE CEO, THE ORGANIZATION AND C&T ENTERPRISES, INC. A TAXABLE HOLDING COMPANY IN WHICH CLAVERACK OWNS 50%. C&T PROVIDES MANAGEMENT SERVICES WHICH INCLUDES PAYROLL AND BENEFITS FOR ALL EMPLOYEES INCLUDING THE CEO. FORM 990, PART VI, SECTION C, LINE 19 THE FORM 990 IS AVAILABLE TO THE PUBLIC UPON REQUEST FORM 990, PART IX, LINE 11G CONSULTING 10,543. AFTER HOURS CALL CENTER 184,310. LINE INSPECTIONS 159,264. ROW/TREE TRIMMING/SPRAYING 2,260,787. FORM 990, PART XI, LINE 9: CHANGE IN OTHER COMPREHENSIVE INCOME -234,877. MEMBERSHIP REFUNDS -4,315. GAIN ON EARLY RETIREMENT OF CAPITAL CREDITS 111,747. CHANGE IN UNCLAIMED CAPITAL CREDIT 398. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART XI, LINE 9, OTHER CHANGES IN NET ASSETS PLEASE NOTE THAT $2,168,492 WAS ALLOCATED TO CLAVERACK MEMBERS IN 2019. THIS AMOUNT CONSISTED OF OPERATING MARGINS TOTALING $1,793,060 AND CAPITAL CREDITS TOTALING $375,432. CLAVERACK ALSO RETIRED $1,691,464 OF CAPITAL CREDITS TO ITS MEMBERS IN 2019. THIS AMOUNT OF $1,691,464 IS STATED ON PART I LINE 14. FORM 990, PART XI, LINE 8, PRIOR PERIOD ADJUSTMENT PLEASE NOTE THAT THE PRIOR PERIOD ADJUSTMENT OF $915,723 IS A RECLASSIFICATION OF UNCLAIMED CAPITAL CREDITS THAT HAVE NOT BEEN ESCHEATED AND WERE IN PRIOR YEARS INCLUDED IN NET ASSETS BUT ARE NOW RECLASSIFIED AND HELD AS A LIABILITY FOR THREE YEARS UNTIL THEY BECOME ESCHEATED AS REQUIRED BY THE STATE OF PENNSYLVANIA. ADDITIONAL 990 DISCLOSURES: CLAVERACK RURAL ELECTRIC COOPERATIVE IS A PARTY TO A MANAGEMENT SERVICES CONTRACT WITH C&T ENTERPRISES, INC. C&T ENTERPRISES IS A FOR-PROFIT HOLDING COMPANY WHICH IS OWNED BY CLAVERACK AND TRI-COUNTY RURAL ELECTRIC COOPERATIVE INC. CLAVERACK AND TRI-COUNTY EACH OWN 50% OF THE STOCK OF C&T ENTERPRISES. UNDER THE TERMS OF THE CONTRACT, C&T ASSIGNS EMPLOYEES TO CLAVERACK AND PROVIDES ALL PAYROLL AND RELATED SERVICES. C&T ALSO ADMINISTERS THE PAYROLL AND BENEFITS OF THE CLAVERACK PRESIDENT AND CEO.