2019-10-30T15:39:51-05:00 2018-12-31 410746479 CLIFTONLARSONALLEN LLP 2689 COMMERCE DRIVE NW SUITE 201 ROCHESTER MN 55901 990 2018-01-01 370345145 ILLINOIS ELECTRIC COOPERATIVE ILLI 2172438700 2 SOUTH MAIN STREET WINCHESTER IL 62694 JIM FREEMAN TREASURER 2172438700 2019-10-14 1 CRAIG POPENHAGEN P01587689 5072802300 2019-10-04 67.137.57.251 2019-10-14 09:41:13 CD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 BEE9541B71B3C138BF05EE03CF4004B91DDC9960 2018 2020-01-14 16:20:31Z JIM FREEMAN 2 SOUTH MAIN STREET WINCHESTER IL 62694 34975587 0 X WWW.E-CO-OP.COM X 1936 IL IN THE COOPERATIVE TRADITION, ILLINOIS ELECTRIC IS DEDICATED TO IMPROVING THE QUALITY OF LIFE FOR OUR MEMBERS THROUGH DEPENDABILITY AND INNOVATION. 11 11 65 0 0 0 0 0 31715530 33581071 92466 172231 1292535 1154312 33100531 34907614 0 0 1883499 2313367 256006 268095 0 0 0 30567433 31931031 32706938 34512493 393593 395121 113056846 117706697 74727324 77586576 38329522 40120121 IN THE COOPERATIVE TRADITION, ILLINOIS ELECTRIC IS DEDICATED TO IMPROVING THE QUALITY OF LIFE FOR OUR MEMBERS THROUGH DEPENDABILITY AND INNOVATION. 0 0 WE PROVIDED 184,024,521 KILOWATT HOURS OF ELECTRICITY TO APPROXIMATELY 7,500 RURAL ACCOUNTS IN ALL OR PART OF TEN COUNTIES IN THE STATE OF ILLINOIS AND WILL CONTINUE THIS IN THE FUTURE. WE PROVIDED INTERNET SERVICES TO APPROXIMATELY 4,100 CONSUMERS IN ALL OR PART OF TEN COUNTIES IN THE STATE OF ILLINOIS. IN 2015 WE BEGAN OFFERING TV AND PHONE ALONG WITH INTERNET THROUGH OUR NEWLY CONSTRUCTED FIBER INFRASTRUCTURE IN THE TOWNS OF WINCHESTER AND BLUFFS. WE PROVIDED THIS SERVICE TO 550 CONSUMERS. WE EXPECT THIS PROGRAM TO CONTINUE GROWING IN THE FUTURE. 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 0 1 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 1 40 0 65 1 0 0 0 0 0 34498184 433882 0 0 0 X 11 11 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X SETH BUSHNELL 2172438700 2 SOUTH MAIN STREET WINCHESTER IL 62694 THOMAS D MEEHAN III PRESIDENT 7.00 0.50 X X 11050 0 0 JULIA EBERLIN VICE-PRESIDENT 3.60 0.50 X X 9200 0 0 RONALD K MYERS TREASURER 4.20 0.50 X X 6800 0 0 KEVIN BRANNAN SECRETARY 6.10 0.50 X X 12000 0 0 JIM FREEMAN ASSISTANT TREASURER 5.00 X X 7850 0 0 JULIE RHOADS ASSISTANT SECRETARY 3.70 X X 5700 0 0 JENNA MORROW DIRECTOR 3.60 X 6350 0 0 LUKE FRALEY DIRECTOR 0.90 X 4400 0 0 BRYAN HUBBERT DIRECTOR 1.30 X 3850 0 0 PAT STENDBACK DIRECTOR 1.80 X 5300 0 0 KEVIN KLEIN DIRECTOR 7.70 X 10400 0 0 BRUCE GIFFEN DIRECTOR 3.00 X 0 0 0 JENIFFER SELLARS DIRECTOR - PART YEAR 0.10 X 800 0 0 SETH BUSHNELL MANAGER OF FINANCE 40.00 X 131660 0 52735 SEAN MIDDLETON MANAGER OF ENGINEERING 40.00 X 145787 0 55503 RANDY LONG MANAGER OF OPERATIONS 40.00 X 142743 0 35734 JOSEPH KILLDAY SERVICEMAN LINEMAN 46.40 X 114155 0 42462 SHAWN RENNECKER DIRECTOR OF ECONOMIC DEV 40.00 X 106280 0 44641 DARREN HAYN SERVICEMAN LINEMAN 44.40 X 105886 0 42462 830211 0 273537 15 0 1 0 WIRELESS DATA SYSTEMS INC 824 ROBERT E LEE DR WILMINGTON NC 28412 INTERNET CONTRACTOR 955444 CROFT ELECTRICAL CONTRACTORS INC 266 HWY KK TROY MO 63379 LINE REBUILDING 505926 SANDS ROAD CONSULTING PO BOX 86 WINCHESTER IL 62694 MANAGEMENT SERVICES 397178 POOR BOY TREE SERVICE 273 E 410TH RD FAIR PLAY MO 65649 ROW TRIMMING 385509 DONCO ELECTRIC CONSTRUCTION LLC PO BOX 158 EDWARDSVILLE IL 62025 LINE DESIGN 264451 8 SALE OF POWER 221000 30861136 30861136 INTERNET REVENUES 517000 2511563 2511563 OTHER ELECTRIC REVENUE 221000 208372 208372 33581071 98892 98892 141312 67973 73339 73339 73339 CAPITAL CREDITS 900099 1152433 1152433 MISCELLANEOUS 900099 3529 3529 MERCHANDISING 900099 -1650 -1650 1154312 34907614 34735383 0 172231 2313367 268095 1844890 3994764 COST OF POWER 16612516 DIST EXP - MAINTENANCE 3353245 INTERNET COST OF SALES 2421833 ADMIN & GENERAL EXP 1895503 1808280 34512493 902813 944433 1836578 2324261 1913590 1852190 3373526 3740449 783989 836397 188681 185498 114792953 23439596 87456382 91353357 953129 808129 663251 705883 11358389 11658463 9169 9169 3617349 3288468 113056846 117706697 2572480 2528321 66945805 67393574 2016629 4391884 3192410 3272797 74727324 77586576 X 0 0 0 0 38329522 40120121 38329522 40120121 113056846 117706697 X 395121 1395478 X X 0 1 X 1 0 600308 600308 2304747 1077438 1227309 20149135 9660565 10488570 91738763 12701593 79037170 91353357 PRAIRIE STATE PROJECT 2823500 C PAT CAP IN ASSOC. ORGS. 7946683 C NRUCFC CAPITAL TERM CERTS 786819 C OTHER INVESTMENTS 27668 C DEFERRED COMP. FUND 73793 C 11658463 CONSUMER DEPOSITS 372545 ACCUM PROV FOR PENSION & BENEFITS 2762513 DEFERRED CREDITS 137739 3272797 X PART X, LINE 2: THE COOPERATIVE HAS BEEN GRANTED TAX EXEMPT STATUS UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE (IRC). IRTC UTILIZES AN ASSET AND LIABILITY APPROACH TO FINANCIAL ACCOUNTING AND REPORTING FOR INCOME TAXES. DEFERRED INCOME TAXES ARE COMPUTED ANNUALLY FOR DIFFERENCES BETWEEN THE FINANCIAL STATEMENT AND TAX BASIS OF ASSETS AND LIABILITIES THAT WILL RESULT IN TAXABLE OR DEDUCTIBLE AMOUNTS IN THE FUTURE BASED ON ENACTED TAX LAWS AND RATES APPLICABLE TO THE PERIODS IN WHICH THE DIFFERENCES ARE EXPECTED TO AFFECT TAXABLE INCOME. SUCH DIFFERENCES RELATE PRIMARILY TO THE USE OF ACCELERATED DEPRECIATION METHODS FOR INCOME TAX PURPOSES AS COMPARED TO THE STRAIGHT-LINE METHOD FOR FINANCIAL REPORTING AND AMORTIZATION OF GOODWILL FOR INCOME TAX PURPOSES. VALUATION ALLOWANCES ARE ESTABLISHED WHEN NECESSARY TO REDUCE DEFERRED TAX ASSETS TO THE AMOUNT EXPECTED TO BE REALIZED. THE PROVISION FOR INCOME TAXES IS THE TAX PAYABLE OR REFUNDABLE FOR THE PERIOD PLUS OR MINUS THE CHANGE DURING THE PERIOD IN DEFERRED TAX ASSETS AND LIABILITIES. IRTC FILES A CONSOLIDATED TAX RETURN, WHICH INCLUDES ITS SUBSIDIARIES. THE CONSOLIDATED INCOME TAX PROVISION (BENEFIT) IS RECORDED BY IRTC AND IS NOT ALLOCATED TO ITS SUBSIDIARIES. THE COOPERATIVE EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2018 AND 2017. X X X 0 1 0 SETH BUSHNELL MANAGER OF FINANCE 131660 0 0 0 0 0 30622 0 22113 0 184395 0 0 0 SEAN MIDDLETON MANAGER OF ENGINEERING 145787 0 0 0 0 0 33239 0 22264 0 201290 0 0 0 RANDY LONG MANAGER OF OPERATIONS 142743 0 0 0 0 0 13470 0 22264 0 178477 0 0 0 JOSEPH KILLDAY SERVICEMAN LINEMAN 114155 0 0 0 0 0 20922 0 21540 0 156617 0 0 0 SHAWN RENNECKER DIRECTOR OF ECONOMIC DEV 106280 0 0 0 0 0 22981 0 21660 0 150921 0 0 0 PART I, LINE 4B BRUCE GIFFIN WAS PAID $2,954 OUT OF HIS 457 PLAN DURING 2018. BRUCE GIFFIN - SANDS ROAD CONSULTING SEE BELOW 397178 SEE BELOW 0 SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: (A) NAME OF PERSON: BRUCE GIFFIN(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: BOARD MEMBER OF ILLINOIS REC AND CEO OF SANDS ROAD CONSULTING(D) DESCRIPTION OF TRANSACTION: BRUCE GIFFIN STARTED SANDS ROAD CONSULTING DURING 2016. ILLINIOS ELECTRIC COOPERATIVE WAS ENGAGED TO SANDS ROAD CONSULTING TO PROVIDE CONSULTING AND MANAGEMENT SERVICES. FORM 990, PART VI, SECTION A, LINE 3 THE COOPERATIVE CONTRACTS WITH SANDS ROAD CONSULTING CO. FOR MANAGEMENT SERVICES. ITS PRINCIPAL CONSULTANT, BRUCE GIFFIN, PROVIDES THOSE SERVICES. THAT INDIVIDUAL HAS FORTY-FIVE YEARS EXPERIENCE IN THE MANAGEMENT OF INVESTOR OWNED UTILITIES AND ELECTRIC COOPERATIVES. ILLINOIS ELECTRIC COOPERATIVE PAID SANDS ROAD CONSULTING $397,178 FOR MANAGEMENT SERVICES IN 2018. FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE HAS TWO CLASSES OF MEMBERS. CLASS A MEMBERS, ELECTRIC MEMBERS, HAVE VOTING RIGHTS, CLASS B MEMBERS INTERNET MEMBERS, DO NOT HAVE VOTING RIGHTS. FORM 990, PART VI, SECTION A, LINE 7A EACH CUSTOMER WHO RECEIVES ELECTRIC SERVICE IS A CLASS A MEMBER. THESE MEMBERS ELECT THE MEMBERS OF THE BOARD OF DIRECTORS AND APPROVE SIGNIFICANT DECISIONS OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7B THE COOPERATIVE HAS ONE CLASS OF MEMBERSHIP THAT MUST VOTE ON CHANGES TO THE BYLAWS, ARTICLES OF INCORPORATION, AND SALE OF SUBSTANTIALLY ALL OF THE COOPERATIVE'S ASSETS. FORM 990, PART VI, SECTION B, LINE 11B EACH MEMBER OF THE BOARD OF DIRECTORS WILL BE PROVIDED AN ELECTRONIC COPY OF THE RETURN PRIOR TO ITS FILING. THE BOARD'S MANAGEMENT CONSULTANT CONDUCTED A REVIEW OF THE RETURN, INCLUDING VERIFYING FINANCIAL AND OTHER INFORMATION AGAINST INTERNAL INFORMATION. FORM 990, PART VI, SECTION B, LINE 12C COUNSEL REVIEWS POLICY ANNUALLY WITH THE BOARD AND SENIOR MANAGEMENT. THE BOARD'S MANAGEMENT CONSULTANT REVIEWS IT ANNUALLY WITH THE EMPLOYEES. DETERMINATIONS FOR THE BOARD ARE AT THE BOARD LEVEL, THE BOARD'S MANAGEMENT CONSULTANT AT THE BOARD LEVEL AND ALL OTHER EMPLOYEES AT THE BOARD'S MANAGEMENT CONSULTANT LEVEL. RESTRICTIONS ON THE BOARD IN THE INSTANCE OF A CONFLICT OF INTEREST DOES NOT ALLOW THEM TO VOTE ON THE MATTER AND EMPLOYEES ARE PROHIBITED FROM HAVING CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS HAS A CONTRACT WITH SANDS ROAD CONSULTING CO., INC., (SRC) FOR MANAGEMENT SERVICES. THE FEE SCHEDULE IN THE CONTRACT PAYS SRC AN AMOUNT COMPARABLE WITH THE TOTAL COSTS OF COMPENSATION FOR A COOPERATIVE MANAGER AS REPORTED IN BENCHMARK DATA FROM THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION AND THE ASSOCIATION OF ILLINOIS ELECTRIC COOPERATIVES. THE PROCESS IS DOCUMENTED IN THE MINUTES OF THE BOARD'S MEETINGS. THE PROCESS OF DETERMINING COMPENSATION FOR OTHER KEY EMPLOYEES IS CARRIED OUT BY THE BOARD'S MANAGEMENT CONSULTANT, USING THE SAME DATA SETS AS NOTED ABOVE. THE PROCESS IS DOCUMENTED IN THE MINUTES OF BOARD MEETINGS AND OF BOARD COMMITTEE MEETINGS. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE'S GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST AND ON OUR WEBSITE WWW.E-CO-OP.COM FORM 990, PART XI, LINE 9: EQUITY IN EARNINGS IN SUBSIDIARY 42,632. PATRONAGE RETIRED -937,781. CHANGE IN OTHER COMPREHENSIVE INCOME -22,740. PATRONAGE DIVIDENDS ALLOCATED 2,313,367. FORM 990, PART XII, LINE 2C THE BOARD OF DIRECTORS PROCESS FOR OVERSIGHT OF THE AUDIT AND SELECTION OF AN INDEPENDENT AUDITOR HAS NOT CHANGED IN 2018. FORM 990, PART IX, LINE 4 THE IRS INSTRUCTIONS STATE THAT PATRONAGE DIVIDENDS PAID BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI, ON PAGE 12 OF THE FORM 990. ILLINOIS RURAL TELECOMMUNICATION CO 2 SOUTH MAIN STREET WINCHESTER IL 62694 371306087 TELECOMMUNICATIONS IL ILLINOIS ELECTRIC COOP C 42632 3337734 1.00000 1 PRATHER OIL CO 2 SOUTH MAIN STREET WINCHESTER IL 62694 371112402 SALE OF PROPANE IL ILLINOIS RURAL TELECOMMUNICATION CO C 1.00000 0 ILLINOIS PROPANE CO 2 SOUTH MAIN STREET WINCHESTER IL 62694 202239550 SALE OF PROPANE IL ILLINOIS RURAL TELECOMMUNICATION CO C 1.00000 0 MIDSTATE PROPANE LLC 2 SOUTH MAIN STREET WINCHESTER IL 62694 371413502 SALE OF PROPANE IL ILLINOIS RURAL TELECOMMUNICATION CO C 288456 1.00000 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 ILLINOIS RURAL TELECOMMUNICATION COMPANY K 144000 ACTUAL