2018-11-02T11:52:28-05:00 2017-12-31 910189318 MOSS ADAMS LLP 805 SW BROADWAY STE 1200 PORTLAND OR 97205 990 2017-01-01 990346113 KAUAI ISLAND UTILITY COOPERATIVE KAUA 8082464300 4463 PAHEE ST STE 1 LIHUE HI 967662000 KARISSA JONAS FINANCIAL VP & CFO 8002468278 2018-10-31 1 WENDY CAMPOS P00448102 5032421447 2018-10-31 12.129.7.100 2018-10-31 15:53:51 PD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 D054F4EF093A01A5BE70ECC55B3094991D2B5D96 2017 2019-02-21 02:37:17Z DAVID BISSELL 4463 PAHEE ST STE 1 LIHUE HI 967662000 149863410 0 X WWW.KIUC.COOP X 1999 HI PROVIDE POWER TO OUR MEMBERS IN A CONSERVATIVE AND SUSTAINABLE MANNER. 9 9 156 0 47582 34717 0 0 143498562 147849788 2127247 1775814 213075 198716 145838884 149824318 92323 63632 6596917 3016445 1825900 1826902 0 0 0 135551387 138012585 144066527 142919564 1772357 6904754 340756263 334347463 237775325 223797901 102980938 110549562 X SEE SCHEDULE OTO PROVIDE RELIABLE POWER SAFELY THAT IS FAIRLY AND COMPETITIVELY PRICED, PRACTICE CONSERVATION AND EFFICIENT USE OF ENERGY RESOURCES AND INCREASE SUSTAINABLE POWER SUPPLY AND ENVIRONMENTAL STEWARDSHIP WHILE IMPROVING THE QUALITY OF LIFE FOR MEMBERS AND KAUA'I. 0 0 GENERATED, TRANSMITTED AND DISTRIBUTED ELECTRICITY TO APPROXIMATELY 37,439 ACTIVE SERVICES AT YEAR END ON THE ISLAND OF KAUAI. 0 0 0 0 0 0 0 0 0 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 113 0 1 156 1 1 1 0 0 0 0 147375744 2244068 0 X 9 9 1 0 0 0 1 1 0 1 0 0 0 1 1 1 1 1 1 1 0 0 HI X X CORINNE CUARESMA CONTROLLER 8082468212 4463 PAHEE ST STE 1 LIHUE HI 967662000 ALLAN SMITH CHAIRMAN 16.00 X X 18015 0 0 JAN TENBRUGGENCATE VICE CHAIR 20.00 X X 14683 0 0 CALVIN MURASHIGE SECRETARY 11.00 X X 15116 0 0 PETER YUKIMURA TREASURER 15.00 X X 16458 0 0 DAVID IHA DIRECTOR 5.00 X 13559 0 0 JIM MAYFIELD DIRECTOR 10.00 X 12268 0 0 TEOFILO TACBIAN DIRECTOR 10.00 X 22202 0 0 PATRICK GEGEN DIRECTOR 17.00 X 16664 0 0 DEE CROWELL DIRECTOR 20.00 X 15137 0 0 DAVID BISSELL CEO 60.00 X 450483 0 138375 KARISSA JONAS FINANCIAL VP & CFO 55.00 X 240152 0 78624 MICHAEL YAMANE CHIEF OF OPERATIONS 40.00 X 231859 0 186491 CAREY KOIDE T&D MANAGER 50.00 X 211567 0 147822 BRAD ROCKWELL POWER SUPPLY MANAGER 50.00 X 244613 0 52383 HARLEY ECKERT FINANCIAL PLANNING & STRATEGY MANAGER 45.00 X 170726 0 185010 TRAVIS OTTO PRIMARY TROUBLEPERSON 50.50 X 169793 0 38299 ELIZABETH UBAY HUMAN RESOURCES & SAFETY MANAGER 46.00 X 178653 0 55647 RICHARD VETTER PORT ALLEN STATION MANAGER 50.00 X 169243 0 55990 TOM YAMAMOTO PRIMARY TROUBLEPERSON 50.00 X 178818 0 41550 2390009 0 980191 78 0 1 0 WAALANI ENTERPRISES LLC PO BOX 798 LAWAI HI 96765 GRADING AND EXCAVATING 840903 MORIHARA LAU & FONG LLP 841 BISHOP ST STE 400 HONOLULU HI 96813 LEGAL SERVICES 769672 EBBIN MOSER & SKAGGS LLP 550 MONTGOMERY ST STE 900 SAN FRANCISCO CA 94111 LEGAL SERVICES 201959 COLLETT & ASSCOIATES LLC 4770 N BELLEVIEW AVE STE 209 KANSAS CITY MO 64116 CONSULTING 163301 SHIRAMIZU LOO & NAKAMURA 4357 RICE ST STE 102 LIHUE HI 96766 LEGAL SERVICES 117419 5 ELECTRICITY 221000 147375744 147375744 SERVICE FEES 221000 474044 474044 147849788 1775814 1775814 86674 39092 47582 47582 47582 PATRONAGE ALLOCATIONS 221000 318974 318974 MISCELLANEOUS SERVICE 221000 -167840 -167840 151134 149824318 148000922 47582 1775814 63632 3016445 1826902 82093 5844731 15255826 UNRELATED BUSINESS TAX 2374 POWER COST 80537711 ADMINISTRATIVE 15477223 OTHER TAXES 12427520 8385107 142919564 12727612 13086859 9722339 9471169 13796978 14379608 1139228 1154460 522506061 280990188 244696045 241515873 39904832 36034453 18769229 18705041 340756263 334347463 13164227 13634984 213066724 195663557 11544374 14499360 237775325 223797901 X 499 515 0 0 102980439 110549047 102980938 110549562 340756263 334347463 X 6904754 -1321500 1985370 X X 0 1 X 1 0 10183534 10183534 40969644 21399995 19569649 466573529 259590193 206983336 4779354 4779354 241515873 INVESTMENTS IN SUBSIDIARY COMPANIES 33737694 C RURAL ECONOMIC DEVELOPMENT LOANS 960428 C INVESTMENTS IN ASSOCIATED ORGANIZATIONS 1336331 C 36034453 ACCRUED UNBILLED REVENEUE 7954977 SPECIAL DEPOSIT 540 DEFERRED DEBITS 10749524 18705041 DEFERRED CREDITS 11793937 POST RETIREMENT BENEFIT OBLIGATIONS 596600 CUSTOMER DEPOSITS 1481759 ENERGY RATE ADJUSTMENT 4588 OTHER LIABILITY 622476 14499360 X PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE, EXCEPT TO THE EXTENT OF UNRELATED BUSINESS INCOME, IF ANY. THE COOPERATIVE ADOPTED FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC) 740-10, RELATING TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS. AS OF DECEMBER 31, 2017 AND 2016, THE COOPERATIVE DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS. THE COOPERATIVE FILES AN EXEMPT ORGANIZATION AND UNRELATED BUSINESS INCOME TAX RETURN IN THE U.S. FEDERAL JURISDICTION AND THE CORPORATE SUBSIDIARIES FILE A CORPORATE RETURN IN THE U.S. FEDERAL AND STATE OF HAWAII JURISDICTIONS. THE COOPERATIVE IS NOT EXEMPT UNDER HAWAII REVISED STATUTES FROM STATE INCOME TAXES; HOWEVER, MARGINS THAT ARE ALLOCATED WITHIN A SPECIFIC TIME PERIOD ARE CONSIDERED A DEDUCTION FOR STATE INCOME TAX PURPOSES. FOR THE STATE OF HAWAII, THE COOPERATIVE IS ALSO ASSESSED A 5.885% OF GROSS REVENUES PUBLIC SERVICE COMPANY TAX IN LIEU OF GENERAL EXCISE TAXES AND COUNTY REAL PROPERTY TAXES. ALSO, THE COOPERATIVE IS ASSESSED A 0.5% OF GROSS REVENUES PUBLIC UTILITY COMMISSION FEE. FOR THE COUNTY OF KAUA'I, HAWAII, THE COOPERATIVE IS ASSESSED A 2.5% FRANCHISE FEE ON GROSS REVENUES. 1 KAUAI UNITED WAY PO BOX 1087 LIHUE HI 96766 990146288 501(C)(3) 25203 NOT APPLICABLE NOT APPLICABLE CHARITABLE GIVING KIUC CHARITABLE FOUNDATION 4463 PAHEE ST STE 1 LIHUE HI 967662000 510592268 501(C)(3) 8079 NOT APPLICABLE NOT APPLICABLE RELATED EXEMPT OPERATIONS NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 20701 COOPERATIVE WAY DULLES VA 20166 520891669 7233 NOT APPLICABLE NOT APPLICABLE COOPERATIVE SYSTEM INTEGRITY FUND 2 PART I, LINE 2: KAUAI UNITED WAY IS A NON-PROFIT, VOLUNTEER-DRIVEN ORGANIZATION, DEDICATED TO SERVING THE SOCIAL NEEDS OF KAUAI SINCE 1943. PARTICIPATING AGENCIES ARE MONITORED THROUGHOUT THE YEAR TO MAKE SURE THAT PROGRAMS CONTINUE TO BE ADMINISTERED EFFICIENTLY AND WITHIN GUIDELINES. KIUC CHARITABLE FOUNDATION SCHOLARSHIPS ARE SELECTED BY COMMITTEE AND QUALIFICATIONS ARE REVIEWED. OTHER GRANTS ARE GIVEN TO APPROVED 501(C)(3) ORGANIZATIONS SELECTED BY COMMITTEE. THE COOPERATIVE RELIES ON THE DONEE ORGANIZATIONS TO USE THE FUNDS AS INTENDED BY THE COOPERATIVE. X X X X 0 0 0 DAVID BISSELL CEO 427444 0 0 0 23039 0 117792 0 20583 0 588858 0 0 0 KARISSA JONAS FINANCIAL VP & CFO 239448 0 0 0 704 0 60003 0 18621 0 318776 0 0 0 MICHAEL YAMANE CHIEF OF OPERATIONS 189208 0 38270 0 4381 0 166139 0 20352 0 418350 0 0 0 CAREY KOIDE T&D MANAGER 173636 0 35029 0 2902 0 139705 0 8117 0 359389 0 0 0 BRAD ROCKWELL POWER SUPPLY MANAGER 168620 0 73790 0 2203 0 33803 0 18580 0 296996 0 0 0 HARLEY ECKERT FINANCIAL PLANNING & STRATEGY MANAGE 143165 0 15000 0 12561 0 169493 0 15517 0 355736 0 0 0 TRAVIS OTTO PRIMARY TROUBLEPERSON 169529 0 0 0 264 0 18678 0 19621 0 208092 0 0 0 ELIZABETH UBAY HUMAN RESOURCES & SAFETY MANAGER 148174 0 29778 0 701 0 34673 0 20974 0 234300 0 0 0 RICHARD VETTER PORT ALLEN STATION MANAGER 145709 0 22158 0 1376 0 37410 0 18580 0 225233 0 0 0 TOM YAMAMOTO PRIMARY TROUBLEPERSON 178408 0 0 0 410 0 22970 0 18580 0 220368 0 0 0 FORM 990, PART VI, SECTION A, LINE 2 DIRECTOR DENNIS ESAKI HAS A BUSINESS RELATIONSHIP WITH DIRECTOR PETER YUKIMURA. FORM 990, PART VI, SECTION A, LINE 6 KIUC HAS APPROXIMATELY 46,700 MEMBERS. THE MEMBERSHIP FEE IS $.01 PER MEMBER. FORM 990, PART VI, SECTION A, LINE 7A EACH DIRECTOR IS ELECTED TO A 3 YEAR TERM. THE 9 DIRECTOR'S TERMS ARE STAGGERED SUCH THAT EACH YEAR 3 DIRECTOR SEATS ARE UP FOR ELECTION. EACH CURRENT MEMBER IS ENTITLED TO CAST A BALLOT AND VOTE FOR 3 DIRECTORS TO FILL THE 3 VACANT SEATS, REGARDLESS OF THEIR BILLING AMOUNT. FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE DOES NOT HAVE COMMITTEES WITH BOARD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B 1) AFTER THE COMPLETED FORM 990 IS RECEIVED FROM THE TAX PREPARER, THE CONTROLLER WILL PERFORM A DETAILED REVIEW OF THE FORM 990, INCLUDING VERIFYING THE FIGURES TO THE BOOKS OF RECORD. 2) THE CFO WILL PERFORM A MORE GENERAL REVIEW OF THE FORM 990 FOR REASONABLENESS. 3) THE FORM 990 WILL BE MADE AVAILABLE TO THE BOARD OF DIRECTORS FOR THEIR INDIVIDUAL REVIEW. IF THE DIRECTORS HAVE ANY QUESTIONS ABOUT THE FORM 990, THE CFO WILL MEET WITH THEM TO ANSWER THEIR QUESTIONS. 4) THE FORM 990 WILL BE FILED WITH THE IRS FOLLOWING THIS PROCESS. FORM 990, PART VI, SECTION B, LINE 12C ANY DIRECTOR, OFFICER OR MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS WHO HAS A DIRECT OR INDIRECT FINANCIAL INTEREST IS COVERED BY THIS POLICY. 1) THE BOARD OF DIRECTORS DETERMINES WHETHER A CONFLICT EXISTS. 2) THE BOARD OF DIRECTORS REVIEWS ACTUAL CONFLICTS. 3) ANY PERSON COVERED BY THIS POLICY WHO IS DEEMED TO HAVE A CONFLICT OF INTEREST IS PROHIBITED FROM PARTICIPATING IN THE BOARD'S DELIBERATIONS AND DECISION IN THE TRANSACTION. FORM 990, PART VI, SECTION B, LINE 15A ALL NON-BARGAINING UNIT [NBU] EMPLOYEES' SALARIES ARE DETERMINED IN ACCORDANCE WITH NRECA'S COMPENSATE SALARY PLAN. IN ADDITION, THE BOARD CONSULTS WITH NRECA COMPENSATION CONSULTANTS REGARDING THE CEO'S COMPENSATION. THIS PROCESS IS UNDERTAKEN ANNUALLY. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION MAKES ITS 990 AVAILABLE TO THE PUBLIC ON ITS WEBSITE AND UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS BYLAWS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC ON THEIR WEBSITE AND UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN OTHER EQUITY 69,448. CHANGE IN MEMBERSHIPS 16. RETIREMENT OF CAPITAL CREDITS -163,250. PATRONAGE NET MARGIN 3,016,445. NET LOSS FROM SUBSIDIARY COMPANIES -937,289. FORM 990, PART XII, LINE 2C: THERE WERE NO CHANGES IN PROCEDURE FROM THE PRIOR YEAR. 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