2018-11-06T10:28:34-06:00 2017-12-31 930623286 ALDRICH CPAS AND ADVISORS LLP 680 HAWTHORNE AVE SE 140 SALEM OR 97301 990 2017-01-01 350914373 HANCOCK RURAL TELEPHONE CORPORATION DBA NINESTAR CONNECT HANC 3173263131 2243 E MAIN GREENFIELD IN 46140 SCOTT HIATT CHIEF FINANCIAL OFFICER 3173263131 2018-11-01 1 KATHY A GORDON CPA P00016213 5035857774 2018-10-31 69.30.50.66 2018-11-01 10:18:07 PD P 8EE20440C749F2340999FF46B6385CC5BFB40ECF 9494BF7B0DAB8C47E497A7B628D0FF9CB78333A7 2017 2019-02-21 02:37:17Z NINESTAR CONNECT SCOTT HIATT 2243 E MAIN GREENFIELD IN 46140 48993708 0 X WWW.NINESTARCONNECT.COM X 1950 IN PROVIDING SUPERIOR ELECTRIC AND VARIOUS TELECOMMUNICATION PRODUCTS AND SERVICES TO OUR CUSTOMERS. 14 14 24 0 -63503 -96766 0 0 47641969 48308512 191139 233850 65430 -15636 47898538 48526726 16000 13500 415182 554786 760333 779939 0 0 0 42914140 40354028 44105655 41702253 3792883 6824473 118272465 121366787 37486457 32967344 80786008 88399443 PROVIDE VARIOUS ELECTRIC, TELECOMMUNICATIONS, WATER, AND SEWER PRODUCTS AND SERVICES TO COOPERATIVE CUSTOMERS IN A 7-COUNTY AREA OF EAST CENTRAL INDIANA. 0 0 PROVIDE VARIOUS ELECTRIC, TELECOMMUNICATIONS, WATER, AND SEWER PRODUCTS AND SERVICES TO COOPERATIVE CUSTOMERS IN A 7-COUNTY AREA OF EAST CENTRAL INDIANA. AS OF DECEMBER 31, 2017, THE NUMBER OF ELECTRIC SERVICES TOTALED 14,600, THE NUMBER OF TELECOMMUNICATIONS ACCESS LINES TOTALED 5,491 AND THE NUMBER OF WATER AND SEWER SERVICES TOTALED 84. 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 1 116 0 24 1 1 1 0 0 0 0 37258640 2695220 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 PHIL HAYES VICE CHAIRMAN 7.00 X X 15600 0 0 KIM CRONK DIRECTOR 5.00 X 14400 0 0 DAVID HELLER DIRECTOR 2.00 X 14400 0 0 JOE PAXTON DIRECTOR 3.00 X 14400 0 0 DON SHAW DIRECTOR 2.00 X 14400 0 0 DARRELL THOMAS DIRECTOR 5.00 X 14400 0 0 MARK EVANS DIRECTOR 3.00 X 14400 0 0 STEPHEN VAIL DIRECTOR 6.00 X 15200 0 0 RONNIE MOHR DIRECTOR 3.00 X 14400 0 0 JAMES CHERRY CHAIRMAN 4.00 X X 16200 0 0 BEVERLY GARD SECRETARY/TREASURER 2.00 X X 14800 0 0 RICHARD WALKER DIRECTOR 1.00 X 2400 0 0 SHELLY KLEIMAN DIRECTOR 1.00 X 14400 0 0 CHRIS JETER DIRECTOR 1.00 X 9600 0 0 RAYMOND KERKHOF DIRECTOR 4.00 X 9600 0 0 MIKE BURROW PRESIDENT 52.00 X 277296 0 75618 SCOTT HIATT CFO 48.00 X 182031 0 46394 JAMIE BELL OPERATIONS DIRECTOR 52.00 X 118437 0 31495 RYAN BEWLEY ENGINEERING DIRECTOR 42.00 X 104100 0 35978 JEFF CONLEY DIRECTOR OF ENGINEERING AND OPERATIONS 48.00 X 128409 0 27347 ROSS FERSON CHIEF TECHNOLOGY OFFICER 44.00 X 123213 0 32007 REGINA BEVER DIRECTOR OF ADMIN 45.00 X 127793 0 26880 1259879 0 275719 7 0 1 0 ELECTRICOM LLC PO BOX 319 PAOLI IN 47454 CONTRACT LABOR AND MATERIALS 907119 YATES ENGINEERING SERVICES 2536 W INDUSTRIAL PARK BLOOMINGTON IN 47404 ENGINEERING SERVICES 325146 JOSEPH W CARR 32545 EARLY RD NEW CARLISLE IN 46552 CONTRACT LABOR 240967 5 STAR ELECTRIC LLC 170 BEAN CEMETERY ROAD MADISONVILLE KY 42431 CONTRACT LABOR AND MATERIALS 126900 4 ELECTRIC SERVICES 221100 34159391 34159391 TELECOMMUNICATIONS SERVICES 517000 13982566 13982566 SEWER REVENUE 221100 119583 119583 WATER REVENUE 221100 46972 46972 48308512 233850 233850 368491 466982 -98491 -98491 -98491 POLE CONTACT RENTALS 532000 47867 47867 ADVERTISING 541800 34988 34988 82855 48526726 48308512 -63503 281717 13500 554786 779939 1260155 5900488 PURCHASED POWER 22246394 CORPORATE OPERATIONS 2731624 ELECTRIC OPERATIONS AND 2532605 CUSTOMER SERVICE & ASSI 2111632 3571130 41702253 5305562 8745980 2800000 2600000 5994248 4948846 225286 207941 132869218 61036896 71702485 71832322 28283911 29780523 3960973 3251175 118272465 121366787 5281991 5936928 28635818 23806264 3568648 3224152 37486457 32967344 X 0 0 0 0 80786008 88399443 80786008 88399443 118272465 121366787 X 6824473 788962 X X 0 1 X 1 0 292392 292392 1060917 732978 327939 131515909 60303918 71211991 71832322 CENTRAL INDIANA COMMUNICATIONS 20157924 C NATIONAL TELCOM CORP COMMON STOCK 550800 C RTFC PATRONAGE CREDITS 3107 C PATRONAGE CAPITAL 8109989 C OTHER INVESTMENTS 286675 C CFC INVESTMENTS 672028 C 29780523 POST RETIREMENT BENEFITS 3224152 3224152 X 50750495 2223769 2223769 48526726 0 48526726 42584595 1437128 1437128 41147467 554786 554786 41702253 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 786,641. UNRELATED BUSINESS EXPENSES - RENTAL EXPENSE 466,782. INCOME NETTED WITH EXPENSES 970,346. PART XII, LINE 2D - OTHER ADJUSTMENTS: UNRELATED BUSINESS EXPENSES - RENTAL EXPENSE 466,782. EXPENSES NETTED WITH REVENUES 970,346. PART XII, LINE 4B - OTHER ADJUSTMENTS: PAYMENT OF CAPITAL CREDITS 554,786. 1 SCHOLARSHIPS 14 13500 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 250000 0 25000 0 2296 0 35346 0 40272 0 352914 0 0 0 SCOTT HIATT CFO 180250 0 1781 0 0 0 24686 0 21708 0 228425 0 0 0 JEFF CONLEY DIRECTOR OF ENGINEERING AND OPERATIO 123600 0 4809 0 0 0 16823 0 10524 0 155756 0 0 0 ROSS FERSON CHIEF TECHNOLOGY OFFICER 123213 0 0 0 0 0 16001 0 16006 0 155220 0 0 0 REGINA BEVER DIRECTOR OF ADMIN 123600 0 4193 0 0 0 16796 0 10084 0 154673 0 0 0 PHILIP M HAYES BOARD MEMBER 22236689 PHILIP M. HAYES IS THE VICE CHAIRMAN OF THE BOARD FOR HANCOCK RURAL TELEPHONE CORPORATION DBA NINESTAR CONNECT. HE ALSO SERVES ON THE WABASH VALLEY POWER ASSOCIATION BOARD OF DIRECTORS. NINESTAR CONNECT PURCHASED $22,236,689 OF PURCHASED POWER FROM WABASH VALLEY POWER DURING 2017. THE SUPPLY CONTRACT WITH WABASH VALLEY POWER WILL EXPIRE IN 2050. 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 786,641. AMORTIZATION ACCRUED PENSION BENEFIT OBLIGATION -3,018. EXCISE TAX REFUNDS RECEIVED 5,339. FORM 990, PART XII, LINE 2C NO CHANGE FROM THE PRIOR YEAR. 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