2017-11-10T14:42:22-06:00 2016-12-31 930623286 ALDRICH CPAS AND ADVISORS LLP 680 HAWTHORNE AVE SE 140 SALEM OR 97301 990 2016-01-01 350914373 HANCOCK RURAL TELEPHONE CORPORATION DBA NINESTAR CONNECT HANC 3173263131 2243 E MAIN GREENFIELD IN 46140 SCOTT HIATT CHIEF FINANCIAL OFFICER 3173263131 2017-11-03 1 KATHY A GORDON CPA P00016213 5035857774 2017-11-01 69.30.50.66 2017-11-03 14:40:57 PD P AE4ACDF54F09409FB44056762757332B35ECF7F1 3145D7E27329845D930040076F55CEF09D2818BA 2016 2017-02-10 21:41:12Z NINESTAR CONNECT SCOTT HIATT 2243 E MAIN GREENFIELD IN 46140 48097624 0 X WWW.NINESTARCONNECT.COM X 1950 IN PROVIDING SUPERIOR ELECTRIC AND VARIOUS TELECOMMUNICATION PRODUCTS AND SERVICES TO OUR CUSTOMERS. 14 14 24 0 16250 -18298 0 0 47934004 47641969 184186 191139 32505 65430 48150695 47898538 16000 16000 0 415182 668562 760333 0 0 0 41977737 42914140 42662299 44105655 5488396 3792883 114159162 118272465 38559081 37486457 75600081 80786008 X PROVIDE VARIOUS ELECTRIC, TELECOMMUNICATIONS, WATER, AND SEWER PRODUCTS AND SERVICES TO COOPERATIVE CUSTOMERS IN A 7-COUNTY AREA OF EAST CENTRAL INDIANA. 1 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, 2016, THE NUMBER OF ELECTRIC SERVICES TOTALED 14,175, THE NUMBER OF TELECOMMUNICATIONS ACCESS LINES TOTALED 5,574, THE NUMBER OF WATER SERVICES TOTALED 84, AND THE NUMBER OF SEWER SERVICES TOTALED 87. 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 1 106 0 24 1 1 1 0 0 0 0 36105313 1526665 0 X 14 14 0 0 0 0 1 1 1 1 1 0 0 0 1 0 1 1 1 1 1 0 IN X SCOTT HIATT 3173263131 2243 E MAIN STREET GREENFIELD IN 46140 PHIL HAYES VICE CHAIRMAN 6.00 X X 14600 0 0 KIM CRONK DIRECTOR 4.00 X 13800 0 0 DAVID HELLER DIRECTOR 2.00 X 13800 0 0 JOE PAXTON DIRECTOR 3.00 X 13800 0 0 DON SHAW DIRECTOR 2.00 X 13800 0 0 DARRELL THOMAS DIRECTOR 5.00 X 13800 0 0 MARK EVANS DIRECTOR 2.00 X 14000 0 0 STEPHEN VAIL DIRECTOR 5.00 X 15200 0 0 RONNIE MOHR DIRECTOR 2.00 X 13800 0 0 JAMES CHERRY CHAIRMAN 2.00 X X 15400 0 0 JAMES GILLETT FORMER DIRECTOR 4.00 X 3450 0 0 BEVERLY GARD SECRETARY/TREASURER 3.00 X X 14200 0 0 RICHARD WALKER DIRECTOR 2.00 X 13800 0 0 SHELLY KLEIMAN DIRECTOR 3.00 X 10350 0 0 MIKE BURROW PRESIDENT 55.00 X 286643 0 75023 SCOTT HIATT CFO 55.00 X 172628 0 52008 JAMIE BELL OPERATIONS DIRECTOR 53.00 X 116708 0 30631 RYAN BEWLEY ENGINEERING DIRECTOR 46.00 X 100769 0 34285 JEFF CONLEY LINE SUPERINTENDENT 55.00 X 102102 0 23855 ROSS FERSON CHIEF TECHNOLOGY OFFICER 55.00 X 104168 0 28490 1066818 0 244292 6 0 1 0 5 STAR ELECTRIC LLC 170 BEAN CEMETERY ROAD MADISONVILLE KY 42431 CONTRACTOR LABOR AND MATERIALS 862827 ELECTRICOM LLC PO BOX 319 PAOLI IN 47454 CONTRACT LABOR AND MATERIALS 776958 YATES ENGINEERING SERVICES 2536 W INDUSTRIAL PARK BLOOMINGTON IN 47404 ENGINEERING SERVICES 280182 JOSEPH W CARR 32545 EARLY RD NEW CARLISLE IN 46552 CONTRACT LABOR 271623 4 ELECTRIC SERVICES 221100 33739210 33739210 TELECOMMUNICATIONS SERVICES 517000 13862879 13862879 SEWER REVENUE 221100 27921 27921 WATER REVENUE 221100 11959 11959 47641969 192452 192452 179122 197773 -18651 -18651 -18651 1313 -1313 -1313 -1313 POLE CONTACT RENTALS 532000 47867 47867 ADVERTISING 541800 36214 36214 84081 47898538 47641969 16250 240319 X 16000 415182 760333 1326293 6992655 PURCHASED POWER 22734517 CORPORATE OPERATIONS 2584569 ELECTRIC OPERATIONS AND 2437695 PLANT SPECIFIC 2308538 4529873 44105655 4812579 5305562 1620000 2800000 4573412 5994248 316877 225286 130371715 58669230 72602663 71702485 26291494 28283911 3942137 3960973 114159162 118272465 5761319 5281991 29259877 28635818 3537885 3568648 38559081 37486457 X 0 0 0 0 75600081 80786008 75600081 80786008 114159162 118272465 X 3792883 1393044 X X 0 1 X 1 0 169587 169587 1060917 701150 359767 129141211 57968080 71173131 71702485 CENTRAL INDIANA COMMUNICATIONS 19386741 C NATIONAL TELCOM CORP COMMON STOCK 550800 C RTFC PATRONAGE CREDITS 3107 C PATRONAGE CAPITAL 7407854 C OTHER INVESTMENTS 262028 C CFC INVESTMENTS 673381 C 28283911 POST RETIREMENT BENEFITS 3563027 INCOME TAX PAYABLE 5621 3568648 X 50617515 2718977 2718977 47898538 0 47898538 44691986 1001513 1001513 43690473 415182 415182 44105655 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 1,717,464. UNRELATED BUSINESS EXPENSES - RENTAL EXPENSE 197,569. INCOME NETTED WITH EXPENSES 803,944. PART XII, LINE 2D - OTHER ADJUSTMENTS: UNRELATED BUSINESS EXPENSES - RENTAL EXPENSE 197,569. EXPENSES NETTED WITH REVENUES 803,944. PART XII, LINE 4B - OTHER ADJUSTMENTS: PAYMENT OF CAPITAL CREDITS 415,182. 1 SCHOLARSHIPS 16 16000 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 36643 0 0 0 37343 0 37680 0 361666 0 0 0 SCOTT HIATT CFO 170000 0 2628 0 0 0 23748 0 28260 0 224636 0 0 0 PHILIP M HAYES BOARD MEMBER 22724968 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 $22,724,968 OF PURCHASED POWER FROM WABASH VALLEY POWER DURING 2016. THE SUPPLY CONTRACT WITH WABASH VALLEY POWER WILL EXPIRE IN 2028. 0 FORM 990, PART III, LINE 2 IN 2016 WATER AND SEWER PLANTS WERE PURCHASED TO PROVIDE WATER AND SEWER SERVICES TO MEMBERS. 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 CFO 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 IX, LINE 24E CUSTOMER SERVICE & ASSISTANCE 2,284,855. PLANT NONSPECIFIC 1,636,851. MISCELLANEOUS 569,866. SEWER OPERATIONS 20,806. WATER OPERATIONS 17,495. FORM 990, PART XI, LINE 9: NET EQUITY INCOME - SUBSIDIARY 1,717,464. AMORTIZATION ACCRUED PENSION BENEFIT OBLIGATION -339,324. EXCISE TAX REFUNDS RECEIVED 14,904. FORM 990, PART XII, LINE 2C NO CHANGE FROM THE PRIOR YEAR. 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