2014-11-13T18:16:08-06:00 2013-12-31 930623286 AKT LLP 680 HAWTHORNE AVE SE 140 SALEM OR 97301 990 2013-01-01 350914373 HANCOCK RURAL TELEPHONE CORPORATION DBA NINESTAR CONNECT HANC 3173263131 2243 E MAIN GREENFIELD IN 46140 SCOTT HIATT CHIEF FINANCIAL OFFICER 3173263131 2014-11-07 1 KATHY A GORDON CPA P00016213 5035857774 2014-11-07 2013 2015-11-30 17:44:51Z NINESTAR CONNECT SCOTT HIATT 2243 E MAIN GREENFIELD IN 46140 46838282 0 X WWW.NINESTARCONNECT.COM X 1950 IN PROVIDING SUPERIOR ELECTRIC AND TELECOMMUNICATION PRODUCTS AND SERVICES TO OUR CUSTOMERS. 15 15 25 0 9586 -27759 0 0 43726147 46536462 34609 31881 27851 55969 43788607 46624312 15000 20000 0 0 911979 823784 0 0 0 37411770 38608846 38338749 39452630 5449858 7171682 105054077 106124907 48031123 42104934 57022954 64019973 PROVIDE ELECTRIC AND TELECOMMUNICATIONS PRODUCTS AND SERVICES TO COOPERATIVE CUSTOMERS IN A 7-COUNTY AREA OF EAST CENTRAL INDIANA. 0 0 PROVIDE ELECTRIC AND TELECOMMUNICATIONS PRODUCTS AND SERVICES TO COOPERATIVE CUSTOMERS IN A 7-COUNTY AREA OF EAST CENTRAL INDIANA. AS OF DECEMBER 31, 2013, THE NUMBER OF ELECTRIC SERVICES TOTALED 12,932 AND THE NUMBER OF TELECOMMUNICATIONS ACCESS LINES TOTALED 4,622. 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 1 0 0 0 0 0 0 0 1 1 0 0 1 94 0 25 1 1 1 0 0 0 0 33414608 1238752 0 X 15 15 0 0 0 0 1 1 1 1 1 0 0 0 1 0 1 1 1 1 1 0 X SCOTT HIATT 3173263131 2243 E MAIN STREET GREENFIELD IN 46140 PHIL HAYES VICE CHAIRMAN 4.00 X X 12605 1000 0 KIM CRONK DIRECTOR 4.00 X 8250 1000 0 RICHARD PARKER DIRECTOR 6.00 X 12050 800 0 DAVID HELLER DIRECTOR 4.00 X 8665 860 0 JOE PAXTON DIRECTOR 6.00 X 10265 1075 0 DON SHAW DIRECTOR 5.00 X 7250 1000 0 ROBERT GLAZIER DIRECTOR 3.00 X 5000 1000 0 DARRELL THOMAS DIRECTOR 6.00 X 8750 1000 0 MARK EVANS SECRETARY/TREASURER 2.00 X X 7725 800 0 THOMAS KIRBY DIRECTOR 2.00 X 4750 650 0 DOYLE S BAKER DIRECTOR 7.00 X 9850 1000 0 STEPHEN VAIL CHAIRMAN 4.00 X X 12390 800 0 RONNIE MOHR DIRECTOR 3.00 X 7600 400 0 JAMES CHERRY DIRECTOR 2.00 X 8150 400 0 JAMES GILLETT DIRECTOR 3.00 X 5665 645 0 TIM HILLS PRESIDENT 47.00 X 217992 0 36714 MIKE BURROW VICE PRESIDENT 48.00 X 171684 0 45380 SCOTT HIATT CFO 47.00 X 165896 0 44723 MARK HUDSON NETWORK OPERATIONS DIRECTO 41.00 X 221500 0 37475 JAMES BELL OPERATIONS DIRECTOR 52.00 X 102033 0 28848 1008070 12430 193140 5 0 1 0 ELECTRICOM LLC PO BOX 319 PAOLI IN 47454 CONTRACT LABOR AND MATERIALS 1628066 YATES ENGINEERING SERVICES 2536 W INDUSTRIAL PARK BLOOMINGTON IN 47404 ENGINEERING SERVICES 692666 MIDWEST UNDERGROUND 3150 5TH AVE EAST MOLINE IL 61244 CONSTRUCTION/DRILLING 327901 USIC LOCATING SERVICES PO BOX 713359 CINCINNATI OH 45271 UNDERGROUND UTILITY LOCATING SERVICE 287240 NISC PO BOX 1147 MANDAN ND 58554 SOFTWARE MAINTENANCE 259665 10 ELECTRIC SERVICES 221100 31416018 31416018 TELECOMMUNICATIONS SERVICES 517000 15120444 15120444 46536462 31881 31881 178936 213970 -35034 -35034 -35034 POLE CONTACT RENTALS 532000 46383 46383 ADVERTISING 541800 44620 44620 91003 46624312 46536462 9586 78264 20000 823784 1656001 5803955 PURCHASED POWER 20898664 PLANT SPECIFIC 2412979 CORPORATE OPERATIONS 2276473 ELECTRIC OPERATIONS AND 2169151 3391623 39452630 6847634 7180383 2003751 1000000 4724791 5151225 158042 179806 112235866 46056116 65446327 66179750 21381499 23024563 4492033 3409180 105054077 106124907 5336769 5123238 2963527 2981259 39730827 33996258 0 4179 48031123 42104934 X 0 0 0 0 57022954 64019973 57022954 64019973 105054077 106124907 X 7171682 -174663 X X 0 1 X 1 0 47712 47712 1060917 605668 455249 111127237 45450448 65676789 66179750 CENTRAL INDIANA COMMUNICATIONS 15533743 C NATIONAL TELCOM CORP COMMON STOCK 500000 C RTFC PATRONAGE CREDITS 3107 C PATRONAGE CAPITAL 6174440 C OTHER INVESTMENTS 86470 C CFC INVESTMENTS 726803 C 23024563 INCOME TAX PAYABLE 4179 4179 X 48239273 1614961 1614961 46624312 0 46624312 40435198 982568 982568 39452630 0 39452630 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. THESE STANDARDS PROVIDE DETAILED GUIDANCE FOR FINANCIAL STATEMENT RECOGNITION, MEASUREMENT, AND DISCLOSURE OF UNCERTAIN TAX POSITIONS. IT REQUIRES AN ENTITY TO RECOGNIZE THE FINANCIAL STATEMENT IMPACT OF A TAX POSITION WHEN IT IS MORE LIKELY THAN NOT THAT THE POSITION WOULD NOT BE SUSTAINED IF EXAMINED BY A TAXING AUTHORITY. MANAGEMENT HAS DETERMINED THAT THE COOPERATIVE HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2013 AND 2012. PART XI, LINE 2D - OTHER ADJUSTMENTS: INCOME FROM SUBSIDIARY 632,393. UNRELATED BUSINESS EXPENSES - RENTAL EXPENSE 213,340. INCOME NETTED WITH EXPENSES 769,228. PART XII, LINE 2D - OTHER ADJUSTMENTS: UNRELATED BUSINESS EXPENSES - RENTAL EXPENSE 213,340. EXPENSES NETTED WITH REVENUES 769,228. 1 SCHOLARSHIPS 20 20000 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 TIM HILLS PRESIDENT 215000 0 0 0 2992 0 24546 0 12168 0 254706 0 0 0 MIKE BURROW VICE PRESIDENT 171000 0 684 0 0 0 20279 0 25101 0 217064 0 0 0 SCOTT HIATT CFO 165550 0 346 0 0 0 19622 0 25101 0 210619 0 0 0 MARK HUDSON NETWORK OPERATIONS DIRECTO 93029 0 0 0 128471 0 25397 0 12078 0 258975 0 0 0 RONNIE MOHR BOARD MEMBER 31462401 RONNIE MOHR IS A DIRECTOR ON THE BOARD OF HANCOCK RURAL TELEPHONE CORPORATION DBA NINESTAR CONNECT. HE ALSO SERVES ON THE WABASH VALLEY POWER ASSOCIATION BOARD OF DIRECTORS. NINESTAR CONNECT PURCHASED $31,462,401 OF PURCHASED POWER FROM WABASH VALLEY POWER DURING 2013. THE SUPPLY CONTRACT WITH WABASH VALLEY POWER WILL EXPIRE IN 2028. 0 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS MEMBERS THAT HAVE A RIGHT TO PARTICIPATE IN THE ORGANIZATIONS GOVERNANCE OR RECEIVE DISTRIBUTIONS OF INCOME OR ASSETS. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER OF THE COOPERATIVE HAS A (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 11 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 XI, LINE 9: NET EQUITY INCOME - SUBSIDIARY 632,393. PATRONAGE PAID -450,271. EXCISE TAX REFUNDS 16,199. AMORTIZATION ACCRUED PENSION BENEFIT OBLIGATION -372,984. FORM 990, PART XII, LINE 2C NO CHANGE FROM THE PRIOR YEAR. 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