2011-09-23T15:38:02-05:00 2010-12-31 BLACKBURN CHILDERS & STEAGALL PLC 801B SUNSET DRIVE JOHNSON CITY TN 376043033 990 2010-01-01 540169578 CITIZENS TELEPHONE COOPERATIVE CITI 5407452111 220 WEBBS MILL ROAD P O BOX 137 FLOYD VA 24091 J GREGORY SAPP 5407452111 2011-09-19 1 MELISSA STEAGALL JONES 4232824511 2011-09-19 2010 2016-03-07 17:11:31Z J GREGORY SAPP 220 WEBBS MILL ROAD P O BOX 137 FLOYD VA 24091 9779402 0 X WWW.CITIZENS.COOP X 1953 VA PROVIDING TELECOMMUNICATIONS SERVICES, SUCH AS PHONE, INTERNET, VIDEO, AND CELLULAR, FOR MEMBERS OF THE COOPERATIVE. 8 8 64 0 95427 40795 164299 137033 7921607 8451711 2604418 13846 1207381 1176812 11897705 9779402 0 0 0 0 0 0 0 0 0 8110505 8383836 8110505 8383836 3787200 1395566 23209174 24420926 10126263 13484035 13082911 10936891 PROVIDING TELECOMMUNICATIONS SERVICES, SUCH AS PHONE, INTERNET, VIDEO, AND CELLULAR, FOR MEMBERS OF THE COOPERATIVE. 0 0 CITIZENS' TELEPHONE COOPERATIVE AND ITS SUBSIDIARIES PROVIDE LOCAL AND LONG DISTANCE TELEPHONE SERVICE; PROVIDE, SELL, AND LEASE COMMUNICATION EQUIPMENT; PROVIDE HIGH-SPEED INTERNET, DIAL-UP INTERNET, AND CABLE TELEVISION FOR MEMBERS OF THE COOPERATIVE. 0 1 0 0 0 0 0 0 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 9 0 1 64 1 1 1 0 0 0 0 0 0 0 0 8451711 1327691 0 X 8 8 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 VA X CHRIS J BOND 5407452111 220 WEBBS MILL ROAD P O BOX 137 FLOYD VA 24091 MELVIN GEARHART 1.00 X X 6500 0 0 RUSSELL STUMP 1.00 X X 5400 0 0 SHELBY QUESENBERRY 1.00 X X 6350 0 0 NOEL UNDERWOOD 1.00 X 4800 0 0 JOHN HOWELL 1.00 X 5550 0 0 WARD REECE 1.00 X 4800 0 0 LYNWOOD ALLEN 1.00 X 4800 0 0 WESLEY GOFF 1.00 X 4800 0 0 J GREGORY SAPP 45.00 X X 118448 0 23974 CHRIS J BOND 45.00 X 62213 0 18176 223661 0 42150 1 0 0 0 QUALITY CONTRACTING INC P O BOX 907 SUMMERSVILLE WV 26651 LINE EXTENSION PROJECTS 267153 CONTRACTING ENTERPRISES INC 2003 RUSSELL AVENUE SW ROANOKE VA 24036 LINE EXTENSION PROJECTS 254627 2 137033 137033 PROGRAM SERVICE REVENU 517000 8451711 8356284 95427 8451711 10287 10287 3559 3559 3559 3559 NON-MEMBER INCOME 517000 1176812 1176812 1176812 9779402 9533096 95427 13846 139819 1405790 CORPORATE OPERATIONS 2174665 PLANT SPECIFIC EXPENSES 2157019 CUSTOMER OPERATIONS 1243960 PLANT NON-SPECIFIC EXPE 1131643 TAXES 127741 3199 8383836 676391 175865 841683 686006 5347225 6366816 185963 214884 -7891 39851 40234671 27003610 13768080 13231061 2273466 2251321 124257 1455122 23209174 24420926 1473050 1888076 402008 4608769 7897675 6650576 353530 336614 10126263 13484035 X 1245 1245 0 0 13081666 10935646 13082911 10936891 23209174 24420926 X 1395566 -3541586 X X 0 1 1 X 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 196584 196584 40038087 27003610 13034477 13231061 2200000 C ASSOC NETWORK PARTNERS, INC. 4700 C NECA SERVICES, INC. 3000 C VA INDEPENDENT TELEPHONE ALLIANCE 43621 C 2251321 UNAMORTIZED DEBT ISSUANCE EXPENSE - LTD 6984 TELEPHONE PLANT UNDER CONSTRUCTION 1448138 1455122 ADVANCE BILLING AND PAYMENTS 2445 CUSTOMER DEPOSITS 40474 ACCRUED LICENSE TAX 2836 OTHER ACCRUED LIABILITIES 247446 ACCRUED PAYROLL TAXES 18386 PATRONAGE CAPITAL PAYABLE 25027 336614 9779402 8383836 1395566 -3541586 -3541586 -2146020 6237816 -3541586 -3541586 9779402 0 9779402 8383836 0 8383836 0 8383836 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: NOTE 15 - UNCERTAIN TAX POSITIONS: ON JULY 1, 2009, THE COOPERATIVE ADOPTED FIN 48 WHICH CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN THE COOPERATIVE'S CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH STATEMENTS ON FINANCIAL ACCOUNTING STANDARDS AND PRESCRIBES A RECOGITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE CONSOLIDATED FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. FIN 48 ALSO PROVIDES GUIDANCE ON DERECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE ADOPTION OF FIN 48 DID NOT HAVE A MATERIAL EFFECT ON THE COOPERATIVE. ALL COMPANIES' FEDERAL AND VIRGINIA INCOME TAX RETURNS FOR TAX YEARS 2006 AND BEYOND REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. THE COOPERATIVE DID NOT HAVE UNRECOGNIZED TAX LIABILITIES AS OF JUNE 30, 2010 AND DOES NOT EXPECT THIS TO CHANGE SIGNIFICANTLY OVER THE NEXT 12 MONTHS. IN CONNECTION WITH THE ADOPTION OF FIN 48, THE COOPERATIVE WILL RECOGNIZE INTEREST AND PENALTIES ACCRUED ON ANY UNRECOGNIZED TAX LIABILITES AS A COMPONENT OF INCOME TAX EXPENSE. AS OF JUNE 30, 2010, THE COOPERATIVE HAS NOT ACCRUED INTEREST OR PENALTIES RELATED TO UNCERTAIN TAX POSITIONS. PART XI, LINE 8 - OTHER ADJUSTMENTS: INCREASE (DECREASE) IN PATRONAGE CAPITAL ACCOUNTS -3,541,586. PART XII, LINE 2D - OTHER ADJUSTMENTS: INCREASE (DECREASE) IN PATRONAGE CAPITAL ACCOUNTS -3,541,586. FORM 990, PART VI, SECTION A, LINE 6 CITIZENS TELEPHONE COOPERATIVE IS A MEMBER-OWNED TELEPHONE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS ARE RESPONSIBLE FOR VOTING FOR THE BOARD OF DIRECTORS EACH YEAR AT THE COOPERATIVE'S ANNUAL MEETING. THE EIGHT BOARD MEMBERS EACH SERVE THREE YEAR TERMS AND THEY ARE ON A ROTATING BASIS. THREE BOARD POSITIONS ARE UP FOR ELECTION ONE YEAR, THREE THE NEXT, AND THEN TWO, AND SO ON. FORM 990, PART VI, SECTION B, LINE 11 A COPY OF THE FORM 990 WAS PROVIDED TO THE BOARD OF DIRECTORS TO REVIEW BEFORE THE RETURN WAS FILED WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C CURRENTLY THE CONFLICT OF INTEREST POLICY IS NOT SIGNED OFF ON BY THE BOARD OF DIRECTORS ON A ANNUAL BASIS. IT IS IN THE COOPERATIVE'S BYLAWS, WHICH ARE PRINTED IN THE COOPERATIVE'S DIRECTORY EACH YEAR AND IN THE BOARD MANUAL, WHICH EACH BOARD MEMBER RECEIVES. THE BOARD OF DIRECTORS INTENDS TO HAVE IT ON THEIR AGENDA TO DECIDE WHETHER OR NOT TO HAVE THE CONFLICT OF INTEREST POLICY REVIEWED AND SIGNED OFF ON ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 CITIZENS TELEPHONE COOPERATIVE HAS AN ANNUAL PERFORMANCE REVIEW OF TOP MANAGEMENT. THE BOARD OF DIRECTORS DOES THE ANNUAL PERFORMANCE REVIEW OF THE GENERAL MANAGER, WHICH ENCOMPASSES COMPANY GOALS AND OBJECTIVES WHICH ARE SET FOR THE GENERAL MANAGER'S CONTRACT, WHICH RUNS FROM JANUARY TO DECEMBER OF EACH YEAR. THE PERFORMANCE REVIEWS ARE NOTED IN THE BOARD OF DIRECTORS MINUTES. FOUR YEARS AGO, THE PREVIOUS GENERAL MANAGER RETIRED. THE BOARD OF DIRECTORS HAD ADVANCE NOTICE THAT THE PRIOR GENERAL MANAGER WAS PLANNING TO RETIRE. THE CURRENT GENERAL MANGER WAS ASSISTANT GENERAL MANAGER AT THAT TIME, AND HE WAS GROOMED FOR THE POSITION OF GENERAL MANAGER BY THE PRIOR GENERAL MANAGER. FORM 990, PART VI, SECTION C, LINE 19 CITIZENS TELEPHONE COOPERATIVE MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: INCREASE (DECREASE) IN PATRONAGE CAPITAL ACCOUNTS -3,541,586. TOTAL TO FORM 990, PART XI, LINE 5: -3,541,586. FINANCIAL STATEMENTS AND REPORTING FORM 990, PART XII, LINE 2C THE COOPERATIVE'S PROCESS FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND FOR SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. THE BOARD OF DIRECTORS ALSO ACTS AS THE AUDIT COMMITTEE. BOTH THE COOPERATIVE AND EACH OF ITS TWO SUBSIDIARIES' YEARENDS ARE DECEMBER 31, 2010. HOWEVER, CONSOLIDATED FINANCIAL STATEMENTS FOR THE PARENT AND ITS TWO SUBSIDIARIES WILL BE PREPARED AS OF JUNE 30, 2011. CITIZENS CABLEVISION INC 220 WEBBS MILL ROAD FLOYD VA 24091 050572816 CABLE TV VA N/A C -898444 7840670 1.00000 SELECTEC INC 220 WEBBS MILL ROAD FLOYD VA 24091 541252852 SALES / LEASING VA N/A C -187172 877665 1.00000 1 0 0 0 0 0 1 0 0 0 0 0 0 1 1 1 1 1 CITIZENS CABLEVISION INC P 112079 A/P INVOICES PARENT PAID FOR SUB CITIZENS CABLEVISION INC N 642741 LABOR PARENT PAID FOR SUB CITIZENS CABLEVISION INC Q 226803 PARENT'S REVENUE COLLECTED BY SUB CITIZENS CABLEVISION INC O 10661 MISC AMOUNTS SUB PAID FOR PARENT CITIZENS CABLEVISION INC R 1987098 SUB'S REVENUE COLLECTED BY PARENT CITIZENS CABLEVISION INC Q -1580944 AMOUNT PARENT PAID TO SUB SELECTEC INC P 3695 A/P INVOICES PARENT PAID FOR SUB SELECTEC INC N 63555 LABOR PARENT PAID FOR SUB SELECTEC INC A 5160 RENT SUB OWES TO PARENT SELECTEC INC Q 15782 MISC CASH PARENT OWES SUB SELECTEC INC R 66395 SUB'S REVENUE COLLECTED BY PARENT SELECTEC INC Q -424686 AMOUNT PARENT PAID TO SUB SELECTEC INC O 367498 A/P SUB PAID FOR PARENT SELECTEC INC G 76572 ASSETS PARENT BOUGHT FROM SUB