Bowater Incorporated Health Benefit Trust

Nonprofit profile at a glance

EIN
566518565
IRS 990 coverage
2010–2013
Forms available
Form 990 2013
Location
Catawba, SC, USA
Phone
4233367209
Rating
81
Verdict
STRONG
Rating confidence
Moderate
Sector
Voluntary Employees Beneficiary Associations (Non-Government)

Reported finances

Revenue
$39,247,692
Expenses
$44,141,081
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2013. Amounts in USD.

Leadership & pay

1 person listed

Highest reported compensation

  • BANK OF NEW YORK MELLON (TRUSTEE): $585 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2013. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The Trust, established between Resolute FP US Inc. (formerly AbiBow US Inc. before May 25, 2012) (the Company), a direct wholly owned subsidiary of Resolute Forest Products Inc. (formerly AbitibiBowater Inc. before May 24, 2012) (RFP) and the Bank of New York Mellon (the Trustee), serves as a funding vehicle for the payment of certain benefits provided under the Resolute FP US Health and Welfare Benefit Plan (Plan Number 520) (formerly the AbiBow US Health and Welfare Benefit Plan before January 1, 2013) (the Plan). However, effective December 31, 2013 (the Termination Date), the Company terminated the Trust. As a result, from the Termination Date forward, all benefits under the Plan are funded through the Company, employee and/or retiree contributions.

What it reported doing in 2013

Health Benefit provided to employees and retirees of resolute FP US Inc.

Operating model

Revenue model
Earned-program. 100% of the money available for current operations came from fees and other program revenue.
Distribution model
Member-benefit provider. The nonprofit used 100% of its reported program spending for member benefits.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Revenue has declined or grown slowly and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 90
  • Accountability: 88
  • Sustainability: 14
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 100%; rating input score 100
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 69th percentile among comparable filings
  • Governance controls: 5 of 9 controls in place; rating input score 71
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Limited
    • Other executive compensation review process: Limited
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -12.5%; rating input score 5; 5th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 0; 0th percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 0%; rating input score 95; 95th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: -0.3% per year; rating input score 0; 23rd percentile among comparable filings
  • Asset growth: -13.2% per year; rating input score 0; 4th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 100% of spending went to programs
  • Governance: 1 of 1 board members independent · 5 of 9 filing controls reported
  • Programs: 1 filed program accomplishment
  • Leadership: top reported pay $585 · 1 people listed
  • Consistency: 16 of 16 current checks pass
  • Schedules: 3 filed schedules
  • Filing history: 4 filing years from 2010 to 2013
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Operating margin scored 5/100.
  • Review — Accountability: Governance controls: 2 of 7 not reported.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 0/100.