Hanson Rural Water System

Nonprofit profile at a glance

EIN
460353646
IRS 990 coverage
2011–2024
Forms available
Form 990 2024
Location
Emery, SD, USA
Phone
6054494422
Rating
77
Verdict
SUPPORTED
Rating confidence
Moderate

Reported finances

Revenue
$2,091,819
Expenses
$1,427,219
Assets
$8,477,015
Liabilities
$2,487,142

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

7 people listed

Highest reported compensation

  • LAWRENCE EICH (VICE CHAIR): $3,700 total reported compensation
  • DOUG DEGEN (DIRECTOR): $3,400 total reported compensation
  • LELAND NESHEIM (CHAIR): $3,300 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Operation of a rural water system for the benefit of members residing in hanson county, South Dakota

Operating model

Revenue model
Earned-program. 84% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - The filed numbers largely add up and a large share of available resources goes toward mission work. Some filing-based governance responses are negative or unanswered and assets have declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 65
  • Transparency & Controls: 90
  • Accountability: 79
  • Sustainability: 79
  • Growth: 80

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 61.8%; rating input score 62
  • Program expense ratio: 93.5%; rating input score 93
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd 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; 63rd percentile among comparable filings
  • Governance controls: 4 of 9 controls in place; rating input score 50
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Limited
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 31.8%; rating input score 85; 85th percentile among comparable filings
  • Total-asset coverage ratio: 5.94; rating input score 86; 86th percentile among comparable filings
  • Liabilities to assets ratio: 0.29; rating input score 35; 35th percentile among comparable filings
  • Officer compensation ratio: 1.5%; rating input score 78; 78th percentile among comparable filings

Growth

  • Program expense growth: 1.2% per year; rating input score 100; 18th percentile among comparable filings
  • Revenue growth: 2.3% per year; rating input score 100; 22nd percentile among comparable filings
  • Asset growth: -0.9% per year; rating input score 0; 10th percentile among comparable filings

Details

  • Where the money goes: 61.8% of revenue deployed · 93.5% of spending went to programs
  • Governance: 7 of 7 board members independent · 4 of 9 filing controls reported
  • Programs: 1 filed program accomplishment
  • Leadership: top reported pay $4K · 7 people listed
  • Consistency: 25 of 25 current checks pass
  • Schedules: 2 filed schedules
  • Filing history: 13 filing years from 2011 to 2024
  • Contacts: How to reach this organization
  • Money network: 7 filed money-flow records
  • 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.

  • Review — Accountability: Governance controls: 4 of 8 not reported.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Sustainability: Liabilities to assets ratio scored 35/100.