Peoples Telephone Cooperative Inc

Nonprofit profile at a glance

EIN
750830462
IRS 990 coverage
2009–2016
Forms available
Form 990 2016
Location
Quitman, TX, USA
Phone
9037632214
Rating
42
Verdict
MIXED
Rating confidence
Moderate
Sector
Telecommunications

Official website

Reported finances

Revenue
$11,583,078
Expenses
$13,836,751
Assets
$47,861,114
Liabilities
$29,874,631

Source: IRS Form 990. Selected filing: tax year 2016. Amounts in USD.

Leadership & pay

11 people listed

Executive titles in this filing

  • Bill Galyean (President)
  • Johnny Ziegler (Vice President)

Highest reported compensation

  • Steven Steele (Manager): $240,707 total reported compensation
  • Scott Thompson (CFO): $197,744 total reported compensation
  • Mark Johnson (Director): $28,156 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2016. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To provide dependable area-wide telephone service on the cooperative plan and at the lowest cost consistent with sound economy and good management.

What it reported doing in 2016

Providing rural telephone service to approximately 9,500 members, which includes local and long distance service, installation, maintenance and equipment sales.

Operating model

Revenue model
Earned-program. 99% of the money available for current operations came from fees and other program revenue.
Distribution model
Cannot be determined from the filing. The filing does not provide enough consistent spending detail to tell whether the nonprofit works directly or through others.

The verdict

MIXED - The filed numbers largely add up and most voting board members are independent. A relatively small share of available resources goes toward mission work and a relatively small share of total spending goes to programs.

Rating breakdown

  • Financial Efficiency: 0
  • Transparency & Controls: 78
  • Accountability: 86
  • Sustainability: 35
  • Growth: 0

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 0%; rating input score 0
  • Program expense ratio: 0%; rating input score 0
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: 1 of 6 controls in place; rating input score 17
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 71st percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Yes; rating input score 100

Accountability

  • Independent voting board: 100%; rating input score 100; 68th percentile among comparable filings
  • Governance controls: 6 of 9 controls in place; rating input score 67
    • Conflict-of-interest policy: Fail
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -19.5%; rating input score 4; 4th percentile among comparable filings
  • Total-asset coverage ratio: 3.46; rating input score 82; 82nd percentile among comparable filings
  • Liabilities to assets ratio: 0.62; rating input score 25; 25th percentile among comparable filings
  • Officer compensation ratio: 3.8%; rating input score 50; 50th percentile among comparable filings

Growth

  • Program expense growth: Limited
  • Revenue growth: -1.2% per year; rating input score 0; 13th percentile among comparable filings
  • Asset growth: -2.8% per year; rating input score 0; 11th percentile among comparable filings

Details

  • Where the money goes: 0% of revenue deployed · 0% of spending went to programs
  • Governance: 9 of 9 board members independent · 6 of 9 filing controls reported
  • Programs: 1 filed program accomplishment
  • Leadership: top reported pay $241K · 11 people listed · 1 of 6 pay-setting controls reported
  • Consistency: 13 of 14 current checks pass · 1 finding to review
  • Schedules: 5 filed schedules · includes grants, executive pay, and related organizations
  • Filing history: 8 filing years from 2009 to 2016
  • Contacts: How to reach this organization
  • Money network: 11 filed money-flow records
  • Related organizations: 4 filed related-organization links
  • 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.
  • Staff and benefit plans: Retirement and health plans the organization files with the Department of Labor, and the people in them.

Key Signals

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

  • High — Financial Efficiency: Mission deployment rate scored 0/100.
  • High — Financial Efficiency: Program expense ratio scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • Review — Accountability: Governance controls: 3 of 9 not reported.
  • High — Sustainability: Operating margin scored 4/100.
  • High — Growth: Asset growth scored 0/100.
  • Moderate — Transparency & Controls: Functional expense sum did not reconcile in the filed values.
  • High — Sustainability: Liabilities to assets ratio scored 25/100.
  • Review — Sustainability: Officer compensation ratio scored 50/100.