Peoples Telephone Cooperative Inc

“Peoples Telephone Cooperative, Inc. has approximately 9,500 members in the rural area of Wood, Franklin, and Rains Counties, Texas.”

“The Form 990 will be reviewed by all of the board of directors of Peoples Telephone Cooperative, Inc. at a board meeting before it is filed.”

“Compensation of the top management official and other officers is reviewed and approved by the board of directors of Peoples Telephone Cooperative, Inc. and determined based on comparison with other industry companies. Such decisions are contemporaneously documented and recorded.”

“See Form 990, Part VI, Line 15a”

“Peoples Telephone Cooperative, Inc. makes its governing documents and financial statements available to its members upon request at the monthly board meetings.”

“Capital Credits Retired = -$349539”

“Change in membership = -$710”

“Change in post retirement - 158 = -$904775”

“Change in Unrealized Gain/Loss = $227697”

“Rounding = $3”

“Subsidiary income = $2763565”

“Other Expenses:Operating Taxes 53,091Special Charges 19,379Nonregulated Service Expense 6,833Less: Grants Paid -15,000Less: Wages/Benefits/Taxes -5,436,489 see belowLess: Rental Expenses -14,912 see below -5,387,098Peoples Telephone Cooperative, Inc. (PTC) prepares its books as required in Part 32 of Title 47 of the FCC Code of Federal Regulations. Under Part 32, salaries, other compensation, and employee benefits are spread among numerous accounts (plant specific, customer operations, corporate operations, plant nonspecific, and nonregulated service expense). PTC has separately stated these expenses in the various categories in Part IX, Column (A), Lines 5-10.Rental expenses associated with rental revenue are reported in Part VIII, Lines 6a-d. These are also spread among numerous accounts listed in Part IX.”

“The entire board of directors of Peoples Telephone Cooperative, Inc. assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant.”

“The method used by Peoples Telephone Cooperative, Inc. to determine the value of the services, cash, and other assets reported in column (c): Peoples Telephone Cooperative, Inc. (PTC) operates in a regulated environment, and as such, is required to record transactions with related organizations according to Part 32.27 of Title 47 of the Code of Federal Regulations. Under these regulations, assets sold or transferred between the taxpayer and its affiliate pursuant to a tariff, including a tariff filed with a state commission, are valued at the tariffed rate. If no tariff exists, the transaction is valued at prevailing rates charged by the taxpayer to non-affiliate entities, as long as over 25% of the total output for that type of asset or service is with non-affiliates. All other sales (or transfers) of assets or services to nonregulated affiliates are valued at the greater of net book cost or fair market value. Purchases (or transfers) of assets or services from nonregulated affiliates are valued at the lower of net book cost or fair market value. The only exception to the above, is if PTC purchases from its affiliate services that are neither tariffed nor subject to prevailing company prices and such affiliate exists solely to provide services to members of PTC's corporate family, such services are valued at fully distributed cost.Fair market value is determined by PTC's geographical location and transactions with non-related entities.”