INDIANA 106 STATEWIDE THE HOOSIER ENERGY DIVISION A Division of INDIANA STATEWIDE RURAL ELECTRIC COOPERATIVE, INC. REPORT ON EXAMINATION FOR THE PERIOD INCEPTION (1965) to DECETER 28, 1968 Performed by REA Accountants Hugo A. Brandts ACCOUNTANTS' REPORT The Administrator, Rural Electrification Administration We have examined the balance sheet of The Hoosier Energy Division of the Indiana Statewide Rural Electric Cooperative, Inc., as of December 28, 1968. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and other auditing procedures as ve considered necessary in the circumstances. In our opinion, the accompanying balance sheet presents fairly the financial position of The Hoosier Energy Division at December 28, 1968, in conformity with generally accepted accounting principles. 1. 2. INDIANA 106 STATEWIDE Notes to Balance Sheet The Hoosier Energy Division has executed contracts for construction of plant facilities in an aggregate amount of $72,378, 503. A loan contract with REA for an aggregate amount of $100,430,000, had been executed. All assets and future revenues are pledged as security for this long term debt. The generating plant was nearing completion at the audit date and construction of connecting transmission line was continuing. However, by decision of the Indiana Supreme Court handed down December 10, 1968, the cooperative may not legally operate the electric system until it obtains additional authorization to do so from the Indiana Public Service Commission. As reflected in the minutes of the Indiana Statewide Rural Electric Cooperative, Inc., of December 28, 1968, the board of directors approved an agreement whereby the cooperative would convey all of its right, title, and interest to the properties covered by the mortgage to the United States of America, subject to provision for reacquisition of these properties by Statewide within four and one half years, if the cooperative establishes its right to operate the system. A sales and agency agreement to accomplish this transfer was executed as of December 28, 1968. 3. The records have been kept primarily on a cash basis. For the purposes of this statement, accrued receivables and accrued payables were included. The amount of additional liabilities which may accrue from right-of-way condemnations or other lawsuits, is unknown. 4. The balance shown for Structures and Improvements under Utility Plant General includes cost of land of $21,557.91. |