Modified
FORM U-13-60
ANNUAL REPORT
For the Period
Beginning January 1, 1993 and Ending December 31, 1993
To The
U.S. Securities and Exchange Commission
of
HEC Inc.
A Subsidiary Service Company
Date of Incorporation: June 19, 1990
State under which Incorporated:
The Commonwealth of Massachusetts
Location of Principal Executive Offices of Reporting Company
24 Prime Parkway
Natick, MA 01760
Report filed pursuant to Order dated September 30, 1990
in file number 70-8076
Name, title, and address of officer to whom correspondence
concerning this report should be addressed:
Linda A. Jensen, Treasurer
HEC Inc.
24 Prime Parkway
Natick, MA 01760
Name of Principal Holding Company Under Which Reporting
Company is Organized:
Northeast Utilities
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Acct. No. No.
Description of system of accounting 3
COMPARATIVE BALANCE SHEET Schedule I 4-5
Company property Schedule II 6-7
Accumulated provision for depreciation
and amortization of company property Schedule III 8
Investments Schedule IV 9
Accounts receivable and accounts
receivable from associate companies Schedule V 10
Miscellaneous deferred debits Schedule IX 11
Proprietary capital Schedule XI 12
Current and accrued liabilities Schedule XIII 13
Notes to financial statements Schedule XIV 14-15
COMPARATIVE INCOME STATEMENT Schedule XV 16
Analysis of billing -
non-associate companies Account 458 17
Departmental analysis of salaries Account 920 18
Outside services employed Account 923 19
Miscellaneous general expenses Account 930.2 20
Rents Account 931 21
Taxes other than income taxes Account 408 22
Other deductions Account 426.5 23
Notes to statement of income Schedule XIV 24
(included above)
ORGANIZATION CHART 26
Annual Report of: HEC Inc.
for the Twelve Months Ended December 31, 1993
Description of the system of accounting employed by HEC Inc.:
HEC Inc. maintains its accounting books and records on a personal
computer using a general ledger software package developed by BST
Consultants. The chart of accounts is a standard set developed
for architectural and engineering firms. Revenues and expenses
are recorded on an accrual basis. A more detailed description of
HEC's accounting policies can be found in the Notes to the
Financial Statements.
<TABLE>
<CAPTION> ANNUAL REPORT OF HEC INC.
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31, 1993 AND 1992
------------------------------------------------------------- ------------ ------------
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
------------------------------------------------------------- ------------ ------------
1993 1992
<S> <C> <C>
COMPANY PROPERTY
101 Company property (Schedule II) 3,410,707 2,207,048
107 Construction work in progress (Schedule II) 178,024 663,675
------------ ------------
Total Property 3,588,731 2,870,723
------------ ------------
108 Less accumulated provision for depreciation and
amortization of company property (Schedule III) 996,317 597,249
------------ ------------
Net Company Property 2,592,414 2,273,474
------------ ------------
INVESTMENTS
123 Investments in associate companies (Schedule IV) 0 0
124 Other Investments (Schedule IV) 0 0
------------ ------------
Total Investments 0 0
------------ ------------
CURRENT AND ACCRUED ASSETS
131 Cash 251,460 150,982
134 Special deposits 0 0
135 Working funds 1,600 1,600
136 Temporary cash investments (Schedule IV) 0 0
141 Notes receivable 0 0
143 Accounts receivable (Schedule V) 2,539,599 1,414,857
144 Accumulated provision of uncollectible accounts 0 0
145 Notes receivable from associate companies 0 0
146 Accounts receivable for associate companies (Schedule V) 74,384 5,250
152 Fuel stock expenses undistributed 0 0
154 Materials and supplies 30,310 80,770
163 Stores expense undistributed 0 0
165 Prepayments 180,237 216,817
174 Miscellaneous current and accrued assets 0 0
------------ ------------
Total Current and Accrued Assets 3,077,590 1,870,276
------------ ------------
DEFERRED DEBITS
181 Unamortized debt expense 0 73,820
184 Clearing Accounts 0 0
186 Miscellaneous deferred debits (Schedule IX) 2,616,921 4,336,036
188 Research, development, or demonstration expenditures 0 0
190 Accumulated deferred income taxes 0 0
------------ ------------
Total Deferred Debits 2,616,921 4,409,856
------------ ------------
TOTAL ASSETS AND OTHER DEBITS 8,286,925 8,553,606
============ ============
</TABLE>
<TABLE>
<CAPTION> ANNUAL REPORT OF HEC INC.
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31, 1993 AND 1992
- ------------------------------------------------------------- ------------ ------------
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
- ------------------------------------------------------------- ------------ ------------
1993 1992
<S> <C> <C>
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 100 100
211 Miscellaneous paid-in capital (Schedule XI) 4,315,737 4,315,737
215 Appropriated Retained Earnings (Schedule XI) 0 0
216 Unappropriated Retained Earnings (Schedule XI) (1,200,694) (1,080,230)
------------ ------------
Total Proprietary Capital 3,115,143 3,235,607
------------ ------------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 0 0
224 Other long-term debt (Schedule XII) 0 4,423,788
225 Unamortized premium on long-term debt 0 0
226 Unamortized discount on long-term debt 0 0
------------ ------------
Total Long Term Debt 0 4,423,788
------------ ------------
CURRENT AND ACCRUED LIABILITIES
231 Notes Payable 0 0
232 Accounts Payable 1,568,910 874,568
233 Notes payable to associate co (Schedule XIII) 2,875,000 0
234 Accounts payable to associate co's (Schedule XIII) 22,701 54,860
236 Taxes accrued (18,160) (207,781)
237 Interest Accrued 0 0
238 Dividends declared 0 0
241 Tax collections payable (Schedule XIII) 2,918 (1,640)
242 Misc. current and accrued liabilities (Schedule XIII) 599,525 174,204
------------ ------------
Total Current and Accrued Liabilities 5,050,894 894,211
------------ ------------
DEFERRED CREDITS
253 Other deferred credits 0 0
255 Accumulated deferred investment tax credits 0 0
------------ ------------
Total Deferred Credits 0 0
------------ ------------
283 Accumulated Deferred Income Taxes 120,888 0
------------ ------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 8,286,925 8,553,606
============ ============
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF HEC INC.
For the Year Ended December 31, 1993
SCHEDULE II - COMPANY PROPERTY
BALANCE AT BALANCE AT
BEGINNING OTHER 1/ CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES OF YEAR
- ------------------------------------------------------------------------------------------
COMPANY PROPERTY
Account
- ------
<S> <C> <C> <C> <C> <C>
301 ORGANIZATION 111,360 111,360
303 MISCELLANEOUS INTANGIBLE PLANT 0
304 LAND AND LAND RIGHTS 0
305 STRUCTURES AND IMPROVEMENTS 0
306 LEASEHOLD IMPROVEMENTS 3,932 2,100 6,032
307 EQUIPMENT 2/ 0
308 OFFICE FURNITURE & EQUIPMENT 503,167 142,636 645,802
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 5,250 13,000 18,250
310 AIRCRAFT AND AIRPORT EQUIPMENT 0
311 OTHER COMPANY PROPERTY 3/ 1,583,339 14,520 (30,797) 1,062,201 2,629,262
----------------------------------------------------
SUBTOTAL 2,207,048 172,255 (30,797) 1,062,201 3,410,707
----------------------------------------------------
107 CONSTRUCTION WORK IN 663,675 576,550 (1,062,201) 178,024
PROGRESS 4/
----------------------------------------------------
TOTAL 2,870,723 748,805 (30,797) 0 3,588,731
====================================================
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Completed ENCORE work transferred to other Company Property
2/ SUB-ACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED.
THE COMPANY SHALL PROVIDE A LISTING BY SUB-ACCOUNT OF EQUIPMENT ADDITIONS
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR.
Not applicable
3/ DESCRIBE OTHER COMPANY PROPERTY:
ENCORE Inservice Property
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS
ENCORE Construction Work in Process
ENCORE Capitalized Interest
</TABLE>
ANNUAL REPORT OF HEC INC.
For the Twelve Months Ended December 31, 1993
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF COMPANY PROPERTY
BALANCE AT ADDITIONS OTHER 1/ BALANCE
BEGINNING CHARGED TO CHANGES AT CLOSE
DESCRIPTION OF YEAR ACCT 403 SALES ADD/(DEDUCT) OF YEAR
- -----------------------------------------------------------------------------
COMPANY PROPERTY
Account
- ------
301 ORGANIZATION 55,680 22,272 77,952
303 MISC. INTANGIBLE PLANT 0
304 LAND AND LAND RIGHTS 0
305 STRUCTURES & IMPROVEMENTS 0
306 LEASEHOLD IMPROVEMENTS 324 742 1,066
307 EQUIPMENT 2/ 0
308 OFFICE FURNITURE
& EQUIPMENT 235,246 115,400 350,646
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE EQUIPMENT 1,688 1,792 3,480
310 AIRCRAFT & AIRPORT
EQUIPMENT 0
311 OTHER COMPANY PROPERTY 3/ 304,311 262,712 (3,850) 0 563,173
-----------------------------------------------
TOTAL 597,249 402,918 (3,850) 0 996,317
===============================================
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: None
3/ AMORTIZATION OF ENCORE PROPERTY
ANNUAL REPORT OF HEC INC.
For the Twelve Months Ended December 31, 1993
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under account 124 "Other Investments", state each investment
separately, with description including the name of issuing
company, number of shares or principal amount, etc.
BALANCE AT BALANCE AT
BEGINNING CLOSE OF
DESCRIPTION OF YEAR YEAR
- ------------------------------------------------------------------------
Account
- -------
123 INVESTMENT IN ASSOCIATE
COMPANIES 0 0
124 OTHER INVESTMENTS 0 0
136 TEMPORARY CASH INVESTMENTS 0 0
- ------------------------------------------------------------------------
TOTAL 0 0
========================================================================
ANNUAL REPORT OF HEC INC.
For the Twelve Months Ended December 31, 1993
SCHEDULE V - ACCOUNTS RECEIVABLE AND
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable
and accounts receivable from each associate company. Where
the service company has provided accomodation or convenience
payments for associate companies, a separate listing of total
payments for each associate company by sub-account should be
provided.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ----------------------------------------------- -----------------------------
Account
- ------
143 Accounts Receivable from clients 1,414,857 2,539,599
---------- ----------
TOTAL 1,414,857 2,539,599
========== ==========
146 Accounts Receivable from
Associate Companies
Connecticut Light & Power Company 3,250 52,336
Western Massachusetts Electric Company 2,000 22,048
Northeast Utilities Service Company 0 0
---------- ----------
TOTAL 5,250 74,384
========== ==========
ANNUAL REPORT OF HEC INC.
For the Twelve Months Ended December 31, 1993
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each
group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- --------------------------------------------------- ------------------------
Account
- -------
186 Miscellaneous Deferred Debits
Accrued Revenue for energy systems &
design contracts, net 4,221,412 2,616,921
Purchase price in excess of book value 114,624 0
----------- -----------
TOTAL 4,336,036 2,616,921
============ ===========
ANNUAL REPORT OF HEC INC.
For the Twelve Months Ended December 31, 1993
SCHEDULE XI - PROPRIETARY CAPITAL
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF
SHARES VALUE NUMBER OF PERIOD
ACCT. CLASS OF STOCK AUTHORIZED PER SHARE SHARES TOTAL AMOUNT
- -----------------------------------------------------------------------------
201 COMMON STOCK 100 1 100 $ 100
- -----------------------------------------------------------------------------
INSTRUCTIONS: Classify amounts in each account with brief explanations,
disclosing the general nature of transactions which give rise
to the reported amounts.
DESCRIPTION AMOUNT
- -----------------------------------------------------------------------------
211 Miscellaneous paid-in capital $ 4,315,737
215 Appropriated Retained Earnings None
------------
TOTAL $ 4,315,737
============
INSTRUCTIONS: Give particulars concerning net income or (loss)during the
year, distinguishing between compensation for the use of
capital owed or net loss remaining for servicing nonassociates
per the General Instructions of the Uniform Systems of
Accounts. For dividends paid during the year in cash or
otherwise, provide rate percentage, amount of dividend, date
declared and date paid.
BALANCE AT NET INCOME BALANCE AT
BEGINNING OR DIVIDENDS CLOSE
DESCRIPTION OF YEAR (LOSS) PAID OF YEAR
- -------------------- -------------------------------------------------------
216 Unappropriated
Retained Earnings $(1,080,230) $(120,464) $ 0 $(1,200,694)
- ---------------------- ------------------------------------------------------
TOTAL $(1,080,230) $(120,464) $ 0 $(1,200,694)
======================================================
ANNUAL REPORT OF HEC INC.
For the Twelve Months Ended December 31, 1993
SCHEDULE XIII - CURRENT ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give descriptions and amount of
miscellaneous current and accrued liabilities. Items
less than $10,000 may be grouped, showing the number
of items in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------- ----------- ----------
Account
- -------
233 NOTES PAYABLE TO ASSOCIATE COS. 0 2,875,000
----------- -----------
TOTAL 0 2,875,000
=========== ===========
234 ACCOUNTS PAYABLE TO ASSOCIATE COS.
Northeast Utilities Service Company 54,860 22,701
---------- -----------
TOTAL 54,860 22,701
========== ===========
241 TAX COLLECTIONS PAYABLE (1,640) 2,918
---------- -----------
TOTAL (1,640) 2,918
=========== ===========
242 MISCELLANEOUS CURRENT AND
ACCRUED VENDOR LIABILITIES
Accrued Audit Fee 42,100 26,550
Accrued Commissions 0 36,385
Accrued Incentive Expense 0 65,825
Accrued Accounts Payable 0 141,800
Accrued Lighting Maintenance 0 24,990
Reserve for energy savings guarantee 104,000 104,000
Miscellaneous (13 Items) 28,104 199,975
---------- -----------
TOTAL 174,204 599,525
========== ===========
ANNUAL REPORT OF HEC INC.
for the Twelve Months Ended December 31, 1993
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes
regarding the financial statements or any account thereof. Furnish
particulars as to any significant contingent assets or liabilities
existing at the end of the year. Notes relating to financial
statements shown elsewhere in this report may be indicated here by
reference.
(1) Summary of Significant Accounting Policies
(a) General
HEC Inc. (the "Company"), a wholly owned subsidiary of
Northeast Utilities ("NU"), designs and installs energy
systems for the lighting, heating, and cooling of
buildings. Effective July 1, 1990, the Company acquired
the business and certain assets of HEC Energy
Corporation. The acquisition was accounted for under the
purchase method of accounting.
(b) Revenue Recognition
Net revenues include amounts earned under contracts for
the design and installation of energy systems and the
realization of energy savings. Certain revenues are
recognized by the percentage-of completion method as work
progresses for contracts in process. Other revenues are
recognized as savings are realized by customers. Losses
on contracts are fully recognized in the period they
become estimable. Participation in energy savings for
certain fixed periods subsequent to recovery of installed
cost of energy systems are recognized in the periods such
savings are achieved.
(c) Depreciation
Depreciation and amortization are provided using
straight-line methods over the estimated useful lives of
the assets.
(d) Organization Costs
Costs incurred to organize the Company were capitalized
and are amortized using the straight line method over a
five-year period commencing July 1, 1990.
(2) Notes Payable/Credit Arrangements
The Company, as of July 1, 1993, has become a participant in the
Northeast Utilities system Money Pool. The Company can borrow
from the Money Pool up to an aggregate principal amount at any one
time outstanding, of $11 million. The balance of this note payable at
December 31, 1993 was $2,875,000. The interest rate is the Northeast
Utilities system Money pool cost to borrow.
ANNUAL REPORT OF HEC INC.
for the Twelve Months Ended December 31, 1993
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS(continued)
(3) Defined Contribution Plan
The Company participates in NU's 401(k) plan which covers
substantially all employees. Eligible employees may contribute up to
16% of their compensation to the plan, and the Company will contribute
up to 3% of each employees' compensation. Employees become vested in
contributions by specified percentages over a five year period.
(4) Leases
The company has certain operating leases for offices and equipment
expiring at various dates through 1997. Total future minimum rentals
payable for all operating leases are as follows:
1994 $ 211,288
1995 210,913
1996 107,718
1997 16,713
---------
TOTAL $ 546,632
=========
ANNUAL REPORT OF HEC INC
For the Twelve Months Ended December 31, 1993 and 1992
SCHEDULE XV - STATEMENT OF INCOME
YEAR ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
ACCOUNT DESCRIPTION 1993 1992
- ------------------------------------------------- ----------- ----------
INCOME
457 Services rendered to Associate Companies 1,131,741 436,116
458 Services rendered to Nonassociate Companies 13,580,992 9,245,368
421 Miscellaneous Income/(Loss) 197,465 492,125
---------- -----------
TOTAL INCOME 14,910,198 10,173,609
========== ===========
EXPENSE
904 Reserve for Uncollectible Accounts 169,700 265,971
920 Salaries and Wages 3,085,713 2,354,889
921 Office Supplies and Expense 2,958,190 3,051,565
922 Administrative Expense transferred-credit 0 0
923 Outside Services Employed 6,841,108 2,969,347
924 Property Insurance 68,393 42,779
925 Injuries and Damages 107,289 151,398
926 Employee Pensions and Benefits 309,185 225,267
928 Regulatory Commission Expense 0 0
930.1 General Advertising Expense 0 0
930.2 Miscellaneous General Expense 58,133 47,024
931 Rents 267,628 192,884
935 Maintenance of Structures and Equipment 19,563 13,310
403 Depreciation and Amortization Expense 380,646 306,263
404 Amortization - Organization Costs 22,272 22,272
408 Taxes other than Income Taxes 268,535 197,341
409 Income Taxes 85,092 (119,250)
410 Provision for Deferred Income Taxes 2,957 0
411 Provision for Deferred Income Taxes-Credit (1,329) 0
411.5 Investment Tax Credit 0 0
426.1 Donations 0 0
426.5 Other Deductions 114,624 158,774
427 Interest on Long-term Debt 166,343 486,178
428 Amortize Debt Expenses 73,820 16,404
430 Interest on Debt to Associate Companies 58,545 0
431 Other Interest Expense (25,745) (50,553)
----------- -----------
TOTAL EXPENSE 15,030,662 10,331,863
----------- -----------
NET INCOME/(LOSS) (120,464) (158,254)
=========== ===========
ANNUAL REPORT OF HEC INC
For the Twelve Months Ended December 31, 1993
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
EXCESS
OR TOTAL
DEFICIENCY AMOUNT
DESCRIPTION TOTAL COST 458-4 BILLED
- --------------------------------------------------- ------------
ENERGY MANAGEMENT SERVICES $ 12,461,920
DEMAND SIDE MANAGEMENT SERVICES 297,485
CONSULTING SERVICES 164,146
OTHER 657,441
-------------
TOTAL $ 13,580,992
=============
INSTRUCTIONS: Provide a brief description of the services rendered
to each nonassociate company.
Energy Management Services:
Engineering and installation of energy conservation measures.
Demand Side Management Services:
Engineering and consulting services in the design, implementation,
and evaluation of demand side management programs.
ANNUAL REPORT OF HEC INC
For the Twelve Months Ended December 31, 1993
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
NAME OF DEPARTMENT OR SALARY NUMBER OF
SERVICE FUNCTION EXPENSE PERSONNEL
- --------------------------------------------------------------------
ADMINISTRATION $ 528,993 10
ENGINEERING 2,121,742 70
MARKETING 434,978 8
------------ ------------
TOTAL $ 3,085,713 88
============ ============
ANNUAL REPORT OF HEC INC.
For Twelve Months Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
From Whom "A"-Associate
Purchased "NA"-Nonassociate Amount
-------------------------------------------------------- ----------
SUBCONTRACTOR SERVICES
Acap NA $ 357,862
Agam NA 72,812
Ahlstrom Shaeffer NA 120,795
B&G NA 449,581
Carrier Corp NA 25,400
Casto NA 108,769
Commander NA 264,610
Difazio NA 134,024
Dougherty NA 75,308
EEM NA 1,115,362
Egg NA 238,668
Hi-Amp NA 163,018
H.G. Martin NA 423,786
J.P. Daly NA 45,451
Kanawha County Schools NA 73,307
Mard NA 110,590
Mass Electric of NY NA 213,993
ML Systems NA 322,337
PEM NA 358,136
Powell NA 47,935
Purvis Enterprises NA 40,904
Ridgeway NA 53,980
Rolands NA 193,743
Schlesinger NA 122,874
Westland Electric NA 45,276
Wilson,Klaes,Brucker & Worden NA 25,040
One Hundred Sixty Five Vendors NA 1,362,671
------------
TOTAL SUBCONTRACTORS $6,566,232
------------
CONSULTING SERVICES
Michael Ramsey NA 28,590
Eleven Vendors NA 116,748
------------
TOTAL CONSULTING SERVICES $ 145,338
------------
LEGAL SERVICES
Five Vendors NA $ 9,932
------------
AUDITING SERVICES
Arthur Andersen NA $ 30,600
------------
OTHER PROFESSIONAL SERVICES
Thirty Two Vendors NA $ 89,007
------------
TOTAL $6,841,108
============
ANNUAL REPORT OF HEC INC
For the Twelve Months Ended December 31, 1993
MISCELLANEOUS GENERAL EXPENSE
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930,
"Miscellaneous General Expense," classifying such expenses
according to their nature. Payments and expenses permitted
by Section 321(b)(2) of the Federal Election Campaign Act,
as amended by Public Law 94-283 in 1976 (2 U.S.C. Section
441(b)(2) shall be separately classified.
DESCRIPTION AMOUNT
- -------------------------------------------------------- ----------
Utilities $ 8,430
Miscellaneous 39,468
Recruiting 9,611
----------
TOTAL $ 57,509
==========
ANNUAL REPORT OF HEC INC
For the Twelve Months Ended December 31, 1993
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931
"Rents," classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
DESCRIPTION AMOUNT
- ------------------------------------------------------- ----------
Office Space $ 217,578
Equipment Rental 50,050
----------
TOTAL $ 267,628
==========
ANNUAL REPORT OF HEC INC
For the Twelve Months Ended December 31, 1993
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other than
Income Taxes." Separate the analysis into two groups:
(1) Other than U.S. Government taxes, and (2) U.S.
Government taxes. Specify each of the various kinds of
taxes and show the amounts thereof. Provide a subtotal for
each class of tax.
KIND OF TAX AMOUNT
- ------------ ----------
1) Other than U.S. Government taxes:
City & County Taxes $ 7,928
Auto Excise Tax 169
State Franchise Taxes 7,018
State Unemployment Taxes 36,562
----------
Subtotal $ 51,677
----------
2)U.S. Government taxes:
Employer's FICA Tax $ 211,398
Federal Unemployment Taxes 5,460
----------
Subtotal $ 216,858
----------
TOTAL $ 268,535
==========
ANNUAL REPORT OF HEC INC
For the Twelve Months Ended December 31, 1993
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account
426.5, "Other Deductions," classifying such expenses
according to their nature.
DESCRIPTION AMOUNT
- ---------------------------------------------------- ----------
Other Deductions
Amortization of Purchase price in excess
of book value $ 114,624
-----------
TOTAL $ 114,624
===========
ANNUAL REPORT OF HEC INC.
For the Twelve Months Ended December 31, 1993
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding
the statement of income or any account thereof. Furnish
particulars as to any significant increases in services
rendered or expenses incurred during the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
See Notes to Financial Statements on pages 14 through 15.
ANNUAL REPORT OF: HEC INC.
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935 and in accordance with release numbers 22719, and order
numbers File No. 70-8076, the undersigned company has duly caused this
report to be signed on its behalf by the undersigned officer thereunto
duly authorized.
HEC INC.
(Name of Reporting Company)
By: Linda A. Jensen
(Signature of Signing Officer)
Linda A. Jensen - Treasurer
(Printed Name and Title of Signing Officer)
Date: April 27, 1994
ANNUAL REPORT OF HEC INC
ORGANIZATION CHART (AS OF DECEMBER 31, 1993)
HEC Inc.
- President
- Vice President & Director
- Vice President Finance & Administration
- Vice President Customer Service
