[X] | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
Page | |
Report of Independent Registered Public Accounting Firm | 1 - 2 |
Financial Statements | |
Statements of Net Assets Available for Benefits | 3 |
Statement of Changes in Net Assets Available for Benefits | 4 |
Notes to Financial Statements | 5 - 13 |
Supplemental Schedules | |
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) | 15 |
Schedule H, Line 4a - Schedule of Delinquent Participant Contributions | 16 |
Arnett Carbis Toothman llp CPAs and Advisors | actcpas.com 101 Washington Street East P.O. Box 2629 Charleston, WV 25329 304.346.0441 office│ 304.346.8333 fax 800.642.3601 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Audit Committee, Benefits Committee, and Plan Administrator
Energy Services of America Staff 401(k) Retirement Savings Plan
Huntington, West Virginia
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of Energy Services of America Staff 401(k) Retirement Savings Plan (the Plan) as of December 31, 2018 and 2017, the related statement of changes in net assets available for benefits for the year ended December 31, 2018, and the related notes to the financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2018 and 2017, and the changes in net assets available for benefits for the year ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Bridgeport, WV • Buckhannon, WV • Charleston, WV • Columbus, OH • Meadville, PA • Morgantown, WV • New Castle, PA • Pittsburgh, PA
Report on Supplemental Information
The supplemental information in the accompanying schedules of Schedule H, line 4(i) – Schedule of Assets (Held at End of Year) as of December 31, 2018, and Schedule H, Line 4(a) – Schedule of Delinquent Participant Contributions for the year ended December 31, 2018, have been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but includes supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information is the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information in the accompanying schedules, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information in the accompanying schedules is fairly stated in all material respects in relation to the financial statements as a whole.
ENERGY SERVICES OF AMERICA STAFF 401(K) RETIREMENT SAVINGS PLAN | |||
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS | |||
DECEMBER 31, 2018 AND 2017 | |||
2018 | 2017 | ||
Assets | |||
Investments, at fair value | $ 5,236,966 | $ 4,956,701 | |
Contributions receivable: | |||
Employee contributions receivable | 4,394 | 14,187 | |
Employer contributions receivable | 2,532 | 7,858 | |
Notes receivable from participants | 124,820 | 111,166 | |
Non-interest bearing cash | 10,980 | - | |
Total assets | 5,379,692 | 5,089,912 | |
Liabilities | |||
Excess contributions payable | 3,178 | 10,342 | |
Total liabilities | 3,178 | 10,342 | |
Net assets available for benefits | $ 5,376,514 | $ 5,079,570 | |
ENERGY SERVICES OF AMERICA STAFF 401(K) RETIREMENT SAVINGS PLAN | |
STATEMENT OF CHANGES IN NET ASSETS | |
AVAILABLE FOR BENEFITS | |
YEAR ENDED DECEMBER 31, 2018 | |
Change in net assets available for benefits attributed to: | |
Investment activities: | |
Net depreciation in fair value of investments | $ (197,474) |
Interest and dividends | 97,651 |
Net (loss) from investment activities | (99,823) |
Interest income on notes receivable from participants | 5,799 |
Additions: | |
Employee contributions, including rollovers | 461,502 |
Employer contributions | 249,282 |
Total additions | 710,784 |
Deductions: | |
Distributions to participants or beneficiaries | 316,456 |
Fees and expenses | 3,360 |
Total deductions | 319,816 |
Change in net assets available for benefits during the year | 296,944 |
Net assets available for benefits, beginning of year | 5,079,570 |
Net assets available for benefits, end of year | $ 5,376,514 |
Level 1 | Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. |
Level 2 | Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. |
Level 3 | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
Fair Value at December 31, 2018 | |||||||
Level 1 | Level 2 | Level 3 | Total | ||||
Investments in the fair value hierarchy | |||||||
Mutual funds | $ 3,552,652 | $ - | $ - | $ 3,552,652 | |||
Company common stock | 575,619 | - | - | 575,619 | |||
Money market fund | 17,144 | - | - | 17,144 | |||
4,145,415 | - | - | 4,145,415 | ||||
Investments measured at net asset value (a) | |||||||
Collective investment trusts | - | - | - | 1,091,551 | |||
- | - | - | 1,091,551 | ||||
Investments at fair value | $ 4,145,415 | $ - | $ - | $ 5,236,966 |
Fair Value at December 31, 2017 | |||||||
Level 1 | Level 2 | Level 3 | Total | ||||
Investments in the fair value hierarchy | |||||||
Mutual funds | $ 2,339,935 | $ - | $ - | $ 2,339,935 | |||
Company common stock | 216,138 | - | - | 216,138 | |||
Money market fund | 4,027 | - | - | 4,027 | |||
2,560,100 | - | - | 2,560,100 | ||||
Investments measured at net asset value (a) | |||||||
Collective investment trusts | - | - | - | 2,396,601 | |||
- | - | - | 2,396,601 | ||||
Investments at fair value | $ 2,560,100 | $ - | $ - | $ 4,956,701 |
(a) | In accordance with Subtopic 820-10, certain investments that were measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the statement of net assets available for benefits. |
Redemption | |||||||
Frequency | Redemption | ||||||
Unfunded | (If Currently | Notice | |||||
Fair Value | Commitments | Eligible) | Period | ||||
2018 | 2017 | 2018 and 2017 | |||||
Collective investment trust- | |||||||
stable value fund | $ 1,091,551 | $ 951,281 | n/a | Daily | 12 months | ||
Collective investment trust- | |||||||
target date and income fund | - | 1,445,320 | n/a | Daily | 30 Days | ||
$ 1,091,551 | $ 2,396,601 |
(a) | (b) Identity of issue, borrower, lessor, or similar party | (c) Description of investment including maturity date, rate of interest, collateral, par, or maturity value | (d) Cost | (e) Current Value |
Mutual Funds | ||||
Goldman Sachs | Small/Mid Cap Growth Fund Institutional | ** | $ 144,145 | |
Homestead | Small Company Stock Fund | ** | 52,896 | |
T. Rowe Price | Diversified Small Cap Growth Fund | ** | 117,154 | |
Vanguard | Mid-Cap Value Index Fund Admiral Shares | ** | 135,779 | |
Vanguard | Mid-Cap Index Fund Admiral Shares | ** | 49,663 | |
Vanguard | Growth Index Fund Admiral Shares | ** | 573,358 | |
Vanguard | Small-Cap Index Fund Admiral Shares | ** | 46,160 | |
Vanguard | 500 Index Fund Admiral Class | ** | 179,693 | |
American Funds | Washington Mutual Investors Fund Class R-5 | ** | 167,866 | |
Harbor | International Fund Institutional Class | ** | 182,104 | |
Harding Loevner | Emerging Markets Portfolio Advisor Class | ** | 94,571 | |
Voya | Global Real Estate Fund Class W | ** | 7,206 | |
Federated | Total Return Bond Fund Institutional Shares | ** | 23,357 | |
Vanguard | High-Yield Corporate Fund Admiral Shares | ** | 281,621 | |
Vanguard | Retirement Target 2050 | ** | 53,632 | |
Vanguard | Retirement Target 2040 | ** | 216,557 | |
Vanguard | Retirement Target 2030 | ** | 461,000 | |
Vanguard | Retirement Target Income | ** | 476,202 | |
Vanguard | Retirement Target 2020 | ** | 280,180 | |
Vanguard | Retirement Target 2045 | ** | 9,508 | |
3,552,652 | ||||
Collective Investment Trust | ||||
Federated | Capital Preservation Fund (IP) | ** | 20,738 | |
Federated | Capital Preservation Fund (R6) | ** | 1,070,813 | |
1,091,551 | ||||
Common Stock | ||||
* | Energy Services of America | Unitized Stock Fund | ** | 575,619 |
Money Market Fund | ||||
First Niagara Bank NA | Bank Deposit Sweep Program | ** | 17,144 | |
5,236,966 | ||||
Notes receivable from participants | ||||
* | Participants Loans | 4.25-6.25%; maturing from 2020 to 2023 | — | 124,820 |
124,820 | ||||
$ 5,361,786 | ||||
ENERGY SERVICES OF AMERICA STAFF 401(K) RETIREMENT SAVINGS PLAN | |||||
EIN: 20-4606266, Plan Number 002 | |||||
Schedule H, Line 4a - Schedule of Delinquent Participant Contributions | |||||
For the Year Ended December 31, 2018 | |||||
Participant Contributions Transferred Late to the Plan | Total that Constitute Nonexempt Prohibited Transactions | Total Fully Corrected Under VFCP and PTE 2002-51 | |||
Check here if Late Participant Loan Repayments are included | Contributions Not Fully Corrected | Contributions Corrected Outside VFCP | Contributions Pending Correction in VFCP | ||
Participant Contributions Transferred Late to Plan for year ended December 31, 2017 | X | $ - | $ - | $ - | $ 31,859 |
Participant Contributions Transferred Late to Plan for year ended December 31, 2018 | X | $ - | $ - | $ 30,025 | $ - |
ENERGY SERVICES OF AMERICA STAFF 401(K) RETIREMENT SAVINGS PLAN | ||
Date: June 28, 2019 | By: | /s/ Charles P. Crimmel |
Charles P. Crimmel | ||
Plan Administrator |