Attach to Form 990 or 990-EZ.| Identifier | Return Reference | Explanation |
|---|---|---|
| Form 990, Part VI, Section A, line 1 | THE COOPERATIVE HAS 7 BOARD MEMBERS; ALL 7 ARE ALLOWED TO VOTE. HOWEVER, THE BOARD PRESIDENT VOTES ONLY IN THE CASE OF A TIE. | |
| Form 990, Part VI, Section A, line 6 | THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS. | |
| Form 990, Part VI, Section A, line 7a | THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS. | |
| Form 990, Part VI, Section A, line 7b | THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE. 1. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE. 2. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION; AND 3. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS. | |
| Form 990, Part VI, Section B, line 11 | MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION, REVIEW AND APPROVAL PRIOR TO FILING. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE THE FILING OF THE FORM 990. | |
| Form 990, Part VI, Section B, line 12c | THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS, AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS. | |
| Form 990, Part VI, Section B, line 15a | THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY AND CONSUMER PRICE INDEX WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN CALIFORNIA AND THE NATION. PER IRS DEFINITIONS OF KEY EMPLOYEES AND OFFICERS THE COOPERATIVE DOES NOT HAVE ANY OTHER EMPLOYEES BESIDES THE GENERAL MANAGER THAT QUALIFIES AS A KEY EMPLOYEE OR OFFICER. AS SUCH PAGE 6, LINE 15B HAS BEEN ANSWERED NO. | |
| Form 990, Part VI, Section C, line 19 | THE COOPERATIVE MAILS, TO EACH MEMBER OF THE COOPERATIVE, AN ANNUAL REPORT. INCLUDED IN THE ANNUAL REPORT IS A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT. THE COOPERATIVE WILL PROVIDE, BY APPOINTMENT, A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR THE COOPERATIVE'S GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. | |
| Changes in Net Assets or Fund Balances: | Form 990, Part XI, line 5: | NET CHANGE IN MEMBERSHIPS -80. UNCLAIMED CAPITAL CREDITS & ESTATE RETIREMENTS 102,763. RETIREMENT OF PATRONAGE CAPITAL -529,661. ADJUSTMENT FOR POST-RETIREMENT MEDICAL PLAN -5,600. Total to Form 990, Part XI, Line 5: -432,578. |
| INDEPENDENT AUDIT | Form 990, Part XII, LINE 2B | AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FISCAL YEAR END OF MARCH 31ST. THE COOPERATIVE'S TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR YEAR END OF DECEMBER 31. |
| WHISTLEBLOWER POLICY | Form 990, Page 6, Part VI, Section B, Line 13 | AT 12/31/10 THE COOPERATIVE DID NOT HAVE AN OFFICIAL WHISTLEBLOWER POLICY IN PLACE. THE COOPERATIVE DOES HAVE A GENERAL MANAGER MISCONDUCT ALLEGATIONS POLICY WHICH ADDRESS ISSUES SIMILAR TO A WHISTLEBLOWER POLICY. THE POLICY CONFIRMS A WHISTLEBLOWERS CONFIDENTIALITY WILL BE PROTECTED. |
| GENERAL MANAGER RESPONSIBILITIES | Form 990, Part VII, Section A | THE BOARD OF DIRECTORS CONSIDERS THE GENERAL MANAGER TO BE BOTH THE TOP MANAGEMENT OFFICIAL AND THE TOP FINANCIAL OFFICIAL. THEREFORE, ONLY THE GENERAL MANAGER IS LISTED AS AN EMPLOYEE OFFICER. |
| TO PROVIDE DETAIL REGARDING OFFICER'S OTHER COMPENSATION | Form 990, Part VII, Column F | IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN UNDER SECTION 401(K) OF THE INTERNAL REVENUE CODE. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION UP TO 2% OF A PARTICIPATING EMPLOYEE'S SALARY. ADDITIONALLY, THE COOPERATIVE PARTICIPATES IN A MULTI-EMPLOYER DEFINED BENEFIT PLAN. CONTRIBUTIONS TO THIS PLAN ARE BASED ON THE FULL FUNDING LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER OR HIGHLY COMPENSATED EMPLOYEE IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER OR HIGHLY COMPENSATED EMPLOYEE, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER (SEE SCHEDULE J PART III FOR A BREAKDOWN OF THE AMOUNTS REPORTED IN PART VII COLUMN F. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. BEGINNING IN YEAR OF RETIREMENT THE COOPERATIVE PAYS 100% OF THE PREMIUM. THE COOPERATIVE THEN PAYS 50% IN YEAR 2, 25% IN YEAR 3 AND IN YEAR 4 THE COOPERATIVE'S CONTRIBUTION DECREASES TO 0%. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. |
| TO PROVIDE ADDITIONAL INFORMATION REGARDING DIRECTOR COMPENSATION | FORM 990, PART VII, COLUMN D | INCLUDED IN FORM 1099-MISC TO DIRECTOR VIRGIL ELMORE REFLECTS COMPENSATION FROM NON-BOARD COMPENSATION FROM SAW & WELDING WORK MR. ELMORE PERFORMED FOR THE COOPERATIVE. INCLUDED IN FORM 1099-MISC AND COLUMN D OF PART VII ARE PER DIEMS AND REIMBURSEMENTS FOR MILEAGE AND OTHER EXPENSES INCLUDING TRAVEL. DIRECTORS ARE REQUIRED TO PROVIDE RECEIPTS TO THE COOPERATIVE FOR REIMBURSEMENT OF THEIR OUT OF POCKET EXPENSES. SUCH AMOUNTS ARE REIMBURSED PURSUANT TO AN ACCOUNTABLE PLAN AND DO NOT REPRESENT REPORTABLE COMPENSATION. FOLLOWING IS A BREAKDOWN OF EACH DIRECTORS PER DIEMS, REIMBURSEMENTS AND NON-BOARD COMPENSATION THAT WERE INCLUDED ON THEIR FORM 1099-MISC. NON-BOARD COMPENSATION PER DIEM/REIMBURSEMENTS SAW & WELDING WORK ADAMS $ 203 ANDERSON 812 BARMORE 522 BURDICK 232 CARLISLE 841 ELMORE 87 $ 68 STEWART 435 |
| PATRONAGE DIVIDENDS | Form 990, Part VIII, LINE 2B | PATRONAGE DIVIDENDS RESULT FROM THE PURCHASE OF WHOLESALE POWER FROM A GENERATION & TRANSMISSION COOPERATIVE. PATRONAGE DIVIDENDS ALSO RESULT FROM THE PAYMENT OF INTEREST FROM COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. |
| ACCOUNTING SYSTEM | Form 990, Part IX | THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE(RUS). THE UNIFORM SYSTEM OF ACCOUNTING DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1 - 23. THE COOPERATIVE WILL BREAK OUT SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1 - 23 WILL BE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS. |
| RECONCILIATION OF WAGES PER RETURN TO FORM W-3 | Form 990, Part IX, Lines 5-7 | SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. IN AN EFFORT TO EXPLAIN WHY THE AMOUNTS REPORTED ON LINES 5-7 DO NOT AGREE TO THE W-3 THE FOLLOWING RECONCILIATION IS PROVIDED. TOTAL PER LINES 5-7 $1,042,373 LESS DIRECTORS FEES REPORTED ON 1099-MISC (99,875) PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 377,198 LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (65,863) RECONCILIATION TO W-3 $1,253,833 |
| BREAKDOWN OF EXPENSES INCLUDED IN ADMINISTRATIVE AND GENERAL | Form 990, Part IX, Line 24 | THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS ADMINISTRATIVE AND GENERAL EXPENSE ON FORM 990, PART IX, LINE 24. OFFICE SUPPLIES AND EXPENSE $62,602 OUTSIDE SERVICES EMPLOYED 44,328 SUBSCRIPTIONS 2,202 MAINTENANCE OF GENERAL PLANT 87,942 MISCELLANEOUS GENERAL EXPENSE 28,775 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $225,849 |
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