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TIN:
SCHEDULE O
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
Attach to Form 990 or 990-EZ.OMB No. 1545-0047
2010
Open to Public
Inspection
Inspection
Name of the organization
DELTA MONTROSE ELECTRIC ASSOCIATION
Employer identification number
84-0185658
84-0185658
| Identifier | Return Reference | Explanation |
|---|---|---|
| Form 990, Part VI, Section A, line 4 | ARTICLE II, SECTION 1, ANNUAL MEETING WAS AMENDED. THIS SECTION WAS AMENDED TO REQUIRE THE DATE OF THE ANNUAL MEETING TO BE POSTED ON THE ASSOCIATION'S WEB SITE NO LESS THAN SIX MONTHS BEFORE THE DATE OF THE MEETING AND TO REQUIRE THE BALLOT MAILING DEADLINE TO BE POSTED ON THE ASSOCIATION'S WEB SITE AT LEAST THREE MONTHS BEFORE THE DEADLINE. ARTICLE II, SECTION 6. ORDER OF BUSINESS WAS AMENDED. THIS SECTION WAS AMENDED TO REMOVE CERTAIN SPECIFIC ITEMS OF BUSINESS TO CONDUCT DURING THE ANNUAL MEETING OF THE MEMBERS. THE AMENDMENT LEFT THE ITEMS OF BUSINESS TO CONDUCT TO BE DETERMINED BY THE PRESIDENT OF THE BOARD OF DIRECTORS. ARTICLE III, SECTION 4. DISTRICTS, NOMINATIONS AND ELECTIONS WAS AMENDED. A NEW SUBSECTION (B) WAS ADDED TO REQUIRE INFORMATION ON BOARD QUALIFICATIONS, THE PROCEDURE FOR BECOMING A CANDIDATE AND THE SCHEDULE FOR ELECTIONS TO BE POSTED ON THE ASSOCIATION'S WEB SITE AND TO BE COMMUNICATED TO EACH MEMBER NO LATER THAN TWO MONTHS BEFORE PETITIONS TO BECOME A CANDIDATE ARE DUE. SUBSECTION (C) WAS AMENDED TO CHANGE THE REQUIRED SIGNATURES FOR A PETITION FOR CANDIDACY FROM TWENTY-FIVE TO FIFTEEN. ARTICLE IV, SECTION 1, PUBLIC MEETINGS WAS AMENDED. A NEW SUBSECTION WAS ADDED TO REQUIRE MINUTES OF ALL MEETINGS OF THE BOARD OF DIRECTORS TO BE POSTED ON THE ASSOCIATION'S WEB SITE. | |
| 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 TO ELECT 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. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; 2. THE DISSOLUTION/LIQUIDATION OF THE COOPERATIVE; AND 3. THE MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION. | |
| Form 990, Part VI, Section A, line 8b | EXECUTIVE SESSION FROM TIME TO TIME THE ENTIRE BOARD WILL GO INTO EXECUTIVE SESSION FOR DISCUSSING ITEMS OF A SENSITIVE AND CONFIDENTIAL NATURE. WHEN THIS OCCURS MANAGEMENT AND OTHERS IN ATTENDANCE ARE REMOVED FROM THE MEETING ROOM. ITEMS DISCUSSED IN EXECUTIVE SESSION ARE NOT DOCUMENTED. HOWEVER, ACTIONS TAKEN BY THE BOARD AFTER EXECUTIVE SESSIONS ARE ADJOURNED ARE FULLY DOCUMENTED IN THE WRITTEN MINUTES. | |
| 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 FILING THE FORM 990. | |
| Form 990, Part VI, Section B, line 12c | THE BOARD OF DIRECTORS CONDUCT AN ANNUAL REVIEW OF THE CONFLICT OF INTEREST POLICY, AND OBTAIN THE SIGNATURE OF EACH BOARD MEMBER ACKNOWLEDGING THE REVIEW OF THE POLICY. | |
| Form 990, Part VI, Section B, line 15 | THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN COLORADO AND THE NATION. THE MANAGEMENT COMPENSATION PLAN IS APPROVED BY THE BOARD OF DIRECTORS. THE BOARD AND THE GENERAL MANAGER USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT COLORADO AND THE NATION. | |
| Form 990, Part VI, Section C, line 19 | THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. THIS IS DONE IN COMPLIANCE WITH BOARD POLICY 10, SECTIONS 1-4. ANNUALLY THE COOPERATIVE PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. FINALLY, THE COOPERATIVE'S BYLAWS CAN BE FOUND ON THEIR WEBSITE WWW.DMEA.COM. | |
| Changes in Net Assets or Fund Balances: | Form 990, Part XI, line 5: | PATRONAGE CAPITAL RETIRED -4,850,556. EQUITY METHOD INCOME/(LOSS) -4,674. PATRONAGE CAPITAL RETIRED - DISCOUNT 3,124,972. ADJUSTMENT FOR ACCRUED POSTRETIREMENT BENEFIT -100,100. Total to Form 990, Part XI, Line 5: -1,830,358. |
| AUDIT COMMITTEE | Form 990, Part XII, Line 2C | THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE ANNUAL AUDIT AND HELP SELECT THE CPA FIRM WHO WILL PERFORM THE AUDIT. |
| TOTAL NUMBER OF EMPLOYEES | Form 990, Page 1, Part I, Line 5 | THE NUMBER OF EMPLOYEES REPORTED ON LINE 5 REPRESENTS THE NUMBER OF W-2'S ISSUED BY THE COOPERATIVE AND NOT NECESSARILY THE NUMBER OF EMPLOYEES NORMALLY EMPLOYED BY THE COOPERATIVE AND REPORTED TO RUS. |
| 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. 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. |
| 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. |
| RECONCILIATION OF WAGES PER RETURN TO 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 $ 4,420,942 LESS DIRECTORS FEES REPORTED ON 1099-MISC (117,776) PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 2,998,995 LESS EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (211,814) RECONCILIATION TO W-3 $ 7,090,347 |
| 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 INJURIES AND DAMAGES $ 8,523 OUTSIDE SERVICES 179,648 SUPPLIES 611,050 INFORMATION TECHNOLOGY 574,114 ADVERTISING 84,138 ANNUAL MEETING EXPENSE 35,679 MAINTENANCE OF GENERAL PLANT 152,536 MISCELLANEOUS GENERAL AND ADMINISTRATIVE 90,232 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 1,735,920 |
| TO PROVIDE DETAIL REGARDING OTHER EXPENSES | Form 990, Part IX, Line 24(F) | THE FOLLOWING IS A BREAKDOWN OF EXPENSES REPORTED AS OTHER EXPENSES ON FORM 990, PART IX, LINE 24(F): SALES EXPENSE $ 102,941 TRANSMISSION EXPENSE 99,501 TAXES (8,165) ECONOMIC DEVELOPMENT 11,368 CAR HITS POLE, MISC JOBS/CONTRACT 5,338 ABANDONMENT LOSS 44,881 GEOTHERMAL EXPENSES 815,784 MISCELANEOUS OTHER EXPENSES 5,925 TOTAL OTHER EXPENSES $ 1,077,573 |
| TO PROVIDE DETAIL REGARDING OFFICER & HIGHLY COMPENSATED EMPLOYEE BENEFITS | 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 4.5% 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, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER. |
| INDEPENDENT DIRECTORS | Form 990, Part VI, Line 1B | KENNETH NORRIS PER IRS FORM 990 INSTRUCTIONS IS NOT AN INDEPENDENT DIRECTOR BECAUSE HE IS ON THE BOARD OF FEDERATED RURAL ELECTRIC INSURANCE CORPORATION. THE COOPERATIVE PURCHASES INSURANCE FROM FEDERATED. THE COOPERATIVE IS A MEMBER OF FEDERATED, AS SUCH MR. NORRIS IS THE COOPERATIVE'S REPRESENTATIVE ON FEDERATED'S BOARD. MR. NORRIS HAS NO OWNERSHIP INTEREST IN FEDERATED AND RECEIVES NO DIRECT OF INDIRECT BENEFIT FROM THE COOPERATIVE DOING BUSINESS WITH FEDERATED. |
| INDEPENDENT DIRECTORS | Form 990, Part VI, Line 1B | MARSHALL COLLINS PER IRS FORM 990 INSTRUCTIONS IS NOT AN INDEPENDENT DIRECTOR BECAUSE HE IS ON THE BOARD OF TRI-STATE G&T. THE COOPERATIVE PURCHASES ELECTRIC ENERGY FROM TRI-STATE. THE COOPERATIVE IS A MEMBER OF TRI-STATE, AS SUCH MR. COLLINS IS THE COOPERATIVE'S REPRESENTATIVE ON TRI-STATE'S BOARD. MR. COLLINS HAS NO OWNERSHIP INTEREST IN TRI-STATE AND RECEIVES NO DIRECT OF INDIRECT BENEFIT FROM THE COOPERATIVE DOING BUSINESS WITH TRI-STATE. |
| INDEPENDENT DIRECTORS | Form 990, Part VI, Line 1B | MARK ECKHART PER IRS FORM 990 INSTRUCTIONS IS NOT AN INDEPENDENT DIRECTOR BECAUSE HE IS ON THE BOARD OF WESTERN UNITED ELECTRIC SUPPLY CORPORATION. THE COOPERATIVE PURCHASES UTILITY MATERIALS FROM WESTERN UNITED. THE COOPERATIVE IS A MEMBER OF WESTERN UNITED, AS SUCH MR. ECKHART IS THE COOPERATIVE'S REPRESENTATIVE ON WESTERN UNITED'S BOARD. MR. ECKHART HAS NO OWNERSHIP INTEREST IN WESTERN UNITED AND RECEIVES NO DIRECT OF INDIRECT BENEFIT FROM THE COOPERATIVE DOING BUSINESS WITH WESTERN UNITED. |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2010
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