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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.
Information about Schedule O (Form 990 or 990-EZ) and its instructions is atwww.irs.gov/form990.
OMB No. 1545-0047
2013
Open to Public
Inspection
Inspection
Name of the organization
EASTERN MAINE ELECTRIC COOPERATIVE INC
Employer identification number
01-0056837
01-0056837
| Return Reference | Explanation |
|---|---|
| Form 990, Part VI, Section A, Line 6 | Eastern Maine Electric Cooperative, Inc. (EMEC) has members. EMEC is owned by its members. EMEC is a non-profit consumer-owned electric utility serving parts of Aroostook, Penobscot and Washington Counties. |
| Form 990, Part VI, Section A, Line 7a | Eastern Maine Electric Cooperative, Inc. (EMEC) members own the cooperative. To conduct the affairs of the cooperative, they elect a Board of Directors, who are themselves members. In the election of Directors, each member has one vote. |
| Form 990, Part VI, Section A, Line 7b | Membership approval for the disposition and acquisition of certain assets and bylaw changes. |
| Form 990, Part VI, Section B, Line 11b | The Form 990 is prepared by the Chief Financial Officer. The Chief Executive Officer reviews the Form 990. The Form 990 is presented, reviewed and discussed with the Board of Directors prior to the return being filed. |
| Form 990, Part VI, Section B, Line 12c | Each board member signs a Conflict of Interest Statement at the monthly board meeting in which they state whether they have a conflict and that they will not participate in any vote in which there may be a potential conflict of interest. |
| Form 990, Part VI, Section B, Line 15 | Comparative salary information from the 800 electric cooperatives is reviewed and used in developing a wage plan for non-bargaining unit employees, as approved by the board. At least once every three years, the wage plan is thoroughly reviewed and updated as necessary, as approved by the board. Annually, the board reviews the performance of the CEO and makes a salary change as applicable. Annually, the CEO reviews the performance of the non-bargaining unit employees and makes a salary change as applicable. |
| Form 990, Part VI, Section C, Line 19 | Eastern Maine Electric Cooperative, Inc. (EMEC) provides its governing documents, the By Laws, to each new member; plus they are available upon request. The Conflict of Interest policy is available upon request. The financial statements are mailed annually to each member and are presented at the annual meeting. |
| Form 990, Part IX, Line 4 | The Cooperative's tax exempt purpose is to provide electricity to its members and to do so, on a cooperative basis. Tax law defines "Operating on a cooperative basis" as subordination of capital, democratic control, and operation at cost. The Cooperative operates at cost through the allocation of true patronage dividends (also referred to as allocations of patronage capital) to its members. Patronage dividends are considered paid if the allocation is made (1) pursuant to a pre-existing obligation, (2) from the margins produced from the transaction done with or for members, and (3) in a fair and equitable basis on the basis of patronage (i.e. purchases). Additionally, the allocation of patronage dividends should be made within a reasonable time period after the close of the Cooperative's year-end of December 31. The amount reported on this line represents the amount of patronage capital that is either allocated or to be allocated to the members resulting from their purchase of delivery service from the Cooperative for the 2013 calendar year. Such amounts are allocated subsequent to year-end in a fair and equitable manner on the basis of patronage (i.e. purchases). The amounts allocated are representative of the margins from the provision of delivery service to the members and are done pursuant to the obligation that exists in the bylaws of the Cooperative. Therefore, these amounts meet the definition of the term "Patronage dividends paid". Patronage dividends to be allocated are reported on line 4. Given line 4 is a negative figure for 2013, patronage will not be allocated until the negative margin has been offset by positive margins in future years. Please note, however, that because patronage dividends is the process by which the Cooperative operates at cost with its members and thereby a key component to accomplishing its exempt purpose, the Cooperative has reported the amount of its 2013 margin that has been or is to be allocated to the members subsequent to year-end. Such amounts are an expense for Form 990 reporting and not an expense for financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP). As a result, the difference between the Cooperative's GAAP basis financial statement and the revenue less expenses reported on Part 1, line 19 is the amount of patronage dividends reported as benefits paid to members. |
| Form 990, Part IX, Line 7 | Total Other Salaries and Wages were $2,372,132 of which $604,022 were charged to balance sheet accounts. The remaining amount of $1,768,109 was charged to expense accounts. |
| Form 990, Part IX, Line 8 | Total Pension Plan Contributions were $473,431 of which $106,421 was charged to balance sheet accounts. The remaining amount of $367,010 was charged to expense accounts. |
| Form 990, Part IX, Line 9 | Total medical, life, and long-term disability insurance contributions were $478,137 of which $103,405 was charged to balance sheet accounts. The remaining amount of $374,732 was charged to expense accounts. |
| Form 990, Part IX, Line 10 | Total Payroll Taxes were $166,295 of which $34,040 was charged to balance sheet accounts. The remaining amount of $132,255 was charged to expense accounts. |
| Form 990, Part XI, Line 9 | The amount reported on this line represents the amount of the current year patronage capital credit assignable, if patronage is a positive figure, and sum of changes in patronage capital retirements and memberships. The amount of patronage capital that is either allocated or to be allocated to the members resulting from their purchase of electricity from the Cooperative for the 2013 calendar year. Such amounts are allocated subsequent to year-end in a fair and equitable manner on the basis of patronage (i.e. purchases). The amounts allocated are representative of the margins from the provision of electric energy to the members and are done pursuant to the obligation that existed in the bylaws prior to the Cooperative providing electricity to members. Therefore, these amounts meet the definition of the term "Patronage dividends paid". |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2013
Additional Data
| Software ID: | 13000241 |
| Software Version: | v1.00 |