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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 990-EZ 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
2014
Open to Public
Inspection
Inspection
Name of the organization
CHOCTAW ELECTRIC COOPERATIVE INC
Employer identification number
73-0182325
73-0182325
| Return Reference | Explanation |
|---|---|
| FORM 990, PART I, LINES 15 & 17 | THE COOPERATIVE PREVIOUSLY INCLUDED ALL LABOR COSTS AS COMPONENTS OF OTHER FUNCTIONAL EXPENSES USED FOR NORMAL FINANCIAL REPORTING. ACCORDINLY, ONLY COMPENSATION FROM PART VII IN THE AMOUNT OF $1,134,257 WAS REPORTED ON LINE 15 FOR THE 2013 CALENDAR YEAR. HOWEVER, FOR THE 2014 CALENDAR YEAR, THE COOPERATIVE BEGAN SEPARATELY STATING THE TOTAL OF ALL LABOR COST EXPENSED TO THE INCOME STATEMENT FOR FORM 990 REPORTING PURPOSES. TO INCREASE CONSISTENCY, LABOR COSTS OF $6,301,854 WERE RECLASSIFIED FROM LINE 17 "OTHER EXPENSES" RESULTING IN A COMPARATIVE LINE 15 TOTAL OF $7,436,111. |
| FORM 990, PART VI, SECTION A, LINE 5 | COOPERATIVE FUNDS WERE USED FOR PERSONAL EXPENSES. A RETIREMENT ANNUITY WAS RETURNED TO THE COOPERATIVE FOR REIMBURSEMENT OF THESE UNAUTHORIZED EXPENSES. |
| 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. AMENDMENTS TO THE ARTICLES OF INCORPORATION; 2. AMENDMENTS TO THE BYLAWS; 3. DISPOSAL OF SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; 4. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE; AND 5. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION. |
| 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 15 | THE BOARD OF DIRECTORS ASSSESS PERFORMANCE AND ALSO USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN OKLAHOMA. THE CEO ASSSESSES PERFORMANCE AND ALSO USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT OKLAHOMA. |
| 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. 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 ANNUAL REPORT AND BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE. |
| FORM 990, PART VI, LINE 13 | THERE WAS NO WHISTLE BLOWER POLICY IN PLACE DURING 2014; HOWEVER, THE COOPERATIVE ADOPTED A FORMAL WHISTLE BLOWER POLICY DURING 2015. |
| FORM 990, PART VI, QUESTION 9 | THE NAMES AND ADDRESSES OF DIRECTORS, OFFICERS, AND KEY EMPLOYEES, WHO CANNOT BE REACHED AT THE COOPERATIVE ARE AS FOLLOWS: BUDDY ANDERSON 420 J C LOOP VALLIANT, OK 74764 MIKE BAILEY P.O. BOX 145 BROKEN BOW, OK 74728 HENRY BAZE HC 67 BOX 270 RATTAN, OK 74562 JOE BRISCOE HC 63 BOX 1030 FT TOWSON, OK 74735 JOE HARRIS 237 BRANDON CIRCLE GOLDSBY, OK 73093 BOB HODGE P.O. BOX 208 BETHEL, OK 74724 MR. BOB HOLLEY HC 70 BOX 1742 ANTLERS, OK 74523 LARRY JOHNSON HC 69 BOX 402 HUGO, OK 74743 RODNEY LOVITT P.O. BOX 11 NASHOBA, OK 74558 TERRY MATLOCK P.O. BOX 131 GARVIN, OK 74745 BILL MCCAIN ROUTE 3 BOX 364 IDABEL, OK 74745 |
| FORM 990, PART VII, COLUMN F | IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES THE COOPERATIVE PARTICIPATES IN A MULTI-EMPLOYER DEFINED BENEFIT PLAN. CONTRIBUTIONS TO THIS PLAN ARE BASED ON THE FULL FUNDING LIMIATION OF THE PLAN. EMPLOYER CONTRIBUTIONS ARE AVAILABLE TO PARTICIPATING EMPLOYEES MEETING THE ELIGIBILITY REQUIREMENTS OF THE PLAN, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES. THE COOPERATIVE ALSO PROVIDES HEALTH BENEFITS TO ALL EMPLOYEES THROUGH A SELF-INSURANCE PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PENSION PLAN AND THE INSURANCE PREMIUM VALUES FOR CONTRIBUTIONS MADE TO THE SELF-INSURANCE PLAN FOR THEIR BENEFIT. |
| FORM 990, PART VIII, LINE 2 | 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. |
| FORM 990, PART IX | THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED FOR BORROWERS OF THE RURAL UTILITIES SERVICE. THE UNIFORM SYSTEM OF ACCOUNTS DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1 - 23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT WILL BE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1 - 23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS. |
| FORM 990, PART IX, LINE 24 | ADMINISTRATIVE AND GENERAL EXPENSES IS COMPRISED OF THE FOLLOWING: OFFICE SUPPLIES AND OTHER EXPENSES $ 65,086 LEASE PAYMENT 28,087 SHIPPING AND FREIGHT 18,527 DATA PROCESSING 68,442 TELEPHONE & UTILITIES 270,544 OUTSIDE SERVICES EMPLOYED 193,918 IN-HOUSE ATTORNEY FEES & EXP 77,864 COBANK CASH MANAGEMENT FEES 15,954 COMPLIANCE 109,534 ELECTRONIC MAPPING PROGRAM 297,075 BROADBAND GRANT EXPENSE 16,555 GENERAL LIABILITY INSURANCE 84,396 INJURIES AND DAMAGES 16,987 TRUSTEES' FEES AND EXPENSES 89,226 DUES AND SUBSCRIPTIONS 124,312 TRAINING EXPENSE 102,822 MANAGERS EXPENSES 16,082 MAINTENANCE OF GENERAL PLANT 92,722 MEMBER MEETING EXPENSE 78,228 ADVERTISING EXPENSE 193 NONOPERATING EXPENSES - INTERNET 31,875 TOTAL ADMINISTRATIVE AND GENERAL EXPENS PER FORM 990 $1,798,429 |
| 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. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $4,775,671 LESS DIRECTORS FEES REPORTED ON 1099-MISC (125,190) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (141,440) PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,016,539 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 866,962 TOTAL WAGES ACCRUED AND/OR PAID $6,392,542 |
| FORM 990, PART IX, LINE 4 | PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE PATRONS SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. 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 PATRONS. PATRONAGE DIVIDENDS ARE CONSIDERED PAID IF THE ALLOCATION IS MADE (1) PURSUANT TO A PRE-EXISTING OBLIGATION, (2) FROM THE MARGINS PRODUCED FROM THE TRANSACTIONS DONE WITH OR FOR PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER 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. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE COOPERATIVE'S BYLAWS AND IS SUMMARIZED AS FOLLOWS: (A) IN ORDER TO INDUCE PATRONAGE AND TO ASSURE THAT THE COOPERATIVE WILL OPERATE ON A NONPROFIT BASIS, THE COOPERATIVE IS OBLIGATED TO ACCOUNT ON A PATRONAGE BASIS TO ALL ITS PATRONS FOR ALL AMOUNTS RECEIVED AND RECEIVABLE FROM THE FURNISHING OF ELECTRIC ENERGY IN EXCESS OF OPERATING COSTS AND EXPENSES PROPERLY CHARGEABLE AGAINST SUCH SERVICES (I.E. MARGINS FROM THE PROVISION OF ELECTRIC ENERGY). (B) THE MARGINS FROM THE PROVISION OF ELECTRIC ENERGY ARE RECEIVED WITH THE UNDERSTANDING THAT THEY ARE FURNISHED BY THE PATRONS AS CAPITAL. (C) THE COOPERATIVE IS OBLIGATED TO PAY BY CREDITS TO A CAPITAL ACCOUNT FOR EACH PATRON FOR ALL SUCH MARGINS. AND (D) ALL SUCH AMOUNTS CREDITED TO THE CAPITAL ACCOUNT OF ANY PATRON SHALL HAVE THE SAME STATUS AS THOUGH THEY HAD BEEN PAID TO THE PATRON IN CASH IN PURSUANCE OF A LEGAL OBLIGATION TO DO SO AND THE PATRON HAD THEN FURNISHED TO THE COOPERATIVE CORRESPONDING AMOUNTS OF CAPITAL. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2014 CALENDAR YEAR. AS NOTED ABOVE, 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 PATRONS AND ARE DONE PURSUANT TO THE OBLIGATION THAT EXISTED IN THE BYLAWS PRIOR TO THE COOPERATIVE PROVIDING ELECTRICITY TO ITS PATRONS. THEREFORE, THESE AMOUNTS MEET THE DEFINITION OF THE TERM "PATRONAGE DIVIDENDS PAID". PLEASE NOTE, HOWEVER, THAT BECAUSE PATRONAGE DIVIDENDS IS THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS PATRONS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED THE AMOUNT OF ITS 2014 MARGIN THAT HAS BEEN OR IS TO BE ALLOCATED TO THE PATRONS SUBSEQUENT TO YEAR-END. SUCH AMOUNTS ARE AN EXPENSE FOR FORM 990 REPORTING AND IS NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. |
| FORM 990, PART IX, LINE 24E | ALL OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: OPERATING TAXES $948,811 OTHER DEDUCTIONS 16,923 TOTAL ALL OTHER EXPENSES PER FORM 990 $965,734 |
| FORM 990, PART X, LINES 1 AND 2 | THE COOPERATIVE HAS DETERMINED THAT ITS SHORT TERM INTEREST BEARING INVESTMENTS SHOULD BE INCLUDED ON PART X, LINE 2 AS "SAVINGS AND TEMPORARY CASH INVESTMENTS" FOR 2014. TO INCREASE CONSISTENCY, THE TEMPORARY CASH INVESTMENTS FROM THE PRIOR YEAR HAVE BEEN RECLASSIFIED FROM LINE 1 TO LINE 2. |
| FORM 990, PART X, LINES 11 AND 13 | THE COOPERATIVE HAS DETERMINED THAT ITS LONG-TERM INVESTMENT HOLDINGS SHOULD BE INCLUDED ON PART X, LINE 11 AS "INVESTMENTS - PUBLICLY TRADED SECURITIES" FOR 2014. TO INCREASE CONSISTENCY, THE LONG-TERM INVESTMENT HOLDINGS FROM THE PRIOR YEAR HAVE BEEN RECLASSIFIED FROM LINE 13 TO LINE 11. |
| FORM 990, PART XI, LINE 9: | DONATED CAPITAL -356. NET CHANGE IN MEMBERSHIP -50. OTHER COMPREHENSIVE INCOME (LOSS) - PROVISION FOR PENSIONS & BENEFITS 196,348. PATRONAGE CAPITAL ASSIGNED 2,212,423. PATRONAGE CAPITAL RETIRED -2,058,318. UNCLAIMED PATRONAGE CAPITAL RETAINED 318,771. |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2014
Additional Data
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