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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
SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC
Employer identification number
86-0059728
86-0059728
| Return Reference | Explanation |
|---|---|
| Form 990, Part VI, Section A, line 4 | THE BYLAWS WERE AMENDED TO STATE THAT UPON LEGAL SEPARATION OR DIVORCE OF THE HOLDERS OF A JOINT MEMBERSHIP, SUCH MEMBERSHIP SHALL CEASE AND NEW OR SEPARATE MEMBERSHIPS WILL BE OPENED FOR EACH MEMBER. BOTH INDIVIDUALS, IN SUCH INSTANCE, SHALL CONTINUE TO BE LIABLE FOR THE DEBTS DUE TO THE COOPERATIVE. THE BYLAWS WERE AMENDED TO STATE THAT MEMBERS SHALL VOTE BY U.S. MAIL OR APPROVED ELECTRONIC MEANS. THE BYLAWS WERE AMENDED TO STATE THAT ONLY NATURAL PERSONS THAT HAVE THE CAPACITY TO ENTER INTO LEGALLY BINDING CONTRACTS SHALL BE ELIGIBLE TO BECOME DIRECTORS. NO MEMBER SHALL BE ELIGIBLE TO BECOME OR REMAIN A DIRECTOR WHO: A. IS NOT A BONA-FIDE RESIDENT OF THE PARTICULAR DISTRICT, FOR AT LEAST ONE YEAR PRIOR TO THE ELECTION, FROM WHICH THE DIRECTOR IS ELECTED. F. WHO HAS BEEN CONVICTED OF A FELONY; G. WHO HAS HAD A CRIMINAL JUDGMENT ENTERED AGAINST HIM/HER BASED ON FRAUD, THEFT, DECEIT, MISREPRESENTATION, CONSPIRACY, BREACH OF TRUST, BREACH OF FIDUCIARY DUTY, OR INSIDER TRADING. H. WHO IS NOT A MEMBER IN GOOD STANDING OF THE COOPERATIVE; I. WHO HAS MADE A MATERIAL MISREPRESENTATION OF FACT TO THE MEMBERS OR OTHER DIRECTORS IN THE PROCESS OF THE DIRECTOR'S ELECTION OR APPOINTMENT TO THE BOARD OF DIRECTORS; J. WHO HAS INTEREST OR CONTROLLING INTEREST IN ANOTHER ORGANIZATION THAT IS NOT IN GOOD STANDING OF THE COOPERATIVE OR THE QUALIFICATIONS OF THIS SECTION OF THE BYLAWS; K. WHO IS EMPLOYED BY, MATERIALLY AFFILIATED WITH, OR SHARES A MATERIAL FINANCIAL INTEREST WITH ANY OTHER DIRECTOR; L. WHO IS NOT A LEGAL CITIZEN OF THE USA; M. WHO DID NOT GRADUATE FROM HIGH SCHOOL OR EARNED AN EQUIVALENT DEGREE OR CERTIFICATION. WHILE DIRECTOR, HE/SHE MUST: 1. BE LOYAL TO THE COOPERATIVE 2. TREAT SENSITIVE ISSUES WITH CONFIDENTIALITY; 3. DISCLOSE CONFLICTS OF INTEREST; 4. ACTIVELY SUPPORT THE OBJECTIVES OF THE COOPERATIVE; 5. EXERCISE AND INSIST UPON SOUND BUSINESS PRINCIPLES IN THE CONDUCT AND AFFAIRS OF THE COOPERATIVE; 6. UPHOLD THE LAWS AND REGULATIONS PERTAINING TO COOPERATIVE BUSINESSS ACTIVITIES; 7. SERVE ALL MEMEBERS OF THE COOPERATIVE WITHOUT GIVING SPECIAL CONSIDERATION TO ANY INDIVIDUAL OR GROUP; 8. NOT COMMUNICATE FALSE OR MISLEADING INFORMATION TO MEMBERS OF THE COOPERATIVE OR PUBLIC; 9. NOT EXPLOIT OR PERMIT EXPLOITATION OF THE POSITION OF DIRECTOR; 10. ABIDE BY AND SUPPORT DECISIONS AND POLICIES MADE BY THE MAJORITY OF THE BOARD; 11. TREAT OTHER BOARD MEMBERS WITH DIGNITY AND RESPECT; 12. MAINTAIN HIGH STANDARDS OF PERSONAL CONDUCT; 13. SEEK EDUCATION AND TRAINING TO IMPROVE PERFORMANCE AS A DIRECTOR; 14. MAINTAIN AND NOT VIOLATE THE CONFIDENTIALITY OF ALL MATTERS DISCUSSED BY DIRECTORS AND STAFF IN THE CONDUCT OF THE COOPERATIVE AFFAIRS UNLESS THESE MATTERS BECOME PUBLIC KNOWLEDGE; 15. MAINTAIN AND NOT VIOLATE THE CONFIDENTIALITY OF THE BOARD ROOM DISCUSSIONS AND ISSUES PRESENTED THEREIN; 16. ACT IN GOOD FAITH. UPON ESTABLISHMENT OF THE FACT THAT A BOARD MEMBER IS HOLDING THE OFFICE IN VIOLATION OF ANY OF THE FOREGOING PROVISIONS, THE BOARD OF DIRECTORS MAY REMOVE SUCH BOARD MEMBER FROM THE BOARD IN THE MANNER PROVIDED BY BOARD POLICY. |
| 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, 3. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS, AND 4. CHANGES TO THE BYLAWS OR ARTICLES OF INCORPORATION. |
| Form 990, Part VI, Section B, line 11 | MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR REVIEW AND APPROVAL PRIOR TO FILING. |
| Form 990, Part VI, Section B, line 12c | THE DIRECTORS REVIEW THE CONFLICT OF INTEREST POLICY ANNUALLY, AND IMMEDIATELY ADDRESS ANY QUESTIONS OR CONCERNS IF THEY ARISE. THE BOARD OF DIRECTORS AND OFFICERS ARE ALSO REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. |
| Form 990, Part VI, Section B, line 15 | THE BOARD OF DIRECTORS USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE BOARD AND THE GENERAL MANAGER USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. |
| Form 990, Part VI, Section C, line 19 | THE COOPERATIVE ANNUALLY MAILS A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE. THE COOPERATIVE ALSO PROVIDES COPIES OF THEIR CURRENT AND PAST ANNUAL REPORTS AND GOVERNING DOCUMENTS ON THEIR WEBSITE. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. |
| 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 3% 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 KEY EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS AND KEY EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER OR KEY EMPLOYEE IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER OR KEY EMPLOYEE, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER OR KEY EMPLOYEE. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. |
| 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 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 SEPARATELY REPORTS 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 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS. |
| 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 $8,271,688 LESS DIRECTORS FEES REPORTED ON 1099-MISC (109,425) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (263,173) LESS KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (183,188) PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 20,433 PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,438,720 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 3,086,850 TOTAL WAGES ACCRUED AND/OR PAID $14,261,905 |
| 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 $277,089 OUTSIDE SERVICES EMPLOYED 810,415 INSURANCE - INJURIES AND DAMAGES 197,942 DUES PAID ASSOCIATED ORGANIZATIONS 274,119 FORT HUACHUCA EXPENSES 204,826 SAFETY 101,815 DIRECTORS EXPENSES 117,996 EMPLOYEE ACTIVITIES 85,777 MAINTENANCE OF GENERAL PLANT 151,899 CAPITAL CREDITS 17,984 MISCELLANEOUS GENERAL EXPENSE 186,365 ADMINISTRATIVE & GENERAL EXPENSE -OTHER 300,276 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $2,726,503 |
| Form 990, Part IX, Line 24e | THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS OTHER EXPENSES ON FORM 990, PART IX, LINE 24E. TAX - OTHER $ 366,804 CONSUMER ACCOUNT AND SERVICE 1,723,662 SALES EXPENSE 193,368 TRANSMISSION EXPENSE 658,648 INTERNET EXPENSES 65,837 PHONE CARD EXPENSES 86 OTHER DEDUCTIONS 86,674 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $3,095,079 |
| Form 990, Part IX, Line 4 | THE FORM 990 INSTRUCTIONS SPECIFICALLY STATE THAT THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS 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 MEMBERS. 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 TRANSACTIONS 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. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE COOPERATIVES 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 MEMBERS 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 MEMBERS AS CAPITAL. (C) THE COOPERATIVE IS OBLIGATED TO PAY BY CREDITS TO A CAPITAL ACCOUNT FOR EACH MEMBER FOR ALL SUCH MARGINS. AND (D) ALL SUCH AMOUNTS CREDITED TO THE CAPITAL ACCOUNT OF ANY MEMBER SHALL HAVE THE SAME STATUS AS THOUGH THEY HAD BEEN PAID TO THE MEMBER IN CASH IN PURSUANCE OF A LEGAL OBLIGATION TO DO SO AND THE MEMBER 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 MEMBERS 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 MEMBERS AND ARE DONE PURSUANT TO THE OBLIGATION THAT EXISTED IN THE BYLAWS PRIOR TO THE COOPERATIVE PROVIDING ELECTRICITY TO ITS MEMBERS. 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 MEMBERS 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 MEMBERS 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. AS A RESULT, THE DIFFERENCE BETWEEN THE COOPERATIVE'S GAAP BASIS FINANCIAL STATEMENTS AND THE REVENUE LESS EXPENSES REPORTED ON PART I, LINE 19 IS THE AMOUNT OF PATRONAGE DIVIDENDS REPORTED AS BENEFITS PAID TO MEMBERS. |
| Form 990, Part XI, line 9: | NET CHANGE IN MEMBERSHIPS 1,120. PATRONAGE CAPITAL CREDIT RETIREMENTS -301,775. PATRONAGE CAPITAL ASSIGNABLE 8,214,283. GAIN ON RETIREMENT OF ESTATE CAPITAL CREDITS 22,430. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS 15,365. |
| Form 990, Part XII, Line 2 | AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FISCAL YEAR END OF JUNE 30TH. ADDITIONALLY, AS A RESULT OF A FEDERAL AWARD, THE ORGANIZATION WAS REQUIRED AND UNDERWENT AN AUDIT AS SET FORTH IN THE SINGLE AUDIT ACT AND OMB CIRCULAR A-133 FOR THE FISCAL YEAR END OF JUNE 30TH. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR YEAR END OF DECEMBER 31. THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. |
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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