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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
2015
Open to Public
Inspection
Inspection
Name of the organization
KAY ELECTRIC COOPERATIVE INC
Employer identification number
73-0308955
73-0308955
| Return Reference | Explanation |
|---|---|
| Form 990, Part III, line 2 | KAY ELECTRIC COOPERATIVE BEGAN PROVIDING THE SERVICES OF SELLING AND INSTALLING GENERATORS DURING THE CALENDAR YEAR 2015. |
| 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 COOPERATIVE IS GOVERNED BY A 9 MEMBER BOARD OF TRUSTEES, EACH REPRESENTING A SEPARATE DISTRICT AND THE MEMBERS LOCATED THEREIN. THREE DISTRICT MEETINGS ARE HELD ANNUALLY WHEREBY THE MEMBERS NONMINATE TWO CANDIDATES TO BE VOTED ON AT THE ANNUAL MEETING FOR A THREE YEAR TERM. ALL ELECTIONS ARE CONDUCTED PURSUANT TO GUIDELINES ESTABLISHED IN THE BYLAWS AND ARE 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. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; 4. AMENDMENT TO THE ARTICLES OF INCORPORATION; 5. AMENDMENT TO THE BYLAWS |
| Form 990, Part VI, Section B, line 11 | MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW AT A REGULARLY SCHEDULED BOARD MEETING. |
| Form 990, Part VI, Section B, line 12c | ALL EMPLOYEES OF THE COOPERATIVE ARE BOUND BY AN EMPLOYEE CONDUCT POLICY THAT DEFINES SITUATIONS RESULTING IN CONFLICTS OF INTEREST AND PROVIDES PROCEDURES FOR HOW SUCH CONFLICTS OF INTEREST SHALL BE REPORTED. ANY EMPLOYEE NOT TIMELY NOTIFYING THE COOPERATIVE OF A CONFLICT OF INTEREST IS SUBJECT TO DISCIPLINARY ACTION. A SEPARATE WRITTEN CONFLICT OF INTEREST POLICY DOES NOT EXIST FOR THE BOARD OF TRUSTEES. HOWEVER, ARTICLE IV, SECTION 4.02 OF THE COOPERATIVE'S BYLAWS PROHIBIT A TRUSTEE FROM BEING A CLOSE RELATIVE TO ANOTHER TRUSTEE, NON-TRUSTEE COOPERATIVE OFFICER OR EMPLOYEE. A TRUSTEE IS ALSO PROHIBITED FROM HAVING A FINANCIAL INTEREST IN A COMPETING ENTERPRISE. A VIOLATION OF THESE PROHIBITIONS DISQUALIFIES A PERSON FROM SERVING AS A TRUSTEE AND SHALL RESULT IN SUCH PERSON BEING REMOVED FROM THE BOARD. TO ASSIST WITH ENFORCING BOTH THE EMPLOYEE CONDUCT POLICY AND QUALIFICATIONS FOR SERVING ON THE BOARD, ALL TRUSTEES, EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE REQUIRED TO ANNUALLY COMPLETE A QUESTIONNAIRE. THE PURPOSE OF THE QUESTIONNAIRE IS TO IDENTIFY BUSINESS AND FAMILY RELATIONSHIPS THAT MAY RESULT IN A CONFLICT OF INTEREST. |
| Form 990, Part VI, Section B, line 15 | THE BOARD OF TRUSTEES ANNUALLY USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY PROVIDES RELEVANT INFORMATION REGARDING SALARIES FOR CEOS FROM ELECTRIC COOPERATIVES OF SIMILAR SIZE, OPERATIONS AND LOCATION. PERFORMANCE RELATED FACTORS MAY ALSO BE CONSIDERED. COMPENSATION FOR OTHER OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE ALSO BASED ON A SIMILAR COMPENSATION SURVEY AND INQUIRIES MADE WITH LIKE SIZE COOPERATIVES WITHIN THE REGION AND STATE OF OKLAHOMA. |
| Form 990, Part VI, Section C, line 19 | ALL NEW MEMBERS ARE PROVIDED A COPY OF THE COOPERATIVE'S BY-LAWS. THE COOPERATIVE ALSO PROVIDES FINANCIAL STATEMENTS AND RELATED INFORMATION TO THE MEMBERS IN ITS ANNUAL MEETING REPORT. ANY MEMBER MAY REQUEST ADDITIONAL INFORMATION DURING THE COOPERATIVE'S NORMAL BUSINESS HOURS AND OFFICE BUILDING BY SUBMITTING SUCH REQUEST TO THE CEO. |
| 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. EMPLOYER CONTRIBUTIONS TO THE PLAN ARE MADE PURSUANT TO THE PLAN DOCUMENT. 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 ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. 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 RUS UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICES (RUS). 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 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 TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $2,332,545 LESS DIRECTORS FEES REPORTED ON 1099-MISC (250,757) LESS EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (243,342) PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 47,870 PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 962,088 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 631,407 TOTAL WAGES ACCRUED AND/OR PAID $3,479,811 |
| FORM 990, PART IX, LINE 24 | ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: OFFICE SUPPLIES AND EXPENSES $306,353 OUSIDE SERVICES EMPLOYED 199,293 INSURANCE 300,008 EMPLOYEE BENEFITS 77,148 DIRECTORS FEES AND EXPENSES 42,029 GENERAL MANAGER EXPENSES 19,819 ADVERTISING 42,198 EDUCATIONAL EXPENSES 265,692 MEETING EXPENSE 122,126 MAINTENANCE OF GENERAL PLANT 189,182 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $1,563,848 |
| FORM 990, PART IX, LINE 4 | PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "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 PATRONS 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. 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 2015 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS ARE 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 SUCH AMOUNTS AS AN EXPENSE FOR FORM 990 REPORTING. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. |
| FORM 990, PART IX, LINE 24(E) | ALL OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: CONSUMER ACCOUNTS EXPENSE $ 184,357 CUSTOMER SERVICES AND INFORMATION EXPENSE 150,758 ADMINISTRATIVE & MANAGEMENT SERVICE COSTS 109,604 ELECTRICIAN SERVICE COSTS 48,079 GENERATOR INSTALLATION EXPENSE 532,421 OTHER 25,780 TOTAL ALL OTHER EXPENSE PER FORM 990 $ 1,050,999 |
| Form 990, Part IX, LINE 1 | ALL GRANTS, SPONSORSHIPS AND DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. ALL DONATIONS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. EACH GRANT, SCHOLARSHIP AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. |
| Form 990, Part XI, line 9: | EQUITY METHOD INCOME FROM SUBSIDIARY -19,956. NET CHANGE IN MEMBERSHIP 544. OCI - UNREALIZED HOLDING GAIN ON SECURITIES -44,748. OCI - POSTRETIREMENT BENEFIT ADJUSTMENT 85,055. UNCLAIMED PATRONAGE CAPITAL RETAINED 31,532. PATRONAGE CAPITAL ASSIGNABLE 5,160,650. PATRONAGE CAPITAL RETIRED -786,468. |
| FORM 990, PART XII LINE 2C | THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2015
Additional Data
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