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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
SOUTH CENTRAL INDIANA RURAL
ELECTRIC MEMBERSHIP CORPORATION
ELECTRIC MEMBERSHIP CORPORATION
Employer identification number
35-6043583
35-6043583
| Return Reference | Explanation |
|---|---|
| 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 | MEMBERS HAVE THE OPPORTUNITY TO VOTE AND ELECT THEIR OWN MEMBER REPRESENTATIVE ON THE BOARD OF DIRECTORS. EACH ELIGIBLE MEMBER IS ENTITLED TO ONE VOTE. |
| 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 | THE VICE PRESIDENT OF CORPORATE SERVICES REVIEWED THE FORM 990 IN ITS ENTIRETY WITH THE GOVERNING BOARD. THE REVIEW WAS CONDUCTED PRIOR TO THE SUBMISSION OF THE FORM WITH THE IRS. |
| FORM 990, PART VI, SECTION B, LINE 12C | A SURVEY IS DISTRIBUTED TO ALL THE RELEVENT PARTIES ANNUALLY WHICH ASKS ABOUT ANY RELATIONSHIPS AND CONFLICTS OF INTEREST. IT IS THE DUTY OF THE BOARD MEMBER TO DISCLOSE ANY CONFLICTS OF INTEREST. A BOARD MEMBER WITH A CONFLICT OF INTEREST MUST RECUSE HIMSELF FROM ANY DISCUSSION OR VOTING ON ISSUES THAT ARISE AS A RESULT OF THAT CONFLICT. |
| FORM 990, PART VI, SECTION B, LINE 15 | THE CEO AND ALL EMPLOYEE COMPENSATION PACKAGES ARE DETERMINED BY USING COMPARABILITY DATA FOR SIMILAR POSITIONS. THIS DATA IS THEN REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS, WITH CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION OF THE DECISION. |
| FORM 990, PART VI, SECTION C, LINE 19 | OTHER THAN THE FORM 990, NO DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC. CURRENT MEMBERS MAY SUBMIT A WRITTEN REQUEST FOR AN EXAMINATION OF THE BOOKS AND RECORDS OF THE COOPERATIVE WHICH ARE LIMITED TO MEETING MINUTES AND FINANCIAL STATEMENTS. ADDITIONALLY, MEMBERS RECEIVE COPIES OF THE BYLAWS AT THE TIME THEY BECOME MEMBERS. |
| 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 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. |
| 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. |
| FORM 990, PART IX | THE COOPERATIVE MAINTAINS ITS BOOKS AND RECORDS IN ACCORDANCE WITH POLICIES PRESCRIBED OR PERMITTED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICES (RUS) AND THE INDIANA UTILITY REGULATORY COMMISSION (IURC), ALTHOUGH THE COOPERATIVE IS NO LONGER REGULATED BY THESE AGENCIES. 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 $ 7,145,449 LESS DIRECTORS FEES REPORTED ON 1099-MISC (219,154) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (334,108) PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,253,550 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED IDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 270,752 TOTAL WAGES ACCRUED AND OR PAID $ 8,116,489 |
| FORM 990, PART IX, LINE 24 | ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: OFFICE AND SUPPLIES $ 349,360 EMPLOYEE DUES & MEMBERSHIP 8,455 TRAINING & SEMINARS 145,748 BUSINESS MEALS 3,764 SUBSCRIPTIONS 2,628 MAINTENANCE OF OFFICE EQUIPMENT 28,688 MILEAGE 3,151 TELEPHONE EXPENSE 43,015 UTILITIES & MONTHLY CHARGES 779,222 OUTSIDE SERVICES EMPLOYED 324,375 INSURANCE & REGULATORY EXPENSE 252,791 PUBLIC RELATIONS 24,306 ANNUAL MEETING EXPENSE 101,678 DIRECTOR EXPENSE 59,139 MAINTENANCE OF GENERAL PLANT 306,271 MISCELLANEOUS GENERAL EXPENSE 334,633 SCI SERVICES GENERAL & ADMIN EXPENSES 878,430 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 3,645,684 |
| 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 24E | ALL OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS EXPENSE $ 706,470 OTHER DEDUCTIONS 1,519 SECURITY - COST OF SALES 60,355 MERCHANDISING - INSTALLATION COSTS 61,054 TOTAL ALL OTHER EXPENSES PER FORM 990 $ 829,398 |
| FORM 990, PART XI, LINE 9: | NET DECREASE IN MEMBERSHIPS -14,675. OTHER COMPREHENSIVE INCOME - POST RETIREMENT BENEFITS OTHER THAN PENSIONS -52,576. PATRONAGE CAPITAL ASSIGNABLE 8,408,991. PATRONAGE CAPITAL RETIRED - TOTAL -2,449,924. PATRONAGE CAPITAL RETIRED - DISCOUNT 828,866. |
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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