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.
Go to www.irs.gov/Form990 for the latest information.
OMB No. 1545-0047
2018
Open to Public
Inspection
Inspection
Name of the organization
CARROLL ELECTRIC COOPERATIVE CORPORATION
Employer identification number
71-0027635
71-0027635
| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 1 | THE COOPERATIVE HAS 9 BOARD MEMBERS; ALL 9 ARE ALLOWED TO VOTE, HOWEVER THE BOARD CHAIRMAN VOTES ONLY IN THE CASE OF A TIE. |
| FORM 990, PART VI, SECTION A, LINE 2 | BUSINESS RELATIONSHIP: ALAN HUNNICUTT (DIRECTOR) AND KRISTY NOBLE (DIRECTOR) SHARE A BUSINESS RELATIONSHIP. ROB BOAZ (PRESIDENT/CEO) AND ALAN HUNNICUTT (DIRECTOR) BOTH SERVE ON THE BOARD OF ARKANSAS ELECTRIC COOPERATIVE CORPORATION AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. ROB BOAZ (PRESIDENT/CEO) AND CARLA HATHORN (DIRECTOR) BOTH SERVE ON THE BOARD OF ARKANSAS ELECTRIC COOPERATIVE, INC. AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. |
| FORM 990, PART VI, SECTION A, LINE 4 | DURING THE YEAR, THE BYLAWS OF THE COOPERATIVE WERE AMENDED AS FOLLOWS: ARTICLE III - BOARD MEMBERS SECTION 4, SUBSECTIONS A, B, AND C WERE AMENDED TO CLARIFY NOMINATING COMMITTEE REQUIREMENTS. ARTICLE VI - NONPROFIT OPERATION SECTION 2 WAS AMENDED TO STATE IF COSTS AND EXPENSES EXCEED THE AMOUNTS RECEIVED AND RECEIVABLE FROM THE FURNISHING OF ELECTRIC ENERGY, REFERRED TO AS A "LOSS", THEN THE BOARD OF DIRECTORS SHALL HAVE THE AUTHORITY UNDER ACCEPTED ACCOUNTING PRACTICES, LOAN COVENANTS, AND FEDERAL COOPERATIVE TAX LAW, TO PRESCRIBE THE ACCOUNTING PROCEDURES UNDER WHICH SUCH LOSS MAY BE ADDRESSED. ADDITIONALLY, THE BOARD OF DIRECTORS, ACTING UNDER POLICIES OF GENERAL APPLICATION TO SITUATIONS OF LIKE KIND MAY APPROVE AN EARLY RETIREMENT PRIOR TO WHEN SUCH CAPITAL CREDITS WOULD GENERALLY BE RETIRED PROVIDED THE FINANCIAL CONDITION OF THE COOPERATIVE WILL NOT BE IMPAIRED. THE PAYMENT PORTION OF SUCH EARLY RETIREMENT SHALL BE ON A DISCOUNTED AND NET PRESENT VALUE BASIS TO REFLECT THE TIME VALUE OF MONEY DUE THE COOPERATIVE. SUCH POLICIES SHALL ESTABLISH THE CRITERIA USED IN DETERMINING THE DISCOUNTED AND NET PRESENT VALUE OF EARLY RETIREMENTS. THE DIFFERENCE BETWEEN THE TOTAL AMOUNT OF CAPITAL CREDITS RETIRED AND THE CASH PAYMENT OF SUCH EARLY RETIREMENT SHALL BE CONSIDERED A CONTRIBUTION OF CAPITAL TO AND PART OF THE NET SAVINGS OF THE COOPERATIVE. ARTICLE X - MISCELLANEOUS A NEW SECTION 4 WAS ADDED REGARDING MEMBER COMMUNICATION WHICH STATES THE COOPERATIVE WILL MAKE AVAILABLE TO MEMBERS GENERAL MEMBER-CONSUMER INFORMATION, CERTAIN PLANS, PROGRAMS AND INITIATIVES OF THE COOPERATIVE, AS WELL AS UPDATES, IF ANY, TO THESE BYLAWS. EXCEPT AS OTHERWISE PROVIDED HEREIN, INFORMATION AND UPDATES MAY BE DELIVERED BY: (A) U.S. MAIL; (B) THROUGH PUBLICATIONS PROVIDED BY THE COOPERATIVE; (C) ELECTRONICALLY THROUGH EMAIL, TEXT, OR THE COOPERATIVE'S WEBSITE; OR (D) IN PERSON. A MEMBER'S ELECTION TO REFUSE DELIVERY OF ANY/ALL OF THESE COMMUNICATION MEDIUMS DOES NOT INVALIDATE THE COOPERATIVE'S EFFORT TO PROVIDE THE ENTIRE MEMBERSHIP COMPLETE INFORMATION OR ENTITLE INDIVIDUAL MEMBERS TO A REDUCTION IN THEIR ELECTRIC BILL. |
| 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 VIA UNITED STATES MAIL ON A ONE MEMBER ONE VOTE BASIS. MEMBERS COMPLETE AND RETURN WRITTEN BALLOTS IN A SEALED ENVELOPE ADDRESSED TO THE SECRETARY OF THE COOPERATIVE. |
| 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 |
| FORM 990, PART VI, SECTION A, LINE 8B | THE COOPERATIVE HAS NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, THE QUESTION HAS BEEN ANSWERED "NO". |
| FORM 990, PART VI, SECTION B, LINE 11B | MANAGEMENT PROVIDED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. |
| FORM 990, PART VI, SECTION B, LINE 12C | OFFICIALS MUST COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM ATTACHED TO THE CONFLICT OF INTEREST POLICY. EACH OFFICIAL IS RESPONSIBLE FOR ENSURING THAT THE FORM IS KEPT CURRENT AND MUST IMMEDIATELY SUBMIT AN UPDATED FORM TO THE APPROPRIATE ETHICS COMMITTEE IF THERE IS ANY MATERIAL CHANGE TO ANY OF THE INFORMATION CONTAINED IN THE FORM. PER THE POLICY DEFINITION, OFFICIAL MEANS A DIRECTOR, OFFICER, AN EMPLOYEE WHO IS RESPONSIBLE FOR THE PROCUREMENT OF GOODS AND SERVICES INCLUDING THE SELECTION, AWARD, OR ADMINISTRATION OF CONTRACTS DURING NORMAL OR EMERGENCY SITUATIONS, OR KEY EMPLOYEE AS DEFINED BY THE INTERNAL REVENUE SERVICE. |
| FORM 990, PART VI, SECTION B, LINE 15 | THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE'S IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE PRESIDENT/CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR PRESIDENTS/CEOS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN ARKANSAS AND THE NATION. THE BOARD AND THE PRESIDENT/CEO USE A COMPENSATION SURVEY AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVES' IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT ARKANSAS AND THE NATION. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE ARTICLES OF INCORPORATION AND THE BYLAWS OF THE COOPERATIVE ARE PROVIDED IN WRITTEN OR ELECTRONIC FORM UPON REQUEST. THE BYLAWS ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE. THE ANNUAL FINANCIAL REPORT IS DISTRIBUTED TO ALL MEMBERS IMMEDIATELY PRIOR TO THE ANNUAL MEETING OF THE MEMBERS. ANY MEMBER, UPON REQUEST, IS PROVIDED A COMPLETE COPY OF THE COOPERATIVE'S AUDIT REPORT. |
| 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 ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) PRESCRIBED FOR RUS ELECTRIC BORROWERS. THE USOA 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 USOA. |
| 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 $14,958,531 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (337,058) PLUS: DIRECTOR RETIREMENT BENEFITS INCLUDED IN LINE 5 90,767 LESS: OFFICER BENEFITS REPORTED ON LINE 5 (500,722) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 5,731,429 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,881,104 TOTAL WAGES ACCRUED AND/OR PAID: $21,824,051 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 4,114,055 OFFICE SUPPLIES 1,059,469 OUTSIDE SERVICES 217,836 PENSION & BENEFITS 1,590,517 REGULATORY COMMISION 297,810 DUPLICATE CHARGES (CREDIT) (164,531) MISCELLANEOUS GENERAL 3,559,640 DIRECTORS 392,608 MAINTENANCE OF GENERAL PLANT 2,045,896 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $13,113,300 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (32,523) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (246,294) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (4,473,530) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (2,292,226) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 6,068,730 |
| 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 2018 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: | OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: TRANSMISSION $ 466,092 OTHER DEDUCTIONS 64,904 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 530,996 |
| FORM 990, PART XI, LINE 9: | NET CHANGE IN MEMBERSHIPS 60,347. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 9,027,301. PATRONAGE CAPITAL RETIRED - DECLARED -4,976,002. UNCLAIMED PATRONAGE RETIREMENTS RETAINED PER STATE LAW 3,229,958. OTHER COMPREHENSIVE INCOME(LOSS) 374,558. |
| FORM 990, PART XII, LINE 2B: | AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR END OF FEBRUARY 28TH. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR END OF DECEMBER 31. |
| FORM 990, PART XII, LINE 2C: | THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING 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) 2018
Additional Data
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