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
DELTA MONTROSE ELECTRIC ASSOCIATION
Employer identification number
84-0185658
84-0185658
| Return Reference | Explanation |
|---|---|
| FORM 990, PART I, LINE 5: | THE NUMBER OF EMPLOYEES REPORTED ON LINE 5 REPRESENTS THE NUMBER OF W-2'S ISSUED BY THE COOPERATIVE AND NOT NECESSARILY THE NUMBER OF EMPLOYEES NORMALLY EMPLOYED BY THE COOPERATIVE AND REPORTED TO RUS. |
| FORM 990, PART VI, SECTION A, LINE 4 | DURING THE YEAR, THE MEMBERS OF THE COOPERATIVE APPROVED AMENDMENTS TO THE ARTICLES OF INCORPORATION TO HAVE THE COOPERATIVE GOVERENED UNDER ARTICLE 56 OF TITLE 7 OF THE COLORADO REVISED STATUTES. ADDITIONALLY, DUE TO THE AMENDMENT OF THE ARTICLES OF INCORPORATION, THE BOARD DETERMINED IT WAS APPROPRIATE TO AMEND THE BYLAWS OF THE COOPERATIVE TO ACCOUNT FOR THE REQUIREMENTS OF ARTICLE 56. THE BYLAWS WERE AMENDED AS FOLLOWS: ARTICLE 1 - GENERAL PROVISIONS THIS ARTICLE AND APPLICABLE SECTIONS ARE NEW. SECTION 1.1 LAW AND ARTICLES, STATES THESE BYLAWS ARE SUBJECT TO THE AMENDED AND RESTATED ARTICLES OF INCORPORATION OF DELTA-MONTROSE ELECTRIC ASSOCIATION, AS MAY BE AMENDED FROM TIME TO TIME (THE "ARTICLES") AND THE LAW. TO THE EXTENT A BYLAW CONFLICTS WITH LAW OR THE ARTICLES, THEN THE LAW OR ARTICLES CONTROL. "LAW" INCLUDES APPLICABLE LOCAL, STATE, AND FEDERAL CONSTITUTIONS, STATUTES, ORDINANCES, REGULATIONS, HOLDINGS, RULINGS, ORDERS, AND SIMILAR DOCUMENTS OR ACTIONS, WHETHER LEGISLATIVE, EXECUTIVE, OR JUDICIAL. AS SET FORTH IN THE ARTICLES, THE COOPERATIVE IS ORGANIZED UNDER TITLE 7, ARTICLE 55 OF THE COLORADO REVISED STATUTES, AND HAS DETERMINED TO ACCEPT THE BENEFITS AND TO BE BOUND BY THE PROVISIONS OF TITLE 7, ARTICLE 56 OF THE COLORADO REVISED STATUTES (THE "COLORADO COOPERATIVE ACT"). SECTION 1.2 FISCAL YEAR STATES THE FISCAL YEAR OF THE COOPERATIVE SHALL BEGIN THE FIRST DAY OF JANUARY OF EACH YEAR AND END ON THE THIRTY-FIRST DAY OF DECEMBER OF THE SAME YEAR. SECTION 1.3 SEAL STATES THE CORPORATE SEAL OF THE COOPERATIVE SHALL HAVE THE NAME OF THE COOPERATIVE AND THE WORDS, "CORPORATE SEAL, COLORADO". DUE TO THE ADDITION OF ARTICLE 1, ALL EXISTING ARTICLE AND SECTION NUMBERS HAVE BEEN RENUMBERED ACCORDINGLY. ARTICLE 2 - MEMBERSHIP SECTION 2.1(C) WAS AMENDED TO STATE THAT EACH MEMBER AGREE TO COMPLY WITH AND BE BOUND BY 1) THE ARTICLES; (2) THESE BYLAWS; (3) THE MEMBERSHIP APPLICATION; (4) THE COOPERATIVE'S SERVICE RULES AND REGULATIONS; (5) THE COOPERATIVE'S RATE OR PRICE SCHEDULES; AND (6) ALL RULES, REGULATIONS, POLICIES, PROGRAMS, DETERMINATIONS, RESOLUTIONS, OR ACTIONS TAKEN OR APPROVED BY THE COOPERATIVE'S BOARD OF DIRECTORS (COLLECTIVELY, THE "GOVERNING DOCUMENTS"). SECTION 2.4 WAS AMENDED TO STATE THE COOPERATIVE SHALL MAINTAIN A WRITTEN OR ELECTRONIC RECORD OF CURRENT MEMBERS IN A FORM PERMITTING THE COOPERATIVE TO (A) LIST IN ALPHABETICAL ORDER THE NAMES AND ADDRESSES OF ALL MEMBERS, AND (B) INDICATE WHETHER OR NOT THE MEMBER IS ENTITLED TO VOTE ("MEMBERSHIP LIST"). EXCEPT AS OTHERWISE PROVIDED BY THESE BYLAWS OR BY THE COLORADO COOPERATIVE ACT, A PERSON MAY NOT INSPECT, COPY, OR RECEIVE A COPY OF ALL OR PART OF THE MEMBERSHIP LIST OR A SIMILAR LIST OF MEMBERS. THE COOPERATIVE WILL NOT ISSUE MEMBERSHIP CERTIFICATES. SECTION 2.6 WAS ADDED TO STATE A MEMBER IS PROHIBITED FROM TRANSFERRING ITS MEMBERSHIP IN THE COOPERATIVE. SECTION 2.7 WAS ADDED TO IDENTIFY REASONS FOR SUSPENDING MEMBERSHIPS. ARTICLE 3 - MEETINGS OF MEMBERS SECTION 3.1 WAS AMENDED TO CLARIFY THE PURPOSE OF ANNUAL MEMBER MEETINGS. SECTION 3.2 WAS AMENDED TO CLARIFY SPECIFICATIONS AND PURPOSE OF A SPECIAL MEETING OF MEMBERS. SECTION 3.4 IS A NEW PROVISION THAT GUIDES THE COOPERATIVE IN DETERMINING WHICH MEMBERS OF THE COOPERATIVE ARE ENTITLED TO VOTE IN MEMBER MEETINGS. SECTION 3.8 IS A NEW PROVISION THAT CLARIFIES MEMBER VOTING RIGHTS AS IT PERTAINS TO A MAIL BALLOT. ARTICLE 4 - DIRECTORS SECTION 4.3 WAS AMENDED TO STATE THAT A PERSON MUST BE A MEMBER OF THE COOPERATIVE IN HIS OR HER INDIVIDUAL CPACITY AND NOT AS AN AUTHORIZED REPRESENTATIVE OF A MEMBER, AND IF SUCH PERSON IS A FORMER EMPLOYEE OF THE COOPERATIVE, MUST BE ELIGIBLE FOR RE-HIRE UNDER THE COOPERATIVE'S STANDARD EMPLOYMENT POLICIES. IT ALSO ADDED WHILE A DIRECTOR, AND DURING THE FIVE (5) YEARS IMMEDIATELY BEFORE BECOMING A DIRECTOR, NOT BE CONVICTED OF, OR PLEAD GUILTY OR NO CONTEST TO, A FELONY OR TO ANY CRIME INVOLVING FRAUD OR DISHONESTY, COMPUTER MISUSE, GAMBLING, IMMORALITY, WEAPONS, FINANCIAL MATTERS OF ANY KIND; WHILE A DIRECTOR, AND DURING THE THREE (3) YEARS IMMEDIATELY BEFORE BECOMING A DIRECTOR, NOT HAVE FILED A PETITION FOR BANKRUPTCY OR COMMENCED PROCEEDINGS RELATING TO BANKRUPTCY OR HAD COMMENCED AGAINST HIM OR HER PROCEEDINGS RELATING TO FORECLOSURE; WHILE SERVING ON THE BOARD MAY NOT BE A PARTY TO ANY CONTRACT FOR PROFIT WITH THE COOPERATIVE DIFFERING IN ANY WAY FROM THE BUSINESS RELATIONS ACCORDED ALL MEMBERS OF THE COOPERATIVE. SECTION 4.4 WAS ADDED TO STATE WITHIN THE LIMITS SPECIFIED IN THE ARTICLES, THE NUMBER OF DIRECTORS SHALL BE DETERMINED FROM TIME TO TIME BY RESOLUTION OF THE BOARD OF DIRECTORS. SECTION 4.5(F) WAS AMENDED TO ADD THAT EACH MEMBER OF THE COOPERATIVE SHALL BE ENTITLED TO VOTE IN THE ELECTION OF DIRECTORS, EITHER BY BALLOT AT THE ANNUAL MEMBER MEETING OR BY MAIL BALLOT (COLLECTIVELY, THE "BALLOTS"), BUT NOT BOTH, EXCEPT THAT ELECTION BY VOICE VOTE BY AND FROM THE MEMBERS AT THE ANNUAL MEMBER MEETING MAY BE ALLOWED TO ELECT A DIRECTOR IN ANY DIRECTOR DISTRICT OR REGION IF ONLY ONE CANDIDATE HAS BEEN NOMINATED FOR ELECTION IN THAT PARTICULAR DIRECTOR DISTRICT OR REGION. THE BALLOTS SHALL IDENTIFY THE CANDIDATES AND THE APPLICABLE DIRECTOR DISTRICT OR REGION. THE ORDER OF NAMES ON THE BALLOTS SHALL BE DETERMINED RANDOMLY IN A MANNER THAT DOES NOT AUTOMATICALLY ASSIGN THE TOP LINE TO THE INCUMBENT SECTION 4.6 WAS AMENDED TO STATE THE COOPERATIVE MAY PROVIDE REASONABLE COMPENSATION FOR TIME ACTUALLY SPENT BY ITS DIRECTORS IN SERVICE TO THE COOPERATIVE. SECTION 4.9 WAS ADDED TO CLARIFY THE RESIGNATION PROCESS OF DIRECTORS. ARTICLE 6 - OFFICERS OF THE BOARD AND COOPERATIVE SECTION 6.10 WAS ADDED TO STATE THE CHIEF EXECUTIVE OFFICER ("CEO") SHALL BE SELECTED BY AND SERVE AT THE PLEASURE OF THE BOARD AND SHALL CONTINUE TO SERVE THE COOPERATIVE UNTIL A SUCCESSOR IS SELECTED AND QUALIFIED UNLESS THE CEO SHALL RETIRE, RESIGN, DIE, BECOME DISQUALIFIED OR BE DISMISSED BY THE BOARD. THE BOARD SHALL APPROVE THE COMPENSATION OF THE CEO. THE CEO, SUBJECT TO THE GOVERNING DOCUMENTS AND TO THE DIRECTION AND CONTROL OF THE BOARD, SHALL BE RESPONSIBLE FOR THE GENERAL MANAGEMENT OF THE COOPERATIVE. THE CEO IS AUTHORIZED TO EMPLOY, PRESCRIBE THE DUTIES OF, SET THE COMPENSATION OF AND SUSPEND OR DISMISS, AT THE CEO'S DISCRETION. ARTICLE 7 - CAPITAL STOCK SECTION 7.2 WAS ADDED TO STATE TO THE EXTENT AUTHORIZED BY THE ARTICLES, THE COOPERATIVE MAY ISSUE NON-VOTING PREFERRED STOCK IN ONE OR MORE SERIES AS MAY BE ESTABLISHED BY THE BOARD ("PREFERRED STOCK") TO ANY PERSON, WHETHER OR NOT SUCH PERSON IS QUALIFIED TO BE A MEMBER. PRIOR TO THE ISSUANCE OF ANY SERIES OF PREFERRED STOCK (EACH, A "SERIES"), THE BOARD SHALL ESTABLISH EITHER IN THE RESOLUTION AUTHORIZING SUCH SERIES OR BY AMENDMENT TO THESE BYLAWS, THE NUMBER OF AUTHORIZED SHARES AND THE TERMS OF SUCH SERIES INCLUDING, WITHOUT LIMITATION, (A) ENTITLEMENT TO DIVIDENDS, IF ANY, (B) PREFERENCES, IF ANY, WITH RESPECT TO DIVIDENDS OR OTHER DISTRIBUTIONS, (C) REDEMPTION TERMS AND CONDITIONS, (D) RESTRICTIONS ON TRANSFER, AND (E) ANY OTHER TERMS, CONDITIONS OR RESTRICTIONS PERMITTED BY LAW, THE ARTICLES AND THESE BYLAWS. UNDER NO CIRCUMSTANCES WILL ANY SERIES OF PREFERRED STOCK BY ENTITLED TO VOTING RIGHTS. SECTION 7.3 WAS ADDED TO STATE DIVIDENDS PAYABLE ON SHARES OF NON-VOTING PREFERRED STOCK OF THE COOPERATIVE MAY BE DECLARED BY THE BOARD AT ANY REGULAR OR SPECIAL MEETING OF THE BOARD, NOT TO EXCEED AN AMOUNT THAT WOULD CAUSE THE COOPERATIVE TO FAIL TO BE CONSISTENT WITH OPERATING ON A COOPERATIVE BASIS UNDER FEDERAL TAX LAW INCLUDING SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. ARTICLE 8 - NONPROFIT OPERATION SECTION 8.4 WAS ADDED TO SPECIFY EACH PATRON'S AGREEMENT WITH THE COOPERATIVE. SECTION 8.5 WAS ADDED TO DEFINE A NON-MEMBER PATRON AND THEIR DUTIES, OBLIGATIONS, AND RESPONSIBILITIES IMPOSED BY THE COOPERATIVE'S GOVERNING DOCUMENTS. A COMPLETE COPY OF THE BYLAWS AND ARTICLES OF INCORPORATION CAN BE FOUND ON THE COOPERATIVE'S WEBSITE AT THE FOLLOWING ADDRESS: HTTPS://WWW.DMEA.COM/BYLAWS |
| 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 TO ELECT 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. 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 PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. |
| FORM 990, PART VI, SECTION B, LINE 12C | THE BOARD OF DIRECTORS CONDUCT AN ANNUAL REVIEW OF THE CONFLICT OF INTEREST POLICY, AND OBTAINS THE SIGNATURE OF EACH BOARD MEMBER ACKNOWLEDGING THE REVIEW OF THE POLICY. |
| FORM 990, PART VI, SECTION B, LINE 15 | THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM COOPERATIVES LOCATED IN COLORADO AND THE NATION. THE MANAGEMENT COMPENSATION PLAN IS APPROVED BY THE BOARD OF DIRECTORS. THE BOARD AND THE CEO USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT COLORADO AND THE NATION. |
| 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. THIS IS DONE IN COMPLIANCE WITH BOARD POLICY 10, SECTIONS 1-4. 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 COOPERATIVE'S BYLAWS AND FINANCIAL STATEMENTS CAN BE FOUND ON THEIR WEBSITE, WWW.DMEA.COM. |
| 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 LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES. |
| 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 ASSOCIATION ARE MAINTAINED IN ACCORDANCE WITH THE RURAL UTILITIES SERVICE (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 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 $ 7,050,315 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (136,075) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (366,423) PLUS: SALARIES & WAGES ALLOCATED TO NONOPERATING MARGINS 26,222 PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 1,658,444 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,164,089 TOTAL WAGES ACCRUED AND/OR PAID $ 9,396,572 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 2,456,466 OFFICE SUPPLIES 1,575,908 OUTSIDE SERVICES 278,044 INSURANCES & DAMAGES 99,658 MISCELLANEOUS GENERAL 60,000 DIRECTORS 214,853 ADVERTISING 27,264 PENSION & BENEFITS 104,404 MAINTENANCE OF GENERAL PLANT 628,876 INFORMATION TECHNOLOGY 597,598 DUPLICATE CHARGES (CREDIT) (118,384) TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 5,924,687 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (136,075) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,118,007) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (876,152) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,794,453 |
| FORM 990, PART IX, LINE 24E: | OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: ECONOMIC DEVELOPMENT $ 10,000 OTHER DEDUCTIONS 109,559 SALES 48,301 TRANSMISSION 391,398 DISPATCHING 281,623 TAXES 658,421 GEOTHERMAL AND HYDRO 692,526 INTEREST PENALITIES 18,996 ABANDONMENT LOSS 129,327 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 2,340,151 |
| 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 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 1: | ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. EACH GRANT, SPONSORSHIP, AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. |
| FORM 990, PART XI, LINE 9: | PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 546,407. PATRONAGE CAPITAL RETIRED - TOTAL -187,446. PATRONAGE CAPITAL RETIRED - DISCOUNT 80,040. EQUITY METHOD INCOME (LOSS) -1,363,125. |
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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