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
NORTHFORK ELECTRIC COOPERATIVE INC
Employer identification number
73-0375288
73-0375288
| Return Reference | Explanation |
|---|---|
| FORM 990, PAGE 6, PART VI, LINE 6 | THE COOPERATIVE HAS ONLY ONE CLASS OF MEMBERS. EACH MEMBER HAS A RIGHT TO: RECEIVE ADEQUATE AND DEPENDABLE ELECTRIC SERVICE, BE HEARD AT MEMBER MEETINGS, RECEIVE CAPITAL CREDITS, HAVE THEIR PROPERTY TREATED WITH CARE BY COOPERATIVE EMPLOYEES, BE HEARD IF THEY HAVE A DISPUTE OR COMPLAINT, AND HAVE SERVICE WITHOUT REGARD TO RACE, COLOR, SEX, NATIONALITY, RELIGION OR MARITAL STATUS. |
| FORM 990, PAGE 6, PART VI, LINE 7A | THE MEMBERS HAVE THE ABILITY TO ELECT THE GOVERNING BODY. TRUSTEES ARE ELECTED FOR 3-YEAR TERMS AND MUST MEET CERTAIN QUALIFICATIONS AS DEFINED BY THE COOPERATIVE BYLAWS. ELECTIONS ARE CONDUCTED AT EACH ANNUAL MEETING OF THE MEMBERS BY SECRET WRITTEN BALLOT OR IF THERE IS ONLY ONE NOMINEE AND NO MEMBERS OBJECT VOTING MAY BE CONDUCTED IN ANY OTHER PROPER MANNER. THE BOARD OF TRUSTEES APPOINTS A NOMINATING COMMITTEE WHOSE TERMS AND QUALIFICATIONS ARE DEFINED IN THE COOPERATIVE BYLAWS. MEMBERS MAY ALSO NOMINATE A CANDIDATE BY PETITION WHOSE TERMS AND QUALIFICATIONS ARE ALSO DEFINED IN THE COOPERATIVE BYLAWS. NOMINEES ARE CHOSEN AND A LIST OF NOMINATIONS MADE IS POSTED AT THE COOPERATIVE HEADQUARTERS. A NOTICE IS ALSO MAILED TO THE MEMBERS WITH THE NOTICE OF THE ANNUAL MEETING LISTING ALL NOMINEES SHOWING SEPARATELY THOSE NOMINATED BY THE COMMITTEE AND THOSE NOMINATED BY PETITION, IF ANY. AT THE ANNUAL MEETING EACH MEMBER SHALL BE ENTITLED TO CAST THE NUMBER OF VOTES WHICH CORRESPONDS TO THE TOTAL NUMBER OF TRUSTEES TO BE ELECTED, BUT NO MEMBER MAY VOTE FOR MORE THAN ONE NOMINEE FOR EACH POSITION. |
| FORM 990, PAGE 6, PART VI, LINE 7B | THE MEMBERS MUST APPROVE BY VOTE ALL TRUSTEES AS WELL AS ANY CHANGES TO THE BYLAWS AND ARTICLES OF INCORPORATION. |
| FORM 990, PAGE 6, PART VI, LINE 11B | A COPY OF THE RETURN WAS PROVIDED AND APPROVED BY THE CURRENT BOARD MEMBERS. |
| FORM 990, PAGE 6, PART VI, LINE 12C | NORTHFORK ADMINISTRATIVE PROCEDURE, NO. 7-4; INFORMS ALL EMPLOYEES OF THE COOPERATIVE ABOUT THE CONFLICT OF INTEREST POLICY. THE ORGANIZATION PERIODICALLY COMMUNICATES THE POLICY TO EMPLOYEES, OFFICERS AND DIRECTORS. |
| FORM 990, PAGE 6, PART VI, LINE 15A | BOARD OF TRUSTEES REVIEWS AND APPROVES THE COMPENSATION OF THE GENERAL MANAGER. |
| FORM 990, PAGE 6, PART VI, LINE 15B | GENERAL MANAGER USES STATE AND NATIONAL SALARY STUDIES OF COOPERATIVES TO ASSIST IN MAKING SALARY DECISIONS. |
| FORM 990, PAGE 6, PART VI, LINE 19 | UPON REQUEST |
| FORM 990, PART VII | COLUMN (F) ESTIMATED AMOUNT OF OTHER COMPENSATION FROM THE ORGANIZATION AND RELATED ORGANIZATIONS OTHER COMPENSATION FROM THE ORGANIZATION INCLUDES NRECA RETIREMENT PLAN ESTIMATED CHANGES IN ACCRUED BENEFITS FOR LISTED PERSONS AND THAT PORTION DOES NOT REPRESENT PAYMENTS TO THOSE PERSONS DURING THE YEAR. ALL FULL-TIME EMPLOYEES WHO HAVE COMPLETED ONE YEAR'S EMPLOYMENT MAY PARTICIPATE. IT ALSO INCLUDES PREMIUMS PAID FOR EMPLOYEE MEDICAL AND PRESCRIPTION INSURANCE. BLUE CROSS BLUE SHIELD OF OKLAHOMA ADMINISTERS THESE PLANS. AS WELL AS AMOUNTS FOR DENTAL, VISION AND EMPLOYEE LIFE INSURANCE. ALL FULL-TIME EMPLOYEES BECOME ELIGIBLE TO PARTICIPATE IN THE MEDICAL PLANS UPON HIRE. FORM 990, PART VII - SUPPLEMENTAL DISCUSSION - DUTIES OF TRUSTEES TRUSTEES OF THE COOPERATIVE ARE RESPONSIBLE FOR DIRECTING THE BUSINESS AND AFFAIRS OF THE COOPERATIVE AND HAVE THE ABILITY TO EXERCISE ALL OF THE POWERS OF THE COOPERATIVE. BEING AN EFFECTIVE TRUSTEE TAKES A SIGNIFICANT TIME COMMITMENT. UPON ELECTION TO THE BOARD, TRUSTEES UNDERGO AN ORIENTATION WITH THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES AND GENERAL MANAGER TO LEARN ABOUT NFEC. THEY ARE ALSO HIGHLY ENCOURAGED TO COMPLETE THE CREDENTIALED COOPERATIVE DIRECTOR (CCD) CERTIFICATE PROGRAM AS SOON AS POSSIBLE SO THAT THEY BECOME INFORMED ON DECISIONS THAT THEY WILL BE ENCOUNTERING IN THEIR NEW POSITION. THE CCD CERTIFICATE PROGRAM INCLUDES COURSES ABOUT TRUSTEE DUTIES AND LIABILITIES, UNDERSTANDING THE ELECTRIC BUSINESS, BOARD OPERATIONS AND PROCESS, STRATEGIC PLANNING, AND FINANCIAL DECISION-MAKING. BOARD MEMBERS ARE ALSO ENCOURAGED TO EARN THE BOARD LEADERSHIP CERTIFICATE (BLC) AND DIRECTOR GOLD CREDENTIALED (DGC) CERTIFICATE TO FURTHER ENHANCE KNOWLEDGE AND TRAINING GAINED IN THE CCD PROCESS. THE BLC REQUIRES 10 ADDITIONAL COURSES ON TOPICS INCLUDING THE COOPERATIVE BUSINESS MODEL, GOVERNANCE, FINANCE, COMMUNICATIONS, TECHNOLOGY, AND RISK MANAGEMENT. THE DGC REQUIRES THREE ADDITIONAL CREDITS FROM THE BLC SERIES OF COURSES. IN ADDITION TO CONTINUE TRAINING PROGRAMS, TRUSTEES ARE EXPECTED TO ATTEND MONTHLY BOARD MEETINGS, COMMITTEE MEETINGS, ASSOCIATED ORGANIZATIONS STATEWIDE, REGIONAL OR NATIONAL MEETINGS AS NEEDED, NORTHFORK ELECTRIC'S ANNUAL MEETING, STRATEGIC PLANNING SESSIONS AND SAFETY MEETINGS. TRUSTEES ARE ALSO EXPECTED TO TAKE THE TIME TO REVIEW THEIR BOARD PACKET PRIOR TO ANY MEETINGS, FIELD PHONE CALLS AND EMAILS FROM MEMBERS, AND REVIEW INFORMATION FROM MANAGEMENT VIA EMAIL. |
| FORM 990, PART VIII | PART IX, LINE 4 BENEFITS PAID TO OR FOR MEMBERS THE FORM 990 INSTRUCTIONS 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 ALLOCATED PATRONAGE CAPITAL TO AND THEREFORE OPERATES AT COST WITH ITS MEMBERS. THE COOPERATIVES 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 (PURCHASES OR SALES). 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 THE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND ARE PROVIDED FOR IN THE COOPERATIVES BYLAWS. PLEASE NOTE 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 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 STATEMENT PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. AS A RESULT, THE DIFFERENCE BETWEEN THE COOPERATIVES GAAP BASIS FINANCIAL STATEMENT 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 | PATRONAGE ALLOCATION 1,284,548 INCREASE IN MEMBERSHIPS 1,855 OTHER EQUITY -43,086 EQUITY IN EARNINGS -9,950 TOTAL 1,233,367 |
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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