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
KOOTENAI ELECTRIC COOPERATIVE INC
Employer identification number
82-0136983
82-0136983
| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 4 | SIGNIFICANT CHANGES TO ORGANIZATIONAL DOCUMENTS: 1: ARTICLES OF INCORPORATION - THE ARTICLES OF INCORPORATION PROVIDED FOR VOTING AT ANNUAL AND SPECIAL MEETINGS ONLY. THE CHANGES MADE NOW ENSURES THAT EACH ACTIVE MEMBER HAS A VOTE ON EACH MATTER SUBMITTED TO A VOTE OF THE MEMBERSHIP, REGARDLESS OF THE VENUE AND METHOD OF VOTING. 2: MEETING OF MEMBERS VOTING PROCEDURES - THE BYLAWS ALLOWED THE BOARD OF DIRECTORS TO DETERMINE THE METHODS OF CASTING BALLOTS AT EACH MEMBER MEETING. THE CHANGE ESSENTIALLY EXPANDS THOSE METHODS BY NOT LIMITING THE BOARD'S OPTIONS TO THOSE METHODS SPECIFICALLY NAMED IN THE BYLAWS. 3: DIRECTOR NOMINATIONS - PREVIOUSLY, PETITION CANDIDATES SUBMITED THEIR APPLICATION AND PETITION TO THE COOPERATIVE UP UNTIL 90 DAYS PRIOR TO THE ANNUAL MEETING. THIS TIMELINE POTENTIALLY CONFLICTS WITH THE VOTE BY MAIL SCHEDULE. THE CURRENT CHANGE MAKES THE BOARD APPLICATION DEADLINE AND THE MEMBER PETITION DEADLINE THE SAME DATE, WHICH WOULD BE SET BY THE BOARD OF DIRECTORS ANNUALLY. 4: REVENUE & RECEIPTS: CAPITAL CREDITS - KEC'S BYLAWS PREVIOUSLY GIVE THE BOARD OF DIRECTORS THE ABILITY TO RETIRE PATRONAGE CAPITAL (ALSO KNOWN AS CAPITAL CREDITS) ON A DISCOUNTED BASIS TO ELIGIBLE MEMBERS AT THE MEMBER'S OPTION. THE CHANGES NOW LIMIT THIS VOLUNTARY ELECTION TO CURRENT MEMBERS AND GIVE THE BOARD OF DIRECTORS THE ABILITY TO PAY OUT PATRONAGE CAPITAL ON A DISCOUNTED BASIS TO TERMINATED MEMBERSHIPS ON A MANDATORY BASIS. THE CURRENT CHANGES ALSO PERMIT THE COOPERATIVE TO RECOUP ANY UNPAID BALANCES OWED BY FORMER MEMBERS WHOSE CAPITAL CREDITS HAVE NOT YET BEEN PAID TO THEM. 5: REVENUE & RECEIPTS: NON-OPERATING REVENUE - KEC'S BYLAWS STATED THAT IN DECEMBER OF EACH YEAR THE BOARD OF DIRECTORS SHALL DETERMINE IF NONOPERATING REVENUE ARISING IN THE CURRENT FISCAL YEAR WILL BE RETAINED AS UNALLOCATED CAPITAL OR ASSIGNED TO THE CAPITAL ACCOUNTS OF ACTIVE MEMBERS. THE BOARD'S PRACTICE HAS BEEN TO DELAY THIS DETERMINATION UNTIL THE ANNUAL FINANCIAL AUDIT HAS BEEN COMPLETED. THE CHANGE FACILITATED THIS BY REPLACING THE SPECIFIC "IN DECEMBER OF EACH YEAR" WITH THE MORE GENERAL "ONCE EACH YEAR AND REFERS TO THE "PRIOR" FISCAL YEAR; I.E., THE YEAR THAT WAS JUST AUDITED. |
| FORM 990, PART VI, SECTION A, LINE 6 | KOOTENAI ELECTRIC COOPERATIVE, INC. IS A MEMBER-OWNED ELECTRIC COOPERATIVE WITH APPROXIMATELY 26,000 MEMBERS. THROUGH PURCHASING ELECTRIC POWER FROM THE COOPERATIVE, MEMBERS MAKE AN ONGOING INVESTMENT IN THE COOPERATIVE. ALL AMOUNTS IN EXCESS OF OPERATING COSTS, FURNISHED BY THE MEMBERS, BECOME CAPITAL CREDITS. THE COOPERATIVE NOTIFIES EACH MEMBER ANNUALLY OF THE AMOUNT OF CAPITAL CREDITS THE MEMBER EARNED IN THE PRIOR YEAR. THE BOARD OF DIRECTORS DECIDES IF THE COOPERATIVE IS FINANCIALLY ABLE TO PAY PRIOR YEARS' CAPITAL CREDITS TO MEMBERS AND THE TIMING OF THOSE PAYMENTS. |
| FORM 990, PART VI, SECTION A, LINE 7A | EACH YEAR, THE GOVERNING BODY APPOINTS A NOMINATING COMMITTEE. THE NOMINATING COMMITTEE MEETS AND NOMINATES A SLATE OF CANDIDATES TO RUN FOR ELECTION TO THE GOVERNING BODY TO FILL ANY VACANCIES OR SEATS UP FOR RE-ELECTION. NOMINATIONS BY PETITION ARE ALSO ACCEPTED FOR CANDIDATES TO RUN FOR ELECTION TO THE GOVERNING BODY. THERE IS ONE CLASS OF MEMBERSHIP FOR ALL MEMBERS AND EACH MEMBER IS ENTITLED TO ONE VOTE. |
| FORM 990, PART VI, SECTION A, LINE 7B | THE MEMBERS MUST APPROVE SIGNIFICANT DECISIONS OF THE GOVERNING BODY AS DEFINED IN ITS ARTICLES OF INCORPORATION AND BYLAWS. EACH MEMBER IS ENTITLED TO ONE VOTE. |
| FORM 990, PART VI, SECTION A, LINE 8B | EACH COMMITTEE DOES NOT HAVE WRITTEN MEETING MINUTES OF THEIR OWN. |
| FORM 990, PART VI, SECTION B, LINE 11B | AFTER THE FORM 990 HAS BEEN PREPARED BY THE INDEPENDENT ACCOUNTANTS, MANAGEMENT REVIEWS THE FORM FOR ACCURACY AND COMPLETENESS. ONCE MANAGEMENT BELIEVES THE FORM IS COMPLETE AND ACCURATE, THE FORM IS PROVIDED TO THE BOARD. MANAGEMENT IS AVAILABLE TO ANSWER ANY QUESTIONS THE BOARD MAY HAVE, AND THE FORM IS SIGNED AND FILED. |
| FORM 990, PART VI, SECTION B, LINE 12C | THE CONFLICT OF INTEREST POLICY COVERS ALL DIRECTORS, OFFICERS AND KEY EMPLOYEES OF THE COOPERATIVE. THE BOARD OF DIRECTORS INTERPRETS AND ENFORCES THE POLICY. THE COOPERATIVE'S LEGAL COUNSEL ANNUALLY REVIEWS THIS POLICY WITH ALL DIRECTORS, OFFICERS AND KEY EMPLOYEES. THE MINUTES OF ALL BOARD MEETINGS RECORD ANY DISCLOSURES, VOTES, AUTHORIZATIONS AND OTHER ACTIONS TAKEN UNDER THIS POLICY. EACH DIRECTOR, OFFICER, AND KEY EMPLOYEE COMPLETES AND SIGNS, ANNUALLY, A DISCLOSURE QUESTIONNAIRE FORM. IF ANYONE DISCOVERS ANY INFORMATION OR FACT THAT COULD IMPACT ANOTHER'S COMPLIANCE WITH THIS POLICY, IT MUST BE DISCLOSED TO THE BOARD. DEPENDING UPON THE NATURE AND SEVERITY OF THE VIOLATION OF THIS POLICY, A DIRECTOR MAY BE DISQUALIFIED AND REMOVED FROM THE BOARD. |
| FORM 990, PART VI, SECTION B, LINE 15 | EACH YEAR, THE BOARD OF DIRECTORS REVIEWS AND APPROVES COMPENSATION FOR THE GENERAL MANAGER. REVISIONS TO SALARY RANGES ARE BASED ON LABOR MARKET SURVEYS, ECONOMIC CONDITIONS, THE FINANCIAL CONDITION OF THE COOPERATIVE, AND ANY OTHER PERTINENT FACTORS AVAILABLE AT THE TIME. THE COOPERATIVE UTILIZES WAGE AND BENEFIT SURVEY DATA CONDUCTED BY NWPPA UTILITIES, SPOKANE AREA COMPENSATION GROUP AND NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION (NRECA). IN ADDITION TO AN ANNUAL REVIEW OF THE GENERAL MANAGER'S COMPENSATION, THE GENERAL MANAGER RECOMMENDS AN ANNUAL COMPENSATION BUDGET FOR ALL EMPLOYEES, WHICH IS APPROVED BY THE BOARD. REVISIONS TO SALARY RANGES ARE BASED ON LABOR MARKET SURVEYS, ECONOMIC CONDITIONS, THE FINANCIAL CONDITION OF THE COOPERATIVE, AND ANY OTHER PERTINENT FACTORS AVAILABLE AT THE TIME. THE COOPERATIVE UTILIZES WAGE AND BENEFIT SURVEY DATA CONDUCTED BY NWPPA UTILITIES, SPOKANE AREA COMPENSATION GROUP AND NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION (NRECA). |
| FORM 990, PART VI, SECTION C, LINE 19 | THE COOPERATIVES BYLAWS, ARTICLES OF INCORPORATION, AND ANNUAL REPORTS ARE POSTED ON THE ORGANIZATION'S WEBSITE. COPIES OF THE COOPERATIVE'S FORM 990, ANNUAL REPORT FROM OUR EXTERNAL AUDITORS AND THE ASSOCIATED FINANCIAL STATEMENTS, CFC FORM 7, AND CONFLICTS OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. |
| FORM 990, PART XI, LINE 9: | RETIREMENT OF CAPITAL CREDITS -3,806,542. OTHER COMPREHENSIVE INCOME(LOSS) -348,178. UNCLAIMED CAPITAL CREDITS -118,276. AMOUNT OF BENEFITS PAID TO MEMBERS PER 990 INSTRUCTIONS, INTERPRETED TO EQUAL NET MARGINS AS THAT IS THE EQUIVALENT OF THE BENEFITS MEMBERS RECEIVE IN THE CURRENT YEAR 5,779,233. ABANDONED CAPITAL CREDITS 478,098. DISCOUNT ON EARLY RETIREMENT OF CAPITAL CREDITS 2,367,610. |
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
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