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
BARTLETT ELECTRIC COOPERATIVE INC
Employer identification number
74-0501156
74-0501156
| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 4 | DURING THE YEAR, THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING DESCRIPTION CLARIFIES THE CHANGES MADE TO ARTICLE IX - NON-PROFIT OPERATION: SECTION 9.04 OF BEC'S BYLAWS CREATES A PRE-EXISTING OBLIGATION TO OFFER GOODS AND SERVICES ON A PATRONAGE BASIS, IN ADDITION TO THE FURNISHING OF ELECTRIC ENERGY. HOWEVER, THE PREEXISTING OBLIGATION TO ALLOCATE PATRONAGE CAPITAL ASSOCIATED WITH RESPECT TO THESE OTHER GOODS OR SERVICES IS BROAD. THEREFORE, THE PURPOSE OF THE RECOMMENDED CHANGES IS TO NARROW THIS PRE-EXISTING OBLIGATION TO ALLOCATE PATRONAGE TO OTHER GOODS OR SERVICES BUT ONLY TO THE EXTENT THE BOARD TAKES STEPS THROUGH POLICIES, RESOLUTIONS OR OTHER AUTHORITY TO LEGALLY OBLIGATE BEC TO DO SO. THIS GIVES THE BOARD THE ABILITY TO MAKE A DETERMINATION WITH EACH ADDITIONAL GOOD OR SERVICE OFFERED AS TO WHETHER OR NOT IT WILL BE OFFERED ON A PATRONAGE OR NON-PATRONAGE BASIS. IT ALSO GIVES THE BOARD THE ABILITY TO OFFER OTHER GOODS OR SERVICES ON A PATRONAGE BASIS TO MEMBERS ONLY OR TO ALL PATRONS, MEMBERS AND NON-MEMBERS ALIKE. ADDITIONALLY, THE RECOMMENDED CHANGES PROVIDE GUIDELINES FOR HOW HANDLING LOSSES APPROVING CAPITAL CREDIT RETIREMENTS, AND THE CREATION OF UNALLOCATED/RETAINED EQUITY WITH RESPECT TO FURNISHING OF GOODS AND SERVICES OTHER THAN THOSE RELATED TO ELECTRIC ENERGY. SPECIFIC CHANGES TO SECTION 9.04 ARE AS FOLLOWS: 1) "REFUNDS" WAS REMOVED AS REFUNDS ARE NOT ADDRESSED ANYWHERE ELSE IN THE BYLAWS; 2) "GOODS" WAS ADDED TO ADD FLEXIBILITY TO BEC OFFERINGS AND/OR TO COVER SHOULD ELECTRICITY EVER BE CLASSIFIED AS A GOOD; 3) SECTION "A" WAS ADDED TO GIVE THE BOARD FLEXIBILITY AS TO WHAT IS CONSIDERED A "PATRON" - DEPENDING ON WHAT GOODS OR SERVICE IS BEING DELIVERED; 4) SECTION "B" WAS ADDED TO GIVE THE BOARD FLEXIBILITY AS TO HOW TO HANDLE LOSSES DEPENDING ON WHAT GOOD OR SERVICE IS BEING DELIVERED; 5) SECTION "C" WAS ADDED TO GIVE THE BOARD FLEXIBILITY AS HOW TO HANDLE THE RETIREMENT OF PATRONAGE CAPITAL DEPENDING ON WHAT GOOD OR SERVICE IS BEING DELIVERED; AND 6) SECTION "D" WAS ADDED TO GIVE THE BOARD FLEXIBILITY AS TO IF MARGINS DERIVED FROM A DELIVERED GOOD OR SERVICE MAY BE ON A NON-PATRONAGE BASIS AND BE USED TO ACCUMULATED PERMANENT EQUITY OR OFFSET LOSSES A COMPLETE COPY OF THE BYLAWS IS AVAILABLE ON THE COOPERATIVE'S WEBSITE. |
| 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 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. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 4. AMENDMENTS 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 COOPERATIVE'S CONFLICT OF INTEREST POLICY IS MONITORED AND ENFORCED THROUGH ANNUAL REVIEWS OF THE POLICY BY LEGAL COUNSEL WITH THE BOARD OF DIRECTORS AND MANAGEMENT, THE RECORDINGS IN THE MINUTES OF ALL DISCLOSURES, VOTES, AUTHORIZATIONS, AND OTHER ACTIONS TAKEN UNDER THE POLICY, AND THROUGH EACH OFFICER'S ANNUAL COMPLETION OF THE CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. IF IT IS RECEIVED OR DISCOVERED THAT A DIRECTOR IS NOT IN COMPLIANCE WITH THE POLICY, THE BOARD MUST GIVE THE DIRECTOR AN OPPORTUNITY TO COMMENT ON THE INFORMATION. IF IT IS DETERMINED THAT THE DIRECTOR IS STILL NOT IN COMPLIANCE, THE BOARD MUST GIVE THE DIRECTOR 30 DAYS TO COMPLY BEFORE SANCTIONS, DISQUALIFICATIONS, AND/OR REMOVAL. |
| FORM 990, PART VI, SECTION B, LINE 15 | THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY AND INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE BOARD OF DIRECTORS AND THE CEO USE A COMPENSATION SURVEY AND INDEPENDENT COMPENSATION CONSULTANT 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 LOCATED IN TEXAS AND THE NATION. |
| FORM 990, PART VI, SECTION C, LINE 19 | PURSUANT TO THE BYLAWS, A FULL AND ACCURATE SUMMARY OF THE INDEPENDENT AUDITOR'S REPORT SHALL BE SUBMITTED TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING, AND IS ALSO AVAILABLE IN THE OFFICE LOBBY UPON REQUEST. WHEN NEW MEMBERS JOIN THE COOPERATIVE THEY ARE PROVIDED A MEMBERSHIP PACKET THAT INCLUDES A COPY OF THE COOPERATIVE'S BYLAWS. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ADDITIONALLY, THE COOPERATIVE'S BYLAWS ARE POSTED ON ITS WEBSITE. |
| 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, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER AND HIGHLY COMPENSATED EMPLOYEE IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID ON BEHALF OF AND FOR THEIR BENEFIT. |
| FORM 990, PART VIII, LINE 2: | 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 WILL BE 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 $ 2,269,994 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (127,087) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (122,237) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 480,726 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY 256,980 TOTAL WAGES ACCRUED AND/OR PAID $ 2,758,376 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 1,344,837 OFFICE SUPPLIES 209,956 OUTSIDE SERVICES 77,720 REGULATORY COMMISSION 38,203 INJURIES AND DAMAGES 93,114 DUES TO ASSOCIATED ORGANIZATIONS 2,505 MISCELLANEOUS GENERAL 353,834 MAINTENANCE OF GENERAL PLANT 155,361 GENERAL ADVERTISING 47,219 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,322,749 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (127,087) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (843,999) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (434,845) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 916,818 |
| 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 CALENDAR TAX 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 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 720,113. PATRONAGE CAPITAL RETIRED -771,046. NET UNCLAIMED PATRONAGE CAPITAL RETAINED 1,346,426. NET CHANGE IN MEMBERSHIPS 4,574. |
| FORM 990, PART XII, LINE 2C: | THE BOARD AS A WHOLE ASSUMES RESPONSIBILITY FOR THE SELECTION OF AN INDEPENDENT AUDITOR AND OVERSEES AND APPROVES THE ANNUAL AUDIT AS PROVIDED FOR IN THE "DIRECTOR" ARTICLE OF THE COOPERATIVE'S BYLAWS. |
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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