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
2020
Open to Public
Inspection
Inspection
Name of the organization
BIG COUNTRY ELECTRIC COOPERATIVE INC
Employer identification number
75-2791424
75-2791424
| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 1 | PER 990 INSTRUCTIONS, DIRECTOR HELMS IS NOT INDEPENDENT DUE TO A FAMILY MEMBER ENGAGING IN A TRANSACTION WITH THE COOPERATIVE. THE TRANSACTION IS KNOWN TO ALL MEMBERS OF THE BOARD. |
| FORM 990, PART VI, SECTION A, LINE 4 | DURING THE YEAR, THE BYLAWS OF THE COOPERATIVE WERE AMENDED. THE FOLLOWING IS A SUMMARY OF APPROVED CHANGES: ARTICLE V - MEETINGS OF MEMBERS SECTION 5.01. ANNUAL MEETING, WAS AMENDED TO ADD THAT MEETINGS MAY BE HELD THROUGH ELECTRONIC OR OTHER COMMUNICATIONS AND ARE NOT REQUIRED TO BE IN PERSON. SECTION 5.04. QUORUM, WAS AMENDED TO ALLOW ELECTRONIC VOTING. SECTION 5.05. VOTING, WAS AMENDED TO ADD THAT THE COOPERATIVE WILL ADOPT RULES AND GUIDELINES FOR SUCH ALTERNATIVE VOTING METHODS "AT ITS DISCRETION" TO ENSURE THE INTEGRITY OF VOTING. ARTICLE VI - DIRECTORS SECTION 6.03. ELECTION, WAS AMENDED TO ADD THAT DIRECTORS SHALL BE ELECTED BY THE VERIFIED MEMBERS USING A METHOD OR METHODS AUTHORIZED AND ADOPTED BY THE BOARD OF DIRECTORS. SECTION 6.06. NOMINATIONS, WAS AMENDED TO ADD THAT "ONLY CANDIDATES WHOSE NAMES APPEAR ON THE BALLOT ARE ELIGIBLE FOR ELECTION; WRITE-IN CANDIDATES AND/OR NOMINATIONS FOR THE FLOOR ARE PROHIBITED AND DELETED "THERE SHALL BE NO NOMINATIONS FROM THE FLOOR AT THE ANNUAL MEETING, EXCEPT AS MAY BE ALLOWED PURSUANT TO THE PROVISIONS OF SECTION 6.08". SECTION 6.07. VOTING FOR DIRECTORS; VALIDITY OF BOARD ACTION, WAS AMENDED TO CHANGE "BALLOTS MARKED" TO "VOTES CAST". A COMPLETE COPY OF THE BYLAWS ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.BIGCOUNTRY.COOP. |
| 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. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSET 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. THE DISCUSSION AND REVEIW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. |
| FORM 990, PART VI, SECTION B, LINE 12C | THE COOPERATIVE'S ATTORNEY REVIEWS THE COOPERATIVE'S POLICIES, SPECIFICALLY THE COOPERATIVE'S CONFLICT OF INTEREST POLICY, WITH THE BOARD ANNUALLY. DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. AT THE BOARD'S DISCRETION, A DIRECTOR WITH A POSSIBLE CONFLICT OF INTEREST WILL ABSTAIN FROM VOTING ON RELATED TRANSACTIONS. BOARD MINUTES NOTE ANY POSSIBLE CONFICT OF INTEREST INQUIRIES. |
| FORM 990, PART VI, SECTION B, LINE 15 | ANNUALLY, THE BOARD OF DIRECTORS PERFORM A REVIEW AND UTILIZE INTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE CEO. THE CEO UTILIZES AN INDPENDENT CONSULTANT AND COMPENSATION SURVEY TO DETERMINE THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE, IF ANY. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS IS PROVIDED TO ANY MEMBER WHO REQUESTS A COPY. THE COOPERATIVE'S BYLAWS ARE ALSO AVAILABLE 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 HIGLY 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 OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE THE TOTAL CONTRIBUTIONS MADE BY THE COOPERATIVE TO THE PENSION PLANS AND INSURANCE 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: | ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITY SERVICES (RUS) BORROWER, ITS ACCOUNTING RECORDS 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 ITS 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 $ 4,684,497 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (99,400) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (538,141) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 16,174 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,177,603 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 194,740 TOTAL WAGES ACCRUED AND/OR PAID $ 5,435,473 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES $ 1,608,024 OFFICE SUPPLIES 52,375 OUTSIDE SERVICES 79,775 DIRECTORS 106,240 ASSOCIATION DUES 60,347 ADVERTISING 119,176 PUBLIC RELATIONS 140,175 MISCELLANEOUS GENERAL 748,808 ANNUAL MEETING 13,292 REGULATORY COMMISSION 49,778 PROPERTY INSURANCE 31,640 INJURIES AND DAMAGES 36,207 MAINTENANCE OF GENERAL PLANT 333,076 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,378,913 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (71,200) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (99,400) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,217,346) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (640,290) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,350,677 |
| 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 2020 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: CONSUMER $ 348,867 TAXES 13,628 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 362,495 |
| FORM 990, PART XI, LINE 9: | PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,999,045. PATRONAGE CAPITAL RETIRED - TOTAL -572,712. PATRONAGE CAPITAL RETIRED - DISCOUNT 29,078. NET CHANGE IN MEMBERSHIPS 3,170. OTHER COMPREHENSIVE INCOME (LOSS) -25,074. |
| 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) 2020
Additional Data
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