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
MOUNTAIN VIEW ELECTRIC ASSOCIATION
Employer identification number
84-0275175
84-0275175
| Return Reference | Explanation |
|---|---|
| PART I, LINE 15 | ON THE 2020 FORM 990, PART I, LINE 15, THE COOPERATIVE SEPARATELY STATED SALARIES AND WAGES, EMPLOYEE BENEFITS, AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH ITS ACCOUNTING SYSTEM. ON THE 2019 RETURN, THE COOPERATIVE DID NOT SEPARATELY STATE THESE EXPENSES. THE 2019 RETURN IS COMPLETE AND ACCURATE, BUT THE COOPERATIVE BELIEVES BY SEPARATELY STATING THESE EXPENSES ON THE 2020 RETURN A READER OF THE FORM 990 WILL BE MORE INFORMED. FUTURE YEARS RETURNS FILED BY THE COOPERATIVE WILL SEPARATELY STATE SALARIES AND WAGES, EMPLOYEE BENEFITS, AND PAYROLL TAXES, MAKING THE COMPARISON ON PAGE 1 MORE MEANINGFUL. |
| FORM 990, PART VI, SECTION A, LINE 1 | THE COOPERATIVE HAS 7 BOARD MEMBERS; ALL 7 ARE ALLOWED TO VOTE, HOWEVER THE BOARD PRESIDENT VOTES ONLY IN THE CASE OF A TIE. |
| FORM 990, PART VI, SECTION A, LINE 4 | DURING THE YEAR, THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE II - MEETINGS OF THE MEMBERS SECTION 1. "ANNUAL MEETING" WAS AMENDED TO SO THAT, AS DESIGNATED BY THE BOARD OF DIRECTORS, THE ANNUAL MEETING MY BE HELD AT A PHYSICAL LOCATION, AT BOTH A PHYSICAL LOCATION AND ALSO BY TELECONFERENCE OR BY TELECONFERENCE ONLY. SECTION 7. "VOTING" WAS AMENDED FOR THREE ITEMS. FIRST, ALL BALLOT QUESTIONS, INCLUDING FOR MAIL BALLOTING, WILL BE DECIDED BY A VOTE OF A MAJORITY OF THE MEMBERS VOTING AT A MEETING OF THE MEMBERS WHERE A QUORUM HAS BEEN ESTABLISHED. SECOND, MEMBERS OF THE ELECTIONS COMMITTEE ARE ALLOWED A FAIR REMUNERATION FOR THEIR SERVICE ON SUCH ELECTIONS COMMITTEE. THIRD, ANY DIRECTOR CANDIDATE LISTED ON A BALLOT MAY OBSERVE THE MEETING OF THE ELECTION COMMITTEE AND THE COUNTING OF BALLOTS. HOWEVER, A DIRECTOR CANDIDATE IS PROHIBITED FROM HANDLING ANY ELECTION MATERIALS OR CONVERSING WITH THE EMPLOYEES COUNTING THE BALLOT OR WITH MEMBERS OF THE ELECTIONS COMMITTEE. ADDITIONALLY, ANY QUESTIONS RAISED BY A DIRECTOR CANDIDATE MAY ONLY BE ADDRESSED TO THE CHAIR OF ELECTIONS COMMITTEE. ARTICLE III - DIRECTORS SECTION 2. "QUALIFICATIONS AND TENURE"CLARIFIES THAT DIRECTORS WILL BE ELECTED FOR A TERM TO EXPIRE AT THE THIRD ANNUAL MEETING OF MEMBERS AFTER THEIR ELECTION AND UNTIL THEIR SUCCESSORS ARE ELECTED AND QUALIFIED. SECTION 3. "NOMINATION AND ELECTION OF DIRECTORS" WAS AMENDED SO THAT DIRECTORS WILL BE ELECTED AT OR COINCIDENT WITH THE ANNUAL MEETING OF MEMBERS. THIS COINCIDES WITH THE ABILITY TO CONDUCT ELECTIONS ON LOCATION AND BY MAIL BALLOTING. ADDITIONALLY, THE AMENDMENTS ALLOW ELECTIONS FOR EACH DISTRICT TO BE CONDUCTED IN WRITING FOR A DIRECTOR'S TERM THAT IS PROJECTED TO EXPIRE BY THE TIME OF THE ANNUAL MEETING RATHER THAN HAVING ALREADY EXPIRED. THE ABOVE ITEMS WERE CONFIRMED BY THE MEMBERS AT THE 2020 ANNUAL MEETING. ADDITIONALLY, A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.MVEA.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 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 REGULARLY MONITORS COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. SUCH COMPLIANCE INVOLVES A "CERTIFICATE TO DISCLOSE ANY CONFLICTS OF INTEREST", WHICH IS COMPLETED ANNUALLY BY EACH DIRECTOR, THE CEO, EACH EXECUTIVE TEAM MEMBER AND THE COOPERATIVE'S ATTORNEY. IN ADDITION, ANY NEWLY APPOINTED OR ELECTED BOARD MEMBERS OR INDIVIDUALS RECENTLY HIRED IN THE CAPACITY OF CEO, EXECUTIVE TEAM MEMBER OR THE COOPERATIVE ATTORNEY WILL COMPLETE A CERTIFICATE. THESE CETIFICATES WILL BE SUBMITTED TO THE BOARD PRESIDENT FOR REVIEW AND APPROPRIATE ACTION. THE ATTORNEY IS RESPONSIBLE FOR MAINTAINING A CURRENT FILE OF THESE CERTIFICATES. IT IS THE GOAL OF THE POLICY FOR THE DIRECTORS, CEO, EXECUTIVE TEAM AND THE COOPERATIVE'S ATTORNEY TO AVOID THE APPEARANCE OR EXISTENCE OF CONFLICTS OF INTEREST. WHEN A POTENTIAL CONFLICT OF INTEREST OR A SITUATION ARISES THAT VIOLATES, MAY VIOLATE OR COULD APPEAR TO VIOLATE THE INTENT OF THE POLICY, A FULL AND OPEN DISCLOSURE OF THE FACTS SHALL BE MADE TO THE BOARD. THE BOARD THEN MAKES THE PROPER INQUIRY, REQUESTS THE OPINION OF THE COOPERATIVE'S ATTORNEY AND MAKES A DETERMINATION IF A VIOLATION OF THE POLICY OR A CONFLICT OF INTEREST EXISTS. IF THIS DETERMINATION IS MADE, THE DIRECTOR WILL BE EXCUSED FROM THE MEETING AND NOT ALLOWED TO PARTICIPATE IN THE DISCUSSION AND DECISIONS ON SUCH MATTERS. IF A DIRECTOR WITH A CONFLICT OF INTEREST THAT IS KNOWN TO OTHER DIRECTORS DOES NOT DECLARE THE CONFLICT OF INTERET OR LEAVE THE MEETING FOLLOWING SUCH DECLARATION, THE BOARD MAY, UPON MOTION, VOTE TO DIRECT THE DIRECTOR LEAVE THE MEETING FOR DISCUSSION AND VOTE. |
| FORM 990, PART VI, SECTION B, LINE 15 | THE BOARD OF DIRECTORS ANNUALLY APPROVES THE COMPENSATION FOR THE CHIEF EXECUTIVE OFFICER. THIS PROCESS INVOLVES THE USE OF A THIRD PARTY COMPENSATION SURVEY AND AN INTERNAL PERFORMANCE REVIEW. THE CHIEF EXECUTIVE OFFICER USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT THE STATE. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE MEMBERS AND PUBLIC UPON REQUEST. THE BYLAWS AND THE ANNUAL REPORT, WHICH INCLUDES A SUMMARIZED SET OF FINANCIAL STATEMENTS, CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE (WWW.MVEA.COOP). |
| 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 TO SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS, KEY EMPLOYEES AND HIGHEST 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, KEY EMPLOYEES AND HIGHEST COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN BENEFITS FOR THE DEFINED BENEFIT PLAN, TOTAL AMOUNT CONTRIBUTED BY THE ASSOCIATION TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. |
| 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 COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE. THE USOA GENERALLY 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. ALL OTHER EXPENSES OF THE COOPERATIVE ARE REPORTED ON THE APPLICABLE LINE BASED ON THE FUNCTIONAL 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 9,365,609 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (100,850) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (190,020) LESS: KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (314,658) PLUS: SALARIES & WAGES ALLOCATED TO NONOPERATING MARGINS 107,308 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 4,552,177 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 333,029 TOTAL WAGES ACCRUED AND/OR PAID $13,752,595 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,259,327 OFFICE SUPPLIES 160,353 OUTSIDE SERVICES 183,809 EMPLOYEE BENEFITS & TRAINING 44,117 INSURANCES AND DAMAGES 21,280 DIRECTORS 155,641 ANNUAL MEETING EXPENSE 118,501 CAPITAL CREDITS EXPENSE 36,051 DUES TO ASSOCIATED ORGANIZATIONS 113,586 MISCELLANEOUS GENERAL EXPENSE 5,028 REGULATORY COMMISSION 12,254 RENT EXPENSE 38,000 MAINTENANCE OF GENERAL PLANT 822,441 OTHER - CHARGES FOR INTERNAL USE OF ELECTRICITY (160,294) TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,810,094 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (100,850) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,687,107) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (731,607) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,290,530 |
| FORM 990, PART IX, LINE 24E: | OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: INTERCONNECTION EXPENSE $ 171,383 SALES EXPENSE 208,147 TRANSMISSION EXPENSE 159,282 OTHER DEDUCTIONS 92,713 TOTAL OTHER EXPENSES BEFORE RECLASSIFICATIONS $ 631,525 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (108,983) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 ( 47,260) TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 475,282 |
| 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 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 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 ASSIGNED OR ASSIGNABLE 8,487,192. PATRONAGE CAPITAL RETIRED - TOTAL -4,205,157. PATRONAGE CAPITAL RETIRED - DISCOUNT 99,209. OTHER COMPREHENSIVE INCOME -65,594. UNCLAIMED PATRONAGE CAPITAL RECLAIMED -7,325. |
| FORM 990, PART XII, LINE 2B: | AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR-END OF JULY 31ST. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31. |
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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