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
HOWELL OREGON ELECTRIC COOPERATIVE INC
Employer identification number
44-0290777
44-0290777
| Return Reference | Explanation |
|---|---|
| PART 1, LINE 19 | THE COOPERATIVE OPERATES AT COST, AND, AS SUCH, ANY END OF YEAR MARGINS ARE ASSIGNED TO THE MEMBERSHIP AS PATRONAGE CAPITAL. THE CURRENT YEAR NET LOSS OF $1,200,000 REPORTED ON PART 1, LINE 19 - REVENUE LESS EXPENSES IS THE RESULT OF THE COOPERATIVE ALLOCATING $3,998,184 TO ITS MEMBERS EVEN THOUGH THE NET BOOK INCOME IS $2,798,184. SINCE THE AMOUNT OF THE PATRONAGE DIVIDEND IS REPORTED AS AN EXPENSE ON THE FORM 990, THE DIFFERENCE BETWEEN THE TWO AMOUNTS RESULTS IN A NET LOSS. THE REASON FOR THE LOSS IS DUE TO THE COOPERATIVE ADOPTING A REVENUE DEFERRAL PLAN IN ACCORDANCE WITH ACCOUNTING STANDARDS CODIFICATION 980 "REGULATED OPERATIONS" WHICH WAS APPROVED BY THE RURAL UTILITIES SERVICES AS THE PRIMARY LENDER. THE NET EFFECT FOR 2020 IS A REDUCTION OF NET INCOME FOR THE YEAR OF $1,200,000 AND THE RECOGNITION OF A REGULATORY LIABILITY OF THE SAME AMOUNT. THE APPROVED REVENUE DEFERRAL WILL BE RECOGNIZED INTO INCOME IN FUTURE YEARS AND IS DESIGNED TO CONTROL RATES BY HELPING TO OFFSET THE FUTURE POTENTIAL INCREASE IN POWER COSTS. REGARDLESS OF THE RATE DECISIONS TO DEFER REVENUE, THE AMOUNTS DEFERRED ARE ASSIGNABLE TO 2020 MEMBERS AS PATRONAGE DIVIDENDS. TO ASSIST IN UNDERSTANDING THE NET LOSS AND THE DIFFERENCE BETWEEN NET INCOME OF THE COOPERATIVE AND THE PATRONAGE DIVIDENDS ALLOCATED TO MEMBERS, THE 2020 PATRONAGE DIVIDEND IS CALCULATED AS FOLLOWS: 2020 NET MARGINS PER AUDITED FINANCIAL STATEMENTS: $2,798,184 PLUS: 2020 INCREASE IN DEFERRED REVENUE (TO BE RECOGNIZED INTO MARGINS IN FUTURE YEARS) +1,200,000 2020 PART 1, LINE 14 - BENEFITS PAID TO MEMBERS $3,998,184 THE NET EFFECT OF THE APPROVED REVENUE DEFERRAL PLAN IN 2019 WAS AN DECREASE IN REVENUE OF $1,000,000 AND THE INCREASE OF A REGULATORY LIABILITY FOR THE SAME AMOUNT. THE 2019 RECONCILIATION IS AS FOLLOWS: 2019 NET MARGINS PER AUDITED FINANCIAL STATEMENTS: $3,830,252 PLUS: 2019 INCREASE IN DEFERRED REVENUE (TO BE RECOGNIZED INTO MARGINS IN FUTURE YEARS) +1,000,000 2019 PART 1, LINE 14 - BENEFITS PAID TO MEMBERS $4,830,252 |
| FORM 990, PART VI, SECTION A, LINE 6 | THE COOPERATIVE HAS MEMBERS. THE COOPERATIVE WAS ORGANIZED BY AND FOR THE MUTUAL BENEFIT OF THE MEMBERS AND PROVIDES ELECTRIC ENERGY ON A COOPERATIVE BASIS. |
| FORM 990, PART VI, SECTION A, LINE 7A | THE MEMBER OF THE COOPERATIVE ELECT THE BOARD OF DIRECTORS AT THE ANNUAL MEETING. ONE MEMBER EQUALS ONE BALLOT. DIRECTOR ELIGIBILITY IS BASED ON VOTING DISTRICT, HOWEVER EACH MEMBER HAS ONE VOTE PER VOTING DISTRICT ON THE BALLOT. |
| FORM 990, PART VI, SECTION A, LINE 7B | ANY CHANGES OR AMENDMENT TO THE BYLAWS PROPOSED BY THE BOARD OF DIRECTORS MUST BE APPROVED BY THE MEMBERS. THE BYLAWS SET FORTH ADDITIONAL TRANSACTIONS THAT REQUIRE MEMBER APPROVAL. VOTING FOR ANY BYLAW CHANGES OCCURS AT THE ANNUAL MEETING, WITH EACH MEMBER GETTING ONE VOTE. |
| FORM 990, PART VI, SECTION B, LINE 11B | THE FORM 990 IS PRESENTED TO THE BOARD OF DIRECTORS AND REVIEWED BEFORE SIGNING AND FILING OF THE 990. |
| FORM 990, PART VI, SECTION B, LINE 12C | EACH DIRECTOR AND EMPLOYEE MUST DISCLOSE ANY SITUATION WHICH, IN HIS OR HER OPINION VIOLATES, MAY VIOLATE OR WOULD APPEAR TO VIOLATE THE INTENT OF THE POLICY. IN ADDITION, THE DIRECTORS AND STAFF OF HOEC ANNUALLY FILL OUT A CONFLICT OF INTEREST QUESTIONNAIRE TO FACILITATE DISCLOSURE. THE BOARD PRESIDENT IS RESPONSIBLE FOR THE ENFORCEMENT OF THE CONFLICT OF INTEREST POLICY AND ANY VIOLATIONS ARE BROUGHT BEFORE THE BOARD OF DIRECTORS. |
| FORM 990, PART VI, SECTION B, LINE 15 | ANNUALLY A SURVEY OF COMPARABLE WAGES FROM SIMILIAR COOPS IS OBTAINED AND REVIEWED TO ASSIST IN DETERMINING WAGES OF THE CEO AND OTHER OFFICER'S AND EMPLOYEES. ALSO ANNUALLY, BENEFITS UNLIMITED GROUP PERFORMS A WAGE ANALYSIS BY POSITION. THESE RESULTS ARE REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS PRIOR TO ANY WAGE ADJUSTMENTS. |
| FORM 990, PART VI, SECTION C, LINE 19 | EVERY NEW MEMBER IS GIVEN A COPY OF THE BYLAWS UPON JOINING THE COOPERATIVE, AND BYLAWS ARE AVAILABLE AT ANY TIME UPON REQUEST. THE FINANCIAL STATEMENTS ARE PRESENTED AT THE ANNUAL MEETING AND UPON REQUEST. THE CONFLICT OF INTEREST POLICY IS PRESENTED UPON REQUEST. |
| PART IX STATEMENT OF FUNCTIONAL EXPENSES | EXPENSES ARE RECORDED IN THE AUDITED FINANCIAL STATEMENTS IN ACCORDANCE WITH USDA/RURAL UTILITIES SERVICE BULLETIN 1767B-1, UNIFORM SYSTEM OF ACCOUNTS. EXPENSES FOR DIRECTORS, SALARY & WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES HAVE BEEN RECLASSIFIED OUT OF THEIR ORIGINAL CATEGORIES FOR FORM 990 PRESENTATION. ALL OTHER EXPENSES ARE RECORDED ON THE FORM 990 IN THEIR RESPECTIVE CATEGORIES IN ACCORDANCE WITH THE PRESCRIBED RUS ACCOUNTING REQUIREMENTS. THIS IS A SCHEDULE OF EXPENSES AND, AS SUCH, THESE AMOUNTS DO NOT INCLUDE AMOUNTS CAPITALIZED ON THE BALANCE SHEET. |
| FORM 990, PART XI, LINE 9: | 2020 PATRONAGE CAPITAL ASSIGNED TO MEMBERS 3,998,184. 2020 NET PATRONAGE CAPITAL RETIREMENTS -1,489. |
| FORM 990, PART XII, LINE 2C | THERE WERE NO CHANGES TO THE SELECTION PROCESS FOR THE AUDITOR OR THE OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT. |
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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