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
SANTEE ELECTRIC COOPERATIVE INC
Employer identification number
57-0240935
57-0240935
| Return Reference | Explanation |
|---|---|
| FORM 990 - ORGANIZATION'S MISSION | TO PROVIDE QUALITY SERVICE AND PRODUCTS TO MEET THE ENERGY NEEDS OF OUR MEMBERS AT A COMPETITIVE PRICE CONSISTENT WITH SOUND BUSINESS PRACTICES, WHILE ENHANCING THE QUALITY OF LIFE IN OUR SERVICE AREA THROUGH THE SUPPORT OF ECONOMIC, CIVIC AND EDUCATIONAL OPPORTUNITIES. |
| FORM 990, PART VI | DISCLOSURE REQUIREMENT: TRUSTEES ARE REQUIRED TO DISCLOSE ANY GOODS/SERVICES PROVIDED BY ANY COMPANY (OF WHICH THE COOPERATIVE IS NOT AN OWNER AND/OR A MEMBER) THAT HAS/DESIRES A BUSINESS RELATIONSHIP WITH THE COOPERATIVE. THE TRUSTEES WERE ASKED TO DISCLOSE ANY SUCH ITEMS AT OUR FEBRUARY 25, 2021 BOARD MEETING, AND THERE WERE NO KNOWN CASES REPORTED. |
| FORM 990, PAGE 6, PART VI, LINE 6 | THE COOPERATIVE HAS MEMBERS WHO ELECT MEMBERS OF THE GOVERNING BODY AS PROVIDED FOR IN ITS BYLAWS WHICH ARE INCLUDED AS A PART OF THIS RETURN. |
| FORM 990, PAGE 6, PART VI, LINE 7A | THE COOPERATIVE HAS MEMBERS WHO ELECT MEMBERS OF THE GOVERNING BODY AS PRO VIDED FOR IN ITS BYLAWS WHICH ARE INCLUDED AS A PART OF THIS RETURN. |
| FORM 990, PAGE 6, PART VI, LINE 7B | CERTAIN DECISIONS OF THE GOVERNING BODY ARE SUBJECT TO APPROVAL BY MEMBERS AS PROVIDED FOR IN ITS BYLAWS WHICH ARE INCLUDED AS A PART OF THIS RETURN. |
| FORM 990, PAGE 6, PART VI, LINE 11B | FORM 990 IS REVIEWED BY THE BOARD WITH ALL SUPPORTING DOCUMENTATION MADE AVAILABLE TO THEM. |
| FORM 990, PAGE 6, PART VI, LINE 12C | THE COOPERATIVE REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THEIR CONFLICT OF INTEREST POLICY AS PROVIDED FOR IN ITS POLICY WHICH IS INCLUDED AS A PART OF THIS RETURN. |
| FORM 990, PAGE 6, PART VI, LINE 15A | THE MARKET RANGE FOR THE TOP OFFICIAL IS DETERMINED LIKE ALL OF THE OTHER EMPLOYEES - BASED ON SALARY STATISTICS FOR THE COOPERATIVES THROUGHOUT THE STATE. THE NATIONAL TRADE ASSOCIATION, NRECA, COLLECTS THE DATA AND MAKES IT AVAILABLE TO THOSE WILLING TO PAY A SMALL FEE FOR THE ANNUAL REPORT. USING THAT REPORT OF DATA, SANTEE DETERMINES WHAT THE AVERAGE PAY IN SOUTH CAROLINA IS FOR ANY COMMON POSITION, INCLUDING TOP OFFICER. THE DATA CAN BE BROKEN DOWN THREE DIFFERENT WAYS BY COOPERATIVE SIZE AND IT CAN ALSO BE STUDIED FOR THE ENTIRE GROUP OF 20 COOPERATIVES IN SOUTH CAROLINA. ONCE THE MARKET RANGE IS DETERMINED, THEN THE EMPLOYEE IS MEASURED AGAINST HIS/HER POSITION DESCRIPTION TO DETERMINE WHERE HE/SHE SHOULD BE IN RELATION TO THE APPROPRIATE MARKET VALUE. THESE RAISES ARE LIMITED BY THE COLLECTIVE AMOUNT THAT THE BOARD APPROVES FOR RAISES WHEN THEY APPROVE THE BUDGET EACH YEAR. THIS RAISE BUDGET AMOUNT IS DETERMINED BY THE COOPERATIVE'S PERFORMANCE IN THREE CAREGORIES - BOTTOM LINE, SAFETY, AND POWER RELIABILITY. THE BOARD ALSO PROVIDES AN ANNUAL COST OF LIVING ADJUSTMENT TO BE ADDED TO THE PERFORMANCE ADJUSTMENT. |
| FORM 990, PAGE 6, PART VI, LINE 15B | THE MARKET RANGE FOR OFFICERS AND KEY EMPLOYEES IS DETERMINED IN THE SAME MANNER AS ALL OTHER COOPERATIVE EMPLOYEES - BASED ON SALARY STATISTICS FOR THE COOPERATIVES THROUGHOUT THE STATE OF SOUTH CAROLINA. THE NATIONAL TRADE ASSOCIATION, NRECA, COLLECTS THE DATA AND MAKES IT AVAILABLE TO THOSE WILLING TO PAY A SMALL FEE FOR THE ANNUAL REPORT. USING THE DATA FROM THAT REPORT, SANTEE DETERMINES WHAT THE AVERAGE PAY IN SOUTH CAROLINA IS FOR ANY COMMON POSITION, INCLUDING OFFICERS OR KEY EMPLOYEES. THE NRECA DATA CAN BE BROKEN DOWN INTO MULTIPLE WAYS BY COOPERATIVE SIZE AND IT CAN ALSO BE ANALYZED FOR THE ENTIRE GROUP OF 20 COOPERATIVES IN SOUTH CAROLINA. ONCE THE MARKET RANGE IS DETERMINED, THEN THE EMPLOYEE IS MEASURED AGAINST HIS/HER POSITION DESCRIPTION TO DETERMINE WHERE HE/SHE SHOULD BE IN RELATION TO THE APPROPRIATE MARKET VALUE. THESE RAISES ARE LIMITED BY THE COLLECTIVE AMOUNT THAT THE BOARD APPROVES FOR RAISES WHEN THEY APPROVE THE ANNUAL BUDGET. THE RAISE BUDGET AMOUNT IS DETERMINED BY THE COOPERATIVE'S PERFORMANCE IN THREE CAREGORIES - BOTTOM LINE, SAFETY, AND POWER RELIABILITY. THE BOARD ALSO PROVIDES AN ANNUAL COST OF LIVING ADJUSTMENT TO BE ADDED TO THE PERFORMANCE ADJUSTMENT. |
| FORM 990, PAGE 6, PART VI, LINE 19 | THE COOPERATIVE MAKES ITS BYLAWS, CONFLICT OF INTEREST POLICY, AND FINANCI AL STATEMENTS AVAILABLE TO THE PUBLIC AS PART OF ITS FORM 990. THE FORM 9 90 IS AVAILABLE UPON REQUEST AS REFLECTED IN PART VI SECTION C LINE 18. |
| FORM 990, PART VII | THE DAILY PER DIEM AMOUNT OF 500 PLACES SANTEE ELECTRIC WITHIN RANGE OF THE AVERAGE FOR OUR STATE AND REGION. WHILE THIS IS NOT CONSIDERED TRADITIONAL COMPENSATION, THE PER DIEM REIMBURSEMENT DOES SERVE TWO VERY IMPORTANT PURPOSES. (1) IT SERVES AS A REMINDER AND AN AGREEMENT THAT THE TRUSTEE OWES A FIDUCIARY DUTY TO THE COOPERATIVE THEY HAVE AGREED TO SERVE. (2) FURTHERMORE, BECAUSE OF THE QUALIFICATIONS REQUIRED TO SERVE ON THE BOARD OF SEC - WITH ANNUAL REVENUES AND TOTAL ASSETS WELL IN EXCESS OF 100M/YEAR AND 200M, RESPECTIVELY - THE MEMBERS OF OUR BOARD QUITE OFTEN HAVE A WIDE RANGE OF RESPONSIBILITIES OUTSIDE OF THEIR BOARD SERVICE. PER DIEM IS A METHOD OF REIMBURSING THEM FOR THE TIME THEY DEDICATE TO THIS SERVICE AND FOR THE EXPERTISE THEY BRING TO THE TABLE. BOARD COMPENSATION IS COMPOSED OF THE FOLLOWING: BILLY MORRIS: REGULAR BOARD MEETING - 6,000 SPECIAL BOARD AND COMMITTEE MEETINGS - 7,000 COOPERATIVE SERVICE ORGANIZATION MEETINGS - -0- TRAINING AND CERTIFICATION - 1,500 TRAVEL EXPENSE AND REGISTRATION FEES (PAID & REIMBURSED) - 959.76 INSURANCE - 21,493.32 OTHER FRINGE BENEFITS - 490.20 TOTAL - 37,443.28 ANDY MCKNIGHT: REGULAR BOARD MEETING - 6,000 SPECIAL BOARD AND COMMITTEE MEETINGS - 7,500 COOPERATIVE SERVICE ORGANIZATION MEETINGS - 4,000 TRAINING AND CERTIFICATION - 3,500 TRAVEL EXPENSE AND REGISTRATION FEES (PAID & REIMBURSED) - 4,012.36 INSURANCE - 12,068.16 OTHER FRINGE BENEFITS - 490.20 TOTAL - 37,570.72 STANLEY PASLEY: REGULAR BOARD MEETING - 5,500 SPECIAL BOARD AND COMMITTEE MEETINGS - 7,000 COOPERATIVE SERVICE ORGANIZATION MEETINGS - 3,500 TRAINING AND CERTIFICATION - 3,500 TRAVEL EXPENSE AND REGISTRATION FEES (PAID & REIMBURSED) - 1,565.31 INSURANCE - 20,751.12 OTHER FRINGE BENEFITS - 490.20 TOTAL - 42,306.63 DON COKER: REGULAR BOARD MEETING - 6,000 SPECIAL BOARD AND COMMITTEE MEETINGS - 5,000 COOPERATIVE SERVICE ORGANIZATION MEETINGS - 6,500 TRAINING AND CERTIFICATION - 2,000 TRAVEL EXPENSE AND REGISTRATION FEES (PAID & REIMBURSED) - (483.69) INSURANCE - 12,185.88 OTHER FRINGE BENEFITS - 490.20 TOTAL - 31,692.39 WALTER SANDERS: REGULAR BOARD MEETING - 6,000 SPECIAL BOARD AND COMMITTEE MEETINGS - 5,000 COOPERATIVE SERVICE ORGANIZATION MEETINGS - 2,000 TRAINING AND CERTIFICATION - 4,000 TRAVEL EXPENSE AND REGISTRATION FEES (PAID & REIMBURSED) - 2,633.50 INSURANCE - -0- OTHER FRINGE BENEFITS - 490.20 TOTAL - 20,123.70 ALLEN NESMITH: REGULAR BOARD MEETING - 6,000 SPECIAL BOARD AND COMMITTEE MEETINGS - 5,500 COOPERATIVE SERVICE ORGANIZATION MEETINGS - 4,500 TRAINING AND CERTIFICATION - 3,000 TRAVEL EXPENSE AND REGISTRATION FEES (PAID & REIMBURSED) - 4,124.37 INSURANCE - -0- OTHER FRINGE BENEFITS - 490.20 TOTAL - 23,614.57 HARRY WALTERS: REGULAR BOARD MEETING - 6,000 SPECIAL BOARD AND COMMITTEE MEETINGS - 5,500 COOPERATIVE SERVICE ORGANIZATION MEETINGS - -0- TRAINING AND CERTIFICATION - 1,500 TRAVEL EXPENSE AND REGISTRATION FEES (PAID & REIMBURSED) - 1,180.16 INSURANCE - -0- OTHER FRINGE BENEFITS - 490.20 TOTAL - 14,670.36 BILL FLOYD: REGULAR BOARD MEETING - 6,000 SPECIAL BOARD AND COMMITTEE MEETINGS - 5,000 COOPERATIVE SERVICE ORGANIZATION MEETINGS - 2,000 TRAINING AND CERTIFICATION - 3,500 TRAVEL EXPENSE AND REGISTRATION FEES (PAID & REIMBURSED) - 1,654.25 INSURANCE - -0- OTHER FRINGE BENEFITS - 490.20 TOTAL - 18,644.45 DUDLEY MUSIER: REGULAR BOARD MEETING - 6,000 SPECIAL BOARD AND COMMITTEE MEETINGS - 6,500 COOPERATIVE SERVICE ORGANIZATION MEETINGS - 5,500 TRAINING AND CERTIFICATION - 3,000 TRAVEL EXPENSE AND REGISTRATION FEES (PAID & REIMBURSED) - 4,320.72 INSURANCE - -0- OTHER FRINGE BENEFITS - 490.20 TOTAL - 25,810.92 THERE ARE SEVERAL PURPOSES FOR THE SPECIAL BOARD MEETINGS AND COMMITTEE MEETINGS HELD THIS YEAR AND EVERY YEAR. SEVERAL SPECIAL MEETINGS RESULTED FROM THE LEGISLATION PASSED BY THE SC GENERAL ASSEMBLY IN 2019 THAT IMPACTED THE ELECTRIC COOPERATIVES OF OUR STATE. AS FOR THE COMMITTEE MEETINGS: (1) THE INSURANCE COMMITTEE (TRUSTEES SANDERS, MUSIER, AND FLOYD) TYPICALLY MEETS ONCE PER YEAR TO DISCUSS EMPLOYEE INSURANCE AND BENEFITS. (2) THE FINANCE/ETHICS COMMITTEE (TRUSTEES MORRIS, COKER, AND NESMITH) TYPICALLY MEETS 1-2 TIMES PER YEAR TO DISCUSS THE COOPERATIVE BUDGET. (3) THE SETTING GOALS/EXPECTATIONS COMMITTEE (TRUSTEES NESMITH, PASLEY, AND MORRIS) TYPICALLY MEETS 1-2 TIMES PER YEAR TO DEAL WITH THE CEO'S EVALUATION, GOALS, AND APPRAISAL. (4) FINALLY, THE POLICY COMMITTEE (TRUSTEES PASLEY, MUSIER, WALTERS, AND MORRIS) TYPICALLY MEETS 2-3 TIMES PER YEAR TO KEEP THE COOPERATIVE'S GOVERNING POLICIES CURRENT WITH TODAYS LAWS AND CIRCUMSTANCES. HOWEVER, DUE TO THE AFOREMENTIONED LEGISLATION, THIS COMMITTEE WAS TASKED WITH A FUNDAMENTAL RE-WRITE OF THE COOPERATIVE'S BYLAWS AND THE BYLAWS OF THE OPERATION ROUND-UP TRUST ORGANIZATION. THIS, OF COURSE, TOOK NUMEROUS MEETINGS TO ACCOMPLISH. THE CHAIRMAN, CURRENTLY ANDY MCKNIGHT, IS REQUIRED TO SERVE AS AN EX-OFFICIO MEMBER OF EACH COMMITTEE AND IS EXPECTED TO ATTEND ALL COMMITTEE MEETINGS. TRUSTEES ARE REQUIRED FROM TIME TO TIME TO PARTICIPATE IN MEETINGS OF SERVICE ORGANIZATIONS TO WHICH THE COOPERATIVE BELONGS. SINCE INDIVIDUAL COOPERATIVES ARE NECESSARILY SMALL, THEY FORM LARGER OPRGANIZATIONS TO SERVE COMMON NEEDS. OUR MATERIALS SUPPLIER, OUR NATIONAL TRADE ASSOCIATION, OUR STATEWIDE TRADE ASSOCIATION, AND OUR WHOLESALE POWER SUPPLIER ARE SUCH EXAMPLES. PARTICIPATING IN THEIR MEETINGS IS CRUCIAL IN MAKING SURE SANTEE ELECTRIC COOPERATIVE IS WELL-REPRESENTED AT EVERY LEVEL. A GREAT DEAL IS REQUIRED OF OUR TRUSTEES - INCLUDING GETTING (AND MAINTAINING) AN EDUCATION IN ALL THINGS THAT IMPACT THE COOPERATIVE. FOR THIS REASON, WE REQUIRE THEM TO PARTICIPATE IN QUITE A LOT OF TRAINING AND CERTIFICATION. WHILE WE REQUIRE THAT ALL TRUSTEES MAINTAIN A CERTAIN LEVEL AT ALL TIMES, THERE IS A HEAVIER BURDEN PLACED ON NEWER TRUSTEES TO ATTAIN CERTIFICATION QUICKLY. FOR THIS REASON, YOU TYPICALLY SEE SOME OF OUR NEWER TRUSTEES (WALTERS, FLOYD, AND MUSIER) WITH SLIGHTLY HIGHER FIGURES IN THE CATEGORY. UNTIL RECENTLY, SEC - LIKE MANY OF THE NATION'S COOPERATIVES - PROVIDED HEALTH INSURANCE (CONSIDERED A FRINGE BENEFIT) FOR ITS TRUSTEES. THE PRACTICE OF PROVIDING THIS FOR NEW TRUSTEES HAS BEEN SUSPENDED. HOWEVER THERE ARE FOUR TRUSTEES THAT STILL REMAIN UNDER THE OLD PROGRAM. IN THE OTHER FRINGE BENEFITS CATEGORY, EACH TRUSTEE WAS GIVEN (1) A CHRISTMAS GIFT BY THE COOPERATIVE (VALUED AT 366.21 EACH), (2) A BOX OF ANNUAL MEETING GIFTS (VALUED AT 110.61 PER TRUSTEE) TO DISTRIBUTE TO MEMBERS IN THEIR DISTRICT WHO WERE UNABLE TO ATTEND THIS YEAR'S ANNUAL MEETING, AND (3) A COOPERATIVE HAT (VALUED AT 13.38 EACH). ANDY MCKNIGHT AND ROBERT ARDIS III RECEIVED 10,635 AND 26,942 IN COMPENSATION, RESPECTIVELY, FROM CENTRAL ELECTRIC COOPERATIVE, INC. (CENTRAL) IN 2020. CENTRAL DOES NOT MEET THE DEFINITION OF A RELATED ORGANIZATION FOR PURPOSES OF THE FORM 990 AND ARE NOT INCLUDED ON PART R. MR. MCKNIGHT AND MR. ARDIS ONLY HAVE THE ABILITY TO SERVE ON THE BOARD OF CENTRAL BECAUSE THEY ARE OFFICERS OF SANTEE ELECTRIC COOPERATIVE, INC. (SANTEE). CENTRAL IS A GENERATION AND TRANSMISSION COOPERATIVE THAT EXISTS SOLELY FOR THE BENEFIT OF ITS MEMBERS. CENTRAL PROVIDES A RELIABLE, LONG-TERM, AND STABLE SUPPLY OF POWER, WHICH ACCOMODATES GROWTH, AT THE LOWEST POSSIBLE COST CONSISTENT WITH GOOD UTILITY PRACTICE. CENTRAL PROVIDES FOR RELIABLE DELIVERY OF POWER WHEN AND WHERE DESIRED, CONSISTENT WITH APPLICABLE GUIDELINES. CENTRAL PROVIDES ADDITIONAL ENERGY-RELATED OR DELIVERY-RELATED SERVICES, AS DIRECTED BY ITS BOARD OF TRUSTEES. SANTEE HAS A WHOLESALE POWER CONTRACT WITH CENTRAL THAT EXTENDS THROUGH 2058. SANTEE ECI PAID CENTRAL 84,966,343 DURING 2020. |
| FORM 990, PART XI, LINE 9 | PATRONAGE CAPITAL CREDITS 5,604,436 OTHER COMPREHENSIVE INCOME 1,640,599 MEMBERSHIPS 1,420 OTHER 154,703 CAPITAL CREDIT RETIREMENTS -1,891,306 TOTAL 5,509,852 |
| FORM 990, PART XII | THE COOPERATIVE'S FISCAL YEAR END IS JUNE 30TH. THE COOPERATIVE'S FINANCIAL STATEMENTS WERE AUDITED AS OF JUNE 30, 2020 AND 2019. THE COOPERATIVE RECEIVED AN UNMODIFIED (CLEAN) AUDIT OPINION FOR EACH OF THE YEARS ENDED JUNE 30, 2020 AND 2019. |
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
| Software ID: | |
| Software Version: |