TIN:
SCHEDULE O
(Form 990)
Department of the Treasury
Internal Revenue Service
(Form 990)
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
2021
Open to Public
Inspection
Inspection
Name of the organization
DELTA MONTROSE ELECTRIC ASSOCIATION
Employer identification number
84-0185658
84-0185658
| Return Reference | Explanation |
|---|---|
| FORM 990, PART I, LINE 5: | THE NUMBER OF EMPLOYEES REPORTED ON LINE 5 REPRESENTS THE NUMBER OF W-2'S ISSUED BY THE COOPERATIVE AND NOT NECESSARILY THE NUMBER OF EMPLOYEES NORMALLY EMPLOYED BY THE COOPERATIVE AND REPORTED TO RUS. |
| FORM 990, LINE B - AMENDED RETURN | ON AUGUST 24, 2021, THE BOARD OF DIRECTORS AMENDED THE BYLAWS AFTER A COMPREHENSIVE REVIEW. A SUMMARY OF THESE AMENDMENTS IS INCLUDED IN THE SCHEDULE O DISCLOSURE FOR FORM 990, PART VI, LINE 4. WHEN THE 2021 FORM 990 WAS ORIGINALLY FILED, THE SUMMARY OF BYLAW AMENDMENTS INCORRECTLY SUMMARIZED THE IMPACT OF CHANGES MADE TO SECTION 2.1 AND AND INADVERTENTLY INCLUDED A NEW SECTION 2.8 ON BINDING ARBITRATION THAT WAS ULTIMATELY NOT ADOPTED BY THE BOARD. FIRST, THE SUMMARY FOR SECTION 2.1 ON QUALIFICATIONS AND OBLIGATIONS IMPLIES THAT IT WAS MODIFID FOR ONLY LEGAL ENTITY PERSONS. HOWEVER, THE MEMBERSHIP QUALIFICATIONS AND OBLIGATIONS WERE MODIFIED FOR ALL PERSONS ELIGIBLE FOR MEMBERSHIP. THE DEFINITION F THE TERM "PERSON" DID NOT CHANGE AND CONTINUES TO BE DEFINED AS ANY PERSON, FIRM, ASSOCIATION, CORPORATION, COOPERATIVE OR BODY POLITIC OR SUBDIVISION THEREOF OR ANY OTHER LEGAL ENTITY. ACCORDINGLY, THE SCHEDULE O DISCLOSURE FOR FORM 990, PART VI, LINE 4 HAS BEEN MODIFIED SO THAT THE TERM "LEGAL ENTITY" WAS REPLACED WITH THE DEFINED TERM "PERSON" SO THAT IT IS CLEAR THAT THE AMENDMENT APPLIES TO ALL QUALIFYING PERSONS AND NOT JUST LEGAL ENTITIES. SECONDLY, THE SUMMARY OF BYLAW CHANGES INADVERTENTLY INCLUDED THE CONTENTS OF A NEW SECTION 2.8 ON BINDING ARBITRATION; THE PURPOSE OF WHICH WAS TO PROVIDE THE FRAMEWORK AND CONTROLLING LAW FOR DISPUTE RESOLUTION BETWEEN THE COOPERATIVE AND ITS MEMBERS. ALTHOUGH SECTION 2.8 BINDING ARBITRATION WAS CONSIDERED BY THE BOARD IN AN EARLY REDLINE DRAFT OF THE PROPOSED AMENDMENTS, SECTION 2.8 WAS EXCLUDED FROM THE FINAL VERSION THAT THE BOARD APPROVED ON AUGUST 24,2021 AND IS NOT PART OF THE BYLAWS CURRENTLY IN EFFECT FOR THE COOPERATIVE AND ITS MEMBERS. THEREFORE, THE COOPERATIVE HAS AMENDED THE 2021 FORM 990 IN ORDER TO REMOVE SECTION 2.8 BINDING ARBITRATION FROM THE SCHEDULE O DISCLOSURE FOR FORM 990, PART VI, LINE 4. |
| 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 MADE: ARTICLE 2 - MEMBERSHIP, SECTION 2.1 QUALIFICATIONS AND OBLIGATIONS WAS AMENDED TO PROVIDE THAT ANY PERSON WILL BECOME A MEMBER WHEN THAT PERSON HAS COMPLETED A WRITTEN MEMBERSHIP APPLICATION; AGREES TO RECEIVE, PURCHASE OR OTHERWISE USE ELECTRIC ENERGY PROVIDED BY THE COOPERATIVE; GRANTS TO THE COOPERATIVE A WRITTEN EASEMENT FOR USE OF THE MEMBER'S PROPERTY FOR BOTH ELECTRIC AND COMMERICAL TELECOMMUNICATIONS PURPOSES; AND AGREES TO COMPLY WITH THE COOPERATIVE'S GOVERNING DOCUMENTS. ALSO ADDED THE MEMBER WILL BE BOUND BY THE COOPERATIVE'S RATE, FEE, DEPOSIT, OR PRICE SCHEDULES. NOTHWITHSTANDING ANYTHING TO THE CONTRARY IN THE BYLAWS, A PERSON WHO ONLY HAS AN IDLE SERVICE WITH THE COOPERATIVE IS NOT A MEMBER. THE DEFINITION OF PERSON DID NOT CHANGE. SECTION 2.2 JOINT MEMBERSHIP WAS CHANGED TO CLARIFY THAT QUALIFIED PERSONS BECOME JOINT MEMBERS IN THE SAME MANNER AS MEMBERS BECOME MEMBERS. SECTION 2.2 (G) WAS AMENDED TO SAY THAT UPON DEATH OR TERMINATION OF ONE PERSON WHO IS A PARTY TO A JOINT MEMBERSHIP, SUCH JOINT MEMBERSHIP SHALL BE HELD SOLELY BY THE REMAINING JOINT MEMBER(S) AND ANY PATRONAGE CAPITAL WILL REMAIN WITH THE MEMBERSHIP. ONE OR MORE JOINT MEMBERS MAY REQUEST THE TERMINATION OF SUCH JOINT MEMBERSHIP AND ANY PERSON MAY APPLY FOR A NEW MEMBERSHIP AS PROVIDED BY THE BYLAWS. SUCH TERMINATION DOES NOT RELEASE ANY PERSON FROM ANY DEBTS OR LIABILITIES DUE THE COOPERATIVE. SECTION 2.4 EVIDENCE OF MEMBERSHIP WAS REVISED TO DELETE THE PROVISION THAT THE COOPERATIVE WOULD MAINTAIN A WRITTEN OR ELECTRONIC RECORD OF CURRENT MEMBERS THAT INDICATED WHETHER OR NOT THE MEMBER WAS ENTITLED TO VOTE. SECTION 2.5 PURCHASE OF ELECTRIC SERVICE WAS AMENDED TO ADD "THE COOPERATIVE WILL USE REASONABLE EFFORTS TO FURNISH DEPENDABLE ELECTRIC SERVICE BUT CANNOT GUARANTEE THAT ANY SERVICES WILL BE CONTINUOUS AND UNINTERRUPTED." SECTION 2.7 SUSPENSION OF MEMBERSHIP SECTION WAS DELETED. SECTION 2.8 TERMINATION OF MEMBERSHIP BECAME SECTION 2.7 AND (D) PARAGRAPH WAS ADDED TO READ "A MEMBER IS TERMINATED UPON THE COOPERATIVE DETERMINING, IN ITS DISCRETION, THAT THE MEMBER HAS PERMANENTLY CEASED PURCHASING ELECTRIC SERVICES FROM THE COOPERATIVE." ARTICLE 3 - MEETINGS OF MEMBERS, SECTION 3.1 ANNUAL MEMBER MEETINGS WAS AMENDED TO SAY THAT AT THE ANNUAL MEETING THE PRESIDENT AND THE CEO MAY PROVIDE OR HAVE PROVIDED WRITTEN OR ORAL REPORTS REGARDING THE ACTIVITIES AND FINANCIAL CONDITION OF THE COOPERATIVE AND DELETED THE SENTENCE THAT ASSIGNED THAT DUTY TO THE TREASURER. SECTION 3.2 SPECIAL MEETINGS WAS REVISED TO GIVE THE BOARD THE OPTION TO HOLD MEMBER MEETINGS ELECTRONCIALLY. SECTION 3.3 NOTICE OF MEMBERS' MEETINGS WAS AMENDED TO ALLOW THE COOPERATIVE TO DELIVER NOTICE OF A MEMBER MEETING BY ELECTRONIC COMMUNICATION, IN ADDITION TO BY MAIL OR PERSONALLY. THE NOTICE MUST BE DELIVERED AT LEAST TEN DAYS BEFORE THE MEETING. THE DEADLINE TO RETURN BALLOTS SHALL BE POSTED ON THE COOPERATIVE WEBSITE AT LEAST 2 MONTHS BEFORE THE DEADLINE. AN ELECTRONIC NOTICE OF A MEMBER MEETING IS DEEMED DELIVERED ON THE DATE SENT BY FACSIMILE OR EMAIL. SECTION 3.5 QUORUM WAS AMENDED TO INCLUDE MEMBERS VOTING BY MAIL BALLOT OR ELECTRONIC BALLOT COUNTED TOWARD THE MEMBER QUORUM. A MEMBER PARTICIPATING ELECTRONICALLY IN ANY MEMBER MEETING OF THE COOPERATIVE SHALL BE CONSIDERED PRESENT FOR SUCH MEMBER MEETING. SECTION 3.8 WAS RENAMED "VOTING OPTIONS AND STATES THAT AT THE OPTION OF THE BOARD, A MEMBER MAY VOTE ELECTRONCIALLY ON ANY MATTER IN CONJUNCTION WITH A MEMBER MEETING BY THE COOPERATIVE PROVIDING ACCESS TO A BALLOT THROUGH A SECURE AND VERIFIABLE ELECTRONIC TRANSMISSION SYSTEM ("ELECTRONIC BALLOT"). EXCEPT AS MAY BE PROVIDED BY THE BOARD, A MEMBER MAY NOT REVOKE A COMPLETED MAIL BALLOT OR ELECTRONIC BALLOT RECEIVED BY THE COOPERATIVE. A MEMBER'S FAILURE TO RECEIVE A MAIL BALLOT OR ELECTRONIC BALLOT DOES NOT AFFECT A VOTE OR ACTION TAKEN BY MAIL BALLOT OR ELECTRONIC BALLOT. ARTICLE 4 - DIRECTORS, SECTION 4.1 GENERAL POWERS ADDED (D) "APPOINT A DIRECTOR TO SERVE AS A REPRESENTATIVE OF THE COOPERATIVE ON THE BOARDS OF THE COLORADO RURAL ELECTRIC ASSOCIATION ("CREA"), WESTERN UNITED ELECTRIC SUPPLY CORPORATION ("WESTERN UNITED") AND ANY OTHER SIMILAR ENTITY AS DETERMINED BY THE BOARD. SECTION 4.3 QUALIFICATIONS WAS AMENDED TO DELETE "APPOINTMENT OF A DIRECTOR TO SERVICE AS A REPRESENTATIVE OF THE COOPERATIVE ON THE BOARDS OF COLORADO RURAL ELECTRIC ASSOCIATION ("CREA"), TRI STATE GENERATION AND TRANSMISSION ASSOCIATEON ("TRI STATE"), COBANK OR OTHER SUCH ENTITY SHALL NOT DISQUALIFY A PERSON FROM SERVING ON THE BOARD." SECTION 4.5 DISTRICTS, NOMINATIONS AND ELECTIONS, (D) PETITIONS FOR CANDIDACY WAS CHANGED TO STATE THAT A CANDIDATE MUST BE A MEMBER OF THE COOPERATIVE FOR 60 DAYS INSTEAD OF 45 DAYS BEFORE THE DATE OF THE ANNUAL MEETING AND THE CANDIDATE MUST SUBMIT A WRITTEN PETITION OF CANDIDACY NOT LESS THAN 60 DAYS PRIOR TO ANNUAL MEMBER MEETING, INSTEAD OF 45 DAYS. AND NOT MORE THAN SEVENTY FIVE DAYS" WAS DELETED. (F) ELECTION PROCESS WAS REVISED TO INCLUDE ELECTRONIC BALLOT VOTING AT THE OPTION OF THE BOARD. A MEMBER WHO HAS VOTED BY MAIL OR BY ELECTRONIC MEANS IS NOT ENTITLED TO VOTE AT THE ANNUAL MEMBER MEETING. THE REQUIREMENT THAT A MAIL BALLOT BE "PLACED IN A SPECIAL ENVELOPE PROVIDED FOR THE PURPOSE SO AS TO CONCEAL THE MARKING ON THE BALLOT" WAS DELETED. "FOR THE MAIL BALLOT OF A JOINT MEMBERSHIP, THE ENVELOPE OF THE MAIL BALLOT MUST INCLUDE THE NAME OF EACH ELIGIBLE VOTER OF THE JOINT MEMBERSHIP. ANY ONE OF THE JOINT MEMBERS MAY CAST THE MAIL BALLOT. THE JOINT MEMBER WHO CASTS THE MAIL BALLOT MUST SIGN THE RETURN ENVELOPE." WAS ADDED. (G) ELECTION COUNT WAS AMENDED TO SAY THAT EXCEPT WHEN ALL DIRECTOR DISTRICTS AND REGIONS ARE UNCONTESTED ELECTIONS, THE BOARD SHALL ARRANGE FOR AN INDEPENDENT THIRD PARTY TO OVERSEE THE COUNTING OF THE BALLOTS. "CANDIDATES FOR THE BOARD SHALL BE GIVEN THE OPPORTUNITY TO BE PRESENT TO OBSERVE THE COUNTING OF THE BALLOTS EXCEPT THAT, IF THE COOPERATIVE HAS CONTRACTED WITH AN INDEPENDENT THIRD PARTY TO COLLECT AND COUNT BALLOTS" WAS DELETED. SECTION 4.8 REMOVAL DIRECTORS (D) PROVIDES THAT A DIRECTOR MAY BE REMOVED UPON AN AFFIRMATIVE VOTE OF A MAJORITY OF THE MEMBERS INCLUDING VOTES IN PERSON, BY MAIL, OR AT THE OPTION OF THE BOARD BY ELECTRONIC BALLOT. ARTICLE 5 - MEETINGS OF DIRECTORS, SECTION 5.4 QUORUM AND VOTING WAS AMENDED TO ALLOW A DIRECTOR TO PARTICIPATE AND VOTE IN ANY BOARD MEETING BY ANY MEANS OF COMMUNICATION , INCLUDING BY ELECTRONIC MEANS. ARTICLE 6 - OFFICERS OF THE BOARD AND COOPERATIVE, SECTION 6.1 NUMBER WAS AMENDED TO ALLOW ADDITIONAL BOARD OFFICERS AS DETERMINED BY THE BOARD TO INCLUDE BUT NOT LIMITED TO ASSISTANT TREASURERS AND/OR ASSISTANT SECRETARIES. ANY SUCH ADDITIONAL OFFICERS SHALL PERFORM ALL THE DUTIES AS MAY BE ASSIGNED FROM TIME TO TIME BY THE BOARD, THE OFFICER(S) AUTHORIZED BY THE BOARD, OR THE PRESIDENT. SECTION 6.2 ELECTION AND TERM OF OFFICE, WAS AMENDED TO STATE THAT "THE ELECTIONS FOR THE OFFICERS AND THE REPRESENTATIVES OF THE CREA BOARD OF DIRECTORS, THE WESTERN UNITED BOARD OF DIRECTORS, AND ANY OTHER ENTITY TO WHICH THE COOPERATIVE APPOINTS A REPRESENTATIVE SHALL BE BY SECRET BALLOT." ARTICLE 8 - NONPROFIT OPERATION, SECTION 8.2 PATRONAGE CAPITAL IN CONNECTION WITH FURNISHING ELECTRIC SERVICE, AMENDED THE DEFINITION OF A "PATRON" TO STATE THEY ARE "A MEMBER -OR IF AUTHORIZED BY THE BOARD - A NON-MEMBER - RECEIVING ELECTRIC SERVICE FROM THE COOPERATIVE." PART (A) CAPITAL CREDIT ALLOCATION, WAS AMENDED TO STATE THAT "ALL OPERATING INCOME AND REVENUE IN EXCESS OF OPERATING COSTS AND EXPENSES ("PATRONAGE MARGINS") ARE RECEIVED FROM THE PATRONS AS PATRONAGE CAPITAL. THE COOPERATIVE IS OBLIGATED TO ALLOCATE BY CREDITS TO A CAPITAL ACCOUNT FOR EACH PATRON ALL PATRONAGE MARGINS (A "CAPITAL CREDIT"). THE BOARD MAY, BY WRITTEN RESOLUTION, OBLIGATE THE COOPERATIVE TO ALLOCATE ON A PATRONAGE BASIS ANY ITEM OR CATEGORY OF NON-OPERATING MARGINS, WHICH AMOUNTS WILL BECOME PATRONAGE MARGINS." THE BOARD RETAINS THE AUTHORITY TO DETERMINE THE MANNER, METHOD AND TIMING OF ALLOCATING CAPITAL CREDIT IN A WRITTEN POLICY BUT THE PHRASE "THE ALLOCATION OF CAPITAL CREDITS IS IN THE DISCRETION OF THE BOARD" WAS DELETED. THE AUTHORITY TO PAY CAPITAL CREDITS AT A DISCOUNT RATE WAS MOVED TO SECTION 8.2(B). PART (B) RETIREMENT OF CAPITAL CREDITS, WAS ALSO AMENDED TO STATE THAT "THE BOARD HAS THE AUTHORITY TO PAY CAPITAL CREDITS AT A DISCOUNTED RATE UNDER TERMS SET BY THE BOARD. FOR ANY SUCH DISCOUNTING PROGRAM, THE BOARD IS AUTHORIZED, BUT NOT REQUIRED, TO CREATE EQUITY ACCOUNTS TO RECEIVE THE DISCOUNTS, INCLUDING PERMANENT EQUITY ACCOUNTS DESIGNATED FOR INDIVIDUAL PATRONS WITH RIGHTS DETERMINED BY THE BOARD." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.DMEA.COM/BYLAWS. |
| 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 TO ELECT 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 AND PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. BOARD REVIEWS ANNUAL FILINGS AT MONTHLY MEETINGS. |
| FORM 990, PART VI, SECTION B, LINE 12C | THE BOARD OF DIRECTORS CONDUCT AN ANNUAL REVIEW OF THE CONFLICT OF INTEREST POLICY, AND OBTAINS THE SIGNATURE OF EACH BOARD MEMBER ACKNOWLEDGING THE REVIEW OF THE POLICY. |
| FORM 990, PART VI, SECTION B, LINE 15 | THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM COOPERATIVES LOCATED IN COLORADO AND THE NATION. THE MANAGEMENT COMPENSATION PLAN IS APPROVED BY THE BOARD OF DIRECTORS. THE BOARD AND THE CEO USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT COLORADO AND THE NATION. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. THIS IS DONE IN COMPLIANCE WITH BOARD POLICY 10, SECTIONS 1-4. ANNUALLY THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. FINALLY, THE COOPERATIVE'S BYLAWS AND FINANCIAL STATEMENTS CAN BE FOUND ON THEIR WEBSITE, WWW.DMEA.COM. |
| FORM 990, PARTS VI & VII: | THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE AND TIME LOG. THE COMPLETED QUESTIONNAIRES AND TIME LOGS ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE AND/OR TIME LOG, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. DURING 2021, DIRECTOR HAUCK PASSED AWAY; THEREFORE, THE PRIOR YEAR QUESTIONNAIRE WAS RELIED UPON WHILE PREPARING THE 2021 RETURN. |
| 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 AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES. |
| 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 VIII, LINE 11A: | THE CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (CARES ACT) ESTABLISHED THE PAYCHECK PROTECTION PROGRAM (PPP) TO PROVIDE LOANS TO SMALL BUSINESSES AS A DIRECT INCENTIVE TO KEEP THEIR WORKERS ON THE PAYROLL. THE LOANS ARE FORGIVEN IF ALL EMPLOYEE RETENTION CRITERIA ARE MET AND THE FUNDS ARE USED FOR ELIGIBLE EXPENSES. DURING 2020, THE COOPERATIVE APPLIED FOR AND RECEIVED A LOAN OF $2,447,500. AFTER FULFILLING THE REQUIREMENTS OF THE PROGRAM, THE COOPERATIVE RECORDED THE ANTICIPATED LOAN FORGIVENESS AS INCOME, BECAUSE THE NATURE OF THE PROGRAM IS COMPRISED OF A BONA FIDE LOAN FOLLOWED BY LOAN FORGIVENESS. ALTHOUGH THE INSTRUCTIONS TO FORM 990 STATE THAT THE AMOUNT OF PPP LOANS THAT ARE FORGIVEN MAY BE REPORTED ON LINE 1E AS CONTRIBUTIONS FROM A GOVERNMENTAL UNIT, THE COOPERATIVE HAS CHOSEN TO REPORT THE PPP LOAN FORGIVENESS AS OTHER INCOME ON LINE 11A. |
| FORM 990, PART VIII, LINE 11D: | OTHER REVENUE IS COMPRISED OF THE FOLLOWING: PROCEEDS FROM POLE DAMAGE CLAIMS $ 53,393 POLE ATTACHEMENT INCOME 244,297 DISPATCHING INCOME 325,028 TOTAL OTHER REVENUE PER FORM 990, LINE 11D $ 622,718 |
| FORM 990, PART IX: | THE ACCOUNTING RECORDS OF THE ASSOCIATION ARE MAINTAINED IN ACCORDANCE WITH THE RURAL UTILITIES SERVICE (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 THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES 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 $ 7,792,546 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (136,465) LESS: EMPLOYEE OFFICER & KEY EMPLOYEE BENEFITS REPORTED ON LINE 5 (473,220) PLUS: SALARIES & WAGES ALLOCATED TO NONOPERATING MARGINS 72,078 PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 1,662,541 PLUS: SALARIES & WAGES ALLOCATED TO ELEVATE SUBSIDIARY 805,684 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,198,382 TOTAL WAGES ACCRUED AND/OR PAID $10,921,546 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,479,593 OFFICE SUPPLIES 1,890,837 OUTSIDE SERVICES 818,336 INSURANCES & DAMAGES 141,896 DIRECTORS 166,464 ADVERTISING 47,023 PENSION & BENEFITS 414,019 MAINTENANCE OF GENERAL PLANT 491,078 INFORMATION TECHNOLOGY 571,026 DUPLICATE CHARGES (CREDIT) (110,418) TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,909,854 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (136,465) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,627,896) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,053,469) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,092,024 |
| FORM 990, PART IX, LINE 24E: | OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: DISPATCHING $ 331,676 ABONDONMENT LOSS 121,630 ECONOMIC DEVELOPMENT 10,000 GEOTHERMAL & HYDRO 123,093 SALES 43,338 CONSUMER 721,856 TRANSMISSION 12,878 OTHER DEDUCTIONS 153,202 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 1,517,673 |
| 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 2021 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 4,170,529. PATRONAGE CAPITAL RETIRED - TOTAL -102,665. PATRONAGE CAPITAL RETIRED - DISCOUNT 44,184. EQUITY METHOD INCOME (LOSS) 213,451. ELEVATE FIBER LEASE - UBI TAX BASIS CONSTRUCTION GRANT INCOME -3,360,261. |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990) 2021
Additional Data
| Software ID: | |
| Software Version: |