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
DIXIE ELECTRIC MEMBERSHIP CORPORATION
Employer identification number
72-0170797
72-0170797
| Return Reference | Explanation |
|---|---|
| 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 IV - DIRECTORS SECTION 4.04 QUALIFICATIONS, WAS AMENDED TO STATE "NO PERSON SHALL BE ELIGIBLE TO BECOME OR REMAIN A DIRECTOR, WHO: (A) DOES NOT HAVE HIS DOMICILE IN THE DISTRICT FROM WHICH HE SEEKS TO BE OR WAS ELECTED AND WHOSE DOMICILE IS NOT SERVED BY DEMCO". SECTION 4.04 I. PRE-QUALIFICATION PERIOD, WAS AMENDED TO STATE "TO PRE-QUALIFY FOR THE POSITION OF DIRECTOR, A MEMBER DESIRING TO SEEK ELECTION TO THE DEMCO BOARD OF DIRECTORS SHALL APPEAR IN PERSON, AT THE OFFICE OF THE GENERAL MANAGER OF DEMCO, DURING THE ESTABLISHED PRE-QUALIFICATION PERIOD ESTABLISHED PURSUANT TO THIS SECTION. SUCH MEMBER SHALL OBTAIN, COMPLETE, SIGN AND RETURN TO DEMCO WITHIN THE PRE-QUALIFICATION PERIOD A DIRECTOR ELIGIBILITY INFORMATION AND QUALIFICATIONS CERTIFICATE PROVIDING THE FOLLOWING INFORMATION CONCERNING THE CANDIDATE (AND SPOUSE, IF APPLICABLE); AND MUST CERTIFY THAT HE (AND SPOUSE, IF APPLICABLE) MEET THE REQUIREMENTS OF THE DEMCO BYLAWS TO SERVE AS A MEMBER OF THE DEMCO BOARD OF DIRECTORS ON THE DATE THE FORM IS SUBMITTED". SECTION 4.08 COMPENSATION, WAS AMENDED TO STATE "DIRECTORS SHALL NOT RECEIVE ANY SALARY FOR THEIR SERVICES AS DIRECTORS, BUT MAY RECEIVE A FIXED SUM AND EXPENSES FOR ATTENDANCE AT ANY OF THE FOLLOWING: 1) BOARD MEETINGS, 2) COMMITTEE MEETINGS, AND 3) OTHER MEETINGS OR FUNCTIONS AUTHORIZED BY THE BOARD; AND SHALL RECEIVE HEALTH INSURANCE BENEFITS FOR THEMSELVES AND THEIR DEPENDENTS THROUGH DEMCO'S HEALTH INSURANCE PROGRAM." UNDER THE DEFINITIONS SECTION OF THE BYLAWS, THE DEFINITION FOR "DOMICILE" WAS ADDED, STATING "DOMICILE: THAT LOCATION IN WHICH A DEMCO MEMBER MAKES HIS OR HER HABITUAL RESIDENCE IN ACCORDANCE WITH THE LAWS OF THE STATE OF LOUISIANA. THE FINAL DETERMINATION OF "DOMICILE" IS A QUESTION OF FACT THAT SHALL BE RESERVED TO THE DEMCO BOARD OF DIRECTORS AND SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING CRITERIA: A) VOTER REGISTRATION; B) HOMESTEAD EXEMPTION; C) VEHICLE REGISTRATION RECORDS; D) DRIVER'S LICENSE ADDRESS; E) STATEMENTS IN NOTARIAL ACTS AND OTHER LEGAL DOCUMENTS; F) EVIDENCE THAT MOST OF THE MEMBERS PROPERTY, CLOTHING, AND DAILY LIVING ITEMS ARE LOCATED AT THAT LOCATION; G) BILLING RECORDS AND RECEIPT OF MAIL; AND H) OTHER RELIABLE DOCUMENTS OR TESTIMONY." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.DEMCO.ORG. |
| 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 SUBSEQUENT TO FILING. |
| FORM 990, PART VI, SECTION B, LINE 12C | THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF 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. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. |
| 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 SIMILARLY SITUATED COOPERATIVES LOCATED IN LOUISIANA AND THE NATION. THE CEO UTILIZES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY SHOWS COMPARATIVE SALARIES FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN LOUISIANA AND THE NATION. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. THE BYLAWS AND THE ANNUAL REPORT ARE ALSO POSTED ON THE COOPERATIVE'S 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, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE EMPLOYEE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN, THE ACTUARIAL INCREASE FOR FUTURE RETIREE BENEFITS EARNED AS A PARTICIPANT IN THE DEFINED BENEFIT PLAN, AND THE INSURANCE PREMIUMS PAID FOR THEIR BENEFIT. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. |
| FORM 990, PART VIII, LINE 2: | PATRONAGE DIVIDENDS 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 MEMBERS. |
| FORM 990, PART IX: | THE COOPERATIVE MAINTAINS ITS RECORDS IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) PRESCRIBED FOR BORROWERS OF THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICE. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX. 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 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 $16,373,107 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (339,081) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (581,220) PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 8,663,483 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,950,291 TOTAL WAGES ACCRUED AND/OR PAID $26,066,580 |
| 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 COOPERATIVE'S BYLAWS. IN GENERAL, 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. FOR 2021, THE COOPERATIVE REPORTED AN OVERALL LOSS. BECAUSE THE COOPERATIVE DOES NOT ALLOCATE LOSSES TO ITS PATRONS, THE $10,848,360 LOSS REPORTED ON PART I, LINE 19 REPRESENTS THE AMOUNT THAT WILL BE RECOVERED FROM THE PATRONS EITHER (1) AS A FUTURE REDUCTION IN THE PATRONAGE CAPITAL THAT WOULD OTHERWISE BE ALLOCATED TO THE PATRONS OR (2) AS A OFFSET TO UNALLOCATED, RETAINED EQUITY OF THE COOPERATIVE. SUCH RECOVERY IS CONSISTENT WITH THE OPERATION AT COST PRINCIPLE. |
| FORM 990, PART IX, LINE 24E: | OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS & SERVICE $ 4,174,917 SALES 1,141,268 TRANSMISSION 575,211 ADMINSTRATIVE AND GENERAL 7,172,802 OTHER DEDUCTIONS 439,971 TOTAL OTHER EXPENSES PER FROM 990 LINE 24E $13,504,169 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 7,428,660 OFFICE SUPPLIES 1,196,088 OUTSIDE SERVICES 923,398 PENSION & BENEFITS 563,255 REGULATORY COMMISSION 350,535 RENT 108,116 MISCELLANEOUS GENERAL 197,437 DIRECTORS 456,565 INSURANCE 424,253 DISTRICT & ANNUAL MEETINGS 279,882 MAINTENANCE OF GENERAL PLANT 1,681,115 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $13,609,304 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (339,081) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (4,199,758) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,897,663) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 7,172,802 |
| FORM 990, PART XI, LINE 9: | EQUITY METHOD INCOME FROM SUBSIDIARY 64,432. NET CHANGE IN MEMBERSHIPS -41,122. |
| FORM 990, PART XII, LINE 2C: | THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO A FINANCE COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT 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) 2021
Additional Data
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