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
SOUTH CENTRAL INDIANA RURAL
ELECTRIC MEMBERSHIP CORPORATION
ELECTRIC MEMBERSHIP CORPORATION
Employer identification number
35-6043583
35-6043583
| 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 III - MEETINGS OF MEMBERS SECTION III. ELECTRONIC MEETINGS; NOTICE OF MEMBERS, WAS AMENDED TO ADD A PARAGRAPH STATING "WHERE AND IN THE MANNER AUTHORIZED BY THE BOARD OF DIRECTORS, ANY PERSON PARTICIPATING IN A MEETING OF THE MEMBERS MAY PARTICIPATE BY ANY MEANS OF COMMUNICATION, ELECTRONIC OR OTHERWISE, BY WHICH ALL PERSONS PARTICIPATING IN THE MEETING ARE ABLE TO READ OR HEAR PROCEEDINGS SUBSTANTIALLY CONCURRENTLY WITH THEIR OCCURENCE, VOTE ON MATTERS SUBMITTED TO THE MEMBERS, AND OTHERWISE FULLY PARTICIPATE IN THE MEETING. SUCH PARTICIPATION SHALL CONSTITUTE PRESENCE IN PERSON AT THE MEETING FOR ALL PURPOSES." SECTION IV. QUORUM, WAS AMENDED TO STATE "AT LEAST TWO PERCENT (2%) OF THE TOTAL NUMBER OF MEMBERS OF THE COOPERATIVE WHO: 1) ARE PRESENT IN PERSON AT A MEETING OF THE MEMBERS; OR 2) CAST VOTES PRIOR TO A MEETING OF THE MEMBERS IN ACCORDANCE WITH THESE BYLAWS; SHALL CONSTITUTE A QUORUM FOR THE TRANSACTION OF BUSINESS AT ALL MEETINGS OF THE MEMBERS." SECTION V. VOTING, WAS AMENDED TO ADD ELECTRONIC BALLOTS AS AN OPTION FOR VOTING. |
| 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 | MEMBERS HAVE THE OPPORTUNITY TO VOTE AND ELECT THEIR OWN MEMBER REPRESENTATIVE ON THE BOARD OF DIRECTORS. EACH ELIGIBLE MEMBER IS ENTITLED TO ONE VOTE. |
| 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. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. |
| FORM 990, PART VI, SECTION B, LINE 12C | ANNUALLY, A SURVEY IS DISTRIBUTED TO ALL THE RELEVENT PARTIES WHICH ASKS ABOUT ANY RELATIONSHIPS AND CONFLICTS OF INTEREST. IT IS THE DUTY OF THE BOARD MEMBER TO DISCLOSE ANY CONFLICTS OF INTEREST. A BOARD MEMBER WITH A CONFLICT OF INTEREST MUST RECUSE HIMSELF FROM ANY DISCUSSION OR VOTING ON ISSUES THAT ARISE AS A RESULT OF THAT CONFLICT. |
| FORM 990, PART VI, SECTION B, LINE 15 | THE CEO AND OTHER EMPLOYEE OFFICER'S COMPENSATION PACKAGES ARE DETERMINED BY USING COMPARABILITY DATA FOR SIMILAR POSITIONS. THIS DATA IS THEN REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS, WITH CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION OF THE DECISION. |
| FORM 990, PART VI, SECTION C, LINE 19 | A CURRENT COPY OF THE BYLAWS AND MONTHLY BOARD MINUTES ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE AT WWW.SCIREMC.COM/BOARD-DIRECTORS. ADDITIONALLY, CURRENT MEMBERS MAY SUBMIT A REQUEST TO REVIEW THE COOPERATIVE'S ARTICLES OF INCORPORATION, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS. |
| 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 INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE 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 COOPERATIVE MAINTAINS ITS BOOKS AND RECORDS IN ACCORDANCE WITH POLICIES PRESCRIBED OR PERMITTED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICES (RUS) AND THE INDIANA UTILITY REGULATORY COMMISSION (IURC), ALTHOUGH THE COOPERATIVE IS NO LONGER REGULATED BY THESE AGENCIES. THE APPLICABLE UNIFORM SYSTEM OF ACCOUNTS (USOA) FOLLOWED BY THE COOPERATIVE 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 THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. |
| FORM 990, PART IX, LINE 1: | ALL GRANTS, DONATIONS, AND/OR SPONSORSHIPS 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, DONATION, AND/OR SPONSORSHIP MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. |
| 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. 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, 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 $ 9,022,275 LESS: DIRECTORS FEES AND DEFERRED COMPENSATION (132,801) LESS: OFFICER AND KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (505,908) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,946,665 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 524,937 TOTAL WAGES ACCRUED AND/OR PAID $11,855,168 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,758,227 EMPLOYEE DUES & MEMBERSHIP 4,816 TRAINING & SEMINARS 68,471 BUSINESS MEALS 4,567 SUBSCRIPTIONS 3,064 MAINTENANCE OF OFFICE EQUIPMENT 68,736 MILEAGE 201 MOBILE PHONES 57,598 OFFICE SUPPLIES 768,709 UTILITIES & MONTHLY CHARGES 968,841 OUTSIDE SERVICES 221,472 INSURANCE & REGULATORY FEES 313,316 PUBLIC RELATIONS 11,863 ANNUAL MEETING 77,005 DIRECTORS 158,060 MAINTENANCE OF GENERAL PLANT 386,090 MISCELLANEOUS GENERAL EXPENSE 491,501 SUBSIDIARY EXPENSE 1,669,573 TOTAL ADMIN & GENERAL EXPENSE PER FINANCIAL STATEMENTS $ 7,032,110 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,552,820) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (911,063) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (132,801) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 4,424,426 |
| FORM 990, PART IX, LINE 24E: | OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER EXPENSE $ 2,207,057 OTHER DEDUCTIONS 3,886 TOTAL OTHER EXPENSES PER THE BOOKS $ 2,210,943 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (793,350) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (473,464) ADD: RECLASS OF MERCHANDISING & OTHER EXPENSES 7,619 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 951,748 |
| FORM 990, PART XI, LINE 9: | PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 9,426,524. PATRONAGE CAPITAL RETIRED - TOTAL -114,012. PATRONAGE CAPITAL RETIRED - DISCOUNT 67,393. OTHER COMPREHENSIVE INCOME - POST RETIREMENT BENEFITS OTHER THAN PENSIONS 153,532. NET DECREASE IN MEMBERSHIPS -10,315. |
| FORM 990, PART XII, LINE 2C: | THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. |
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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