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
KENERGY CORP
Employer identification number
61-1345109
61-1345109
| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 2 | A BUSINESS RELATIONSHIP EXISTS BETWEEN DIRECTOR BRENT WIGGINTON ADN DIRECTOR ROBERT WHITE. BOTH SERVE ON THE BOARD OF BIG RIVERS ELECTRIC COOPERATIVE AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. |
| 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 5. AMENDMENT TO THE BYLAWS 6. REMOVAL OF A DIRECTOR FROM THE BOARD |
| 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. |
| FORM 990, PART VI, SECTION B, LINE 12C | ANNUALLY, THE CHAIRMAN OF THE BOARD OF DIRECTORS REQUIRES EACH BOARD MEMEBER AND THE CEO TO COMPLETE AND SIGN A FORM LISTING THE NAMES OF THEIR BUSINESS INTEREST, POSITIONS HELD, AND THE OWNERSHIP PERCENTAGE. ANNUALLY, THE CEO REQUIRES ALL VICE-PRESIDENTS AND MANAGERS TO COMPLETE A SURVEY PROVIDING THE SAME INFORMATION. |
| FORM 990, PART VI, SECTION B, LINE 15 | THE BOARD OF DIRECTORS APPROVES CEO COMPENSATION BASED ON A REVIEW OF PERFORMANCE AND OF EXTERNAL MARKET PRICING. TO ASSIST WITH EXTERNAL MARKET PRICING, AN INDEPENDENT COMPENSATION CONSULTANT IS PERIODICALLY USED. FOR ALL OTHER EMPLOYEE OFFICERS AND KEY EMPLOYEES, COMPENSATION IS DETERMINED BY EXTENAL MARKET SOURCES, INCLUDING THE PERIODIC USE OF AN INDEPENDENT COMPENSATION CONSULTANT. INTERNAL MARKET PRICING IS ESTABLISHED BY UTILIZING A POINT-FACTOR METHOD OF ASSIGNING WEIGHTED FACTORS BASED ON A VARIETY OF COMPENTENCIES. THE BOARD OF DIRECTORS APPROVES THE BUDGET, INCLUDING COMPENSATION OF EMPLOYEE OFFICERS AND KEY EMPLOYEES, BASED ON THIS PROCESS. |
| FORM 990, PART VI, SECTION C, LINE 19 | KENERGY PROVIDES EACH MEMBER, THROUGH A BILLING INSERT, A CONDENSED BALANCE SHEET AND INCOME STATEMENT COMPARING THE MOST RECENT CALENDAR YEAR TO THE PREVIOUS CALENDAR YEAR. THE COMPARATIVE STATEMENT OF OPERATIONS, AS WELL AS THE BYLAWS, CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE AT WWW.KENERGYCORP.COM/ABOUT. ADDITIONALLY, POLICIES ARE MADE AVAILABLE TO MEMBERS UPON A WRITTEN REQUEST. |
| FORM 990, PARTS VI & VII: | THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES 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, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. THE COOPERATIVE DID NOT RECEIVE A QUESTIONNAIRE FROM TWO DIRECTORS - , MR. MITCHELL AND MR. DENTON. THERE WERE NO KNOWN CHANGES FOR THE TWO INDIVIDUALS FROM 2021 TO 2022. |
| FORM 990, PART VII, COLUMN F: | IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE ACTIVELY 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. A DEFINED CONTRIBUTION PLAN IS ALSO OFFERED TO EMPLOYEES. SINCE JANUARY 1, 2019, THE DEFINED CONTRIBUTION PLAN IS FOR ELECTIVE SALARY DEFERRALS ONLY AND NOT MATCHED BY THE COOPERATIVE. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. |
| FORM 990, PART VIII, LINE 2B: | 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 ITS MEMBERS. |
| FORM 990, PART IX: | THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE THE RURAL UTILITIES SERVICE (RUS). THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARETLY STATES 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, 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 $ 9,484,263 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (144,400) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (707,564) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 12,321 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,334,034 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 273,611 TOTAL WAGES ACCRUED AND/OR PAID $12,252,265 |
| FORM 990, PART IX, LINE 24E: | OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: BROADBAND EXPENSE $ 140,494 CONSUMER EXPENSE 709,448 TAXES 586,312 OTHER DEDUCTIONS 7,801 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 1,444,055 |
| 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 ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2022 CALENDAR YEAR. WHEN ALLOCATED, THE COOPERATIVE NOTIFIES THE PATRONS OF THE STATED DOLLAR AMOUNT OF THE PATRONAGE DIVIDEND IN WRITING. ADDITIONALLY, 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 24: | AMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,329,620 OFFICE SUPPLIES 8,852 OUTSIDE SERVICES 163,912 REG. COMMISSION EXPENSE 773 MISCELLANEOUS GENERAL 518,744 DIRECTORS EXPENSE 219,951 MAINTENANCE OF GENERAL PLANT 960,748 ADVERTISING EXPENSE 5,395 MANAGEMENT EXPENSE 8,718 FRANCHISES EXPENSE 5,000 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,221,713 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (144,400) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,914,797) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (877,905) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,284,611 |
| FORM 990, PART X, LINES 29 & 31: | THE COOPERATIVE PREVIOUSLY INCLUDED MEMBERSHIPS AS A COMPONENT OF RETAINED EARNINGS ON LINE 31 OF PART X. HOWEVER, FOR THE 2022 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS ON LINE 29. TO INCREASE CONSISTENCY, MEMBERSHIPS IN THE AMOUNT OF $230,340 FOR THE 2021 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 31 TO LINE 29. |
| FORM 990, PART XI, LINE 9: | PATRONAGE CAPITAL ALLOCATED 1,568,806. PATRONAGE CAPITAL RETIRED - TOTAL -238,119. PATRONAGE CAPITAL RETIRED - DISCOUNT 142,697. NET CHANGE IN MEMBERSHIPS 1,410. |
| 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. 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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