Oneida-Madison Electric Cooperative

“Any person, firm, association, corporation, or body politic or subdivision thereof will become a member of Oneida-Madison Electric Cooperative, Inc. upon receipt of electric service from the Cooperative, provided that he or it has first:a)made written application for membershipb)agreed to purchase from the Cooperative electric energy c)agreed to comply with and be bound by the articles of incorporation and bylaws of the cooperative and any rules and regulation adopted by the Boardd)paid the membership fee”

“Members who are currently purchasing electric service from the Cooperative shall be considered active members and shall be entitled to vote at all regular and special membership meetings. Every three years a director is elected or re-elected by the membership.”

“Each active membership shall be entitled to only one vote upon any matter submitted to a vote at a meeting. All questions shall be decided by a vote of a majority of the active members voting thereon in person or by proxy, except as otherwise provided by law, the articles of incorporation or by-laws.”

“Review of Form 990 can be completed during the course of a regularly scheduled monthly board meeting at which a quorum is present. The Form 990 will be signed by an officer of the Cooperative after its review.”

“Each official must annually complete and sign the Conflict of Interest Certification and Disclosure Form and deliver the completed and signed form to President or Manager.”

“The CEO/general manager's performance review and salary adjustments will commence with the board of directors in the month of November, following further discussion with the CEO/general manager in the month of December, concluding a salary adjustment which would become effective in January the following year. The CEO/general manager's review process will be based on NRECA, general manager's review policy.”

“The Cooperative shall produce the documents upon receipt of a written request of the public. The Cooperative will keep a record of the written request. A summary format of the Cooperative financial statements are provided to the membership at the annual meeting.”

“Allocation of patronage capital credits = $312160”

“Change in memberships = $12115”

“Change in other equities = -$0”

“Change in other equities = $168109”

“Retirement of patronage capital credits = -$179896”

“The accounting records of the cooperative are maintained in accordance with the uniform system of accounts (usoa) as prescribed for electric borrowers of the rural utilities services (rus). 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 that are described in lines 1-23 are reported on line 24 under the expense categories required by the usoa.”

“Admin and general expenses include the following:employee expenses $ 63,580 employee education 16,517ceo education 530office supplies 69,715misc general expense 19,181 outside services 80,561insurance 34,256director expense 11,016retiree health insurance 7,857total admin & general $303,213”

“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 calendar tax 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 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.”

“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 $681,189less: employee officer benefits included in line 5 (54,795)less: director fees reported on forms 1099-misc (29,820) plus: salaries and wages capitalized to plant 81,606total wages accrued and/or paid $678,180”