Otsego Electric Cooperative Inc

“Any person, firm, association, corporation, or body politic or subdivision thereof will become a member of the Otsego 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 Board”

“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.The following acts require approval of the members of the Cooperative:1. Dissolution/Liquidation of the Cooperative2. Merger or consolidation of the Cooperative with another Organization3. Disposal of a substantial portion of the Cooperative's assets4. Amendment to the Articles of Incorporation5. Amendment to the Bylaws”

“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 there on in person or by proxy, except as otherwise proved by law, the articles of incorporation or by-laws.”

“It shall be the policy of the Otsego Electric Cooperative, Inc. to have Form 990 reviewed by its Board of Directors each year prior to filing with the Internal Revenue Service.Said review can be completed during the course of a regularly scheduled the Board of Directors' meeting at which a quorum is present.”

“Each Official must annually complete and sign the Conflict of Interest Certification and Disclosure Form attached to this Policy and deliver the completed and signed Form to President or Manager. If an Official discovers any information or fact that could impact another Official's compliance with this Policy, then the Official must disclose the information or fact to President or Manager immediately.”

“The Board of Directors is responsible for overseeing the evaluation process for the Chief Executive Officer.The process is intended to formally assess the Chief Executive Officer's past performance as well as to help the Board determine future developmental needs for the Chief Executive Officer. Consequently, there are two types of measures: a) Financial Performance Measures, which track accountability for past performance, and b) Leadership Effectiveness Measures, which identify the key objectives that will assure the future success of the Cooperative. Leadership Effectiveness Measures include, but are not limited to, the following:LeadershipBuilding Team SpiritManaging Vision and MissionOrganizational FlexibilityApproachability and AccessibilityEffective Decision MakingBusiness AcumenAccountabilityDeveloping PeopleIntegrity and TrustResultsPresentation SkillsMaintaining Organizational ValuesCommunity InvolvementThe following steps are utilized to carry out this review:The Board reviews performance measures and targets and submits these for full Board approval on or before the start of the first meeting of the fiscal year.The Chief Executive Officer provides a self-evaluation to the Board within seventy-five days of the end of the fiscal year.Directors will provide their individual assessments of the Chief Executive Officer's performance. These assessments should include the Board's appraisal of the Financial Performance Measures and the Leadership Performance Measures approved by the Board as well as any other aspect of the Chief Executive Officer's performance that the Directors deem relevant. In addition, Directors should identify any future developmental needs they deem necessary for the Chief Executive Officer.The Board accumulates this information and recommends annual compensation of the Chief Executive Officer based on the evaluation. After agreement by the Board to the evaluation, the President of the Board will meet with the Chief Executive Officer to discuss the Board's assessment of performance and developmental needs for the Chief Executive Officer. The Chief Executive Officer may then take the opportunity to discuss his or her reaction to the evaluation.”

“It shall be the policy of Otsego Electric Cooperative, Inc. to have governing documents, including the By-Laws, annual financial reports, and Conflict of Interest Policy available to the public upon request. These documents shall be kept at the Otsego Electric Cooperative, Inc. main office under the supervision and control of the Board of Directors and the Chief Executive Officer.The Chief Executive Officer of Otsego Electric Cooperative, Inc. shall produce the documents upon receipt of a written or verbal request of the public. The Chief Executive Officer shall keep a record of the written and/or verbal request. The By-Laws are available on the Cooperative's website.”

“Benefits paid to members = $764524”

“change in other equities = $16721”

“Contribution in aid of construction not revenue per gaap = -$3550”

“Nys bb grant funds received = -$1511879”

“Current year revenue included nys broadband grant funds received on a nonpatronage basis $1,511,879”

“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 & general include the following expenses:retired employee health $171,529misc general expense 145,288outside services 104,442insurance 37,799annual meeting expense 17,060director expense 6,320total admin & general $482,438”

“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 2019 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 $1,185,532less: director fees reported on forms 1099-misc (27,418) less: employee officer benefits included in line 5 (71,868)plus: salaries and wages capitalized directly to plant 320,946plus: salaries and wages capitalized/expensed indirectly through clearing and other accounts 206,366 total wages accrued and/or paid $1,613,558”

“The Cooperative separately stated salaries and wages, employee benefits, and payroll taxes that are allocated in accordance with their accounting system. On the 2018 return the Cooperative did not separately state these expenses. The 2018 return, is complete and accurate, but the Cooperative believes by separately stating these expenses for both the current and prior years on the 2019 return a reader of the Form 990 will be more informed. Future years returns filed by the Cooperative will separately state salaries and wages, employee benefits, and payroll taxes.”