Adams Rural Electric Cooperative Inc

“Adams Rural Electric Cooperative Inc. is an electric cooperative that is owned by its membership. Every member pays a membership fee to join the cooperative and to obtain electric service. The fee is returned when service is disconnected. Members have voting rights to elect the board of trustees and to make changes to the bylaws. At the end of 2024 Adams Rural Electric Cooperative Inc. had 6,135 members.”

“Adams Rural Electric Cooperative Inc. has a nine member board of trustees which each represent a district within the cooperatives service territory. Board members serve a three year term. Annually a nominating committee of members nominate at least two members to run for the current board seats up for re-election in each district. Members receive a mail-in ballot to vote to determine who will fill the board seat. The election is held by an accounting firm prior to the annual meeting of membership and the results are announced at the meeting.”

“The annual meeting of membership is held annually to approve changes to the bylaws which require a vote of the membership. Members receive a mail-in ballot to vote on any proposed changes. The election is held by an accounting firm prior to the annual meeting of membership and the results are announced at the meeting. The board of trustees has full authority to approve any other matter during a monthly board meeting.”

“The 2024 Form 990 was prepared and reviewed by the manager of accounting. The board of trustees received a copy of the Form 990 at the July 3 2025 board meeting. The manager of accounting reviewed the Form 990 with the board at the meeting and answered all questions that were asked.”

“Annually all employees and board of trustee members are required to fill out the Conflict of Interest Disclosure Form as to any possible conflicts of interest that may exist. These forms are reviewed by the general manager. If a potential conflict exists the general manager will provide the form to the president of the board of trustees who will distribute to the remaining board of trustee members. If it is determined that a conflict does exist the employee or board of trustee is given thirty days to comply with policy to avoid being sanctioned terminated or removed.”

“The cooperative used the National Rural Electric Cooperative Associations National Compensation Survey to review and approve the salaries of all officers. The survey provides data by job classification based on state regional and national averages. The review is conducted on an annual basis. The board of trustees approves the general managers salary.”

“A copy of the bylaws is given to each member at the time of joining the cooperative. The financial statements are presented in the annual report which is included in the Ohio Cooperative Living magazine prior to the annual meeting of membership which is circulated to all members.”

“| Description:, Explanation:, Amount:| The other changes in net assets or funds balance is the allocation of 2023 margins retirement of patronage capital to estates and a general retirement and changes in membership other equity and non-operating margins., Patronage Capital, $-759585|”