Union Rural Electric Cooperative Inc

“The cooperative has approximately 12,000 member/owners”

“Every member/owner has one vote for cooperative trustees. Each of the trustees serve 3 year terms and must live within a defined district. Once elected, trustees represent all member/owners, therefore member/owners are not limited to voting for the trustee representing only their district.”

“Elected trustees make decisions concerning governance of the cooperative on behalf of the member/owners. However a change to the bylaws is subject to a vote by the member/owners.”

“The Form 990 is distributed to the trustees in its entirety for their review. The form is then discussed at a regularly scheduled board meeting, after which corrections and/or adjustments are made if necessary.”

“The conflict of interest policy states that trustees and employees are required to discuss any potential conflict of interest issues with the CEO as they arise.”

“The wage and salary structure for all positions at the cooperative is compiled annually by an independent 3rd party contractor. The salary structure is then reviewed and approved by the board of trustees annually.”

“Code of Regulations and Articles of Incorporation are available to the public in the lobby of our office at 15461 US Highway 36, Marysville, Ohio. The conflict of interest policy is also available upon request. Audited financial statements are available for viewing on the cooperative's website under URL https://ure.com/wp-content/uploads/Financial-Statement-Full-report.pdf”

“Retired Trustee Thornton deferred a portion of his income during the years he served on the Cooperative's board. These amounts were reported in previous Form 990s in the years earned. The deferred income has been included as an asset of the cooperative as well as a liability. A portion of the amount reported in Part VII as reportable compensation to Trustee Thornton was paid out of his deferred compensation balance.”

“"Benefits paid to or for members" is for patronage dividends paid to members and is interpreted to mean current year margins to be allocated to members in the following year in accordance with the cooperative's bylaws. This is not an expense according to Generally Accepted Accounting Principles and was not recorded as an expense on the books of the cooperative in either the prior year or the current year. This is a reconciling item between book net income and tax net income on Schedule D, Part XII, Line 4b.”

“Many of the expenses listed on these lines have been spread over many expense accounts according to their function and are included in expenses categorized by function.”

“Other changes in net assets or fund balances include: 1)Margins to be allocated in the following year ($3,248,668 increase), 2) Capital Credit retirements ($2,759,981 decrease), 3) Capital credits forfeited back to the cooperative ($1,717 increase), 4) Escheat process ($56,637 increase), 5) Changes to Post Retirement Benefit Fund including actuarial gain ($1,600 decrease), 6)Youth scholarships paid out ($8,000 decrease), 7)Change in Equity of Scholarship Fund ($36,338 increase).”