Midwest Electric Inc

“990 core, page 6, part vi, section b, item 16b: not applicable - this entity did not invest in any joint venture or any other similar arrangement with a taxable entity during the calendar year.”

“990 core, page 6, part vi, section a, item 4: during the beginning of the 2021 year, one major change to the code of regulation change was proposed to the membership and subsequently approved and ratified. This code of regulation change prevents a board member from being elected if they have any familial connections already on the board or have a felony criminal record. These board qualification changes resulted in language changes in section 3 of article iv.”

“990 core, page 6, part vi, section a, item 6: each customer who receives power from our distribution network becomes a voting member of the cooperative. After the year-end audit, any excess margins are allocated back to the members from the year just closed based upon their contributions to the margins.”

“990 core, page 6, part vi, section a, item 7a: the same members who are identified in question six have the opportunity to vote for the eight board member seats that come up for re-election; board members have three-year terms. Voting is handled by an independent third party and is done through the mail and an online website.”

“990 core, page 6, part vi, section a, item 7b: the same members who are identified in question six have the opportunity to vote for any proposed changes in the organization's articles of incorporation and code of regulations. It takes a majority of the votes cast to approve any of the proposed regulation changes. Board members can not change the articles of incorporation or the code of regulations without a consenting membership vote.”

“990 core, page 6, part vi, section b, item 10b: this entity has no local chapters, branches, or affiliates.”

“990 core, page 6, part vi, section b, item 11b: prior to a monthly board meeting, a digital version of form 990 and the required schedules were made available on the board member's computer tablet. At the board meeting, the return was again reviewed by the board members, the corporate attorney, the ceo, the manager of finance and customer service, and the manager of human resources and safety. All present were asked if they had any questions or disagreements with the proposed filing. No changes were suggested.”

“990 core, page 6, part vi, section b, item 12c: annually, the board members and officers are required to complete a conflict of interest and disclosure questionnaire. Based upon the results of that questionnaire, any reported conflicts with third parties or internal parties are identified and may affect the board member's status. If a conflict is small, the board member must recuse himself from decisions involved with that entity/person. If the conflict is substantial or prohibitive based upon the code of regulations, the board member would be subject to removal as detailed in article iv and article vi of the code of regulations.”

“990 core, page 6, part vi, section b, item 15: annually, the board pays for an independent consultant to perform a wage and salary comparison of cooperative wages against those of local, state, and national businesses of like-kind size. The compensation goal of the board is to set pay within a standard deviation of the average wage paid for that position in these similar-sized organizations. The ceo will then use the same wage study and techniques to set the individual wages for management personnel of the cooperative. Each year the board of directors will conduct a performance review of the ceo to review past performance and set short-term and long- term goals. The board will then have an executive session to discuss and arrive at the ceo's salary for the upcoming year.”

“990 core, page 6, part vi, section b, item 15: annually, the board pays for an independent consultant to perform a wage and salary comparison of cooperative wages against those of local, state, and national businesses of like-kind size. The compensation goal of the board is to set pay within a standard deviation of the average wage paid for that position in these similar-sized organizations. The ceo will then use the same wage study and techniques to set the individual wages for management personnel of the cooperative. Each year the board of directors will conduct a performance review of the ceo to review past performance and set short-term and long- term goals. The board will then have an executive session to discuss and arrive at the ceo's salary for the upcoming year.”

“990 core, page 6, part vi, section c, item 19: the cooperative gives the articles of incorporation and the code of regulations to all new members (either by mail or e-mail); any current member may also request a copy of these documents. The conflict of interest policy will be given to members upon request. The cooperative's financial statements are made available upon request but are also published annually in the member's monthly publication of the ohio cooperative living magazine. The audited statements are typically displayed in the magazine in the month preceding the june annual meeting.”

“990 core, page 7, part vii, section a, item 1a, column a: prior to the 990 completion, each board member, officer, and key employee was given an information-gathering questionnaire to complete. The questionnaire explained reportable conditions and gave the irs' definition on key terms. Upon receipt of all ten questionnaires, they were reviewed to identify any reportable situation. Additionally, if any reportable situation was known or observed by another governing member, they were expressed with the necessity to come forward with that information. 990 core, page 7, part viii, statement of revenue, line 1e: in april 2020, the company received a 703,655 paycheck protection loan from the small business administration (sba) through an area bank. After utilizing the proceeds on eligible expenses, the company applied for loan forgiveness in december 2020. On march 11, 2021, the sba granted loan forgiveness of the entire amount.”

“990 core, page 1, item h(b): not applicable since there are no subordinates. 990 core, page 3, part iv, item 4: not applicable, this is not a 501(c)(3) entity. 990 core, page 3, part iv, item 20b: not applicable, this organization does not operate any hospital facilities. 990 core, page 4, part iv, item 25a: not applicable, this is not a 501(c) (3) or a 501(c)(4) or a 501(c)(29) entity. 990 core, page 4, part iv, item 25b: not applicable, this is not a 501(c) (3) or a 501(c)(4) or a 501(c)(29) entity. 990 core, page 4, part iv, item 36: not applicable, this is not a 501(c) (3) entity. 990 core, page 10, part ix, line 4: in adhering to irs 990 instructions, patronage capital retired to active and former members for the calendar year is reported on this line. Conceptually, patronage capital represents a member's ownership in a cooperative and any retirement of patronage capital is, in fact, a return of that investment and not a traditional expense as viewed in standard accounting rules. By including this amount on the statement of functional expenses, we have overstated our current year's expense by 2,288,481 and we had to create a balancing adjustment on line 24d to properly adjust our expenses back to gaap and usda accounting methodology. 990 core, page 10, part ix, line 24d: in adhering to the irs 990 instructions for expense disclosures on part ix, statement of functional expenses, items that are not treated as current year expenses on our audited statements have been overstated on this tax return. For instance, large portions of labor, labor overhead, and subcontracted labor are capitalized in the cooperative's fixed assets in accordance with usda accounting procedures. These assets have a multi-year life and are either depreciated or amortized over their useful life. Therefore, by reporting our gross payrolls in lines 5,7, 8, 9, and 10, we need to recognize an offsetting amount in line 24d to properly identify these labor costs that have been capitalized as an element of fixed assets. In addition, as stated above in line 4, the retirement of patronage capital is not viewed as a traditional expense but rather as a return of invested capital. Therefore, the entire amount on line 4 (2,288,481) is not considered an expense for gaap or usda standards and by including this amount on line 4, we need to create an offset amount on line 24d to successfully adjust our total functional expenses back to the audited balance of 31,328,240. 990 core, page 10, part ix, columns b-d: since this entity is not a 501 (c)(3) or a 501(c)(4) entity, columns b, c, and d were not required to be filled out and were not completed on this return. 990 core, page 10, part ix, line 26: this entity has no joint costs from column b to report. 990 schedule d, part i: this section was not applicable. 990 schedule d, part ii: this section was not applicable. 990 schedule d, part iii: this section was not applicable. 990 schedule d, part iv: this section was not applicable. 990 schedule d, part v: this section was not applicable. 990 schedule d, part vii: this section was not applicable. 990 schedule d, part viii: this section was not applicable. 990 schedule j, part i, items 5-9: not applicable - this is not a 501(c) (3), a 501(c)(4), or a 501(c)(29) entity. 990 schedule l, part i: this section was not applicable. 990 schedule l, part iii: this section was not applicable. 990 schedule l, part iv: this section was not applicable. 990 schedule r, part i: this section was not applicable. 990 schedule r, part iii: this section was not applicable. 990 schedule r, part iv: this section was not applicable. 990 schedule r, part vi: this section was not applicable.”

“990 core, page 2, part iii, item 4e: since functionalized break-outs are not required on part ix, the total on part ix, line 25, column (b) is not available. Additionally, the entity is not a 501(c)(3) or a 501(c)(4) entity.”

“990 core, page 5, part v, item 5c: not applicable - the filing of form 8886-t was not required. 990 core, page 5, part v, item 6b: not applicable - no tax deductible charitable contributions were received. 990 core, page 5, part v, items 7a-h: not applicable - this entity can not receive tax deductible contributions under section 170(c). 990 core, page 5, part v, item 8: not applicable - this entity does not maintain donor advised funds. 990 core, page 5, part v, item 9a: not applicable - this entity does not maintain donor advised funds. 990 core, page 5, part v, item 9b: not applicable - this entity does not maintain donor advised funds. 990 core, page 5, part v, item 10a: not applicable, this is not a 501(c) (7) entity 990 core, page 5, part v, item 10b: not applicable, this is not a 501(c) (7) entity. 990 core, page 5, part v, item 12a: not applicable, this is not a section 4947(a)(1) non-exempt charitable trust. 990 core, page 5, part v, item 12b: not applicable, this is not a section 4947(a)(1) non-exempt charitable trust. 990 core, page 5, part v, item 13a: not applicable, this is not a 501(c) (29) qualified nonprofit health insurance issuer. 990 core, page 5, part v, item 13b: not applicable, this is not a 501(c) (29) qualified nonprofit health insurance issuer. 990 core, page 5, part v, item 13c: not applicable, this is not a 501(c) (29) qualified nonprofit health insurance issuer. 990 core, page 5, part v, item 14b: not applicable - the filing of form 720 was not required to report payments for indoor tanning services. 990 core, page 5, part v, item 17: not applicable, this is not a 501(c) (21) entity.”

“990 core, page 12, part xi, item 9: other changes in fund balances for the year included: refund of member patronage capital with general retirements (2,423,074) refund of member patronage due to special estate retirements (183,064) other comprehensive income - change of fas106 valuation 158,441 forfeiture of unclaimed patronage capital 77,110 discount on early retirement of estate patronage 65,120 ----------- total other changes in fund balance (2,305,467) 990 core, page 12, part xii, item 2c: the board of directors has a sub- committee that has the responsibility of selecting an independent auditor to annually audit the cooperative's financial statements. The committee has the ability to meet with the auditor prior to and after the audit has been completed. This process has been consistent from year-to-year. 990 core, page 12, part xii, item 3b: no single audit act or omb circular a-133 audit was required this year.”

“990 core, page 12, part xii, item 1: this entity did not change its' accounting method.”