Cloverland Electric Cooperative Inc

“The cooperative is owned by its members.”

“The members elect the board of directors by region.”

“The form 990 is reviewed by the president/ceo and cfo.”

“The policy is provided to new employees upon hire and is available to employees on via the organization intranet. The board of directors also has a policy accessable via electronic records.”

“Review of compensation survey and approval by the board of directors.”

“Made available by written request.”

“The organization does not have a written policy regarding its participation in american transmission company, llc (atc). The activities of atc are related to the cooperative's exempt purpose, therefore the cooperative does not believe its participation in this joint venture will endanger its tax exempt status.”

“Included in part vii, column "f and schedule j, part ii, column "c" is the estimated annual increase in the actuarial value of the defined benefit plan. This amount is an estimate in the increase of the value of the plan and is not a current year expense of the cooperative. The estimated actuarial increase for each officer and highest compensated employee is: michael heise: $48,840 patrick frazier: $61,642 jillian tomkinson: $14,959 jeffrey benoit: $17,234 jared kangas: $12,682 matthew shadnaw: $8,752 tyler wollan: $4,903 donald hagen: $26,803 the current year expense is the contribution into the defined benefit plan. The contribution for each officer and highest compensated employee is: michael heise: $70,346 patrick frazier: $60,151 jillian tomkinson: $27,567 jeffrey benoit: $18,686 jared kangas: $21,029 matthew shadnaw: $20,225 tyler wollan: $20,225 donald hagen: $21,029”

“Benefits paid to or for members includes patronage dividends paid. This amount is an expense for purposes of form 990, but is not recognized as an expense under g.a.a.p. Reporting requirements, which are used for book income. The result is a book to tax difference which is disclosed on part xi and in schedule o. In reference to form 990, part ix, line 4, the cooperative has interpreted "patronage dividends paid" as capital credits allocated to members under the preexisting obligations pursuant to the bylaws of the cooperative.”

“The wages, benefits, and payroll taxes reported on lines 5, 7, 8, 9, and 10 are included in the transmission, distribution, and other expenses. Therefore, these amounts are subtracted out as an other deduction on line 24e. These payroll expenses are netted with other expenses on line 24e to arrive at the total shown on the return.”

“Memberships issued 7,405. Retirement of capital credits -839,147. Other changes in equity 284,574. Book to tax difference on partnersh 875,986. Allocated capital credits 4,273,550.”

“The process remains unchanged from the prior year.”