Thumb Electric Cooperative of Michigan Inc

“The Cooperative has members, each member has one voting right.”

“The Board of Directors is elected by the members.”

“Members vote on items affecting the bylaws of the Cooperative.”

“There are no other committees that act on behalf of the governing board.”

“The Form 990 is reviewed and approved by the General Manager and Office Services Manager. The form is then provided to the Board before it is filed with the IRS.”

“The Board and Management staff conduct a yearly review for any conflicts. The General Manager reviews the documents and determines if a conflict exists. If a conflict exists, the General Manager would request that individual abstain from voting.”

“The Board annually reviews and approves the compensation for the General Manager and Office Services Manager in conjunction with NRECA compensation study. The Board review and approval is substantiated in the Board minutes.”

“The governing documents, conflict of interest policy and financial statements are available to the public upon request.”

“The amounts listed in Column F are the actuarial estimates of the increase in the value of the employees defined benefit pension. The actual current year expense for the defined benefit pension plan was: Dallas Braun $41,269, James Philp $22,475, Brandon Bruce $18,362, Mike Cleland $17,109, Mike Kozlowski $17,572, Jim Vogel $17,109, Paul Voss $17,109, Ray Kwiatkowski $18,362, Jeff Swick $17,109, Brad Essenmacher $25,118, Alan Rutkoski $21,171, Mike Affer $20,458, Brandon LeGault $25,630, Mike Weber $17,109.”

“The Cooperative has interpreted the instructions to this line and section to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the Cooperative Bylaws.”

“Because Line 5 captures only the current year expense of the defined benefit pension plan of the Cooperative, the compensation in Part IX, Line 5 is more than that reported on Part VII.”

“Other expenses, salaries, pension and payroll taxes reported on Lines 5 - 10 are already included in distribution expenses, administrative & general and consumer expenses. Therefore, these amounts are being subtracted out as an other deduction on Line 24e in the amount of ($4,377,830).”

“Change in net asset value. Memberships Issued $2,610, Other Equity Transactions $109,087, Retirement of Patronage Capital ($662,350), Patronage Capital Allocation $927,829, Change in Investment of Subsidiary $159,092. Total amount on Part XI, Line 9 is $536,268.”