Freeborn Mower Cooperative Services

“Each member is a consumer of the cooperative.”

“There is only one class of voting membership and each member is allowed one vote.”

“The form 990 is reviewed by the board and management team prior to its filing with the irs.”

“An annual compliance certification is completed by each board member, officer, and key employee.”

“The board of directors will use national, regional, and state data to determine the new annual salary for the president/ceo. The board of directors will also utilize the national comp. Study conducted annually by nreca as a guide. Each non-union employee completes an evaluation form which is reviewed annually with their supervisor. Wage increases are based upon performance annually. The union employees' wage increase is based on the union contract. Both of these processes were used during the current tax year.”

“The cooperative makes its governing documents and financial statements available upon request at the cooperative.”

“Capital credits retired -1,217,535. Change in other equities -196,717. Heartland security services, llc k-1 -3,737. Freeborn mower construction company -23,807. Patronage dividends allocated 1,703,474.”

“The cooperative's board of directors assumes responsibility for oversight of the audit of its consolidated financial statements and the selection of its independent accountant. This process has not changed from the prior year.”

“The irs instructions state that patronage dividends paid by section 501(c)(12) organizations to their members should be reported on line 4. The organization has interpreted patronage dividends paid to mean patronage dividends allocated or to be allocated for the current year. Since this allocation is not an expense under generally accepted accounting principles (gaap), this has resulted in a reconciling item to net assets in part xi on page 12 of the form 990.”