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 voting members of the cooperative approve any amendments to the bylaws governing the cooperative. The governing body of the cooperative adheres to this governing document.”

“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.”

“Included in part vii, section a, line 1a, column f, is the estimated annual increase in the actuarial value of the defined benefit plan. This amount is an estimate of the increase of the value of the plan and is not a current year expense of the cooperative. Current year contributions into the defined benefit plan are a current year expense and are included in part ix as such.”

“As required by form 990 instructions, form 990, part ix, line 4 (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 on schedule d parts xi and xiii. In reference to 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.”

“Heartland security services, llc k- 1,653. Minnesota three llc k-1 -24,761. Patronage dividends allocated 4,039,130. Income tax benefits 4,655. Capital credits retired -1,280,478.”

“Oversight process of the audit and selection process of the independent auditors has not changed from the prior year.”