Itasca Mantrap Co Op Electrical Assn

“The organization is a member owned cooperative.”

“There is one class of membership and members elect the board of directors.”

“Cooperative members vote on changes to the bylaws or articles of incorporation.”

“Copies of form 990 are given to the board of directors for their review and discussed at the itasca-mantrap co-op board meeting.”

“The cooperative regularly monitors and enforces compliance with their conflict of interest policy by requesting a form 990 questionaire be completed.”

“The board of directors fills out a ceo performance appraisal form. The board reviews other local cooperatives ceo salaries and refers to the nreca annual minnesota salary survey for guidance. They review the appraisal, surveys, discuss the progress on goals assigned amongst themselves and then bring the ceo into the room and discuss these same items with him. For all other officers and key employees of the cooperative, a performance review on trakstar (a software program) is performed and reference to the nreca annual minnesota salary survey is made.”

“The cooperative's governing documents, conflict of interest policy and financial statements are made available upon request.”

“Form 990, part ix, line 4 (benefits paid to or for members) now 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.”

“Book/tax difference from k-1's -33,642. Retirement of capital credits -897,352. Other adjustments -1,340. Allocated capital credits 1,769,177. Ubit per return 6,692. Ubit per books -5.”