Lake Region Electric Cooperative

“One class of members and each member receives one vote, even if they have multiple electrical connections.”

“The members of the organization elect the members of the governing body. One class of members and each member is entitled to one vote. Husband and wife only get one vote for their joint membership. Members can only vote within their own district.”

“The bylaws must be approved by a majority vote of the members. The following items must be approved by two-thirds vote of its members: 1) sale, lease or exchange of more than 25% of its property, privileges, and franchises; 2) merge or consolidate into another entity that is not a rural electric cooperative association and 3) dissolution of the cooperative.”

“There are no committees with authority to act on behalf of the governing body.”

“The form 990 is reviewed by internal accounting department and then presented to the board of directors for approval prior to being filed.”

“Annually, every director, officer and all employees must complete and sign a "conflict of interest disclosure statement". The statements are reviewed by the board of directors for all directors and officers and the statements are reviewed by the ceo for the employees. Board members with conflicts are asked to abstain from voting on conflicting issues and they are asked to leave the room. Potential conflict of interest for employees is determined by the ceo for review and action if necessary. Any conflict of interests will be documented in the board minutes or the employee personnal file.”

“The board of directors approves the ceo's compensation. Nreca salary survey's are used as comparability data and written minutes are taken when determining the ceo's compensation. The ceo's compensation was last reviewed in november 2024. The board does not approve salaries and benefits for any other positions. The ceo approves the compensation for officers or key employees of lrec. Wage ranges are established using nreca surveys, local market data, cost of living, and trends in the industry.”

“Governing documents, the conflict of interest policy, and financial statements are made available upon request.”

“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. 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.”

“Patronage dividends allocated 1,657,214. Capital credits retired -1,414,416. Change in other equities -182,359. Book to tax difference - subsidiary company -165,603. Book to tax difference - partnership investment -14,210. Donated unclaimed capital credits 126,848.”