Lyon Lincoln Electric Cooperative Inc

“The organization has only one class of members.”

“Members elect the board of directors, all members are of the same class and each member has one vote.”

“Changes to bylaws must be approved by vote of the members.”

“Committees do not have the authority to act on behalf of the governing body; they are only allowed to make recommendations to the board of directors.”

“The form 990 is reviewed at a board meeting prior to being filed.”

“Individuals are required to sign an acknowledgement disclosure annually. The board of directors is covered by the policy. The board of directors and the board committee review whether conflicts exist. If a conflict exists, the individual affected by the conflict is excluded from voting on the issue surrounding the conflict.”

“Compensation is determined by a salary committee with final approval determined by the full board of directors. Comparability data is used in determining the appropriate salary adjustments. This process was last undertaken in 2016. This process is done every year. All employee salaries are compared to nreca's national survey each year.”

“These documents are made available upon request.”

“Included in other compensation is the estimated current year increase or decrease in the actuarial value of the defined benefit plan for the general manager. The current year increase or decrease does not represent current year contributions to the plan. Rather, it is an estimate of the increase or decrease in the actuarial value of the plan as calculated by the plan administrator.”

“Retirement of capital credits -444,892. Changes in other equity 63,145. Changes in memberships 17. Allocation of 2016 margins in 2017 1,103,575.”

“The cooperative is audited on a fiscal year basis. The most recent audit completed was for the fiscal year ended august 31, 2016.”

“The cooperative has interpreted the instructions to part ix, line 4, to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the by-laws of the cooperative.”

“Allocated and other expense - the labor, pension and payroll taxes reported on lines 6-10 are included in distribution expense, administrative & general expense and customer expense. Therefore, labor, pension and payroll taxes are shown as a reduction to other expenses on line 24e.”