Mille Lacs Energy Cooperative

“Member owned electric cooperative”

“We are a cooperative. Board member positions come up for election every 3 years. All members are eligible to vote. The board is authorized to fill a position when vacated during the year.”

“Where applicable, i.e. Changes in articles of incorporation by-laws, dissolution of cooperative, etc. All members are eligible to participate in this decision.”

“A draft copy of the 990 was provided to each board member. This was reviewed by the controller with the board at a board meeting prior to filing.”

“The wage and salary plan used for all of the non-union employees, including the management team, is based on survey data provided by nreca for similar positions of other rural electric cooperatives in the u.s. The process used has been approved by the board and is documented in policy. The overall plan is reviewed annually.”

“Mille lacs energy cooperative publishes its articles of incorporation and bylaws on its website, have a copy in our lobby and send to any members who request a paper copy. The cooperative publishes its quarterly financial statements in its monthly newspaper "the outlet" (which is mailed to all members and also posted on the website); same with its annual report to their membership.”

“In 2017, the cooperative started providing fiber-at-the-home broadband service. Once the infrastructure for the entire project is completed it is expected to bring fiber to approximately 800 patrons. This is considered an exempt activity and is in accordance with the cooperative's bylaws.”

“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 xii 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.”

“Patronage dividends paid (allocated 1,866,685. Retirement of capital credit -717,788.”

“The process for overseeing the audit and selection of an independent accountant has not changed from the prior year.”