Nobles Cooperative Electric

“All consumers taking nce electric services are considered members”

“Only current electrical consumers are able to vote for board members and vote on bylaw changes..”

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

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

“Upon reviewing or discovering any information or fact that could impact a director's compliance with this policy, the board must 1 - provide the director an opportunity to comment orally and in writing regarding the information or fact, and an opportunity to be represented by legal counsel, and 2 - determine whether the director complies with this policy. If the board determines that a director does not comply with this policy, then 1 - the board must provide the director an opportunity to comply with this policy within thirty days and, 2 - if the director does not comply with this policy within thirty days, then, as allowed by law, the board must sanction, disqualify, and/or remove the director upon receiving or discovering any information or fact that could impact any other official's compliance with this policy, the board must act as a appropriate or authorize the manager to act as appropriate.”

“Nobles cooperative board of directors annually review and determine chief executive officer compensation package. The board of directors uses the nreca national compensation system to review other cooperatives of similar size and annual revenues as a guide. An independent review of the ceo's performance and accomplishments is performed. The decisions are documented in board minutes.”

“The organization makes these documents available at all times on their website (www.nobles.coop). All doucments are also available upon request.”

“The organization makes these documents available at all times on their website (www.nobles.coop). All doucments are also available upon request.”

“The irs instructions state that patronage dividends paid by section 501(c)(12) organizations to their members should be reported on line 4. The organization has interpreted patronage dividends paid to mean patronage dividends allocated or to be allocated for the current year. Since this allocation is not an expense under generally accepted accounting principles (gaap), this has resulted in a reconciling item to net assets in part xi on page 12 of the form 990 and in part xii on schedule d.”

“Patronage allocation 2,120,400. Retirement of capital credits -1,026,162. Transfer to other equities -131,940. Increase in other equities 9,986. Rounding 4.”

“The cooperative's board of directors assumes responsibility for oversight of the audit of its financial statements and the selection of its independent accountant. This process has not changed from the prior year.”