People'S Cooperative Services

“Each customer is a member of the electric cooperative and has voting rights at the annual meeting.”

“Each customer is a member of the electric cooperative and may elect members of the governing body. Each member is allowed one vote.”

“Bylaw changes must also be approved by a vote of the membership.”

“The manager will review the 990 and conduct a review with the board before it is filed.”

“Directors and key employees answer a questionaire regarding business relationships, family relationships and independence. Directors and employees with a conflict may face appropiate sanction.”

“The boards process for determining ceo compensation is based on results of a written performance evaluation completed by all board members, then summarized. Compensation is then determined by comparing regional salary levels for ceo's based on company size with current ceo's salary and performance. Compensation of officers and key employees are based upon an approved employee compensation administration policy and a compensation plan, both approved by the board of directors. The data used in the compensation plan is collected from the nreca national compensation survey.”

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

“Included in column (f), estimated amount of other compensation from the organization and related organizations, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase is $94,978 for elaine garry, $14,160 for michael henke, $20,425 for gary koehne, $16,731 for troy swancutt, $21,747 for kevin mcdermott, $22,627 for gary fitterer, and $21,205 for mark hallum. These amounts are estimates in the increase of the value of the plan and are not current year expenses of the cooperative. The current year expense for this defined benefit plan was $40,592 for elaine garry, $23,586 for michael henke, $14,747 for gary koehne, $22,247 for troy swancutt, $14,348 for kevin mcdermott, $20,995 for gary fitterer, and $14,736 for mark hallum.”

“Patronage dividends allocated 2,408,876. Accumulated other comprehensive income -200. Patronage capital retired -832,367. Book to tax difference -heartland security services llc -6,146. Book to tax adj - minnesota three llc k-1 16,011.”

“The cooperative's board of directors assumes responsibility for oversight of the audit of its financial statements and the selection of its independent accountant.”

“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.”