Renville - Sibley Cooperative Power

“All electric customers are voting members of the cooperative. Each member has one vote.”

“The membership elects the board of directors. There is one class of membership.”

“The governing board will review the form in its entirety.”

“On an annual basis, each officer and director completes a form listing any conflicts that may exist and indicating that they have complied with the cooperative's conflicts of interest policy. If a conflict of interest exists, then the board of directors will collectively determine what action should be taken. If directors have a conflict of interest they shall disqualify themselves from decisions that pose the conflict or the appearance of conflict of interest. The director may request the opinion of the cooperative attorney before such action is taken.”

“The board of directors reviews and approves the ceo salary/wage increase and the ceo reviews and approves all other employees salary/wage increases annually. This review last occurred in 2022.”

“The cooperative's articles of incorporation and bylaws are available on the website for the membership and public. The cooperative's bylaws include a section on conflict of interest. Annually, the cooperative's attorney reviews the conflict of interest section of the bylaws with all directors. A link to access the cooperative's 990 returns are posted on the website. A condensed financial statement is published in the cooperative's annual report, which is posted on the website and mailed to every member. The financials are also presented at the annual meeting. The full financial audit is available to members upon request to review in the office.”

“Officer compensation reported on part ix, line 5 does not equal the total compensation reported on part vii for officers and directors. The discrepancy is due to the difference between the current year contributions to the defined benefit pension plan (a current year expense) and the increase in actuarial value of the pension plan. The increase in actuarial value is not a current year expense, but is reported as compensation for purposes of part vii. Included on part vii, column "f", other compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. For the following individuals, the estimated increase is: deeanne newville: $113,350 cindy mertens: $40,377 this amount is an estimate of the increase of the value of the plan and is not a current year expense of the cooperative. Current year employer contributions into the defined benefit plan were as follows: deeanne newville: $55,174 cindy mertens: $20,769”

“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 xi 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.”

“Retirement of capital credits -442,020. Allocated capital credits 1,864,651.”

“There have been no changes to the cooperative's oversight responsibilities this year.”