Traverse Electric Cooperative Inc

“All electric customers of the cooperative are members.”

“Cooperative members elect the board of directors.”

“All active members vote on any bylaw amendments. Each member has one vote.”

“The organization does not have any committees that have authority to act on behalf of the governing body.”

“A copy of the 990 is provided to the board for review with a formal review of the 990 at a board meeting. This is normally done after the 990 is filed due to filing deadline.”

“A. Each director and employee of traverse electric shall make every reasonable effort to comply with the letter and spirit of this policy. B. The manager shall make every reasonable effort to inform all employees about the content of this policy and make every reasonable effort based on the information available to him to see that it is complied with and report to the board of directors periodically on how this policy is being carried out. C. Consistent with the bylaws of traverse electric any director or employee whose conduct infringes upon either the letter of spirit of this policy, shall be subject to: (1) if director or manager, expulsion or termination by appropriate action of the board of directors, or (2) if an employee, termination by appropriate action of the manager. The organization document proceedings resulting from conflict of interest in board minutes and that the board member abstained from voting.”

“The board of directors is responsible for reviewing the general manager salary. An outside consultant provides the board with methods to properly evaluate the performance of the general manager (gm) and reviews comparable gm compensation to verify the gm's compensation is within a competitive range for gm's of comparable organizations and provides this information to the board of directors. The board of directors reviews and approves the gm's compensation annually. The process was last conducted in 2024. An outside consultant conducted a salary study of all non-union positions within the organization utilizing updated job descriptions for each position and recommended comparable salary ranges for each position. It did not guarantee an increase to any employee. This information was provided to the general manager to determine a budget for salary increases, which is approved by the board of directors. Department managers completed a written job/performance evaluation for each employee in their department and recommended a salary increase based upon the salary study and performance evaluation. The general manager reviews the salary recommendations and provides final approval. This process was last conducted in 2024.”

“The cooperative makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”

“Donated capital and capital credits retired -469,225. Patronage dividends allocated 1,089,145.”

“The organization's financial statements are audited by an independent accountant for year ended march 31 annually. The 990 is reported with a year end of december 31.”

“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.”