Butler County Rural Electric Cooperative

“Substantially all customers of the cooperative are members. Each member has equal voting rights.”

“Members elect the board of directors. There is one class of membership.”

“The membership votes on any changes to the articles of incorporation.”

“The board of directors reviewed the form 990 prior to its filing.”

“Directors, officers and key employees are expected to declare any conflicts of interest. Directors are to abstain from discussions and voting on any matters involving a conflict of interest.”

“Ceo and recording secretary's compensation were reviewed and approved in 2018 by the board of directors. The board uses nreca comparability data to determine officers compensation and the executive session of the board is documented in the board minutes.”

“The governing documents, conflict of interest policy, and financial statements are not made available to the public. The governing documents and financial statements are available to members.”

“Capital credits retired -635,471. Net actuarial gain on post retirement benefits -97,654. Book/tax difference - subsidiary income -5,552. Patronage dividends paid 2,482,958.”

“The process for oversight of the annual financial statement audit and selection of an independent accountant has not changed.”

“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.”