Grundy County Rural Electric Cooperative

“The members have to receive electricity from grundy county rec. Grundy county rec is a not-for-profit organization, and any margins are allocated back to the membership on a proportionate amount based on sales.”

“The members elect directors each year on a rotating basis at the annual membership meeting in september. One membership equals one vote.”

“As detailed in the articles of incorporation, altering the articles of incorporation requires a vote by the membership.”

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

“The form 990 is prepared by an independent accounting firm. The return is then presented to the board for review. If changes are required this is done before filing the tax return.”

“The organization reviews annually if there are any conflicts of interest. Directors and employees are questioned about new or old situations that exist in the organization. If conflicts arise they would be properly documented.”

“The salary of the general manager is determined using comparability data. The general manager negotiates an amount of money for annual raises for all other employees. The wage increases are then distributed to the employees by the general manager as he sees fit. The general manager does call around to other surrounding coop general managers, and compares wages with them. The agreed upon amount of wage increases is stated as a dollar amount, or a percentage of total salaries (not including the general manager). All final decisions regarding all compensation requires a formal decision by the board in the form of a motion and vote.”

“The documents are on file at the cooperative's main headquarter's building. They are available for examination upon request for a legitimate purpose.”

“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.”

“Retired capital credits -8,235. Patronage dividends allocated 1,042,985. Patronage dividends paid -255,569. Donated capital 26,107. Income/loss from icr 323.”