Harrison County Rural Electric Cooperative

“The organization has members.”

“Members are all of the same class. Each membership has one vote on items brought to the membership for vote.”

“Changes to the articles of incorporation are subject to a vote of the membership. The membership also elects directors at the annual meeting.”

“There are no committees with broad authority to act on behalf of the governing body.”

“The general manager and finance officer review the 990 in detail. After their review, the 990 is provided to each board member. The general manager and/or finance officer present the 990 to the board of directors at the meeting held prior to its filing if so requested by any board member. Whether presented in a board meeting or not, the 990 is not filed until each board member has been given a copy of it and given ample time to review it.”

“All suspected instances or known instances of conflict are reviewed with the individual involved, and handled according to policy. All employees and members of the board are covered by the policy. The manager determines whether a conflict exists, and a review would be performed. Restrictions would apply as determined necessary to remove the conflict.”

“The board determines the salary for the manger/evp. Factors used in setting the salary include cost of living, performance evaluation, and the nreca wage survey, which is reviewed every 2-3 years. The manager/evp gets compensation surveys and provides the information to the board of directors. A reasonable salary is then set for all the individuals. The process was undertaken in 2017.”

“The documents are made available upon request.”

“Included in other compensation is the estimated current year increase or decrease in the actuarial value of the defined benefit plan for the manager/evp and director of administration. The current year increase or decrease does not represent current year contributions to the plan. Rather, it is an estimate of the increase or decrease in the actuarial value of the plan as calculated by the plan administrator.”

“Subsidiary earnings - loess hills -1,567. Allocation of 2017 margins in 2018 1,127,135. Retirement of capital credits -329,896. Gain/loss on retirement of capital credits 5,242. Memberships issued (net) 40. Patronage education fund -64,473.”

“The cooperative has an audit on a fiscal year basis. The cooperative's most recent audit was for the fiscal year ended april 30, 2017.”

“The labor, pension and payroll taxes reported on lines 6-10 are included in distribution expense, administrative & general expense and customer expense. Therefore, labor, pension and payroll taxes are shown as a reduction to other expenses on line 24e.”

“The cooperative has interpreted the instructions to part ix, line 4, to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the by-laws of the cooperative.”