Pella Cooperative Electric Association

“Membership is available to all persons within the assigned service area of the cooperative on a nondiscriminatory basis. Each member-consumer has one vote at the annual meeting of the membership.”

“Each member-consumer has one vote and the affairs of the cooperative are conducted by a board of directors who are elected from among the member-consumers by the member-consumers.”

“Any amendment to the articles of incorporation or by-laws are subject to approval by the cooperative's members.”

“The directors were provided with an electronic copy of the form 990, 990-t, and ia 1120 prior to filing of the return. Management performed a review of the returns prior to filing.”

“The cooperative recognizes and respects each employee's/director's right to privacy and to engage in personal activities outside the scope of employment with the cooperative. Each employee/director also has an obligation; however, to refrain from activities which conflict or interfere with the cooperative's operations, and to refer questions and concerns about potential conflicts to their supervisor, the ceo, or the board president. Annually, each employee/director will be required to fill out and sign a "statement of business ethics" as a condition of employment/appointment. The cooperative reserves the right to determine when an activity conflicts with its interests, and to take whatever action is necessary to resolve the conflict. If necessary, this action can include termination of the employee or removal from the board.”

“Compensation for the ceo and all staff positions are reviewed annually, the latest review being completed in 2014. Compensation is established based on competitive wages paid to individuals with similar job responsibilities. Comparisons are made using the nreca compensation study and adjusted using state, regional, or national comparisons.”

“Governing documents and conflict of interest policy are available upon request. Financial statements are included in the annual report which is posted on our website.”

“Patronage dividends allocated 175,000. Capital credits retired -156,959. Changes in other equities 2,224.”

“The oversight of the financial statements and the selection of an independent accountant to perform the audit of the financial statements by the board of directors 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 and in part xii on schedule d.”