Midland Power Cooperative

“All electric customers of the cooperative are voting members of the cooperative. Each member has one vote at the annual meeting of the membership.”

“Members of the board of directors are elected to three year terms by the members of the cooperative at the cooperative's annual meeting.”

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

“An independent accountng firm prepares and reviews the 990. The 990 is then reviewed by the organization's officers and accounting personnel. Any questions or concerns are addressed and corrections made. The 990 return is presented to the board of directors and approved by the board prior to filing.”

“Directors are required to fill out a conflict of interest disclosure statement annually. Officers are not required to complete the disclosure statement.”

“Line 15a midland power cooperative's board of directors performs an annual review of the ceo using nreca survey data to determine the rate of pay. Line 15b the ceo uses the same nreca data the board uses in determining the salaries of the key employees and hourly employees that are non-union.”

“Annual reports are distributed at the annual meeting that contain the financial statements. All other policies are available upon request.”

“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 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.”

“Retirement of capital credits $ ( 974,219) changes in other equities 128,485 patronage allocation 2,463,860 ----------- total $ 1,618,126”