Prairie Energy Cooperative

“All electric customers of the cooperative are members. There is one class of membership with equal voting rights.”

“Members elect the board of directors.”

“The membership votes on any changes to the articles of incorporation as well as any mergers or a motion to dissolve the cooperative.”

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

“An independent accounting firm prepares and reviews the 990. The 990 is then reviewed by management. Any questions or concerns are addressed and corrections or clarifications are made. The final 990 with all required schedules is then provided to all voting members of the board prior to filing.”

“All employees and members of the board are required to disclose potential conflicts of interest on an annual basis. New employees and board members must disclose any such potential conflicts upon beginning their employment or board term. It is the responsibility of the board president to address potential conflicts of interest concerning board members, and to take appropriate action if required. The general manager is responsible for addressing any potential conflicts for employees, and for taking any appropriate action required.”

“The board reviews the general manager's compensation package on an annual basis. They use comparative compensation data provided by the national organization for ceos in the state of iowa in determining the compensation package for the general manager. This process is completed annually, and documented in the board minutes. The general manager reviews compensation for all employees on an annual basis, using compensation data provided by the national organization, in determining appropriate compensation levels for employees. The proposed compensation levels are then submitted to the board of directors for their review and approval. This process is documented in the personnel file. The process described here was last completed in 2024.”

“The cooperative makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“Capital credits retired -1,456,642. Equity in earnings - k-1's -42,398. Patronage dividends allocated 2,081,316.”

“The process for the oversight of the audit and the selection of an independent accountant 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.”