Howell Oregon Electric Cooperative Inc

“The cooperative has members. The cooperative was organized by and for the mutual benefit of the members and provides electric energy on a cooperative basis.”

“The member of the cooperative elect the board of directors at the annual meeting. One member equals one ballot. Director eligibility is based on voting district, however each member has one vote per voting district on the ballot.”

“Any changes or amendment to the bylaws proposed by the board of directors must be approved by the members. The bylaws set forth additional transactions that require member approval. Voting for any bylaw changes occurs at the annual meeting, with each member getting one vote.”

“The form 990 is presented to the board of directors and reviewed before signing and filing of the 990.”

“Each director and employee must disclose any situation which, in his or her opinion violates, may violate or would appear to violate the intent of the policy. In addition, the directors and staff of hoec annually fill out a conflict of interest questionnaire to facilitate disclosure. The board president is responsible for the enforcement of the conflict of interest policy and any violations are brought before the board of directors.”

“Annually a survey of comparable wages from similiar coops is obtained and reviewed to assist in determining wages of the ceo and other officer's and employees. Also annually, benefits unlimited group performs a wage analysis by position. These results are reviewed and approved by the board of directors prior to any wage adjustments.”

“Every new member is given a copy of the bylaws upon joining the cooperative, and bylaws are available at any time upon request. The financial statements are presented at the annual meeting and upon request. The conflict of interest policy is presented upon request.”

“The cooperative operates at cost, and, as such, any end of year margins are assigned to the membership as patronage capital. On part 1, line 19 - revenue less expenses is the result of the cooperative allocating $3,072,375 to its members even though the net book income is $3,072,375. Since the amount of the patronage dividend is reported as an expense on the form 990, the difference between the two amounts results in no net profit. The cooperative adopted a revenue deferral plan in accordance with accounting standards codification 980 "regulated operations" which was approved by the rural utilities services as the primary lender. There is no effect for 2024 on net income for the year. The approved revenue deferral is designed to control rates by helping to offset the future potential increase in power costs. Regardless of the rate decisions to defer revenue, the amounts deferred are assignable to 2024 members as patronage dividends. To assist in understanding the net income and the difference between net income of the cooperative and the patronage dividends allocated to members, the 2024 patronage dividend is calculated as follows: 2024 net margins per audited financial statements: $3,072,375 plus: 2023 decrease in deferred revenue (recognized into margins from previous years) 0 2023 part 1, line 14 - benefits paid to members $3,072,375 the net effect of the approved revenue deferral plan in 2024 was no effect on revenue and a regulatory liability for the same amount. The 2023 reconciliation is as follows: 2023 net margins per audited financial statements: $4,040,175 plus: 2023 decrease in deferred revenue (recognized into margins from previous years) -2,300,000 2023 part 1, line 14 - benefits paid to members $1,740,175”

“Expenses are recorded in the audited financial statements in accordance with usda/rural utilities service bulletin 1767b-1, uniform system of accounts. Expenses for directors, salary & wages, employee benefits and payroll taxes have been reclassified out of their original categories for form 990 presentation. All other expenses are recorded on the form 990 in their respective categories in accordance with the prescribed rus accounting requirements. This is a schedule of expenses and, as such, these amounts do not include amounts capitalized on the balance sheet.”

“2024 net patronage capital retirements -2,359. 2024 net patronage capital assigned to members 3,072,375. 2024 retired capital gain 1,376.”

“There were no changes to the selection process for the auditor or the oversight of the financial statement audit.”