North Central Electric Cooperative Inc

“There is one class of members which all have the same voting rights.”

“Members vote for all open positions in all districts that are up for election that year.”

“Changes to bylaws or articles of incorporation must be approved by members of the cooperative.”

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

“The general manager and business manager reviewed a draft of the form 990. The form 990 was presented at a board meeting prior to filing with the irs.”

“Each interest disclosed to the president of the board of directors is reviewed by the president to determine: a) take no action, b) full disclosure to the board & other covered individuals, c) ask person to recuse from participation in related discussions/decisions, or d) ask person to resign their position.”

“The board annually uses a salary survey made available through the north dakota association of rural electric cooperatives. The salary deliberation is documented in the minutes. The board votes on the compensation. Compensation for the business manager is determined based on business manager salaries at other cooperatives across north dakota, taking into account the results of the nd association of rec's wage and salary survey. In addition, the business manager's years of service to the cooperative are considered. The board approves all wages annually. For non-union employees the general manager makes a recommendation, and the board votes to approve. For union members, the union negotiates directly with the board and the general manager. When an agreement is reached, the board will formally approve the new wage scale.”

“The governing documents, conflict of interest policy and financial statements are available upon request.”

“Included in the column "f" estimated amount of other compensation is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase is as follows for those listed in part vii: jonathan beyer - $74,706 sarah dawson - $28,503 pete erickson - $0 tyler lee - $26,274 tyson brandt - $20,433 talon thompson - $1,887 courtney larocque - $3,381 these amounts are estimates in the increase of the value of the plan and are not current year expenses of the cooperative. The current year expense for this defined benefit plan was as follows: jonathan beyer - $60,950 sarah dawson - $37,623 pete erickson - $0 tyler lee - $37,623 tyson brandt - $26,887 talon thompson - $11,416 courtney larocque - $11,416”

“Capital credits retired -539,144. Discounted estate retirements -142,987. Patronage capital credits allocated 2,025,612.”

“There was no change in the oversight or selection process of the independent auditors. The full board of directors reviewed and approved the independent auditors.”

“Allocated costs - the labor, pension and payroll taxes reported on lines 5 - 10 are already included in distribution, adminstrative and general expense, and customer expense. Therefore, these amounts are being subtracted out as an other deduction in line 24e for the total amount.”

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