Mclean Electric Cooperative Inc

“The cooperative is a member owned cooperative.”

“Each member of the cooperative has one vote in elections of the board members.”

“Each cooperative member is allowed a vote to approve any by-laws changes.”

“The general manager, business manager, and board of directors review the 990 for accuracy and approve the 990 prior to filing.”

“The board of directors review the policy on a regular basis. Employees are provided a copy of all policies.”

“The board uses state and national comparability data from nreca and ndarec surveys and the board evaluates performance to determine the general manager's compensation. The general manager uses state and national surveys and performance evaluations to determine compensation of other employees.”

“The organization's public inspection copy of form 990 is available upon request.”

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

“Officer and director compensation reported on part ix, line 5 does not equal the total compensation reported on part vii, line 1b for these individuals. The difference is due to the difference between the current year contributions (a current year expense) and the increase in actuarial value. The increase in actuarial value is not a current year expense, but is reported as compensation for purposes of part vii. Included part vii, column "f", other compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. For the following individuals, the estimated increase is: mark doyle - $38,800 keith thelen - $0 lucas schaaf - $26,542 nathan ruud - $39,984 wendy kinn -$20,896 travis voth - $39,984 loren desjardins - $16,971 lucas dusek - $16,971 jesse carter - $16,971 this amount is an estimate of the increase of the value of the plan and is not a current year expense of the cooperative. The current year expense for this defined benefit plan was as follows: mark doyle - $29,900 keith thelen - $0 lucas schaaf - $5,271 nathan ruud - $42,722 wendy kinn -$24,457 travis voth - $36,941 loren desjardins - $25,576 lucas dusek - $12,294 jesse carter - $11,173”

“As required by form 990 instructions, form 990, part ix, line 4 (benefits paid to or for members) includes patronage dividends paid. This amount is an expense for purposes of form 990, but is not recognized as an expense under gaap reporting requirements, which are used for book income. The result is a book to tax difference which is disclosed on part xi and on schedule d parts xi and xiii. In reference to part ix, line 4, the cooperative has interpreted "patronage dividends paid" as capital credits allocated to members under the preexisting obligations pursuant to the bylaws of the cooperative.”

“The labor, pension and other benefits reported on lines 5 - 9 are already included in distribution expense, admin & general and customer service expense. Therefore, these amounts are being subtracted out as an other deduction (allocated costs) in line 24e.”

“Retirement of capital credits -250,121. Forfeited/retired capital credit gains 44,291. Allocated capital credits 1,665,555.”

“Oversight process of the audit and selection process of the independent auditors has not changed from the prior year.”

“Certain line items on the prior year balance sheet have been reclassified to conform to the current year presentation. There is no change to total assets, liabilities, or net assets as previously presented.”