Burke Divide Electric Cooperative Inc

“All board members have one voting right. The President only votes if there is a tie.”

“Bylaws were updated to allow for the membership to vote by mail or electronic means, to eliminate director nominations from the floor, and to specify director qualifications for members who were employed by the Cooperative.”

“There is only one class of members. Each member is allowed one vote. Each household is considered one member.”

“The members of the Cooperative elect the Board of Directors.”

“Changes to the bylaws and new business activities are both subject to approval of the members.”

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

“The General Manager and the Office Manager reviewed a draft of the 990 prior to it being electronically sent to the board for their review and final approval before being filed with the IRS.”

“All employees and Board Members are covered under the policy. The General Manager, staff, and the President of the Board of Directors review the suspected conflicts. The General Manager works with the employees to resolve the conflict. The board is responsible for managing the conflicts that may exist with board members and the General Manager. If the conflict is deemed detrimental to the Cooperative, the employee/board member would be terminated.”

“The Board of Directors performs an annual review of the General Manager's performance with the General Manager. This review includes the involvement of a Compensation Committee that performs a compensation survey or study. After the review, the Board will go into executive session to determine the adjustment to the salary. The General Manager uses compensation studies to determine the Office Manager's compensation. The Board does not approve any other employee salaries. This process is undertaken annually in September.”

“The Cooperative bylaws are available for distribution upon becoming a member and are available to the public upon request. The bylaws are available on the Cooperative's website. Financial statements are available at the annual meeting and upon request.”

“Included in column "F", Other Compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. These amounts are estimates in the increase of the value of the plan and are not current year expenses of the cooperative. The estimated increase is was as follows: Jerry King $115,907 Brooke Watterud $16,170 Vernon Unruh $48,612 Lex Lindbo $38,086 Jason Bruner $40,548 George Knutson $30,660 Terry Knutson $14,755 Eric Sieg $28,459 The current year expense for the defined benefit plan was as follows: Jerry King $33,013 Brooke Watterud $15,228 Vernon Unruh $17,965 Lex Lindbo $28,431 Jason Bruner $28,431 George Knutson $14,962 Terry Knutson $14,115 Eric Sieg $30,866”

“The labor, pension and payroll taxes reported on lines 5-10 are already included in distribution expense, administrative & general expense and customer expense. Therefore, these amounts are being subtracted out as an other deduction on line 24e in the amount of $(4,688,528).”

“The Cooperative has interpreted the instructions to 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.”

“Retirement of Unclaimed Capital Credits 388,731. Current Year Patronage Capital Allocated to Members 1,379,665. Retirement of Capital Credits -1,383,883.”