Northern Plains Electric Cooperative Inc

“Each member has one vote. There are 3 districts and each district has 3 board member representatives. Each member can only be a member in one district. A member's primary residence is the deciding factor as to which district they are considered to be a member of.”

“Each member receives one vote.”

“Changes to the by-laws must be voted on by members. Mergers must also be voted on by members.”

“There are no committees with authority to act on behalf of the full board.”

“The business manager reviewed a draft of the 990 prior to presenting it to the board at a board meeting.”

“Directors are asked to disclose any actual or potential conflicts of interest. If a possible conflict arises, the full board reviews the disclosures and determines if there is a conflict. A director with a conflict is not allowed to vote or participate in any discussions on the issue. The director is asked to leave the room during any votes or discussions. Any potential issues disclosed by the board members are documented in the board meeting minutes. The cooperative also has an employee conflict of interest policy.”

“The salary of the general manager is approved annually by the board of directors. Wage rates for union employees are determined through negotiations, with final contract being approved by the board of directors. Non-union employees are reviewed annually through a process that includes an evaluation of job performance and approved range of wage increases based on a policy approved by the board of directors.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request. The financial statements are also available in the annual report.”

“The cooperative's policy regarding participation in joint ventures is not written; however, the cooperative performs an 85% test on an annual basis to ensure that it maintains its tax exempt status. Additionally, the joint venture arrangement is reviewed and monitored by the board of directors.”

“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 g.a.a.p. 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.”

“Retirement of capital credits -1,245,101. Allocated capital credits 3,664,228.”

“There have been no changes to the cooperative's oversight responsibilities this year.”