Codington-Clark Electric Cooperative

“Any person, firm, association, corporation or body politic or subdivision thereof will become a member of codington-clark electric cooperative, inc. (hereinafter called the "cooperative") upon receipt of electric service from the cooperative, provided that it has first (a) made a written application for membership therein; (b) agreed to purchase from the cooperative electric energy as hereinafter specified; (c) agreed to comply with and be bound by the articles of incorporation and bylaws of the cooperative and any rules and regulations adopted by the board.”

“Each member of the cooperative present at the annual meeting shall be entitled to vote for one candidate from each district from which a director is to be elected.”

“The cooperative may not sell, lease, or otherwise dispose of all or a substantial portion of its property, unless such a sale, lease, or other disposition is authorized by the affirmative vote of not less than a majority of all members of the cooperative. The bylaws may be altered, amended, or repealed by the members at any regular or special meeting, provided the notice of such meeting shall have contained a copy of the proposed alteration, amendment or repeal.”

“The organization does not have committees with the broad authority to act on behalf of the governing body.”

“Prior to filing with the irs, the form 990 is presented at a regularly scheduled board meeting and a brief overview is given to all directors.”

“The board of directors review and approve the compensation plan annually. The board uses a market survey to compare compensation for similarly qualified persons in functionally comparable positions at similarly situated organizations. Contemporaneous documentation and record keeping for deliberations and decisions regarding the compensation arrangements are kept. A formal written plan is created based on market survey.”

“A copy of the year end financial statement is provided to all members at the annual meeting. A copy of the bylaws is given to all members with the new membership packet. These items are also available upon request.”

“Retirement of capital credits -554,586. Gain on capital credit retirements 54,843. Allocation of 2021 margins in 2022 924,578.”

“The financial statements of the cooperative were audited by an independent auditor as of the fiscal year end 10/31/2021.”

“The 2021 revenue less expense equals $0 because allocable capital for the current year is a deduction from expense for form 990 purposes. The cooperative operates on a nonprofit basis. Amounts received from furnishing electric energy in excess of operating costs and expenses are allocated to members on a patronage basis. All other amounts received by the cooperative from its operations in excess of costs and expenses are also allocated to its members on a patronage basis to the extent they are not needed to offset current or prior deficits. Allocable margins are reported on part ix, line 4, benefits paid to or for members.”

“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 by-laws of the cooperative.”