Sioux Valley Southwestern Electric

“Each electric account is a member.”

“Cooperative is broken into 10 districts. 9 districts have one director. 1 district has two directors. Members can vote for the director from the district in which the member is located.”

“Changes to the cooperative by-laws are voted on at the annual meeting in which each member has the right to vote.”

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

“The form 990 will be provided to all members of the board of directors at a meeting prior to the filing. Each board member will have the opportunity to review the return at that time. The return will also be reviewed by the cfo prior to filing of the return.”

“All employees, directors, the general manager/ceo, the management staff, and the attorney must be familiar with the conflict of interest policy. Each is required to execute a conflict of interst statement that they are in compliance with the policy. Annually the directors, general manager/ceo, attorney and management staff execute a new statement. Employees execute one at a time of employment and update when a conflict arises. If a conflict of interest exists, then the employee and supervisor in coordination with management shall collectively determine what action should be taken. If a director has a conflict of interest he/she shall disqualify themselves from decisions that pose the conflict or the appearance of a conflict of interest. The director may request an opinion of the cooperative attorney before such action is taken.”

“Sioux valley energy uses a national compensation survey provided to us by our national association, nreca. The national average pay is used as a guidance for establishing initial salaries and yearly salary changes. Years of experience in a position are also factored in. Using the survey data helps to esure salaries remain competitive with those offered at other rural electric cooperatives and that the data remains consistent from year to year. This process is used for all positions at sioux valley energy on an annual basis. The last year this process was undertaken was 2024. All decisions are documented within the employee personnel file.”

“The cooperative makes its governing documments and finacial statements available to the cooperative members upon request.”

“Retirement of capital credits -1,307,121. Patronage dividends paid 5,740,695.”

“The irs instructions state that patronage dividends paid by section 501(c)(12) organizations to their members should be reported on line 4. The organization has interpreted patronage dividends paid to mean patronage dividends allocated or to be allocated for the current year. Since this allocation is not an expense under generally accepted accounting principles (gaap), this has resulted in a reconciling item to net assets in part xi, on page 12 of the form 990.”