Ark Valley Electric Cooperative

“Ark Valley Electric Cooperative is a member owned Cooperative.”

“Each Member of the Cooperative is entitled to vote in the election of the Board of Trustees.”

“Management reviews the annual filing of the Form 990.”

“Annual and periodic reviews of the policy are made by the Board and Management.”

“The Board of Trustees annually review the General Managers Performance and uses comparative salary information. The main criteria in setting management salaries is to look at what their peers get at other Cooperatives. The method is to separate pay from performance evaluations. Good performance is the minimum requirement for the job, and the Cooperative doesnt pay any more than they have to pay, as measured by what others pay for the same talent. It is also important that any supervisor should be compensated more than those he/she supervises and that can be a big factor where the Cooperative has high union-negotiated compensation.”

“All other employees are hourly union employees. Their pay rates are negotiated and contracted with IBEW. The Cooperative uses a labor attorney for negotiations.”

“Bylaws are offered to all new members; all other documents are available at any time upon request.”

“Form 990, Part XI, Line 9 - Other Changes in Net Assets Explanation Capital Credit Gain $ 107,999 Margins Assigned to Members $ 1,278,273 Retirement of Capital Credits $-1,323,218 Total $ 63,054”

“Form 990, Part IX, Line 4 The instructions to the 2024 Form 990 indicate that organizations exempt under Section 501(c)(12) should report patronage dividends paid to their members in Part IX, Line 4 of the Form 990. The Cooperative has interpreted the words patronage dividends paid in the instructions to mean margins that are assigned or assignable to the members. The Cooperative assigns the net margins to its members each year. Therefore, the amount listed in Part IX, Line 4 represents the net margins assignable to the members for the calendar year ended December 31, 2024.”