Flint Hills Rural Electric Cooperative Association

“Flint Hills Rural Electric Cooperative Association is a member owned Cooperative.”

“The Board of Trustees are elected by the membership.”

“The members of the Cooperative make all amendments to the Articles of Incorporation or Bylaws, as well as elect the members of the Board of Trustees.”

“The staff reviews the Form 990 with the Board of Trustees at the board meeting.”

“The Board enforces the conflict of interest policy. Actions considered inconsistent with the conflict of interest policy are reported to the entire Board. Each trustee and employee must disclose any situation, in which it could appear to violate the intent of the conflict of interest policy.”

“The Board annually reviews top management official compensation, and the Board approves compensation changes as a whole. The top management official is responsible for substantiating pay subject to approval from the Board.”

“The Board annually reviews top management official compensation, and the Board approves compensation changes as a whole. The top management official is responsible for substantiating pay subject to approval from the Board.”

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

“Form 990, Part VII, Section A, Column D Cooperative is governed by a Board of Trustess elected by fellow members of the Cooperative. Most electric cooperative have Boards of 7-10 leaders who dedicate their time and energy to provide direction of the cooperative. Trustees bring a variety of skills and experiences to the boardroom and they do receive compensation, often referred to as per-diem, for attending monthly cooperative board meetings. Often Trustees must miss work or self-employment to attend cooperative board meetings. The compensation is paid for the day of the meeting, but Trustees are not additionally compensated for the extensive work in advance of a Board meeting to study materials and be an effective representative of the membership. Because on-going education is encouraged to further enhance utility knowledge and board skills, Trustees may also receive compensation to attend training sessions. In addition, Trustees may receive compensation to attend other industry meetings when needed. Form 990, Part VII, Section A, Column F - (Estimated other compensation) - This column includes amounts that are not part of the employees take-home pay such as educational assistance, health insurance, medical reimbursement programs, life insurance, disability insurance, long-term care insurance, deferred compensation, and retirement. Included in this amount is the increase in actuarial value of benefits payable under a defined benefit retirement plan. The contribution rate for participants in the NRECA R&S defined benefit pension plan is the same for all individuals in this multi-employer plan. The change in actuarial value for each participant, however, is based on several factors. Years of service, age, and salary will affect this value. Actual contributions paid by the Cooperative during the tax year are significantly less than the actuarial increases required to be listed in this section of the Form 990. Actual R&S contributions paid by the Cooperative during the year were $45,263 for Mr. Goeckel, $24,680 for Mr. Blue, $15,958 for Mr. Jirak and $17,249 for Mr. Nieman.”

“Net margins assigned to members $ 927,342 Grant Received for Plant $-235,248 Other changes $ 30,861 Decrease in memberships $ 955 Retirement of capital credits $-525,304 Total $ 198,606”

“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. Flint Hills Rural Electric Cooperative Association, Inc. has interpreted the words patronage dividends paid in the instructions to mean margins that are assigned or assignable to the members. Flint Hills Rural Electric Cooperative Association, Inc. 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.”

“Form 990, Part XII, Line 2 Flint Hills Rural Electric Cooperative Association, Inc.s financial statement year-end differs from its tax year-end. The Cooperative receives audited financial statements on an annual basis for the year ended September 30th.”