Prairie Land Electric Cooperative Inc

“The cooperative was formed by the members to provide electric service at cost on a cooperative basis.”

“The members of the cooperative vote on the board of trustees. Elections are done on a one member one vote basis.”

“The following acts require approval of the members of the cooperative: 1. Dissolution/liquidation of the cooperative 2. Merger or consolidation of the cooperative with another organization 3. Disposal of a substantial portion of the cooperative's assets 4. Amendment to the articles of incorporation 5. Amendment to the bylaws 6. Other matters reserved by and for the members, such as voting to remain regulated or to become deregulated.”

“The cooperative has no committees with authority to act on behalf of the governing body. Therefore, and pursuant to form 990 instructions, the question has been answered "no".”

“Management presented a copy of the form 990 to the board for discussion and review prior to filing.”

“The conflict of interest policy is reviewed annually by the board of trustees and senior management. Then the conflict of interest certification and disclosure form is completed.”

“Prairie land cooperative enrolled in the nreca compensation program to evaluate and grade each position within our cooperative. Nreca then provides prairie land electric cooperative with the regional and national wage range for a position with similar responsibilities. All wages are within the pay range for employees. The board of trustees approves the ceo wages annually.”

“The cooperative will provide a complete copy of its governing documents, conflict of interest policy, and year end financial statements to any member who requests a copy of any such document. Annually, the cooperative provides a copy of the year end balance sheet and income statement to the members of the cooperative with the annual report. The annual report and bylaws can also be found on the cooperative's website.”

“In order to provide retirement benefits to its employees, the cooperative has established a defined contribution plan under section 401(k) of the internal revenue code. Employer contributions to the plan are made pursuant to the plan document. Additionally, the cooperative participates in a multi-employer defined benefit plan. Contributions to this plan are based on the full funding limitation of such plan. Employer contributions for both plans are available to participating employees, including officers, key employees, and highly compensated employees, meeting the eligibility requirements of such plans. The cooperative also provides health and life insurance to all eligible employees through a qualified plan. The amounts reported on part vii, column (f) for the employee officers, key employees and highly compensated employees is comprised of actuarial increase in the defined benefit plan, the total amount contributed by the cooperative to the defined contribution plan and insurance paid on behalf of and for their benefit.”

“Patronage dividends result from the purchase of wholesale power from a generation & transmission cooperative. Patronage dividends also result from the payment of interest from cooperative banks and the purchase of supplies and services from other cooperative organizations. The expenses associated with purchases from and payments to such cooperative organizations are a direct component of cost of the electric service provided by the cooperative to its members.”

“Salaries and wages are allocated to asset, liability, and expense accounts based on the accounting system described above. The following schedule reconciles amounts reported on lines 5-7 to total wages accrued and/or paid: total per lines 5-7 $ 6,060,233 less: director fees reported on forms 1099-nec (146,300) less: employee officer benefits reported on line 5 (500,965) plus: salaries and wages allocated to nonoperating margins 106,206 plus: salaries and wages capitalized directly to plant 3,242,343 plus: salaries and wages capitalized/expensed indirectly through clearing & other accounts 277,595 total wages accrued and/or paid $ 9,039,112”

“Other expenses is comprised of the following: taxes $ 3,706 transmission 621,312 other deductions 221,137 total other expenses per form 990, part ix $ 846,155”

“Pursuant to the form 990 instructions, the amount of patronage dividends paid to the members (hereinafter referred to as "patrons") should be reported on part ix, line 4. The phrase "patronage dividends paid" refers to the process, subsequent to year-end, by which the cooperative allocates patronage capital to and, therefore, operates at cost with its patrons. The cooperative's tax exempt purpose is to provide electricity to its patrons and to do so on a cooperative basis. Tax law defines "operating on a cooperative basis" as subordination of capital, democratic control, and operation at cost. The cooperative operates at cost through the allocation of true patronage dividends (also referred to as allocations of patronage capital) to its patrons. Patronage dividends are considered paid if the allocation is made (1) pursuant to a pre-existing obligation, (2) from the margins produced from the transactions done with or for patrons, and (3) in a fair and equitable manner on the basis of patronage (i.e. Purchases). Additionally, the allocation of patronage dividends should be made within a reasonable time period after the close of the cooperative's year-end of december 31. Each one of these requirements for a true patronage dividend is provided for in the non-profit operation article of the cooperative's bylaws. The amount reported on part ix, line 4 represents the amount of patronage capital that is either allocated or to be allocated to the patrons resulting from their purchase of electricity from the cooperative for the 2024 calendar year. Because patronage dividends are the process by which the cooperative operates at cost with its patrons and thereby a key component to accomplishing its exempt purpose, the cooperative has reported such amounts as an expense for form 990 reporting. Patronage dividends are not an expense for financial statements prepared in accordance with generally accepted accounting principles, however.”

“Administrative & general expense is comprised of the following: administrative & general salaries, benefits, & other $ 2,088,034 office supplies 296,408 outside services 220,098 injuries and damages 294,342 employee pension & benefits 144,596 regulatory commission 8,918 directors 194,943 annual meeting expense 63,798 advertising 13,269 donations 35,565 dues and subscriptions 144,663 miscellaneous general 379,099 maintenance of general plant 181,115 total admin & general exp per financial statements $ 4,064,848 less: reclass of donations to part ix, line 1 (35,564) less: reclass of director fees to part ix, line 5 (146,300) less: reclass of labor to part ix, lines 5 & 7 (1,551,513) less: reclass of benefits to part ix, lines 8-10 (780,759) total admin & general expense per form 990, part ix $ 1,550,712”

“The accounting records of the cooperative are maintained in accordance with the rural utilities service (rus) uniform system of accounts (usoa) as prescribed for rus electric borrowers. The usoa does not record expenses in the general expense categories provided on part ix lines 1-23. The cooperative separately reports salaries and wages, employee benefits and payroll taxes that are allocated in accordance with their accounting system, but other expenses that are described in lines 1-23 are reported on line 24 under the expense categories required by the usoa.”

“Patronage capital assignable 5,714,610. Patronage capital retired - total -312,912. Patronage capital retired - discount 196,395. Donated capital 120,312.”

“The board as a whole is responsible for overseeing the financial statement audit and selecting the independent financial statement auditor. Procedural changes did not occur during the year.”