Choptank Electric Cooperative Inc

“Choptank electric cooperative is an electric cooperative that delivers electricity to the members of the cooperative. The members elect the board of directors, which is the governing body of the cooperative. Each member has one vote in each election or question brought to a vote of the members.”

“All members of choptank electric cooperative receive one vote with respect to electing each seat up for election on the cooperative's board of directors annually.”

“Certain decisions of the governing body are subject to approval by the members as provided for in the cooperative bylaws, including all amendments of bylaws.”

“The form 990 is initially completed by the cooperative's cpa firm. Thereafter, a copy is provided to the cooperative's management and general counsel for review and comment, and to all board members prior to being filed.”

“Choptank's written conflict of interest policy requires each board member and the ceo to immediately report to board counsel and to seek his advice on how to proceed under the circumstances regarding all potential, actual, or appearances of conflicts of interest in which such board member or ceo may be involved. It also requires each other officer or key employee to immediately report to general counsel and to seek his advice on how to proceed under the circumstances regarding all potential, actual, or appearances of conflicts of interest in which such other officer or employee may be involved. All board members and the ceo are required to annually sign and file a report with the board showing any actual and appearances of conflicts of interest for the past year, and all officers and key employees are required to annually sign and file a report with the ceo showing any actual and appearances of conflicts of interest for the past year.”

“Periodically the cooperative has an outside consultant review the range of compensation at the cooperative compared to industry ranges of comparable electric cooperatives. A national trade association periodically publishes an industry salary survey that is also used as a benchmark for compensation in addition to periodic surveys performed by a regional trade association. The board of directors periodically reviews and determines the compensation of the cooperative's ceo.”

“Periodically the cooperative has an outside consultant review the range of compensation at the cooperative compared to industry ranges. A national trade association periodically publishes a salary survey that is also used as a benchmark for compensation.”

“Governing documents are available on the cooperative website. The 990 is available upon request.”

“Form 990, part ix, line 4 benefits paid to or for members: for each cooperative service (or group of cooperative services if permitted by law) supplied for a fiscal year, cec shall equitably allocate to each patron, in proportion to the quantity or value of the cooperative service(s) patronage by the patron during the fiscal year, cec's operating earnings during the fiscal year. "operating earnings" (also known as "patronage margin") for a cooperative service means the amount by which cec's operating revenues (also known as "patronage sourced revenues") from supplying cec service(s) exceed cec's operating expenses, costs and reserves permitted by law (also known as "patronage sourced expenses") of supplying cec services(s). Form 990 part ix line 17 travel: travel costs includes the expenses of purchasing, leasing, operating, and repairing any vehicles owned by the corporation and used in the corporation's activities. Travel costs also include transportation costs, meals and lodging, and per diem payments.”

“Non-cash patronage allocations not revenue - irs 2,364,939 patronage div pd to members' accts not exp - gaap 10,028,582 contributions in aid of const not revenue per gaap -1,845,518 net retirement of capital credits -645,565 other comprehensive loss -17,582,446 total -7,680,008”