Barc Electric Cooperative

“BARC is an electric cooperative that delivers electricity to the members of the cooperative. The members of the cooperative elect the board of directors which serves as the governing body.”

“All Members of BARC receive one vote with respect to selecting the cooperative's board of directors.”

“Certain decisions of the Governing Body are subject to approval by the members as provided for in the bylaws.”

“Management reviewed the tax form 990 with the board after the return had been filed.”

“Annually, directors review potential conflicts of interest. Directors always remove themselves from voting on issues that could present a conflict of interest.”

“The governing body sets the compensation of the CEO. To assist with this process a salary survey was performed by a national consulting group along with contemporaneous salary data being provided.Other Officers - salaries are based on three contemporaneous reference points:USBLS, NRECA, and the Virginia E.C. for non-metro western Virginia.”

“These documents are available upon request. Financial data is provided to the membership at the annual meeting each year.”

“Information is available upon request from the Cooperative. Financial information is provided to the membership at the annual meeting.”

“Book tax difference in start up costs = -$70434”

“Contributions in aid of construction NOT REVENUE PER GAAP = -$453097”

“NET Change in memberships = -$1250”

“Net change in unclaimed capital credits = $61492”

“Noncash patronage allocations not revenue per irs = $183959”

“Patronage div. Paid to members' accts not expense per gaap = $930761”

“Retirement of Capital Credits = -$567321”

“Per IRS instructions the total travel costs reported on this line represent all transportation costs of the Cooperative, including the expense of purchasing, leasing, operating, and repairing all vehicles owned by the Cooperative. This includes all the line and service trucks used in the daily operations of the Cooperative. These trucks log in approximately thousands of miles each year constructing and maintaining the electric plant of the Cooperative.”

“Patronage dividends are paid to members' accounts in accordance with the pre-existing obligation in barc electric cooperative's bylaws. The cooperative is obligated to pay by credits to a capital account for each patron all such amounts in excess of operating costs and expenses. Irs instructions for line 4 changed in 2011 to include patronage dividends paid by section 501(c)(12) organizations to their members. Accordingly, these amounts are now reported on line 4.”

“The officers of the Cooperative participate in a multi-employer defined benefit pension plan. Included in column C is the actuarial increase associated with the plan. It should be noted that the contribution rate for participants in the plan IS the same for all individuals in the plan. The change in actuarial value for each participant, however, varies with age. In other words, the older a participant is, the greater the increase in that individual's actuarial value, all other things being equal.”