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 reviews the tax form 990 with the board after the return has 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.”

“Schedule j, part ii, column c 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. Form 990, part ix, line 4 benefits paid to or for members 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. Form 990, part ix, line 17 travel 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 thousands of miles each year constructing and maintaining the electric plant of the cooperative.”

“Patronage div paid to members not exp per gaap 1,166,928 book tax diff barconnect 12,038 net change in memberships 110 non-cash patronage allocations not rev per irs 219,459 installment sale of solar plant 210,372 deferred tax liability barconnect 235,000 ciac not rev per gaap -821,580 retirement of capital credits -847,610 deferred tax asset reliable -10,000 total 164,717”