Shenandoah Valley Electric Cooperative

“Virginia law requires that the number of directors elected each year be as nearly equal as possible. The prompt inclusion of directors for the service area acquired in 2010 had resulted in a disparity of numbers. To correct the situation, the bylaws were changed to permit re-staggering of terms. Term lengths were increased to four years to make this possible. See attached copy of the by-laws.”

“Shenandoah valley electric cooperative is an electric membership cooperative that delivers electricity to the members of svec.”

“MEMBERS OF THE GOVERNING BOARD ARE ELECTED BY THE MEMBERSHIP OF THE COOPERATIVE through democratically contested elections. THE BOARD HAS regular MONTHLY MEETINGS. AN ANNUAL MEETING IS OPEN TO THE ENTIRE MEMBERSHIP.”

“CERTAIN DECISIONS OF THE GOVERNING BODY ARE SUBJECT TO APPROVAL BY THE MEMBERS AS required by state law and BYLAWS.”

“The vice president of finance reviews the 990 with the board prior to filing with the irs.”

“The cooperative's legal counsel annually reviews the conflict of interest compliance and enforcement with the governing board.”

“The governing board's compensation and benefits committee does an annual review of the ceo's compensation and benefits. This is done after a third party review and recommendation.”

“The governing board's compensation and benefits committee does an annual review of officers and key employee's compensation and benefits. This is done after a third party review of the overall compensation.”

“Governing documents, policies, form 990 and financial statements are always available upon request. Bylaws,rates and terms are disclosed on the cooperatives website. Financial information is presented to the membership each year at the annual meeting. This information is also published in the cooperative's magazine cooperative living with links available on the website.”

“The Cooperative participates in the NRECA group defined pension plan. As part of this plan, participants are required to recognize the actuarial increase in the value of their account on the form 990. The contribution rate for participants in the plan are 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 change in actuarial value with all other things being equal.”

“Contributions in aid of construction not revenue per gaap = -$1252278”

“Net Change in Donated Capital = $133495”

“Net increase in memberships = $3800”

“noncash patronage capital allocations not revenue per IRS = $2083612”

“patronage div. credited to members' accts not exp. per gaap = $10230364”

“Retirement of Capital Credits = -$3422078”

“This line represents all transportation expenses including mileage, gas, and the maintenance costs of all vehicles owned by the Cooperative.”

“Patronage dividends are paid to members' accounts in accordance with the pre-existing obligation in the Cooperative's by-laws. The Cooperative is obligated to credit 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.”