Southside Electric Cooperative Inc

“Southside Electric Cooperative is an electric cooperative that delivers electricity to the members of the cooperative.”

“Members of the governing body are subject to approval by the members as provided in its bylaws.”

“Certain decisions of the governing body are subject to approval by the members as provided for in its bylaws.”

“VP of Finance and Corporate Services and CEO review tax return with the board prior to filing.”

“Anyone that has a conflict of interest will excuse themselves from discussions or voting on subject matter where a possible conflict exists.”

“The members of the governing board also serve as the compensation committee. Annually they evaluate the performance of the CEO and approve the compensation package for this position. Also, the compensation committee approves all other payroll increases in total.”

“Governing documents and policies are available upon request. Financial data is presented to the members at the annual meeting and also included in the 990 which is also available upon request.”

“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 rates 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. These actuarial increases, do not represent actual cash received, but rather an unrealized actuarial increase in retirement accounts that is required to be reported on the form 990.”

“Contributions in aid of construction not revenue per gaap = -$931725”

“Net change in donated capital and memberships = $1160”

“non-cash patronage allocations not revenue per irs = $1461640”

“Patronage Div. paid to members' accts. not expense per gaap = $4624709”

“Retirement of Capital Credits = -$3252603”

“Travel costs includes the expenses of purchasing, leasing, operating, and repairing any vehicles owned by the Organization and used in the Organization's activities. Travel costs also include transportation costs, meals and lodging, and per diem payments.”

“Patronage dividends paid to members' accounts are in accordance with the pre-existing obligation in Southside Electric Cooperative's by-laws. 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.”