Brunswick Electric Membership Corporation

“Each director of Brunswick Electric Membership Corporation has a business relationship with all other directors of Brunswick Electric Membership Corporation, in their capacities as directors of Rural Consumer Services Corporation.John Ward has a business relationship with Don Hughes in their capacities as directors of the North Carolina Electric Membership Corporation.Calvin Duncan has a business relationship with Don Hughes in their capacities as directors of the North Carolina Association of Electric Cooperatives, Inc.”

“The Corporation is an electric cooperative that distributes electricity to its members. Membership is available to any individual or business that desires electric service within the Corporation's assigned service territory.”

“All members of the governing body (the Directors) of the Corporation are elected by the general membership of the cooperative at the Corporation's annual membership meeting.”

“All decisions made by the governing body of the Corporation are ratified by the general membership of the cooperative at the Corporation's annual membership meeting.”

“Prior to filing, the Form 990 is presented to the full Board of Directors, at a regularly scheduled meeting, by the CEO and VP of Finance. The Board authorizes the CEO to sign and file the return. In addition, at various meetings throughout the year, the Board receives training regarding the elements of the Form 990 by the Corporation's tax consultant and special outside legal counsel.”

“Officers, directors, and key employees are required to disclose interests that could give rise to conflicts at the beginning of each regularly scheduled monthly meeting of the Board of Directors. In addition, officers, directors and key employees are required to sign an annual statement disclosing any such interests.”

“CEO compensation is determined by the Board of Directors of the Corporation after (1) review by the Compensation Committee of the Board of Directors, (2) comparisons with compensation surveys, (3) consultation with outside professionals, and (4) review of any other pertinent data.”

“Compensation of officers and key employees is determined by the CEO after (1) consultation with the Director of Human Resources, (2) comparisons with compensation surveys, (3) consultation with outside professionals, and (4) review of other pertinent data.”

“All governing documents and policies (including the conflict of interest policy) are available at the Corporate offices, upon request, in accordance with State and Federal statutes. Summary financial statements are provided free of charge to members at the annual membership meeting. Complete audited financial statements are available upon request, either paper or electronic, without charge. The Form 990 is available upon request, paper or electronic, without charge. The Form 990 is also available on-line at "guidestar.com", free of charge.”

“OTHER PROGRAM SERVICES 4: Operation, maintenance and construction of electric distribution lines for (1) the Military Ocean Terminal Sunny Point, under the terms of a long-term contract with the United States Government, and (2) the City of Southport, NC. OTHER PROGRAM SERVICES 5: Capital credits received from suppliers for the furtherance of the distribution of electricity to members. Expenses on Form 990 = $0. Revenue on Form 990 = $1,194,788.”

“Change in memberships = -$47850”

“Contributions in aid of construction not revenue per GAAP = -$3689430”

“Noncash patronage capital allocations not revenue per IRS = $3218720”

“Other comprehensive income = -$971371”

“Patronage div. paid to members' accts not expense per GAAP = $9383508”

“Retirement of capital credits = -$6606005”

“This amount represents patronage dividends paid to members' accounts in accordance with the pre-existing obligation in Section 9.02 of Brunswick Electric Membership Corporation's by-laws. The Corporation 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 mission of Brunswick Electric Membership Corporation is to provide our cooperative membership with superior electric and consumer services through open communication, utilizing a highly-trained, efficient work force in conjunction with a knowledgeable and well-informed membership. Our primary goal is to distribute safe, affordable, reliable, and environmentally responsible electricity to our membership.”

“Per IRS instructions,the total travel costs on this line represent all transportation costs of the Corporation, including the expense of purchasing, leasing, operating and repairing over 100 vehicles owned by the Corporation. This includes all the line and service trucks used in the daily operations of the Corporation. These trucks log approximately 1,000,000 miles each year constructing and maintaining the electric plant of the Corporation.”