Grady Electric Membership Corporation

“Individuals and entities requesting service are required to pay a one-time membership fee.”

“A board election is held annually in conjunction with the corporation's annual member meeting. The members are the only ones allowed to vote in the annual election of board members.”

“Certain decisions, such as by-laws changes, must be approved by the members.”

“Form 990 was reviewed with the board of directors and certain members of management by the certified public accounting firm that prepared the form 990.”

“The board discusses the conflict of interest policy each year during the presentation of the tax return to the board. The board monitors all distributions monthly to vendors and inquires of directors any conflicts annually. We recommend the board of directors and officers be required to file a conflict of interest statement annually. This statement should be reviewed at a meeting of the directors and during the presentation of the annaul tax return to the board of directors.”

“The board of directors approves the general manager's compensation on an annual basis using wage studies and various other criteria. Annual compensation for certain other employees is initially set by the general manager and is then subject to directors' approval.”

“Such information is available to the public upon receipt of a reasonable request.”

“Consumer accounts 1,437,229. Postretirement benefit expense 291,305. Taxes 150.”

“Change in memberships 530. Retirements of patronage capital -1,356,754. Increase in other equities due to discounts on estate capital credits 500,245. K-1 flow through income from sowega energy resoureces llc in excess of book -42,193. Benefits paid to members 5,584,834. Other comprehensive income 87,839. Grady emc holding corporation dividends in excess of book income -2,330,323.”

“The corporation has not significantly changed its oversight process or selection process during the tax year.”