Flint Electric Membership Corporation

“The corporation's members approved certain bylaw changes at its october 17, 2017 annual meeting of the members. The corporation's members approved a reduction in the size of the elected board from 11 to 9. A copy of the revised bylaws is attached to this return.”

“The cooperative has members as provided for in its bylaws which are included as a part of this return.”

“Certain decisions of the governing body are subject to approval by members as provided for in its bylaws which are included as a part of this return.”

“Certain decisions of the governing body are subject to approval by members as provided for in its bylaws which are included as a part of this return.”

“Form 990 is reviewed by the board with all supporting documentation made available to them.”

“The cooperative regularly and consistently monitors and enforces compliance with their conflict of interest policy as provided for in its policy which is included as a part of this return.”

“Compensation for the ceo is reviewed and approved through the use of form 990 information of other cooperatives, a compensation survey, and a performance review conducted by the member-elected board.”

“Compensation for key employees is reviewed and approved through the use of form 990 information of other cooperatives, a compensation survey, and a performance review.”

“The cooperative's form 990 is published on guidestar.org, generally two to three months after it is filed.”

“The cooperative makes its bylaws, conflict of interest policy, and financial statements available to the public as part of its form 990. The form 990 is available upon request as reflected in part vi section c line 18.”

“Donated capital 357,715 change in membership fees 31,082 retired capital credit-gains 748,684 asc 980 deferred revenue recognized 825,000 patronage capital assigned 7,270,364 patronage capital retired -4,285,504 asc 980 deferred revenue deferred -1,245,000 comprehensive loss -319,332 total 3,383,009”

“The electric utility industry has historically allowed utilities to either record unbilled revenue or disclose the unbilled amounts in their audited financial statements without recording. Until 2017, the cooperative chose to report the unbilled revenue amount as a disclosure only. During 2017, the cooperative began recording unbilled electric revenue due to management's belief that this provides a better reflection of the corporation's financial position and results of operations. In addition, technology now exists to obtain a more accurate determination of these amounts eliminating estimates related to usage that previously affected the calculation. This change in accounting principle resulted in a prior period adjustment of 12,878,778. Since a substantial portion of this accrual is attributable to prior years and the patronage for those years has already been assigned, accrued unbilled utility revenues as of december 31, 2016 (12,878,778) will remain a component of other equities until the cooperative is liquidated or dissolved, at which time it will be allocated and assigned as patronage capital to the members that contributed the patronage.”