South Kentucky Rural Electric

“Line 6 explanation - must be a member to receive electric service. May have more than 1 service per membership.”

“Line 7a explanation - board members shall be elected by ballot, in the event of a contested election. Otherwise, board members may be elected by ballot, voice, hand, or other suitable means. Board members shall be elected by the members-at-large at the annual meeting of members, or at a special election. The person nominated for director in his district, receiving the highest number of votes of the members as certified by the credentials and elections committee, is the person elected.”

“Line 7b explanation - articles of incorporation may be amended by a majority of members. Bylaws may be amended by a majority vote of the board of directors at any regular or special board meeting.”

“Line 11b explanation - directors are furnished a draft copy of the form 990 to review prior to filing.”

“A questionnaire is prepared by each director and key employee on an annual basis.”

“The planning and development process is accomplished annually for all employees, including key employees and top executives. Managers are responsible to evaluate their employees. Monetary increases are based on the national average wage benchmark as provided by an outside consultant. The board of directors approves salary adjustments through the budget process. The board of directors reviews the ceo performance to determine compensation on an annual basis using industry data.”

“Bylaws are available on the organization's website. Articles of organization and the conflict of interest policy are available upon request. Financial statements are published in the organization's monthly publication and distributed to all members. A meeting of members is held annually according to the organization's bylaws.”

“Comprehensive income-postretirement benefits 249,465. Margins allocated to members -2,009,008. Memberships issued, net 16,704. Refund of capital credits -297,702. Other equities 170,570.”

“No changes from prior year.”

“Benefits paid to or for members represents patronage capital allocated to members in accordance with the bylaws of the cooperative. This reporting results in a difference between book income and income reported on the form 990 by the same amount.”