Sand Mountain Electric Cooperative

“The organization has 33,755 consumers to whom it provides electricity.”

“The members of sand mountain electric cooperative elect the board of directors through a democratic process.”

“Vote of members is required to elect trustees, change by-laws, approve certain property sales and approve some limited other issues.”

“The organization's board of directors will review the 990 before submitting it to the irs.”

“Key employees and trustees are required to fill out two separate questionnaires annually disclosing any conflicts of interest.”

“The board of directors sets the general manager's compensation separately from the other employees after reviewing area (alabama rural elec. Assoc.) salary surveys. The other officers, key employees (listed managers) salary is set by the board with a recommendation from the gm. They use the area salary survey in the process. All of our employee pay rates are set by the board. The majority are under a union contract that is negotiated by a committee of the board and approved by the full board.”

“The governing documents, conflict of interest policy, and financial statements are available to the public upon request.”

“Increase in capital stock (memberships) 9,430. Other comprehensive income - apbo -27,285.”

“Audit oversight process remains unchanged from the prior year.”

“Salaries and wages amount listed here doesn't include employee benefits (other than that of officers, key employees)”

“Some of lines 8 through 23 were not completed because expenses were spread to other accounts. This was done in an effort to make the expense structure of the electric utility more meaningful and accurate for the readers of the financial statements.”

“For presentation purposes, $8,626,796 was reclassified to salaries and wages to give a more accurate figure. A large amount of salaries expense is capitalized into plant during the year which leaves the salaries and wages expense amount understated. Since we reclassified this amount on part ix, other expenses show a negative balance.”