South Alabama Electric Cooperative

“South Alabama Electric Cooperative operates on the cooperative basis having members with equal voting rights and who are assigned margins in accordance with the cooperative's bylaws.”

“The members of South Alabama Electric Cooperative may elect the members of its governing body at its annual meeting provided that a quorum is present.”

“The membership must approve decisions that involve substantial transfers of cooperative assets, amendments to the cooperative's bylaws, as well as other decisions requiring approval of the membership by law, the articles of incorporation, and/or the cooperative's bylaws.”

“The Form 990 was reviewed by management before it was presented to the board. The external accountant who assisted management in the preparation of the Form 990 conducted a formal review of the Form 990 with the Trustees at the monthly board meeting before the Form 990 was filed.”

“Officers and Trustees are required to disclose annually any conflicts of interest on a questionnaire.”

“The General Manager reviews the complete wage and salary for all employees, which the board approves. Then, the board reviews the General Manager's compensation package and approves or makes changes to the plan.”

“The cooperative's governing documents, conflict of interest policy, and financial statements are available to the public upon request at its main office in Troy, Alabama.”

“South Alabama Electric Cooperative is concerned with the privacy issues of its employees and trustees. With this concern, the cooperative has chosen to use initials to protect the identity of its employees and trustees. The actual names will be made available to the public upon request.”

“The instructions to the Form 990 indicate that organizations exempt under Section 501(c)(12) should report patronage dividends paid to their members in Part IX, Line 4 of the Form 990. South Alabama Electric Cooperative has interpreted the words "patronage dividends paid" in the instructions to mean margins that are assigned or assignable to the members. South Alabama Electric Cooperative assigned the 2024 net margins to its members as well as an amount representing deferred revenue that will be recognized in 2025. Therefore, the amount listed in Part IX, Line 4 represents the current year net margins assigned to the members plus the portion of deferred revenue that will be recognized in 2025.”

“Increase in memberships 5,180. Retirement of capital credits -700,003. Net margins assigned to members - reported in Part IX, Line 4 6,169,207. Gain on retirements 251,002. Accumulated Comprehensive Income 12,191.”

“South Alabama Electric Cooperative's financial statement year end differs from its tax year end. The cooperative receives audited financial statements on an annual basis for the year ended March 31st.”