Southern Pine Electric Cooperative Inc

“Southern Pine Electric Cooperative, Inc. is a not-for-profit membership organization whose members have identical voting rights and are assigned margins in accordance with the cooperative's bylaws.”

“The entire general membership re-elects or fills vacancies of the governing body by vote at the annual membership meeting.”

“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 the Chief Executive Officer and the Chief Financial Officer before it was presented to the board. The tax consultant hired to assist in the preparation of the Form 990 attended a board meeting prior to filing the Form 990 with the IRS and conducted a formal review of the Form 990 with the trustees.”

“When feasible, all purchases are made at the lowest cost available, large items are open to bid, all checks issued require two signatures, checks issued over $25,000 require at least one trustee signature. These procedures ensure that two or more staff and/or trustees review each check so that no favoritism or conflicts of interest exist in purchasing materials, paying for goods or services or issuing payroll.”

“Compensation of the President/CEO is set and approved by the Board of Trustees. It and all other compensation is based on salaries of comparable organizations, experience, length of service and job performance. Compensation for other employees are set by the President/CEO and at least one Staff member using the same guidelines.”

“Financial statements, by-laws and policies are available for inspection at the Brewton Office, 2134 S Blvd, Brewton, Al, 36426.”

“The instructions to the 2013 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. Southern Pine Electric Cooperative has interpreted the words "patronage dividends paid" in the instructions to mean margins that are assigned or assignable to the members. Southern Pine Electric Cooperative assigns the net margins to its members each year. Therefore, the amount listed in Part IX, Line 4 represents the net margins assignable to the members for the calendar year ended December 31, 2013.”

“Amortization of Actuarial Loss Included in Net Margins 280,256. Amortization of the Unrecognized Transition Obligation 56,274. Increase in Memberships 150. Gain on Retirement of Capital Credits 139,582. Retirement of Capital Credits -748,440. Net Margins Assigned to Members 3,394,136.”

“The filing organization did not change its processes of oversight or selection for the year ending 12/31/2013.”