Wiregrass Electric Cooperative

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

“At each annual meeting, trustees are elected by the cooperative membership to succeed those whose terms have expired.”

“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 and the accounting staff at Wiregrass Electric Cooperative before it was provided to the trustees. An electronic or paper copy of the Form 990 was then provided to the trustees prior to filing the form with the Internal Revenue Service. They have ten days to comment on the 990 before filing.”

“Once per year, each director and key management employee receive a questionnaire to be completed and returned regarding this policy. The CEO makes sure every questionnaire is returned and reviewed every year. If a conflict of interest were to appear, he would address it or bring it to the board to be addressed, depending on the situation.”

“The board uses annual Compensation Surveys and Studies from the National Rural Electric Cooperative Association to evaluate the CEO's pay. The NRECA surveys more than 800 electric distribution cooperatives each year and publishes the results. AREA also distributes a Wage and Salary survey that is used in the evaluation process. The board also reviews salary of other cooperatives in our area for CEO positions. The entire board reviews the information, deliberates, takes a recorded vote and then delegates to the Controller to implement any approved compensation changes for the CEO. The positions of all other employees are graded based on knowledge, skill and ability needed to perform the job. The co-op previously contracted with a professional wage consultant who helps design, monitor and manage a large number of wage and salary plans for distribution cooperatives throughout the country. In the most recently updated plan the non-union positions graded into 17 pay grades, based on the job, not the person in the job. The union positions are all defined and graded through a negotiation process with union representatives. Union negotiations occur every five years. The CEO and Chief Financial Officer obtain updated wage survey data for each pay grade/position (union and non-union) through NRECA, the various state association surveys, and other published state surveys in Alabama. For non-union employees, each position has a minimum, midpoint and maximum. When a person has the experience, knowledge, skill and ability and soft skills to fully perform the duties of a position, the overall goal is for that person to be at or near the midpoint in the scale. The pay scales are updated annually prior to annual employee evaluations. Each non-union employee is individually evaluated by their supervisor using a template that includes comments on strengths and weakness as well any need for improvement. Based on these written evaluations (merit based), and the supervisors consultation with the CEO, pay adjustments are made annually (within the board approved budget) to move each employee incrementally in the direction of the mid-point of the scale. Union employees are also evaluated annually by their supervisors. Union employees receive step pay increases periodically for up to 6 years when they fill a union position. As they demonstrate the knowledge, skill and ability to perform the position, the step pay increase moves their pay incrementally to the contract level for that job. Cost of living pay adjustments are also made annually for union employees based on the most recently approved contract with the union (within the board approved budget).”

“These documents are available upon request at the cooperative's main office in Hartford, Alabama. Also, the governing documents are posted on the company's website- www.wiregrass.coop”

“The instructions to the 2017 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. Wiregrass Electric Cooperative has interpreted the words "patronage dividends paid" in the instructions to mean margins that are assigned or assignable to the members. Wiregrass 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, 2017.”

“Change in Memberships 1,205. Retirement of Capital Credits -1,637,750. Gain on Retirement of Capital Credits 472,915. Assignment of net margins to members 3,374,096.”

“Wiregrass 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 April 30th.”