South Mississippi Electric Power Association

“The board of directors of south mississippi electric power association consists of 2 directors from each of the 11 member nonprofit distribution cooperatives that own south mississippi electric power for a total of 22 directors. One of 2 directors serving on south mississippi electric power association's board of directors is the general manager of the member cooperative and the other is a director serving on the board of directors of the member cooperative. Thus the general manager and director from each member cooperative have a business relationship with each other while serving as directors for south mississippi electric power association.”

“See response to part vi section a question 2 above.”

“See response to part vi section a question 2 above.”

“A copy of the 2013 form 990 was reviewed with the audit committee and reported to the board of directors. On the audit committee's recommendation, the board authorized the execution and filing of the return.”

“Conflict of interest policy enforcement - directors, officers, and key employees annually complete, and sign, a questionnaire relative to independence, business relationships, etc.”

“A salary survey was conducted in 2012 by an independent entity. Five similarly sized generation and transmission cooperatives were surveyed. The following positions were surveyed: general manager/ceo, assistant general manager, chief engineering officer, chief financial officer, chief of transmission, and chief operating officer. The board of directors was provided the salary survey results. The board determines the salary for the general manager/ceo. The general manager/ceo utilized the survey for key employees. Additionally, the general manager/ceo advises the board of average annual salary increase as part of the annual budget approval process. Approval of the annual budget is documented in board minutes.”

“Receptionists have been informed that the form 990 will be made available. A form is utilized for parties requesting a copy of the form 990. This form advises requesting parties that photocopies will be made available upon receipt of copying fees (also specified in the request form). Financial statements are available on the organization's website.”

“Other changes in net assets 32,292,000.”

“There were no changes in these process for the 2013 tax year”

“Excess of revenues over expenses, or net margin, is allocated to the 11 member cooperatives based on sales. This is only an allocation of patronage capital. No actual payment is made to the members. This allocation of patronage capital is shown as a functional expense in part ix, number 4, per form 990 instructions effective for 2012 reporting. South mississippi electric power association does not include this allocation of patronage capital as an expense for financial reporting.”