South Mississippi Electric Power Association

“The board of directors of cooperative energy consists of 2 directors from each of the 11 member nonprofit distribution cooperatives that own cooperative energy, plus 2 at large directors who also serve on the board of directors of the member cooperative for a total of 24 directors. Eleven directors serving on cooperative energy's board of directors are general manager 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 cooperative energy.”

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

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

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

“A copy of the 2023 form 990 was reviewed with the budget and finance committee and reported to the board of directors. On the budget and finance committee's recommendation, the board authorized the execution and filing the return.”

“Conflict of interest policy enforcement - directors, officers, and key employees annually complete, and sign, a questionaire relative to independence, business relationships, etc. Directors shall avoid actual or apparent conflicts between personal interests and official responsibilities on behalf of cooperative energy. A conflict occurs when a director or family member has private interests that interfere with the director's responsibility to act objectively and effectively in the best interest of cooperative energy. Any director who becomes aware that the conduct of others violates this code is obligated to report the violation to the general counsel.”

“Cooperative energy utilizes various data sources and engages an external compensation consultant, who aligns compensation market trends. This ensures that cooperative energy's wages remain competitive, fair, and equitable. In 2023, cooperative energy participated in multiple compensation surveys to gather comparable data on compensation practices. The survey data and position valuation ranges established by the compensation consultant were then used to evaluate the salaries of the ceo and the executive management team. The ceo recommended the salaries for the executive management team, which were approved by the budget and finance committee and the board of directors. The board of directors established the ceo's salary.”

“Receptionists have been informed that the form 990 will be made available. Financial statements are available on the organization's website.”

“Other changes in net assets 10,000,000.”

“Excess of revenues over expenses, or net margin of $20,000,000, 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 2023 reporting. Cooperative energy does not include this allocation of patronage capital as an expense for financial reporting. During 2023, patronage capital amounting to $10,000,000 was retired.”

“There were no changes in the process for the 2023 tax year.”