South Louisiana Electric

“Line 6 explanation - any person, firm, association, corporation, or body politic or subdivision thereof may become a member of the south louisiana electric cooperative association (the cooperative) by:(a) making a written application for membership, (b) agreeing to purchase from the cooperative electric energy, (c) agreeing to comply with and be bound by the articles of incorporation and bylaws of the cooperative and any rules and regulations adopted by the board of directors, and (d) paying a membership fee, subject to acceptance by the board of directors or members. No member may hold more than one membership in the cooperative.”

“Line 7a explanation - the cooperative's service area is divided into nine districts. The members in each district elect a director to represent the district for a term of three years. Voting takes place at a district meeting, held within the geographical boundaries of the district. Voting is done by secret ballot and the nominee receiving a plurality of votes cast is elected. A general membership meeting is held annually. A quorum of four hundred (400) or five percent (5%), whichever is less, is required to conduct business at the annual meeting. Amendments to the bylaws must be approved by the membership at the annual meeting or at a special meeting.”

“Line 11b explanation - the form 990 is presented and reviewed at a regularly scheduled meeting of the board of directors prior to filing.”

“All employees are provided with copies of the "employee conduct, conflict of interest and outside activities policy and supervisors are charged with monitoring compliance in their departments. Accounting internal controls are established to promote compliance with the policies.”

“A committee of the board reviews the performance of the general manager. The board of directors considers the performance evaluation in setting the annual compensation of the general manager. Compensation and other benefits are included in a written employment contract executed between the general manager and the cooperative. The general manager makes compensation recommendations for other employees which are ratified by the board as part of the annual budgeting process.”

“Copies of tax returns, organizational documents and policies are available for inspection at both of the cooperative's offices. All new members are provided with the articles and bylaws at the time of their membership application and are available at each membership meeting.”

“Net gain of subsidiary 1,976,019. Increase (decrease) in memberships -475. Other losses -306.”

“Process has not changed from prior year.”