Verdigris Valley Electric

“MEMBERS”

“YES”

“YES”

“Review and/or approval by board.”

“Organization periodically reviews its conflict of interest policy at board meetings.”

“Manager's compensation includes a review of prior year's operational and financial data, comparison of other managers' compensation for a comparable size cooperative in our state. All this information is considered by the vvec board of directors annually.”

“Key employees are compensated based on merit and years of service.”

“No documents available to the public”

“Form 990, part ix the cooperative's accounting records are maintained in accordance with the uniform system of accounts required by its regulatory agency. The uniform system of accounts does not record expenses in the expense categories provided on part ix lines 1-23. Therefore, other expenses line 24 includes expenses that are described in lines 1-23, but reported using the uniform system of accounts.”

“Form 990, part ix: for the audited financial statements, the amount of patronage dividends paid or allocated to the members is reported as an increase in equity and not as an expense. Therefore, net income per the audited financial statements is reported gross of the amount of patronage dividends that are either allocated or to be allocated at the time the audited financial statements are prepared. However, because the allocation of patronage dividends is one aspect of how the cooperative fulfills its tax exempt purpose of operating on a cooperative basis, the amount of patronage dividends either allocated or to be alloced to the members is reported on form 990, part ix, line 4 as "benefits paid to members." patronage dividends are allocated on a patronage basis and done so pursuant to a pre-existing obligation as provided for in the "non-profit operation" article of the cooperative's bylaws.”

“Increase in other equities 799,704 increase in memberships 15,705 benefits margin allocation 6,395,284 decrease in aoci -55,358 retirement of capital credits -1,000,000 reclassification of prior year margins -602,580 total 5,552,755”