Sam Houston Electric Cooperative Inc

“The cooperative has only one class of members. Each member has a right to receive adequate and dependable electric service, privacy, be heard at member meetings, their share of capital credits, information about sam houston eci, have their property treated with care by cooperative employees, be heard if they have a dispute or complaint, and have service without regard to race, color, sex, nationality, religion, or marital status.”

“The members have the ability to elect the governing body. Directors are el ected for 5 year terms and must meet certain qualifications as defined by the cooperative bylaws. Elections are conducted by mail or electronic ball ot. The board of directors appoints an election committee whose terms and qualifications are defined in the bylaws. Nominees are chosen and a ballot is prepared and posted as well as mailed. Nominations by petition are also accepted. A deadline for receipt of ballots is defined in the cooperative bylaws. A nominee receiving the most votes for a particualar place shall be deemed elected.”

“The members must approve by vote all directors as well as any changes to t he articles of incorporation.”

“One of the duties assigned to the audit committee by the board is preliminary review of the 990. Each member of the audit committee is allowed time to review the 990 and inquire of the parties responsible for the 990 completion and filing. Once the audit committee has reviewed and approved the 990, it is made available to the full board for review and questions. The audit committee makes recommendation to the entire board that the 990 be approved and filed. After board approval, the 990 is filed.”

“The cooperative has included a conflict of interest policy in it's board policy manual. Board members and officers are required to complete a confl ict of interest inquiry annually and sign an affidavit identifying whether any such conflicts exist. The board of directors is responsible for inter preting and enforcing the policy.”

“Independent wage and salary surveys are obtained annually. The surveys are obtained from an independent source. The ceo salary is reviewed and appro ved by the board of directors. The other officers and key employee salarie s are reviewed by the ceo and recommendations are made to a special commit tee. The committee reviews the proposal and makes a recommendation to the full board for approval.”

“Independent wage and salary surveys are obtained annually. The surveys are obtained from an independent source. The ceo salary is reviewed and appro ved by the board of directors. The other officers and key employee salarie s are reviewed by the ceo and recommendations are made to a special commit tee. The committee reviews the proposal and makes a recommendation to the full board for approval.”

“Governing documents are available on the cooperative's website. Financial statements are also included in an annual report and mailed to all members.”

“Other comprehensive income -34,652”