Holy Cross Electric Association Inc

“Holy cross electric association is a member owned cooperative.”

“Members of holy cross electric nominate and elect the board of directors.”

“Mergers and/or consolidations require approval by a 2/3 majority vote of the members.”

“No committee has the authority to act for the board of directors.”

“The form 990 is reviewed by the vice president of finance, the ceo, and the accounting manager prior to submittal. The board of directors is also supplied with draft copies for review.”

“Each director is required to annually submit a written statement and answer a questionnaire certifying that the director does not have any conflicts of interest and is qualified to continue serving as a director. To the extent a director has a conflict of interest with a particular transaction or matter before the board. That director may continue to participate in board decisions on such matters provided that the conflict of interest has been disclosed to the other directors and/or to the cooperative membership in advance, and provided that the conflict of interest transaction is voted on for approval by the board or membership.”

“The compensation is set by the board of directors utilizing salary data for general managers statewide and nationally. Survey data is gathered through mountain states employers council, crea, and other cooperative surveys utilized to set compensation levels.”

“The compensation is set by the board of directors based on an internal performance review process and pay grade benchmarking against other similiar jobs using salary data for similiar positions statewide and nationally. Survey data is gathered through mountain states employers council, crea, and other cooperative surveys utilized to set compensation levels.”

“Documents are available on the holy cross energy website. All new members are sent a welcome letter explaining where the documents can be found.”

“Holy cross electric associations financial statement year end differs from its tax year end. The cooperative receives audited financial statements on an annual basis for the year ended april 30th.”

“2024 Patronage Allocated to Members $10,169,425Change in Equities $ 5,497,796Operating Margins - Prior Year $-9,621,748 Total Other Changes $ 6,045,473”

“Form 990, Part IX, Line 4The instructions to the 2024 Form 990 indicate that organizations exempt under Section 501(c)(12) should report patronage dividends paid to their members in Part IX, Line 4 of the Form 990. The Cooperative has interpreted the words patronage dividends paid in the instructions to mean margins that are assigned or assignable to the members. The Cooperative assigns the net margins to its members each year. Therefore, the amount listed in Part IX, Line 4 represents the net margins assignable to the members for the calendar year ended December 31, 2024.”

“The Software used to prepare the Forms 3468 is not checking No on Part 1 question 12diii. In addition on Form 3800 Part III line 4(a) should reflect the number 3 and reflecting the project numbers listed on the forms 3468. The total amount of credits in the amount of $754,509 should also be reflected in columns (h) and (j). In Part V of the Form 3800 the detail projects (3) should be listed in this section on lines 1-3. The Form 990-T Part III line 6j reflects the proper amount of Form 3800 Credits due to the Association.”