Valley Electric Association Inc

“The cooperative was formed by the members to provide electric service at cost on a cooperative basis.”

“The members of the cooperative vote on the board of directors. Elections are done on a one member one vote basis.”

“The following acts require approval of the members of the cooperative: 1. Dissolution/liquidation of the cooperative 2. Merger or consolidation of the cooperative with another organization 3. The disposal of a substantial portion of the cooperative's assets 4. Amendment to the articles of incorporation 5. Amendment to the bylaws”

“The cooperative has no committees with authority to act on behalf of the governing body. Therefore, and pursuant to form 990 instructions, the question has been answered "no".”

“Management provided a copy of the form 990 to the board for discussion and review subsequent to filing.”

“Directors and officers are required to review and be familiar with the policies outlined in the cooperative's conflict of interest policy. The conflict of interest policy is explained to all new directors coming on the board. Directors and officers are required to disclose any action or situation that might violate the policy to the full board of directors as soon as possible. Board minutes are noted when a director has a conflict of interest.”

“The board of directors use a compensation survey and an independent consultant when determining the compensation of the ceo. The survey shows comparative salaries for ceo's from cooperatives located in nevada and the nation. The board and ceo use a compensation survey and an independent consultant when determining the compensation of the cooperative's other employees meeting the definition of officer and key employees. The survey includes salaries from similar cooperatives throughout nevada and the nation.”

“The cooperative provides a summarized copy of the audited financial statements to members of the cooperative at the annual meeting. The cooperative's bylaws, articles of incorporation, annual report, and audited financial statements for most recent year are also available on the cooperative's website. The cooperative will provide a complete copy of the conflict of interest policy or governing documents to any member who requests a copy.”

“In order to provide retirement benefits to its employees, the cooperative has established a defined contribution plan under section 401(k) of the internal revenue code. Employer contributions to the plan are made pursuant to the plan document. Additionally, the cooperative participates in a multi-employer defined benefit plan. Contributions to this plan are based on the full funding limitation of such plan. Employer contributions for both plans are available to participating employees, including officers, key employees and highly compensated employees, meeting eligibility requirements of such plans. The cooperative also provides health, dental, vision and life insurance to all eligible employees through a qualified plan. The amounts reported on part vii, column (f) for the officers, key employees and highly compensated employees is comprised of the actuarial increase in the defined benefit plan, the total amount contributed by the cooperative to the defined contribution plan and insurance paid on behalf of and for their benefit. In addition to the above pension plans, the cooperative also provides post-retirement health insurance benefits through an unfunded welfare benefit plan. The value of these benefits has not been estimated.”

“Patronage dividends result from the payment of interest from cooperative banks and the purchase of supplies and services from other cooperative organizations. The expenses associated with purchases from and payments to such cooperative organizations are a direct component of cost of the electric service provided by the cooperative to its members.”

“The cooperative annually provides each director who served on the board during the year a questionnaire. The completed questionnaires are used to complete the applicable questions on the form 990 pertaining to business relationships among directors, officers, and key employees, as well as to determine if there are any transactions which must be reported in detail on schedule l - "transactions with interested persons". If the cooperative was unable to obtain a completed questionnaire, the cooperative relied upon the completed information for the prior year. The cooperative was unable to obtain a questionnaire from director bonnie groenert as well as officer steve morrison; therefore, their prior questionnaires were relied upon while preparing the return. There were no known changes from 2021 to 2022.”

“Although the association is no longer a rural utilities service (rus) borrower, its accounting records are maintained in accordance with the rus uniform system of accounts (usoa) prescribed for rus electric borrowers. The usoa does not record expenses in the general expense categories provided on part ix lines 1 - 23. The cooperative separately salaries and wages, employee benefits and payroll taxes that are allocated in accordance with their accounting system, but other expenses that are described in lines 1 - 23 are reported on line 24 under the expense categories required by the usoa.”

“Salaries and wages are allocated to asset, liability, and expense accounts based on the accounting system described above. The following schedule reconciles amounts reported on lines 5-7 to total wages accrued and/or paid: total per lines 5-7 $ 9,789,262 less: director fees reported on forms 1099-nec (114,800) less: employee officer benefits included in line 5 (284,201) less: key employee benefits included in line 5 (464,499) plus: salaries and wages capitalized directly to plant 3,363,131 plus: salaries and wages capitalized/expensed indirectly through clearing & other accounts 3,789,339 total wages accrued and/or paid $16,078,232”

“Administrative and general expense is comprised of the following: administrative & general salaries, benefits, & other $ 5,147,126 office supplies 60,468 outside services 404,381 injuries & damages 73,493 employee pension & benefits 58,146 meetings 355,087 miscellaneous general exp 709,581 directors 155,166 dues 54,512 total admin & general exp per financial statements $ 7,017,960 less: reclass of director fees to part ix, line 5 (114,800) less: reclass of labor to part ix, lines 5 & 7 (2,645,568) less: reclass of benefits to part ix, lines 8-10 (1,710,359) total admin & general expense per form 990, part ix $ 2,547,233”

“Other expenses is comprised of the following: customer accounts $ 926,453 customer service & sales 453,523 other deductions 292,473 total other expenses per form 990, line 24e $ 1,672,449”

“Patronage capital retired - total -1,606,974. Patronage capital retired - discount 124,655. Donated capital 480,712. Net change in memberships -14,480. Other equity adjustments 13,880. Other comprehensive income adjustment for post-retirement benefits 339,732. Transfer of margins 363,927.”

“The board as a whole is responsible for overseeing the financial statement audit and selecting the independent financial statement auditor. Procedural changes did not occur during the year.”