Mt Wheeler Power Inc

“A business relationship exists between william ricci (key employee) and kevin robison (officer). Both individuals served on the board of deseret generation & transmission at the request of and for the benefit of the cooperative.”

“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. Disposal of a substantial portion of the cooperative's assets 4. Amendment to the articles of incorporation”

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

“Management presented a copy of the form 990 to the board for discussion and review prior to filing. The discussion and review was performed at the board meeting immediately before filing the form 990.”

“The board of directors and officers are required to review and be familiar with the policies outlined in the cooperative's conflict of interest policy. The board of 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. The conflict of interest policy is reviewed on an annual basis. When a contract or business transaction is under consideration and a director or employee knows that he, she, or a close relative has a financial interest, this interest is required to be disclosed fully to the board of directors. The board of directors shall decide if such an interest should prevent the cooperative from entering into a particular transaction or contract.”

“The board of directors and general manager utilize a compensation survey when determining the compensation of the general manager and other employees meeting the definition of officer or key employee. The compensation survey shows comparative salaries from cooperatives located in nevada and the nation.”

“The cooperative provides a summarized copy of the audited financial statements to the members of the cooperative at the annual meeting. The cooperative will provide a complete copy of the audited financial statements, conflict of interest policy, or governing documents to any member who submits a written request, subject to approval.”

“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. Employer contributions are available to participating employees, including officers, key employees, and highly compensated employees, meeting the eligibility requirements of such plans. The cooperative also provides health and life insurance to all employees through a qualified plan. The amounts reported on part vii, column (f) for the officers, key employees, and highly compensated employees are comprised of the total amounts contributed to the 401(k) pension plan and the insurance premiums paid for their benefit.”

“Patronage dividends result from the purchase of wholesale power from a generation & transmission cooperative. Patronage dividends also 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.”

“In general, when an electric cooperative bases the patronage dividend calculation on its net book income/(loss), page 1, part i, line 19 - revenue less expenses - will be $0. For the current year, page 1, part i, line 19 reports net income of $2,327,080, which is the effect of the transfers to other equities and retained capital associated with the amount of patronage dividends received in excess of estimated fair value. The following schedule is provided to further explain the impact of this transaction: (a) - net income on page 1, part i, line 19 $2,327,080 (b) - benefits paid to members (i.e. Patronage dividends), part i, line 14 $1,031,144 total 2024 net margin per financial statements (a + b) $3,358,224”

“Although the cooperative is no longer a borrower of the rural utilities service (rus), the accounting records are maintained in accordance with the uniform system of accounts (usoa) as prescribed for electric borrowers of the rus. The usoa does not record expenses in the general expense categories provided on part ix lines 1-23. The cooperative separately reports 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 $ 4,216,703 less: director fees reported on forms 1099-nec (126,431) less: employee officer benefits included in line 5 (301,119) plus: salaries and wages allocated to purchase power 44,640 plus: salaries and wages allocated to nonoperating margin 10,385 plus: salaries and wages capitalized directly to plant 787,869 plus: salaries and wages capitalized/expensed indirectly through clearing and other accounts 200,115 total wages accrued and/or paid $ 4,832,162”

“Administrative & general expense is comprised of the following: administrative & general salaries, benefits, & other $1,447,235 public relations 98,761 annual meeting 14,637 dues and subscriptions 82,695 directors 174,863 outside services employed 109,771 insurance 148,304 maintenance of general plant 460,253 regulatory commission 1,322 miscellaneous general 23,017 total admin & general exp per financial statements $ 2,560,858 less: reclass of donations to part ix, line 1 (11,904) less: reclass of director fees to part ix, line 5 (126,431) less: reclass of labor to part ix, lines 5 & 7 (1,131,995) less: reclass of benefits to part ix, lines 8-10 (527,967) total admin & general expense per form 990, part ix $ 762,561”

“Other expenses is comprised of the following: sales $ 70,569 taxes 438,660 transmission 120,497 other deductions 7,309 total other expenses per form 990, line 24e $ 637,035”

“Pursuant to the form 990 instructions, the amount of patronage dividends paid to the members (hereinafter referred to as "patrons") should be reported on part ix, line 4. The phrase "patronage dividends paid" refers to the process, subsequent to year-end, by which the cooperative allocates patronage capital to and, therefore, operates at cost with its patrons. The cooperative's tax exempt purpose is to provide electricity to its patrons and to do so on a cooperative basis. Tax law defines "operating on a cooperative basis" as subordination of capital, democratic control, and operation at cost. The cooperative operates at cost through the allocation of true patronage dividends (also referred to as allocations of patronage capital) to its patrons. Patronage dividends are considered paid if the allocation is made (1) pursuant to a pre-existing obligation, (2) from the margins produced from the transactions done with or for patrons, and (3) in a fair and equitable manner on the basis of patronage (i.e. Purchases). Additionally, the allocation of patronage dividends should be made within a reasonable time period after the close of the cooperative's year-end of december 31. Each one of these requirements for a true patronage dividend is provided for in the non-profit operation article of the cooperative's bylaws. The amount reported on part ix, line 4 represents the amount of patronage capital that is either allocated or to be allocated to the patrons resulting from their purchase of electricity from the cooperative for the 2024 calendar year. Because patronage dividends are the process by which the cooperative operates at cost with its patrons and thereby a key component to accomplishing its exempt purpose, the cooperative has reported such amounts as an expense for form 990 reporting. Patronage dividends are not an expense for financial statements prepared in accordance with generally accepted accounting principles, however.”

“All grants, sponsorships, and/or donations are made to non-profit and civic organizations that are located in the cooperative's service area, and are intended to improve the communities in which our members reside. Each grant, sponsorship, and/or donation made during the year was below the reporting threshold of schedule i, part ii.”

“Patronage capital allocated or to be allocated 1,031,144. Patronage capital retired - total -1,458,800. Patronage capital retired - discount 78,313.”

“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.”