Nespelem Valley Electric Cooperative Inc

“A copy of the form 990 is distributed to the board for review at their regularly scheduled board meeting prior to filling the form 990.”

“If an employee/staff member suspects a conflict of interest pertaining to any business with nespelem valley electric cooperative, he reports his concern to the general manager. After receiving the alleged "conflict of interest" report, the general manager performs a full investigation and review of the findings. The general manager then reports the alleged "conflict of interest" and findings to the nvec board of trustees at the next regular board meeting.”

“Governing documents and financial statements are available upon request and are also available at the annual meeting.”

“Line 7b explanation - any changes to the by-laws would require the vote of the membership. Form 990, part vi, secton a , line 6: every patron who purchases electricity from the cooperative is required to be a member of the cooperative. Each member has the right to vote on board members. In addition, each member is allocated their share of net margins of the cooperative on an annual basis. Patronage dividends are distributed to the members subject to available cash flow and based on approval by the board of directors.form 990, part vi, section a, line 7a: this is done by way of a nominating committee who nominates members from the districts that have expiring terms. The membership will then vote at the annual meeting on the member to represent each district. Form 990, part vi, section a , line 7b: any changes to the cooperative's bylaws require the vote of the membership.form 990, part vi, section b, line 12c: conflict of interest forms are discussed and signed by board members and employees annually. Form 990, part vi, sectonb, line 15: a salary survey is performed of like organizations. The salaries are evaluated and approved by the board of directors.”

“2017 margins allocated to members = $287448”

“DECREASE IN Memberships = -$195”

“Retirement of capital credits = -$93387”

“Unclaimed Capital CreditS = $17415”

“The irs instructions state that patronage dividends paid by 501(c)(12) organizations should be reported in the statement of functional expenses on line 4. The cooperative has allocated 100% of its 2017 margins as patronage dividends to its members and reported this amount on line 4. The cooperative's accounting system follows generally accepted accounting principles (gaap) which do not report patronage dividends as an expense; as such, the 2017 margins are also recorded as a reconciling item on schedule d part xiii of the form 990.”