Blachly-Lane County Cooperative Electric Association

“The Cooperative is owned by the approximately 2874 members who are in the following classes: Residential, Commercial and Industrial. Each member shall be entitled to one vote upon each matter being voted upon.”

“All members of the governing body (Board of Directors) are elected by vote of the all the members, regardless of district. Directors serve a 3-year term and then must run for re-election. The by-laws give specific direction for election of the board members. Candidates from each district receiving the highest number of votes shall be elected. The by-laws are readily available at the office, online, or at board or member meetings.”

“Members have the exclusive right to elect members of the Board of Directors. Members also have the right to remove a director. Members may approve a voluntary dissolution, sale, or merger of the Cooperative. By-law changes must be voted on by the membership. The rights of the members are outlined, in detail, in the by-law. By-laws are available at the office, online, or at board or member meetings.”

“All members of the Board of Directors are provided with a draft copy of the Form 990, including all schedules and supplemental information, prior to the return being filed. They then have the opportunity to ask questions or suggest changes before it is filed.”

“Legal counsel, management, and the Board of Directors review the policy and any potential conflicts of interest that are disclosed, at least annually. Additionally, Board Members, Officers, and key or highly-compensated employees complete and sign a questionnaire each year for completion of the Form 990. If any potential conflicts of interest are identified, it is discussed with legal counsel to determine further action.”

“The Board obtains salary information from various sources, including the Oregon Rural Electric Cooperative Association's and the National Rural Electric Cooperative Association's surveys in determining the appropriate level of compensation for the General Manager position. On an annual basis, Human Resources prepares an analysis of management, professional, and trade positions that includes a comparison of wages and benefits for similar positions at other entities. This analysis gathers data from the local area utility market and the national rural electric cooperative's wage survey which covers comparable positions nationally, regionally, and by state. The Board sets the General Manager's salary and approves the salary budget for other positions. The wages of each individual employee below the GM are ultimately determined by the General Manager within this salary budget and based on individual performance.”

“The annual report is mailed to all members unless they have proactively elected to opt-out of our publication. They may then pick up the report at the annual meeting or from the office or request it by mail or email. The Form 990 is available online or on request. The annual financial statement audit report, and the conflict-of-interest policy are available upon request. The by-laws and other governing documents are available at member meetings or on request.”

“The Cooperative participates in the National Rural Electric Cooperative's group defined benefit plan. As part of the plan, we are required to recognize the actuarial increase in the value of their retirement plan for purposes of this schedule. Employee age and years of service have an impact on their actuarial value. Additionally, the taxable value of employee life insurance is considered in this total.”

“The IRS instructions for Section 501 (c) 12 organizations direct them to report patronage dividends on this line. The Cooperative allocates 100% of net margins as patronage dividends / capital credits to its members. The Cooperative's accounting system follows generally accepted accounting principles (GAAP) which do not report patronage as an expense. As such, the margins are also recorded as a reconciling item on Schedule D Part XII line 4b of Form 990 and Form 990, Part IX, line 4.”

“The IRS instructions for Section 501 (c) 12 organizations direct them to report patronage dividends on this line. The Cooperative allocates 100% of net margins as patronage dividends / capital credits to its members. The Cooperative's accounting system follows generally accepted accounting principles (GAAP) which do not report patronage as an expense. As such, the benefits allocated to its members are also recorded as a reconciling item on Schedule D Part XII line 4b of Form 990 and Form 990, Part I, Line 14.”

“Under the Federal Energy Regulatory Commission's (FERC) system of accounts, most expenses are classified by function rather than source.”

“Taxes (other than income or sales taxes of which there were none)”

“Other charges in net assets include retirement of patronage capital, change in membership, and change in retained capital by forfeiture or paying out previous forfeitures.”