TY 2016 Form 990 Schedule O

efile Public Visual Render ObjectId: 201723149349303052 - Submission: 2017-11-10 TIN: 41-0558175

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
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Attach to Form 990 or 990-EZ.
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Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2016

Open to Public
Inspection

Name of the organization

STEARNS COOPERATIVE ELECTRIC ASSOCIATION

Employer identification number

41-0558175

Return Reference	Explanation
FORM 990, PART VI, SECTION A, LINE 6	THE ORGANIZATION HAS MEMBERS, EACH HAVING ONE VOTE.
FORM 990, PART VI, SECTION A, LINE 7A	MEMBERS ELECT THE GOVERNING BODY BY BALLOT THROUGH 9 VOTING DISTRICTS.
FORM 990, PART VI, SECTION A, LINE 7B	REMOVAL OF DIRECTORS FOR CAUSE & REINSTATE AN EXPELLED MEMBER. DISPOSAL OF MORE THAN 25% OF THE COOPERATIVE PROPERTY. MERGE OR CONSOLIDATE WITH ANOTHER ENTITY AND FILE BANKRUPTCY. A BYLAW CHANGE MUST BE APPROVED BY THE MEMBERS.
FORM 990, PART VI, SECTION B, LINE 11B	THE CEO/GM AND THE CFO PROVIDE AND REVIEW FORM 990 WITH DIRECTORS BEFORE FILING
FORM 990, PART VI, SECTION B, LINE 12C	BOARD/OFFICERS PROVIDE AN ANNUAL STATEMENT LISTING CONFLICTS OF INTEREST. DIRECTORS MAY NOT VOTE ON ACTIONS WITH A CONFLICT OF INTEREST. THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS THE CONFLICT OF INTEREST POLICY.
FORM 990, PART VI, SECTION B, LINE 15	A NATIONAL SURVEY IS USED FOR COMPARABILITY DATA. THE BOARD TAKES ACTION INDEPENDENTLY TO ESTABLISH COMPENSATION FOR THE CEO'S COMPENSATION.
FORM 990, PART VI, SECTION C, LINE 19	GOVERNING DOCUMENTS & CONFLICTS OF INTEREST POLICY ARE AVAILABLE ON REQUEST TO THE PERSON LISTED IN PART VI-C, LINE 20. FINANCIAL STATEMENTS ARE AVAILABLE PER THE PUBLIC INSPECTION RULES.
FORM 990, PART XI, LINE 9:	CAPITAL CREDITS RETIRED -1,238,371. PATRONAGE MARGINS ALLOCATED 4,143,057. ACCUMULATED OTHER COMP MARGINS 107,100.
PART XII, LINE 2C:	THE PROCESS FOR OVERSIGHT OF THE ANNUAL FINANCIAL STATEMENT AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED.
FORM 990, PART IX, LINE 4	THE IRS INSTRUCTIONS STATE THAT PATRONAGE MARGINS ALLOCATED BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI, ON PAGE 12 OF THE FORM 990.

Return Reference

Explanation

FORM 990, PART VI, SECTION A, LINE 6

THE ORGANIZATION HAS MEMBERS, EACH HAVING ONE VOTE.

FORM 990, PART VI, SECTION A, LINE 7A

MEMBERS ELECT THE GOVERNING BODY BY BALLOT THROUGH 9 VOTING DISTRICTS.

FORM 990, PART VI, SECTION A, LINE 7B

REMOVAL OF DIRECTORS FOR CAUSE & REINSTATE AN EXPELLED MEMBER. DISPOSAL OF MORE THAN 25% OF THE COOPERATIVE PROPERTY. MERGE OR CONSOLIDATE WITH ANOTHER ENTITY AND FILE BANKRUPTCY. A BYLAW CHANGE MUST BE APPROVED BY THE MEMBERS.

FORM 990, PART VI, SECTION B, LINE 11B

THE CEO/GM AND THE CFO PROVIDE AND REVIEW FORM 990 WITH DIRECTORS BEFORE FILING

FORM 990, PART VI, SECTION B, LINE 12C

BOARD/OFFICERS PROVIDE AN ANNUAL STATEMENT LISTING CONFLICTS OF INTEREST. DIRECTORS MAY NOT VOTE ON ACTIONS WITH A CONFLICT OF INTEREST. THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS THE CONFLICT OF INTEREST POLICY.

FORM 990, PART VI, SECTION B, LINE 15

A NATIONAL SURVEY IS USED FOR COMPARABILITY DATA. THE BOARD TAKES ACTION INDEPENDENTLY TO ESTABLISH COMPENSATION FOR THE CEO'S COMPENSATION.

FORM 990, PART VI, SECTION C, LINE 19

GOVERNING DOCUMENTS & CONFLICTS OF INTEREST POLICY ARE AVAILABLE ON REQUEST TO THE PERSON LISTED IN PART VI-C, LINE 20. FINANCIAL STATEMENTS ARE AVAILABLE PER THE PUBLIC INSPECTION RULES.

FORM 990, PART XI, LINE 9:

CAPITAL CREDITS RETIRED -1,238,371. PATRONAGE MARGINS ALLOCATED 4,143,057. ACCUMULATED OTHER COMP MARGINS 107,100.

PART XII, LINE 2C:

THE PROCESS FOR OVERSIGHT OF THE ANNUAL FINANCIAL STATEMENT AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED.

FORM 990, PART IX, LINE 4

THE IRS INSTRUCTIONS STATE THAT PATRONAGE MARGINS ALLOCATED BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI, ON PAGE 12 OF THE FORM 990.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2016

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