2016-11-15T13:29:16-06:00 2015-12-31 990 2015-01-01 530116145 NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION NATI 7039075960 4301 WILSON BLVD FIN8-110 ARLINGTON VA 22203 VENEICIA LOCKHART VP,FINANCE 7039075960 2016-11-15 2015 2017-02-10 21:41:12Z JO ANN EMERSON 4301 WILSON BLVD FIN8-110 ARLINGTON VA 22203 180501603 0 X NRECA.COOP X 1942 DC MEMBERSHIP ASSOCIATION DEDICATED TO REPRESENTING THE NATIONAL INTERESTS OF COOPERATIVE ELECTRIC UTILITIES AND THE CONSUMERS THEY SERVE. NRECA HAS MORE THAN 900 MEMBER COOPERATIVES THAT SERVE 42 MILLION CONSUMERS IN 47 STATES. 47 47 858 0 7079234 1225713 6015735 1812109 163253285 155657230 142930 133742 15917896 15423156 185329846 173026237 0 0 0 0 111269335 116968738 0 0 0 76337185 59379252 187606520 176347990 -2276674 -3321753 186789779 179704649 101396295 92446227 85393484 87258422 X THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION (NRECA) IS THE SERVICE ORGANIZATION FOR 1,050 RURAL ELECTRIC COOPERATIVES, PUBLIC POWER DISTRICTS AND PUBLIC UTILITIY DISTRICTS. NRECA'S MISSION IS TO ENGAGE IN THE COMPILATION AND DISSEMINATION OF INFORMATION WITH RESPECT TO RURAL ELECTRIFICATION AND THE FURNISHING OF OTHER SERVICES TO RURAL ELECTRIC COOPERATIVES AND OTHERS IN CONNECTION WITH THE COORDINATION, ADVANCEMENT, AND DEVELOPMENT OF RURAL ELECTRIFICATION IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS, FOR THE PRIMARY AND MUTUAL BENEFIT OF THE MEMBERS OF THE ASSOCIATION AND THEIR CONSUMER MEMBERS. 0 0 REGULATORY & LEGISLATIVE: NRECA PROVIDES LEGAL AND SUPPORT SERVICES TO MEMBERS RELATED TO COMPLIANCE AND REGULATORY ISSUES. IN ADDITION, NRECA CONVEYS TO MEMBERS OF CONGRESS AND THEIR STAFFS, FEDERAL AGENCIES AND THE ADMINISTRATION VIEWS OF THE 42 MILLION CONSUMERS-MEMBERS SERVICED BY RURAL ELECTRIC COOPERATIVES, AS WELL AS KEEPING OUR MEMBERSHIP INVOLVED WITH THE LEGISLATIVE PROCESS. CONSULTING, TRAINING, & CONFERENCES: NRECA PROVIDES MEMBERS WITH ESSENTIAL INDUSTRY SPECIFIC TRAINING AS WELL AS DIRECTOR, MANAGER, AND EMPLOYEE TRAINING; CONSULTING RELATED TO THE ORGANIZATION AND PROCESS IMPROVEMENTS, AND INDUSTRY AND TECHNOLOGICAL CHANGES; AND CONFERENCES AND MEMBERSHIP MEETINGS, PROMOTING COLLABORATION AND NETWORKING. MULTIPLE EMPLOYER BENEFIT PLAN ADMINISTRATION: NRECA PROVIDES PLAN ADMINISTRATION SERVICES ON A COST REIMBURSABLE BASIS TO THREE MULTIPLE EMPLOYER BENEFIT PROGRAMS IN WHICH NRECA MEMBER COOPERATIVES CAN PARTICIPATE. THEY CONSIST OF TWO RETIREMENT PROGRAMS, THE RETIREMENT SECURITY PROGRAM, WHICH IS A DEFINED BENEFIT PENSION PLAN, AND THE NRECA 401(K) PENSION PLAN, WHICH IS A DEFINED CONTRIBUTION PENSION PLAN. THESE TWO PLANS SERVE MORE THAN 60,000 ACTIVE AND RETIRED EMPLOYEES OF NRECA MEMBER COOPERATIVES. THE THIRD PLAN IS THE GROUP BENEFITS TRUST, WHICH PROVIDES MEDICAL, DENTAL, VISION, DISABILITY, LIFE, TRAVEL, AND ACCIDENT INSURANCE TO NRECA MEMBER COOPERATIVES. THE RS AND 401(K) PENSION PLANS ARE EXPEMPT FROM INCOME TAXES UNDER IRS SECTION 401 AND THE GROUP BENEFITS TRUST IS EXEMPT UNDER IRS SECTION 501(C)(9). 0 0 0 1 0 0 0 1 0 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 1 1 0 1 632 0 858 0 1 1 0 0 0 0 0 X 47 47 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 VA X X VENEICIA LOCKHART 7039075960 4301 WILSON BLVD FIN8-110 ARLINGTON VA 222031860 TONY ANDERSON BOARD MEMBER 5.00 X 31050 0 0 LAWRENCE BECKER BOARD MEMBER 8.00 X 25825 0 0 PHIL CARSON VICE PRESIDENT 17.00 X X 57950 0 12050 RAYMOND CLOUD BOARD MEMBER 5.00 X 25100 0 0 MEL COLEMAN PRESIDENT 26.00 X X 89300 0 0 MICHELLE DAVIA BOARD MEMBER 5.00 X 32300 0 0 DANIEL DYER BOARD MEMBER 5.00 X 18900 0 4250 LARRY ELKINS BOARD MEMBER 9.00 X 21150 0 0 ROY FRIEDERSDORF BOARD MEMBER 6.00 X 27100 0 0 ESTON GLOVER BOARD MEMBER 6.00 X 20000 0 0 SCOTT HALLOWELL BOARD MEMBER 6.00 X 25825 0 0 WILLIAM HART BOARD MEMBER 15.00 X 32200 0 0 MARK HOFER BOARD MEMBER 10.00 X 34850 0 0 KERRY KELTON BOARD MEMBER 8.00 X 24250 0 0 MEERA KOHLER BOARD MEMBER 10.00 X 29950 0 0 THOMAS MADSEN BOARD MEMBER 7.00 X 3850 0 25350 TOM MCQUISTON BOARD MEMBER 7.00 X 22250 0 0 DON MCQUITTY BOARD MEMBER 4.00 X 24950 0 0 GALEN MILLS BOARD MEMBER 6.00 X 7950 0 27300 SAM NICHOLS BOARD MEMBER 7.00 X 23550 0 0 RUSSELL NIELSEN BOARD MEMBER 9.00 X 25250 0 0 CURTIS NOLAN BOARD MEMBER 9.00 X 32900 0 0 ROBERT OCCHI BOARD MEMBER 7.00 X 28800 0 0 GARY POTTER BOARD MEMBER 6.00 X 25800 0 0 LANNY RODGERS BOARD MEMBER 8.00 X 12000 0 18400 KEITH ROSS BOARD MEMBER 7.00 X 25650 0 0 RONALD SCHWARTAU BOARD MEMBER 9.00 X 0 0 32475 DAVID SPRADLIN BOARD MEMBER 7.00 X 26800 0 0 BRYAN WOLFE BOARD MEMBER 13.00 X 26900 0 0 CURTIS WYNN SECRETARY-TREASURER 12.00 X 59850 0 0 SANDRA GREEN BOARD MEMBER 5.00 X 27500 0 0 WILLIAM NOEL BOARD MEMBER 22.00 X 26100 0 0 MICHAEL PETERSON BOARD MEMBER 8.00 X 24650 0 0 REUBEN RITTHALER BOARD MEMBER 1.00 X 36875 0 0 CHARLES ED SHORT BOARD MEMBER 6.00 X 30200 0 0 TIMOTHY SMITH BOARD MEMBER 8.00 X 0 0 0 STEVEN WALTER BOARD MEMBER 9.00 X 33050 0 0 ERIC ANDERSON BOARD MEMBER 11.00 X 27625 0 0 CHRIS CHRISTENSEN BOARD MEMBER 6.00 X 44025 0 0 LYNN JACOBSON BOARD MEMBER 6.00 X 10650 0 0 JOE MARTIN BOARD MEMBER 5.00 X 21850 0 0 MARK BROWN BOARD MEMBER 1.00 X 0 0 0 KELLEY SMITH BOARD MEMBER 9.00 X 32050 0 0 JIM STUART BOARD MEMBER 3.00 X 19000 0 0 GREG WHITE BOARD MEMBER 7.00 X 22550 0 0 KENNETH COLBURN BOARD MEMBER 9.00 X 23800 0 0 DAVID IHA BOARD MEMBER 6.00 X 35263 0 0 JAMES BAUSELL SR. VP, COMMUNICATIONS 53.00 X 322864 0 181161 PETER BAXTER SR. VP INSURANCE & FINANCI 60.00 X 501687 0 147436 KIRK JOHNSON SR. VP, GOVERMENT RELATION 61.00 X 354887 0 117943 VENEICIA LOCKHART SR. VP, FINANCE 43.00 X 294045 0 163459 MARTIN LOWERY EXEC VP, MEMBER & ASSOC. RELATIONS 40.00 X 562609 0 105847 LAURA MARSHALL SCHEPIS VP, POLITICAL AFFAIRS 54.00 X 242887 0 62305 RICH MEYER SR. VP, GENERAL COUNSEL 46.00 X 329302 0 118630 STEPHEN SANKER VP, RELATIONSHIP MANAGEMENT 69.00 X 317555 0 142194 MONICA SCHMIDT VP NATIONAL CONSULTING GRO 48.00 X 277936 0 110386 DANIELLE SIEVERLING CHIEF RISK & COMPLIANCE OFFICER 53.00 X 284690 0 62953 THOMAS STANGROOM SR. VP & CIO 50.00 X 398493 0 167746 JOHN WADE VP, RISK MGT & CHIEF ACTUAR 48.00 X 209589 0 76957 BRIAN CAVEY VP, LEGISLATIVE AFFAIRS 50.00 X 296718 0 109973 JEFFREY CONNOR CHIEF OPERATING OFFICER 51.00 X 347919 0 66708 JAY MORRISON VP, REGULATORY ISSUES 59.00 X 260273 0 103285 SHAARA ROMAN SR. VP, HUMAN RESOURCES 45.00 X 315491 0 69863 TRACEY STEINER SR. VP, EDUCATION & TRAININ 52.00 X 276357 0 126927 DENISE ARANOFF-BROWN COO, TOUCHSTONE ENERGY 48.00 X 195450 0 9272 MARC BRESLAW EXEC DIRECTOR, INT'L FOUND 47.00 X 180470 0 45473 JAMES SPIERS VP, BUSINESS & TECH. STRAT 40.00 X 327357 0 129062 DAN WADDLE SR. VP, NRECA INT'L LTD 58.00 X 276844 0 221319 JODI FULLER VP, BENEFITS PRODUCTS & MGMT 55.00 X 254568 0 85285 STEPHEN KASZYNSKI CEO, HOMESTEAD FUNDS 49.00 X 484528 0 24658 MARK MAUS VP, ACTUARIAL SERVICES & CHIEF ACTUARY 64.00 X 232188 0 62250 MARY MCLAURY COO/CMO TOUCHSTONE ENERGY 47.00 X 230444 0 67119 TY THOMPSON VP, DEPUTY GEN COUNSEL-DIR & MEMBER LEG SVC 51.00 X 223237 0 99105 MARK ASHTON SR. MGR., EQUITY PORTFOLIO 47.00 X 2756998 0 125243 PRABHA CARPENTER SR. MGR., EQUITY PORTFOLIO 45.00 X 878251 0 139930 DOUGLAS KERN SR. MGR., FIXED INCOME PORTFOLIO 45.00 X 565846 0 107599 PETER MORRIS VP & CHIEF INVESTMENT OFFICER 46.00 X 1971004 0 4645 STUART TEACH SR. EQUITY PORTFOLIO MGR. 46.00 X 1525174 0 4674 JO ANN EMERSON FORMER CHIEF EXECUTIVE OFFICER 48.00 X 1732284 0 107255 18685383 0 3286487 367 1 1 0 PRODUCTION RESOURCE GROUP 539 TEMPLE HILL RD NEW WINDSOR NY 12533 MEETINGS SERVICES 781647 MICROSOFT LICENSING 1401 ELM STREET 5TH FLOOR DALLAS TX 75202 SOFTWARE LICENSING 570343 KIVVIT PUBLIC AFFAIRS 730 N FRANKLIN ST SUITE 450 CHICAGO IL 60654 CONSULTING SERVICES 515917 DANIELLE CORBIN 7400 NATHANIEL DRIVE MOUNT AIRY MD 21771 COMMISSIONS 487176 CORESITE LP 1050 17TH ST SUITE 800 DENVER CO 80266 COMPUTER SERVICES 484309 45 1812109 1812109 REIMBURSED COSTS 524292 101586385 101586385 MEMBERSHIP DUES 900099 30134143 30134143 TRAINING & PROFESSIONAL SERVICES 541900 9971348 6418048 3553300 ADVERTISING INCOME 511120 1834483 1834483 SUBSCRIPTION INCOME 511120 1102039 1102039 11028832 9923382 1105450 155657230 133742 133742 600651 14650 586001 13226550 7475366 5751184 5751184 5751184 MEETINGS & CONFERENCES 541900 9071321 9071321 9071321 173026237 164134894 7079234 0 12163983 70612189 17624101 10966409 5602056 390425 1953789 101862 649445 14244615 467192 3380400 1616270 2424110 6152362 6088822 6224168 388517 UBIT 462886 EQUIPMENT MAINTENANCE 3262749 ELECTRONIC SUBSCRIPTION 2124966 PRINTING 1132599 8314075 176347990 19158364 22059388 41143186 31602376 38450 41467 4214686 4428292 150279046 62538660 89493200 87740386 143150 143762 15375852 21022312 17222891 12666666 186789779 179704649 30461852 21982661 30746620 36822690 370018 370139 39817805 33270737 101396295 92446227 X 0 0 0 0 85393484 87258422 85393484 87258422 186789779 179704649 X -3321753 5186691 X X 0 1 X 1 1 1 0 0 0 30134143 2371000 2371000 4520121 -2149121 0 1 X 11916966 11916966 88248903 30758217 57490686 15194488 9287272 5907216 34918689 22493171 12425518 87740386 19999770 C CAPITAL TERM CERTIFICATES 827307 C COLLATERAL CERTIFICATES OF DEPOSIT 195235 C 21022312 PATRONAGE CAPITAL CERTIFICATES 493863 DEFERRED COMPENSATION FUND (EMPLOYEES) 11040660 TENANT ESCROW 370138 EMPLOYEE AND EXECUTIVE OPTION PURCHASE PLAN 762005 12666666 POST RETIREMENT BENEFITS OTHER THAN PENSIONS 16537366 DEF COMP FUND (EMPLOYEES) 11040660 EMPLOYEE & EXEC OPT PLAN 755085 COOPERATIVE RESEARCH NETWORK FUND 4816194 OTHER RESTRICTED FUNDS 121432 33270737 X 219925907 46899670 46899670 173026237 0 173026237 218060967 41712977 41712977 176347990 0 176347990 PART IV, LINE 2B: SECURITY DEPOSITS/ESCROW AMOUNTS ARE HELD FOR BUILDING TENANTS PART X, LINE 2: NRECA ADOPTED THE PROVISIONS OF FASB INTERPRETATION NO. 48, ACCOUNTING FOR UNCERTAINLY IN INCOME TAXES, DURING THE YEAR ENDING DECEMBER 31, 2007. FOR THE PERIOD FROM NRECA'S INCEPTION TO DECEMBER 31, 2015, NO UNRECOGNIZED TAX PROVISION OR BENEFIT EXISTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: REV FROM SUBS NOT INCLUDED IN FORM 990 LESS TENANT EXPENSES ON PART VII, 6B 46,899,670. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXP FROM SUBS NOT INCLUDED IN 990 PLUS TENANT EXP PART VIII, LINE 6B 41,712,977. X X 1 1 X X X X X 0 0 1 JAMES BAUSELL SR. VP, COMMUNICATIONS 314906 0 200 0 7758 0 161838 0 19323 0 504025 0 0 0 PETER BAXTER SR. VP INSURANCE & FINANCI 439226 0 48450 0 14011 0 119053 0 28383 0 649123 0 0 0 KIRK JOHNSON SR. VP, GOVERMENT RELATION 348306 0 200 0 6381 0 94599 0 23344 0 472830 0 0 0 VENEICIA LOCKHART SR. VP, FINANCE 290797 0 200 0 3048 0 136894 0 26565 0 457504 0 0 0 MARTIN LOWERY EXEC VP, MEMBER & ASSOC. RELATIONS 479601 0 200 0 82808 0 82166 0 23681 0 668456 0 0 0 LAURA MARSHALL SCHEPIS VP, POLITICAL AFFAIRS 238078 0 600 0 4209 0 55780 0 6525 0 305192 0 0 0 RICH MEYER SR. VP, GENERAL COUNSEL 307672 0 200 0 21430 0 86130 0 32500 0 447932 0 0 0 STEPHEN SANKER VP, RELATIONSHIP MANAGEMENT 305293 0 5450 0 6812 0 119742 0 22452 0 459749 0 0 0 MONICA SCHMIDT VP NATIONAL CONSULTING GRO 275480 0 350 0 2106 0 90706 0 19680 0 388322 0 0 0 DANIELLE SIEVERLING CHIEF RISK & COMPLIANCE OFFICER 279959 0 450 0 4281 0 58042 0 4911 0 347643 0 0 0 THOMAS STANGROOM SR. VP & CIO 387126 0 200 0 11167 0 139961 0 27785 0 566239 0 0 0 JOHN WADE VP, RISK MGT & CHIEF ACTUAR 187465 0 0 0 22124 0 72112 0 4845 0 286546 0 0 0 BRIAN CAVEY VP, LEGISLATIVE AFFAIRS 291487 0 1550 0 3681 0 77546 0 32427 0 406691 0 0 0 JEFFREY CONNOR CHIEF OPERATING OFFICER 331091 0 15200 0 1628 0 37442 0 29266 0 414627 0 0 0 JAY MORRISON VP, REGULATORY ISSUES 258183 0 1200 0 890 0 77306 0 25979 0 363558 0 0 0 SHAARA ROMAN SR. VP, HUMAN RESOURCES 308043 0 200 0 7248 0 59027 0 10836 0 385354 0 0 0 TRACEY STEINER SR. VP, EDUCATION & TRAININ 271122 0 200 0 5035 0 117710 0 9217 0 403284 0 0 0 DENISE ARANOFF-BROWN COO, TOUCHSTONE ENERGY 195324 0 0 0 126 0 3240 0 6032 0 204722 0 0 0 MARC BRESLAW EXEC DIRECTOR, INT'L FOUND 177693 0 200 0 2577 0 25575 0 19898 0 225943 0 0 0 JAMES SPIERS VP, BUSINESS & TECH. STRAT 298175 0 200 0 28982 0 106066 0 22996 0 456419 0 0 0 DAN WADDLE SR. VP, NRECA INT'L LTD 271972 0 200 0 4672 0 199429 0 21890 0 498163 0 0 0 JODI FULLER VP, BENEFITS PRODUCTS & MGMT 251742 0 450 0 2376 0 72223 0 13062 0 339853 0 0 0 STEPHEN KASZYNSKI CEO, HOMESTEAD FUNDS 353768 0 125200 0 5560 0 0 0 24658 0 509186 0 0 0 MARK MAUS VP, ACTUARIAL SERVICES & CHIEF ACTUA 228564 0 2850 0 774 0 40633 0 21617 0 294438 0 0 0 MARY MCLAURY COO/CMO TOUCHSTONE ENERGY 227005 0 200 0 3239 0 56842 0 10277 0 297563 0 0 0 TY THOMPSON VP, DEPUTY GEN COUNSEL-DIR & MEMBER 220991 0 1100 0 1146 0 73349 0 25756 0 322342 0 0 0 MARK ASHTON SR. MGR., EQUITY PORTFOLIO 346406 0 405826 0 2004766 0 112135 0 13108 0 2882241 0 0 0 PRABHA CARPENTER SR. MGR., EQUITY PORTFOLIO 341072 0 405826 0 131353 0 111951 0 27979 0 1018181 0 0 0 DOUGLAS KERN SR. MGR., FIXED INCOME PORTFOLIO 378885 0 54554 0 132407 0 84390 0 23209 0 673445 0 0 0 PETER MORRIS VP & CHIEF INVESTMENT OFFICER 94565 0 0 0 1876439 0 4099 0 546 0 1975649 0 0 0 STUART TEACH SR. EQUITY PORTFOLIO MGR. 98572 0 689981 0 736621 0 3693 0 981 0 1529848 0 0 0 JO ANN EMERSON FORMER CHIEF EXECUTIVE OFFICER 1171799 0 200 0 560285 0 85707 0 21548 0 1839539 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - ACCORDING TO NRECA BOARD POLICY, THE SPOUSES OF THE PRESIDENT AND CEO CAN ACCOMPANY THEM ON A TRIP WHEREVER THERE WILL BE OFFICIAL FUNCTIONS FOR WHICH SPOUSES ARE RESPONSIBLE FOR ATTENDING. TAX IDENTIFICATION AND GROSS UP PAYMENTS: NRECA GROSSES UP PAYMENTS MADE TO STAFF UNDER THE EXECUTIVE 401(K) BONUS PLAN AND ON ELIGIBLE RELOCATION EXPENSES. PART I, LINE 4C PART I, LINE 4B: THE FOLLOWING CURRENT AND FORMER EMPLOYEES RECEIVED PAYMENTS FROM AN EXECUTIVE NONQUALIFIED RETIREMENT PLAN. THESE AMOUNTS ARE INCLUDED AND REPORTED IN PART II, COLUMN B(III): PRABHA CARPENTER ($124,117); JOANN EMERSON ($253,145); DOUG KERN ($122,219); MARTIN LOWERY ($55,769); RICH MEYER ($9,872); PETER MORRIS ($1,858,459);JOHN WADE ($14,079); MARK ASHTON ($95,000); STUART TEACH ($724,398). COOPERATIVE ENERGY SERVICES FOR PROFIT SUBSIDIARY-3 KEY EMPLOYEES ARE OFFICERS OF CES 250647 ADMINISTRATIVE SERVICES AGREEMENT 0 RE ADVISORS CORPORATION AND RE INVESTMENT CORPORATION FOR PROFIT SUBSIDIARY- 3 KEY EMPLOYEES SERVE AS OFFICERS & DIRS 16647211 ROYALTY PAYMENTS AND ADMISTRATIVE SERVICES AGREEMENT 0 COOPERATIVE BENEFIT ADMINISTRATORS FOR PROFIT SUBSIDIARY-4 KEY EMPLOYEES SERVE AS A DIRECTOR 11968411 ADMINISTRATIVE SERVICES AGREEMENT 0 ELECTRIC COOPERATIVE LIFE INSURANCE FOR PROFIT SUBSIDIARY-2 KEY EMPLOYEES SERVE AS A DIRECTOR 4802 ADMINISTRATIVE SERVICES AGREEMENT 0 NRECA UNITED FOR PROFIT SUBSIDIARY-1 OFFICER, 2 KEY EMPLOYEES SERVE AS UNITED OFFICERS 0 EXPENSE REIMBURSEMENT 0 COOPERATIVE INSURANCE SERVICES FOR PROFIT SUBSIDIARY-2 KEY EMPLOYEES SERVE AS A DIRECTOR 0 ADMINISTRATIVE SERVICES AGREEMENT 0 ARKANSAS ELECTRIC COOPERATIVE CORPORATION FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR 882601 VARIOUS SERVICES PROVIDED TO MEMBER 0 ASSOCIATED ELECTRIC COOPERATIVE FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR 945574 VARIOUS SERVICES PROVIDED TO MEMBER 0 WESTERN FARMERS ELECTRIC COOPERATIVE FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR 206232 VARIOUS SERVICES PROVIDED TO MEMBER 0 BASIN ELECTRIC POWER COOPERATIVE FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR 1231211 VARIOUS SERVICES PROVIDED TO MEMBER 0 KAMO POWER FOR PROFIT MEMBERSHIP WITH ONE SHARED DIRECTOR 318324 VARIOUS SERVICES PROVIDED TO MEMBER 0 FORM 990, PART VI, SECTION A, LINE 2 SOME NRECA DIRECTORS, OFFICERS, AND KEY EMPLOYEES ALSO SERVE AS DIRECTORS OR OFFICERS OF THE FOLLOWING NRECA SUBSIDIARIES AND AFFILIATED ENTITIES: NRECA UNITED; NRECA INTERNATIONAL LTD; NRECA INTERNATIONAL FOUNDATION; COOPERATING ENERGY SERVICES; RE ADVISORS CORPORATION; RE INVESTMENT CORPORATION; COOPERATIVE BENEFIT ADMINISTRATORS; ELECTRIC COOPERATIVE LIFE INSURANCE COMPANY; COOPERATING INSURANCE SERVICES; AND NRECA WOOD QUALITY CONTROL. FORM 990, PART VI, SECTION A, LINE 6 ALL VOTING MEMBERS MUST BE ENTITIES WHOSE OPERATIONS ARE CONSISTENT WITH COOPERATIVE PRINCIPLES AND THE OBJECTIVES AND MISSION OF NRECA AND FALL INTO ONE OF THE FOLLOWING THREE CATEGORIES: (1) DISTRIBUTION (ELECTRIC DISTRIBUTION COOPERATIVES OR PUBLIC UTILITY DISTRICTS); (2) GENERATION AND TRANSMISSION (COOPERATIVES OR ASSOCIATIONS ENGAGED IN THE MARKETING, GENERATION AND/OR TRANSMISSION WHOLESALE BULK ELECTRICITY); AND (3) SERVICE MEMBERS (NOT ENGAGED IN DISTRIBUTION, GENERATION, OR TRANSMISSION OF ELECTRICITY BUT WHOSE MEMBERS CONSIST OF DISTRIBUTION OR G&T COOPERATIVES) FORM 990, PART VI, SECTION A, LINE 7A THE NRECA BOARD OF DIRECTORS IS COMPOSED OF 47 PERSONS, ONE FROM EACH STATE WHERE THERE IS AN OPERATING ELECTRIC SYSTEM WITH MEMBERSHIP IN NRECA. DIRECTORS, EACH OF WHOM MUST BE A MEMBER, DIRECTOR, OFFICER, OR EMPLOYEE OF AN NRECA MEMBER SYSTEM, ARE ELECTED EVERY TWO YEARS BY THE MEMBER SYSTEMS IN EACH STATE. THEIR TERMS RUN FROM THE CLOSE OF EACH NRECA ANNUAL MEETING (USUALLY HELD IN MARCH) TO THE CLOSE OF THE ANNUAL MEETING TWO YEARS HENCE. THE NRECA PRESIDENT, VICE PRESIDENT, AND SECRETARY TREASURER ARE ELECTED EVERY TWO YEARS BY THE BOARD FROM AMONG ITS MEMBERS. THE CHIEF EXECUTIVE OFFICER IS ALSO SELECTED BY THE BOARD. FORM 990, PART VI, SECTION A, LINE 7B NRECA MEMBERS MUST APPROVE ANY DECISION MADE BY THE NRECA BOARD RELATING TO (1) CHANGERS IN DUES FORMULAS AND MULTIPLIERS; (2) EXPULSION AND REMOVAL OF MEMBERS; AND (3) REMOVAL OF ANY OFFICER OR DIRECTOR. FORM 990, PART VI, SECTION B, LINE 11 NRECA FORM 990 IS PREPARED BY A SENIOR ACCOUNTANT WITHIN FINANCE. THE SENIOR VP OF FINANCE REVIEWS THE FORM 990 AND SUPPORTING WORKPAPERS IN DETAIL. THE FORM 990 IS THEN POSTED ON THE NRECA BOARD OF DIRECTORS' WEBSITE FOR THEIR REVIEW AND COMMENTS AT LEAST 7 DAYS PRIOR TO THE RETURN BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR, OFFICER, AND KEY EMPLOYEE IS REQUIRED TO COMPLETE AND SUBMIT A CONFLICT OF INTEREST QUESTIONNAIRE THAT IS REVIEWED BY THE SENIOR VP OF FINANCE. THE SENIOR VP OF FINANCE REVIEWS EACH QUESTIONNAIRE AND FOLLOWS UP ON ANY CONFLICTS WITH THE RESPECTIVE DIRECTOR, OFFICER, OR KEY EMPLOYEE ALONG WITH NRECA'S CORPORATE COUNSEL. FORM 990, PART VI, SECTION B, LINE 15 LINE 15A (CEO COMPENSATION): THE CEO EVALUATION COMMITTEE OF THE BOARD IS RESPONSIBLE FOR EVALUATING THE PERFORMANCE OF THE CEO. AN OUTSIDE CONSULTANT (E.G., QUATT ASSOCIATES) REVIEWS INDEPENDENT COMPENSATION STUDIES ANNUALLY TO VERIFY THE CEO'S COMPENSATION IS WITHIN A COMPETITIVE RANGE FOR CEO'S OF COMPARABLE ORGANIZATIONS AND PROVIDES THIS INFORMATION TO THE COMMITTEE. THE COMMITTEE REVIEWS COMPETITIVE SALARY SURVEY DATA PROVIDED BY THE OUTSIDE CONSULTANTS AND DEVELOPS A SALARY INCREASE RECOMMENDATION THAT IS PRESENTED TO THE FULL BOARD. THE BOARD REVIEWS AND APPROVES THE CEO'S COMPENSATION ANNUALLY. LINE 15B (OTHER OFFICERS/KEY EMPLOYEE COMPENSATION: NRECA'S HUMAN RESOURCES DEPARTMENT HAS A MARKET PAY TOOL THAT USES CURRENT SALARY DATA FROM PURCHASED COMPENSATION STUDIES TO ANALYZE SALARY FOR POSITIONS WITHIN THE ORGANIZATION. NRECA HAS WRITTEN POLICIES AND PROCEDURES GOVERNING ITS SALARY INCREASE PROCESS. THE SALARY INCREASE PROCESS IS INTENDED TO ENABLE MANAGERS TO MAKE RATIONAL DECISIONS CONCERNING SALARY INCREASES WITHIN THE ASSOCIATION'S BUDGETING CONSTRAINTS. HOWEVER, IT DOES NOT GUARANTEE AN INCREASE TO ANY EMPLOYEE. THE SALARY INCREASE PROCESS IS COMPRISED OF THE FOLLOWING STEPS: (1) APPROVAL OF NRECA'S SALARY INCREASE BUDGET BY THE NRECA BOARD OF DIRECTORS, WHICH IS BASED ON COMPETITIVE SALARY DATA; (2) COMPLETION OF WRITTEN ANNUAL PERFORMANCE SUMMARY REPORTS FOR EACH EMPLOYEE BY HIS/HER MANAGER; (3) RECOMMENDATION OF MERIT INCREASES FOR INDIVIDUAL EMPLOYEES BASED UPON PERFORMANCE; (4) ANALYSIS, REVIEW, AND APPROVAL OF SALARY INCREASE RECOMMENDATIONS BY HUMAN RESOURCES AND THE CHIEF EXECUTIVE OFFICER; AND (5) COMMUNICATION OF SALARY INCREASE DECISIONS TO STAFF. FORM 990, PART VI, SECTION C, LINE 19 NRECA DISTRIBUTES A COPY OF ITS ANNUAL REPORT TO THE CEO OF EVERY NRECA MEMBER. IN ADDITION, NRECA PUBLISHES AND MAKES AVAILABLE ITS ANNUAL REPORT, FINANCIAL STATEMENTS, AND CONFLICT OF INTEREST POLICY ON COOPERATIVE.COM, A MEMBER ONLY SITE FOR ELECTRIC COOPERATIVES AND AFFILIATED ENTITIES. NRECA WILL PROVIDE COPIES OF ITS FORM 990 TO THE GENERAL PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: NET INCOME OF SUBSIDIARIES 5,186,691. FORM 990, PART XII, LINE 2C: THIS PROCESS HAS NOT CHANGED FROM PRIOR YEAR. 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