2013-11-14T08:57:33-06:00 2012-12-31 530116145 NATIONAL RURAL ELECTRIC COOPERATIVE ASSO 4301 WILSON BLVD ARLINGTON VA 22203 990 2012-01-01 530116145 NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION NATI 7039075960 4301 WILSON BLVD FIN8-110 ARLINGTON VA 22203 PATRICK GIOFFRE 7039075960 2013-11-14 7039075960 2012 2016-02-24 21:20:13Z JO ANN EMERSON 4301 WILSON BLVD FIN8-110 ARLINGTON VA 22203 178925130 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 1,000 MEMBER COOPERATIVES THAT SERVE 42 MILLION CONSUMERS IN 47 STATES. 47 47 838 0 1989656 0 17507505 8722564 143262642 146987571 471012 173927 14194664 14838010 175435823 170722072 0 0 0 0 96109735 97495827 0 0 0 77288613 70097937 173398348 167593764 2037475 3128308 212734842 211569345 127809061 122153102 84925781 89416243 X THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION (NRECA) IS THE SERVICE ORGANIZATION FOR 1,047 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 1 0 1 0 0 0 1 0 1 0 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 1 392 0 1 838 1 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 ANTHONY ANDERSON 5.00 X 22350 0 0 GERALD ANDERSON 1.00 X 4500 0 0 MARTIN ANDERSON 1.00 X 0 0 9400 LAWRENCE BECKER 9.00 X 15000 0 0 DEAN BELT 1.00 X 4500 0 0 VERNON BRINKLEY 5.00 X 16300 0 0 PHIL CARSON 8.00 X 27300 0 0 RAYMOND CLOUD 4.00 X 19875 0 0 MEL COLEMAN 14.00 X X 44550 0 0 MICHELLE DAVIA 4.00 X 18750 0 0 CHARLES DAWSEY 1.00 X 8700 0 0 DANIEL DYER 4.00 X 12000 0 0 LARRY ELKINS 7.00 X 18750 0 0 DENNIS ESAKI 6.00 X 21750 0 0 ROY FRIEDERSDORF 5.00 X 16200 0 0 EDWARD GARCIA 10.00 X 25900 0 0 ESTON GLOVER 6.00 X 16500 0 0 MICHAEL GUIDRY 18.00 X X 53438 0 0 SCOTT HALLOWELL 5.00 X 16875 0 0 WILLIAM HART 6.00 X 26250 0 0 ANGUS HASTINGS 4.00 X 19500 0 0 MARK HOFER 5.00 X 18400 0 0 CLARENCE KELLER 12.00 X 10950 0 14550 KERRY KELTON 5.00 X 16500 0 0 MEERA KOHLER 8.00 X 21600 0 0 DONALD LINK 7.00 X 0 0 35100 THOMAS MADSEN 5.00 X 0 0 17700 TOM MCQUISTON 4.00 X 14250 0 0 DON MCQUITTY 6.00 X 20550 0 0 GALEN MILLS 6.00 X 0 0 26550 SAM NICHOLS 6.00 X 17250 0 0 RUSSELL NIELSEN 7.00 X 17250 0 0 CURTIS NOLAN 15.00 X X 48000 0 0 ROBERT OCCHI 8.00 X 23250 0 0 RONALD OSTERHOUT 5.00 X 15375 0 0 GAIL PAINE 9.00 X 17650 0 3500 GARY POTTER 4.00 X 15000 0 0 LANNY RODGERS 7.00 X 12500 0 13000 KEITH ROSS 5.00 X 12750 0 0 RONALD SCHWARTAU 10.00 X 4750 0 19250 CB SHARP 7.00 X 16500 0 0 DAVID SPRADLIN 5.00 X 15750 0 0 M LADON TORGERSEN 1.00 X 4875 0 0 BRYAN WOLFE 9.00 X 20250 0 0 FE WOLSKI 1.00 X 16700 0 0 CURTIS WYNN 4.00 X 19500 0 0 SANDRA GREEN 2.00 X 16275 0 0 WILLIAM NOEL 2.00 X 12000 0 0 MICHAEL PETERSON 3.00 X 0 0 0 REUBEN RITTHALER 2.00 X 11250 0 0 CHARLES ED SHORT 3.00 X 12750 0 0 TIMOTHY SMITH 4.00 X 0 0 0 STEPHEN WALTER 3.00 X 13875 0 0 GLENN L ENGLISH 40.00 X 1888071 0 111582 PATRICK E GIOFFRE 56.00 X 663957 0 603429 JAMES BAUSELL 49.00 X 247546 0 113195 PETER BAXTER 62.00 X 363368 0 98116 STEPHEN GUTH 52.00 X 332614 0 89060 PAUL HVIDDING 44.00 X 237539 0 72857 KIRK JOHNSON 53.00 X 325841 0 78234 VENEICIA LOCKHART 51.00 X 213735 0 94579 MARTIN LOWERY 40.00 X 501418 0 103536 ALEXANDER MCKELWAY 54.00 X 253296 0 92015 PETER MORRIS 43.00 X 912609 0 102986 STEPHEN SANKER 63.00 X 262772 0 104773 MONICA SCHMIDT 52.00 X 243242 0 97196 DANIELLE SIEVERLING 50.00 X 233110 0 60068 SCOTT SPENCER 58.00 X 468000 0 10652 THOMAS STANGROOM 53.00 X 353444 0 141471 DENA STONER 56.00 X 316207 0 121919 JOHN WADE 49.00 X 349534 0 154637 BRIAN CAVEY 50.00 X 267205 0 74527 JOHN HEWA 55.00 X 297263 0 74103 JAY MORRISON 56.00 X 234071 0 92655 TRACEY STEINER 46.00 X 209129 0 74385 MARK ASHTON 45.00 X 395131 0 97664 PRABHA CARPENTER 45.00 X 312563 0 117374 DOUGLAS KERN 47.00 X 392904 0 267566 STUART TEACH 42.00 X 745912 0 104961 JOHN SZCZUR 40.00 X 269616 0 93511 PERRY RUBART 0.00 X 21835 0 0 12166670 0 3386101 210 1 1 0 MCKESSON HEALTH SOLUTIONS 21987 NETWORK PLACE CHICAGO IL 60673 COMPUTER SERVICES-HEALTH 653528 REED SMITH LLP 2672 PAYSPHERE CIRCLE CHICAGO IL 60674 LEGAL FEES 627923 CORESITE REAL ESTATE 1050 175H ST SUITE 800 DENVER CO 80265 COMPUTER SERVICES 489214 DANIELLE CORBIN 7400 NATHANIEL DR MOUNT AIRY MD 21771 MAGAZINE ADVERTISING SALES 386817 DOUGLAS R DANLEY 18131 METZ DRIVE GERMANTOWN MD 20874 CONSULTING SERVICES 293750 28 8472564 250000 8722564 REIMBURSED COSTS 524292 84647306 84647306 MEMBERSHIP DUES 900099 28929174 28929174 TRAINING & PROFESSIONAL SERVICES 541900 8871754 8871754 ADVERTISING INCOME 511120 1989656 1989656 SUBSCRIPTION INCOME 511120 1213185 1213185 21336496 21336496 146987571 173927 173927 367609 71145 296464 15319800 8203058 7116742 7116742 7116742 MEETINGS & CONFERENCES 541900 7353659 7353659 7353659 170722072 159713388 1989656 296464 15351946 54325789 15175779 8043673 4598640 735033 1324630 78658 610985 11047590 530023 3909035 1203153 2411216 4939614 4497294 80587 5922015 296077 SPON PURCH RES. EQ. 19330156 EQUIPMENT MAINTENANCE 3131924 RESEARCH EXPENSES 1952586 RECRUITMENT 1204909 6892452 167593764 42989241 62715875 32028208 28646258 145939 96205 17126731 5380605 154461041 60923033 95194996 93538008 132365 138424 12591966 8601437 12525396 12452533 212734842 211569345 18653368 17596887 50124198 57827758 302253 292765 8634334 0 50094908 46435692 127809061 122153102 X 0 0 0 0 84925781 89416243 84925781 89416243 212734842 211569345 X 3128308 1362154 X 0 1 X 1 1 1 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 28929174 2652000 2652000 3760793 -1108793 0 1 X 10809143 10809143 86679039 24555985 62123054 13687837 7508416 6179421 43285022 28858632 14426390 93538008 PATRONAGE CAPITAL CERTIFICATES 414657 DEFERRED COMPENSATION FUND (EMPLOYEES) 9589036 TENANT ESCROW 292765 EMPLOYEE AND EXECUTIVE OPTION PURCHASE PLAN 2156075 12452533 POST RETIREMENT BENEFITS OTHER THAN PENSIONS 27181415 DEFERRED COMPENSATION FUND (EMPLOYEES) 9589036 EMPLOYEE AND EXECUTIVE OPTION PURCHASE PLAN 2150334 COOPERATIVE RESEARCH NETWORK RESTRICTED FUNDS 7393475 OTHER RESTRICTED FUNDS AND MISCELLANEOUS 121432 46435692 X 208686048 37963976 37963976 170722072 0 170722072 204195586 36601822 36601822 167593764 0 167593764 PART IV, LINE 2B: SECURITY DEPOSITS/ESCROW AMOUNTS ARE HELD FOR BUILDING TENANTS DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: 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, 2012, NO UNRECOGNIZED TAX PROVISION OR BENEFIT EXISTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: REV FROM SUBS NOT INLCUDED IN FORM 990 LESS TENANT EXPENSES ON PART VII, 6B PART XII, LINE 2D - OTHER ADJUSTMENTS: EXP FROM SUBS NOT INCLUDED IN 990 PLUS TENANT EXP PART VIII, LINE 6B X X 0 1 X X X X X 0 1 1 GLENN L ENGLISH 1267970 0 100 0 620001 0 81251 0 30331 0 1999653 0 0 0 PATRICK E GIOFFRE 584707 0 50100 0 29150 0 576143 0 27286 0 1267386 0 0 0 JAMES BAUSELL 244794 0 425 0 2327 0 87924 0 25271 0 360741 0 0 0 PETER BAXTER 349322 0 10100 0 3946 0 60929 0 37187 0 461484 0 0 0 STEPHEN GUTH 316754 0 11100 0 4760 0 75827 0 13233 0 421674 0 0 0 PAUL HVIDDING 228301 0 600 0 8638 0 69406 0 3451 0 310396 0 0 0 KIRK JOHNSON 319190 0 100 0 6551 0 71516 0 6718 0 404075 0 0 0 VENEICIA LOCKHART 203093 0 9600 0 1042 0 66773 0 27806 0 308314 0 0 0 MARTIN LOWERY 434177 0 100 0 67141 0 75974 0 27562 0 604954 0 0 0 ALEXANDER MCKELWAY 252270 0 200 0 826 0 78254 0 13761 0 345311 0 0 0 PETER MORRIS 509869 0 308042 0 94698 0 71434 0 31552 0 1015595 0 0 0 STEPHEN SANKER 259939 0 200 0 2633 0 75198 0 29575 0 367545 0 0 0 MONICA SCHMIDT 241903 0 100 0 1239 0 72878 0 24318 0 340438 0 0 0 DANIELLE SIEVERLING 229553 0 650 0 2907 0 51310 0 8758 0 293178 0 0 0 SCOTT SPENCER 197767 0 0 0 270233 0 8885 0 1767 0 478652 0 0 0 THOMAS STANGROOM 345461 0 600 0 7383 0 105472 0 35999 0 494915 0 0 0 DENA STONER 282039 0 5100 0 29068 0 92007 0 29912 0 438126 0 0 0 JOHN WADE 286051 0 100 0 63383 0 131326 0 23311 0 504171 0 0 0 BRIAN CAVEY 265003 0 600 0 1602 0 47775 0 26752 0 341732 0 0 0 JOHN HEWA 296488 0 100 0 675 0 37640 0 36463 0 371366 0 0 0 JAY MORRISON 232938 0 350 0 783 0 57056 0 35599 0 326726 0 0 0 TRACEY STEINER 208566 0 100 0 463 0 48453 0 25932 0 283514 0 0 0 MARK ASHTON 274143 0 110816 0 10172 0 75848 0 21816 0 492795 0 0 0 PRABHA CARPENTER 227642 0 82754 0 2167 0 91386 0 25988 0 429937 0 0 0 DOUGLAS KERN 299629 0 85472 0 7803 0 231730 0 35836 0 660470 0 0 0 STUART TEACH 412269 0 264435 0 69208 0 76842 0 28119 0 850873 0 0 0 JOHN SZCZUR 249245 0 18910 0 1461 0 57575 0 35936 0 363127 0 0 0 PERRY RUBART 21835 0 0 0 0 0 0 0 0 0 21835 0 0 0 PART I, LINE 1A SOCIAL CLUB DUES - NRECA PAYS $1,700 FOR THE CEO'S MEMBERSHIP TO ONE SOCIAL CLUB. THIS EXPENDITURE IS INCLUDED IN THE BUDGET APPROVED BY THE NRECA BOARD OF DIRECTORS. 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 1B NRECA FOLLOWS WRITTEN POLICY EXCEPT FOR SOCIAL CLUB DUES. THERE IS NO WRITTEN POLICY REGARDING PAYING FOR THE CEO'S MEMBERSHIP TO ONE SOCIAL CLUB; HOWEVER, THE BOARD DOES APPROVE THE EXPENSE. PART I, LINES 4B-C THE FOLLOWING PARTICIPATED IN OR RECEIVED PAYMENT FROM NRECA'S EXECUTIVE STOCK OPTION PLAN: MARK ASHTON ($5,406); PAT GIOFFRE ($2,586); DENA STONER ($2,210). SUPPLEMENTAL INFORMATION PART III NRECA HAS A NONQUALIFIED DEFERRED COMPENSATION PLAN UNDER IRS 457(F). PARTICIPATION IN THE PLAN IS LIMITED TO HIGHLY COMPENSATED EMPLOYEES WHO, ON THE DATE OF THEIR RETIREMENT, HAVE A PENSION LIMITATION AS DEFINED BY THE PLAN. BENEFITS UNDER THIS PLAN ARE SUBJECT TO SUBSTANTIAL RISK OF FORFEITURE AS DEFINED IN IRC SECTION 457(F)(3)(B). THE ACTUARIAL INCREASE OF THIS BENEFIT IS INCLUDED IN COLUMN C FOR KEY STAFF WHO PARTICIPATE. COOPERATIVE ENERGY SERVICES FOR PROFIT SUBSIDIARY-2 OFFICERS,2 KEY EMPLOYEES ARE OFFICERS OF CES 543294 ADMINISTRATIVE SERVICES AGREEMENT 0 RE ADVISORS CORPORATION AND RE INVESTMENT CORPORATION FOR PROFIT SUBSIDIARY-4 KEY EMPLOYEES SERVE AS OFFICERS & DIRS 8607904 ROYALTY PAYMENTS AND ADMIISTRATIVE SERVICES AGREEMENT 0 COOPERATIVE BENEFIT ADMINISTRATORS FOR PROFIT SUBSIDIARY-1 OFF, 3 KEY EMP SERVE AS OFFICERS & DIRECTORS 20312263 ADMINISTRATIVE SERVICES AGREEMENT 0 ELECTRIC COOPERATIVE LIFE INSURANCE FOR PROFIT SUBSIDIARY-1 OFFICER,2 KEY EMP SERVE AS OFFICERS & DIRECTORS 49126 ADMINISTRATIVE SERVICES AGREEMENT 0 NRECA UNITED FOR PROFIT SUBSIDIARY-2 OFFICERS, 1 KEY EMPLOYEE SERVE AS UNITED OFFICERS 0 EXPENSE REIMBURSEMENT 0 COOPERATIVE INSURANCE SERVICES FOR PROFIT SUBSIDIARY-1 OFF, 2 KEY EMP SERVE AS OFFICERS & DIRECTORS 7206 ADMINISTRATIVE SERVICES AGREEMENT 0 ARKANSAS ELECTRIC COOPERATIVE CORPORATION FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR 738303 VARIOUS SERVICES PROVIDED TO MEMBER 0 ASSOCIATED ELECTRIC COOPERATIVE FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR 1726417 VARIOUS SERVICES PROVIDED TO MEMBER 0 WESTERN FARMERS ELECTRIC COOPERATIVE FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR 361911 VARIOUS SERVICES PROVIDED TO MEMBER 0 BASIN ELECTRIC POWER COOPERATIVE FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR 771125 VARIOUS SERVICES PROVIDED TO MEMBER 0 KAMO POWER FOR PROFIT MEMBERSHIP WITH ONE SHARED DIRECTOR 271260 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 VP OF FINANCE REVIEWS THE FORM 990 AND SUPPORTING WORKPAPERS IN DETAIL. THE EXECUTIVE VP OF FINANCE & ADMINISTRATION THEN REVIEWS THE FORM 990 FOR ACCURACY. 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 VP OF FINANCE. THE 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. THE COMMITTEE REVIEWS COMPETITIVE SALARY SURVEY DATA PROVIDED BY HUMAN RESOURCES AND DEVELOPS A SALARY INCREASE RECOMMENDATION THAT IS PRESENTED TO THE FULL BOARD BASED ON THE CEO'S PERFORMANCE. NRECA'S HUMAN RESOURCES DEPARTMENT REVIEWS INDEPENDENT COMPENSATION STUDIES ANNUALLY TO VERIFY THE CEO'S COMPENSATION IS WITHIN A COMPETITIVE RANGE FOR CEO'S OF COMPARABLE ORGANIZATIONS AND PROVIES THIS INFORMATION TO THE COMMITTEE. THE BOARD REVIEWS AND APPROVES THE CEO'S COMPENSATION ANNUALLY. LINE 15B (OTHER OFFICERS/KEY EMPLOYEES):NRECA ENGAGES AN OUTSIDE CONSULTING FIRM SUCH AS MERCER TO CONDUCT AN INDEPENDENT COMPENSATION STUDY EVERY THREE TO FOUR YEARS FOR ALL TYPICAL POSITIONS TO ENSURE NRECA'S PAY GRADES AND COMPENSATION ARE COMPETITIVE. PAY GRADES ARE REVIEWED ANNUALLY AND MAY BE ADJUSTED BY A COMPETITIVE FACTOR AS DETERMINED BY RESULTS OF INDEPENDENT COMPETITIVE MARKET SURVEYS. NRECA HAS WRITTEN POLICIES AND PROCEDURES GOVERNING ITS SALARY BUDGET PROCESS. THE SALARY BUDGET PROCESS IS INTENDED TO ENABLE MANAGERS TO MAKE RATIONAL, PERFOMANCE BASED DECISIONS CONCERNING MERIT SALARY INCREASES WITHIN THE ASSOCIATION'S BUDGETARY CONSTRAINTS. HOWEVER, IT DOES NOT GUARANTEE AN INCREASE TO ANY EMPLOYEE. THE SALARY BUDGET PROCESS IS COMPRISED OF THE FOLLOWING STEPS: (1) APPROVAL OF NRECA'S MERIT POOL BUDGET BY THE NRECA BOARD OF DIRECTORS, WHICH IS BASED ON COMPETITIVE SALARY DATA; (2) COMPLETION OF WRITTEN ANNUAL PERFORMANCE SUMMARY REPORT FOR EACH EMPLOYEE BY HIS/HER MANAGER; (3) RECOMMENDATION OF MERIT INCREASES FOR INDIVIDUAL EMPLOYEES BASED UPON PERFORMANCE (4) ANALYSIS, REVIEW AND APPROVAL OF MERIT INCREASE RECOMMENDATIONS BY HUMAN RESOURCES AND THE CHIEF EXECUTIVE OFFICER; AND (5) COMMUNICATION OF MERT 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: NET INCOME OF SUBSIDIARIES 1,362,154. NRECA INTERNATIONAL FOUNDATION 4301 WILSON BLVD ARLINGTON VA 22203 521409279 CHARITIABLE ACTIVITES VA 501(C)(3) 509(A)(C) TYPE II NRECA 1 NRECA INTERNATIONAL LTD 4301 WILSON BLVD ARLINGTON VA 22203 521387851 INTERNATIONAL RURAL ELECTRIFICATION VA 501(C)(6) NRECA 1 FUNDACION ENERGETICA BOLIVIANA 4301 WILSON BLVD ARLINGTON VA 22203 BOLIVIAN RURAL ELECTRIFICATION BL NRECA 1 NRECA WOOD QUALITY CONTROL INC 4301 WILSON BLVD ARLINGTON VA 22203 521446660 WOOD POLE TESTING VA 501(C)(6) NRECA 1 COOPERATIVE INSURANCE SERVICES 4301 WILSON BLVD ARLINGTON VA 22203 521076274 INSURANCE AGENT VA NRECA UNITED C 68037 645251 1.00000 1 ELECTRIC COOPERATIVE LIFE INSURANCE CO 4301 WILSON BLVD ARLINGTON VA 22203 860262046 LIFE & HOSPITALIZATION INSURANCE VA NRECA C 66809 1840955 1.00000 1 COOPERATIVE BENEFIT ADMINISTRATORS 4301 WILSON BLVD ARLINGTON VA 22203 521327041 CLAIMS ADMINISTRATOR VA NRECA UNITED C 17803377 8040865 1.00000 1 COOPERATIVE ENERGY SERVICES 4301 WILSON BLVD ARLINGTON VA 22203 521490710 MARKET RESEARCH VA NRECA UNITED C 258993 1.00000 1 RE INVESTMENT INC 4301 WILSON BLVD ARLINGTON VA 22203 521679315 INVESTMENT BROKER VA NRECA UNITED C 171816 1.00000 1 RE ADVISERS INC 4301 WILSON BLVD ARLINGTON VA 22203 521694000 MARKET RESEARCH VA RE INVESTMENT INC C 10002365 8106105 1.00000 1 NRECA UNITED INC 4301 WILSON BLVD ARLINGTON VA 22203 521765915 HOLDING COMPANY VA ELCO C 340269 1.00000 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 NRECA INTERNATIONAL FOUNDATION L 120765 ACCOUNTING RECORDS NRECA INTERNATIONAL FOUNDATION N 14445 ACCOUNTING RECORDS NRECA INTERNATIONAL FOUNDATION Q 597654 ACCOUNTING RECORDS NRECA INTERNATIONAL LTD L 426843 ACCOUNTING RECORDS NRECA INTERNATIONAL LTD N 94124 ACCOUNTING RECORDS NRECA INTERNATIONAL LTD Q 11531583 ACCOUNTING RECORDS NRECA WOOD QUALITY CONTROL INC L 100594 ACCOUNTING RECORDS NRECA WOOD QUALITY CONTROL INC Q 1534577 ACCOUNTING RECORDS NRECA WOOD QUALITY CONTROL INC O 449499 ACCOUNTING RECORDS COOPERATIVE INSURANCE SERVICES L 7206 ACCOUNTING RECORDS ELECTRIC COOPERATIVE LIFE INSURANCE CO L 10000 ACCOUNTING RECORDS ELECTRIC COOPERATIVE LIFE INSURANCE CO Q 39126 ACCOUNTING RECORDS COOPERATIVE BENEFIT ADMINISTRATORS L 6887404 ACCOUNTING RECORDS COOPERATIVE BENEFIT ADMINISTRATORS N 536486 ACCOUNTING RECORDS COOPERATIVE BENEFIT ADMINISTRATORS O 7614893 ACCOUNTING RECORDS COOPERATIVE BENEFIT ADMINISTRATORS Q 5273480 ACCOUNTING RECORDS COOPERATIVE ENERGY SERVICES Q 543294 ACCOUNTING RECORDS RE INVESTMENT INC O 20106 ACCOUNTING RECORDS RE INVESTMENT INC L 942977 ACCOUNTING RECORDS RE INVESTMENT INC Q 84361 ACCOUNTING RECORDS RE ADVISERS INC L 3815939 ACCOUNTING RECORDS RE ADVISERS INC Q 2923322 ACCOUNTING RECORDS RE ADVISERS INC O 524735 ACCOUNTING RECORDS RE ADVISERS INC A 296464 ACCOUNTING RECORDS