2016-11-15T15:05:01-06:00 2015-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2015-01-01 710027635 CARROLL ELECTRIC COOPERATIVE CORPORATION CARR 8704232161 PO BOX 4000 BERRYVILLE AR 72616 ROB BOAZ PRESIDENT/CEO 8704232161 2016-11-14 1 WILLIAM M MILLER P00439459 8067473806 2016-11-14 X 2015 2017-02-10 21:41:12Z ROB BOAZ PO BOX 4000 BERRYVILLE AR 72616 170365123 0 X WWW.CARROLLECC.COM X 1937 AR TO SERVE OUR MEMBERS WITH SAFE, RELIABLE, AND AFFORADABLE ELECTRICITY. 9 9 328 0 0 0 0 0 169608763 165579923 2706432 3345512 909900 1172880 173225095 170098315 24355 29185 7716091 12186348 17356993 17236591 0 0 0 148127656 140646191 173225095 170098315 0 0 508496973 537285799 294973606 310276451 213523367 227009348 WE EXIST TO SERVE OUR MEMBERS WITH SAFE, RELIABLE, AND AFFORDABLE ELECTRICITY. 0 0 SALES OF ELECTRIC POWER TO MEMBERS - 93,728 ACTIVE SERVICES WERE PROVIDED POWER AT YEAR END AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 93 0 328 1 0 0 0 0 0 166202597 5534025 0 X 9 9 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X CHAD ALLEN 8704232161 920 HWY 62 SPUR BERRYVILLE AR 72616 ALAN HUNNICUTT CHAIRMAN 9.00 X X 27083 0 1491 CARLA HATHORN VICE CHAIRMAN 7.00 X X 22333 0 6788 WINFRED PRIER SEC/TREASURER 4.00 X X 31958 0 -4702 J NEFF BASORE DIRECTOR 6.00 X 24053 0 6276 KRISTY K ESTREM DIRECTOR 5.00 X 33663 0 605 DAVID GLASS DIRECTOR 7.00 X 40193 0 -1651 CHARLES R SHINN DIRECTOR 3.00 X 23313 0 1911 JOSEPH R SPIVEY DIRECTOR 7.00 X 34893 0 2022 BOBBY G RAULSTON DIRECTOR 7.00 X 37603 0 -3306 ROB BOAZ PRESIDENT/CEO 50.00 X 406454 0 232230 CHAD ALLEN VP/FINANCIAL SERVICES 45.00 X 149466 0 93827 JAMES SANDERS VP/EXECUTIVE SERVICES 45.00 X 206413 0 97778 KEAN STEELY VP/ENGINEERING & OPERATION 45.00 X 196596 0 77072 MICHAEL DODGE VP/BENTONVILLE DISTRICT 50.00 X 192377 0 95602 DAVID BROCK VP/OFFICE SERVICES 46.00 X 149136 0 66531 CHRIS BANKS JOURNEYMAN/LINEMAN 58.00 X 141951 0 42228 1717485 0 714702 20 0 1 0 NABHOLZ CONSTRUCTION CORPORATION PO BOX 277 ROGERS AR 72757 CONSTRUCTION 10129471 ARKANSAS ELECTRIC COOPERATIVEINC PO BOX 194208 LITTLE ROCK AR AR 72219 CONSTRUCTION 3462475 BARROWS EXCAVATION INC 49 CR 404 BERRYVILLE AR 72616 EXCAVATION 2580299 ALLGEIER MARTIN & ASSOCIATES INC PO BOX 2627 JOPLIN MO 64803 ENGINEERING 899601 SOUTHERN ELECTRIC CORPORATION 4374 MANGUM FLOWOOD MS 39232 CONSTRUCTION 867793 12 X ELECTRIC ENERGY 221000 163479352 163479352 PATRONAGE DIVIDENDS 221000 977934 977934 SERVICE FEES 221000 833934 833934 SURGE SUPPRESSOR REVENUE 221000 219188 219188 OTHER PROGRAM REVENUE 221000 69515 69515 165579923 3340182 3340182 12550 0 12550 12550 12550 72916 67586 5330 5330 5330 207267 199222 8045 8045 POLE ATTACHMENT INCOME 221000 1152285 1152285 1152285 170098315 165587968 0 4510347 X 15185 14000 12186348 1166503 10174643 2842355 2229145 823945 11509182 15849588 PURCHASED POWER 100300404 DISTRIBUTION EXPENSE 8141890 ADMIN AND GENERAL 3870985 CONSUMER ACCOUNTS 599259 374883 170098315 X 820717 714121 6763382 18112310 20326171 17991935 3618734 3782975 38659 90584 552597060 138729940 390065883 413867120 69217810 68128773 17645617 14597981 508496973 537285799 5680645 7194483 266150773 283880467 23142188 19201501 294973606 310276451 X 1747855 1786740 0 0 211775512 225222608 213523367 227009348 508496973 537285799 X 0 13485981 X X 0 0 0 0 0 6918969 6918969 44159385 3919019 40240366 463036925 134810921 328226004 38481781 38481781 413867120 CAPITAL TERM CERTIFICATES 1835746 C PATRONAGE CAPITAL - AECC 60185250 C PATRONAGE CAPITAL - AECI 3465188 C PATRONAGE CAPITAL - CFC 986736 C PATRONAGE CAPITAL - COBANK 434882 C PATRONAGE CAPITAL - FEDERATED 717566 C PATRONAGE CAPITAL - ARESIT 226433 C MEMBERSHIPS & OTHER 3420 C PATRONAGE CAPITAL - FARMERS 354 C PATRONAGE CAPITAL - SOUTH COOP 41 C NON UTILITY PLAN 273157 C 68128773 CONSUMER ADVANCES FOR CONSTRUCTION 536548 CUSTOMER DEPOSITS 4953993 PROVISION FOR PENSIONS AND BENEFITS 3413417 ACCRUED TAXES 4876357 PATRONAGE CAPITAL RETIREMENT DECLARED - GREATER THAN 1 YEAR 4400000 DEFERRED CREDITS 1021186 19201501 X Part X, Line 2: THE COOPERATIVE FOLLOWS THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COOPERATIVE IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COOPERATIVE DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS) AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5 PERCENT OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART IX HAS BEEN LEFT BLANK. 1 SCHOLARSHIPS FOR POST SECONDARY EDUCATION 28 14000 SCHEDULE I, PART II ALL GRANTS AND DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. ALL DONATIONS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. EACH GRANT, SPONSORSHIP AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE INDIVIDUAL REPORTING THRESHOLDS OF PART II. SCHEDULE I, PART III EACH HIGH SCHOOL IN THE COOPERATIVE'S SERVICE TERRITORY SELECTS ONE SCHOLARSHIP RECIPIENT. THE RECIPIENT IS CHOSEN BY THE COUNSELOR OF EACH RESPECTIVE HIGH SCHOOL. UPON ENROLLMENT BY THE SCHOLARSHIP RECIPIENT, THE COOPERATIVE THEN PAYS THE COLLEGE OR UNIVERSITY DIRECTLY. 1 X X X 0 1 0 ROB BOAZ PRESIDENT/CEO 391689 0 11449 0 3316 0 214471 0 17759 0 638684 0 0 0 CHAD ALLEN VP/FINANCIAL SERVICES 146137 0 2424 0 905 0 76856 0 16971 0 243293 0 0 0 JAMES SANDERS VP/EXECUTIVE SERVICES 193121 0 8358 0 4934 0 80509 0 17269 0 304191 0 0 0 KEAN STEELY VP/ENGINEERING & OPERATION 192284 0 2266 0 2046 0 59815 0 17257 0 273668 0 0 0 MICHAEL DODGE VP/BENTONVILLE DISTRICT 188203 0 2820 0 1354 0 78363 0 17239 0 287979 0 0 0 DAVID BROCK VP/OFFICE SERVICES 145721 0 2379 0 1036 0 53169 0 13362 0 215667 0 0 0 CHRIS BANKS JOURNEYMAN/LINEMAN 140501 0 1242 0 208 0 41756 0 472 0 184179 0 0 0 SCHEDULE J PART I, LINE 1A THE CEO RECEIVES THE TRAVEL FOR COMPANION BENEFIT AS APPROVED BY THE BOARD ON AN AS NEEDED BASIS. PART I, LINE 4B QUALIFYING DIRECTORS AND THE PRESIDENT/CEO PARTICIPATE IN A NONQUALIFIED RETIREMENT AND DEFERRED COMPENSATION PLAN PURSUANT TO BOARD POLICY. BENEFITS VEST ONLY ON RETIREMENT AND BOARD APPROVAL AT THAT TIME. THE ACTUARIAL INCREASE OF BENEFITS POTENTIALLY PAYABLE UNDER THE PLAN ARE REPORTED ON FORM 990, PART VII, SECTION A, COLUMN F AND ARE SUMMARIZED AS FOLLOWS: DIRECTORS $ 9,434 PRESIDENT/CEO (3,319) TOTAL ACCRUED UNDER THE PLAN $ 6,115 PART II, COLUMN C INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. Form 990, Part VI, Section A, line 1 THE COOPERATIVE HAS 9 BOARD MEMBERS; ALL 9 ARE ALLOWED TO VOTE, HOWEVER THE BOARD CHAIRMAN VOTES ONLY IN THE CASE OF A TIE. Form 990, Part VI, Section A, line 2 BUSINESS RELATIONSHIP: ALAN HUNNICUTT (DIRECTOR) AND KRISTY ESTREM (DIRECTOR) SHARE A BUSINESS RELATIONSHIP. ROB BOAZ (PRESIDENT/CEO) AND ALAN HUNNICUTT (DIRECTOR) BOTH SERVED ON THE BOARD OF ARKANSAS ELECTRIC COOPERATIVE CORPORATION AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. ROB BOAZ (PRESIDENT/CEO) AND CARLA HATHORN (DIRECTOR) BOTH SERVED ON THE BOARD OF ARKANSAS ELECTRIC COOPERATIVE, INC. AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. Form 990, Part VI, Section A, line 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS. Form 990, Part VI, Section A, line 7a THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE VIA UNITED STATES MAIL ON A ONE MEMBER ONE VOTE BASIS. MEMBERS COMPLETE AND RETURN WRITTEN BALLOTS IN A SEALED ENVELOPE ADDRESSED TO THE SECRETARY OF THE COOPERATIVE. Form 990, Part VI, Section A, line 7b THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE. 1. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE; 2. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION; 3. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; 4. AMENDMENT TO THE ARTICLES OF INCORPORATION; 5. AMENDMENT TO THE BYLAWS Form 990, Part VI, Section B, line 11 MANAGEMENT PROVIDED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. Form 990, Part VI, Section B, line 12c ALL DIRECTORS AND KEY EMPLOYEES MUST ANNUALLY REVIEW THE CONFLICT OF INTEREST POLICY AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM AND DELIVER THE COMPLETED, SIGNED FORM TO THE CHAIRMAN OR THE PRESIDENT/CEO. Form 990, Part VI, Section B, line 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVES' IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE PRESIDENT/CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR PRESIDENTS/CEOS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN ARKANSAS AND THE NATION. THE BOARD AND THE PRESIDENT/CEO USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT ARKANSAS AND THE NATION. Form 990, Part VI, Section C, line 19 THE ARTICLES OF INCORPORATION AND THE BYLAWS OF THE COOPERATIVE ARE PROVIDED IN WRITTEN OR ELECTRONIC FORM UPON REQUEST. THE ANNUAL FINANCIAL REPORT IS DISTRIBUTED TO ALL MEMBERS IMMEDIATELY PRIOR TO THE ANNUAL MEETING OF THE MEMBERS. ANY MEMBER, UPON REQUEST, IS PROVIDED A COMPLETE COPY OF THE COOPERATIVE'S AUDIT REPORT. Form 990, Part VIII, Line 2B PATRONAGE DIVIDENDS RESULT FROM THE PURCHASE OF WHOLESALE POWER FROM A GENERATION & TRANSMISSION COOPERATIVE. PATRONAGE DIVIDENDS ALSO RESULT FROM THE PAYMENT OF INTEREST FROM COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. Form 990, PART IX THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICES (RUS). THE UNIFORM SYSTEM OF ACCOUNTS DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1 - 23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1 - 23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS. Form 990, Part IX, Lines 5-7 SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 11,341,146 LESS DIRECTORS FEES REPORTED ON 1099-MISC (275,092) LESS DIRECTOR RETIREMENT BENEFITS INCLUDED IN LINE 5 (9,434) LESS OFFICER BENEFITS REPORTED ON LINE 5 (326,057) PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 5,794,354 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,377,594 TOTAL WAGES ACCRUED AND/OR PAID: $ 17,902,511 Form 990, Part IX, Line 24 ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: OFFICE AND SUPPLIES $ 731,252 OUTSIDE SERVICES 206,581 REGULATORY COMMISION EXPENSE 287,450 DUPLICATE CHARGES (122,863) DIRECTORS EXPENSES 64,357 GENERAL PLANT MAINTENANCE 986,591 MISCELLANEOUS GENERAL AND ADMINISTRATIVE 1,717,617 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 3,870,985 FORM 990, PART IX, LINE 4 PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "PATRONS") SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO ITS PATRONS AND TO DO SO ON A COOPERATIVE BASIS. TAX LAW DEFINES "OPERATING ON A COOPERATIVE BASIS" AS SUBORDINATION OF CAPITAL, DEMOCRATIC CONTROL, AND OPERATION AT COST. THE COOPERATIVE OPERATES AT COST THROUGH THE ALLOCATION OF TRUE PATRONAGE DIVIDENDS (ALSO REFERRED TO AS ALLOCATIONS OF PATRONAGE CAPITAL) TO ITS PATRONS. PATRONAGE DIVIDENDS ARE CONSIDERED PAID IF THE ALLOCATION IS MADE (1) PURSUANT TO A PRE-EXISTING OBLIGATION, (2) FROM THE MARGINS PRODUCED FROM THE TRANSACTIONS DONE WITH OR FOR PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). ADDITIONALLY, THE ALLOCATION OF PATRONAGE DIVIDENDS SHOULD BE MADE WITHIN A REASONABLE TIME PERIOD AFTER THE CLOSE OF THE COOPERATIVE'S YEAR-END OF DECEMBER 31. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE COOPERATIVE'S BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2015 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS ARE THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS PATRONS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED SUCH AMOUNTS AS AN EXPENSE FOR FORM 990 REPORTING. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. Form 990, Part IX, Line 24E OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: TRANSMISSION EXPENSE $ 371,521 MISCELLANEOUS GENERAL EXPENSE 3,362 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 374,883 FORM 990, PART X, LINES 17 & 25 THE COOPERATIVE PREVIOUSLY INCLUDED ACCRUED EXPENSES (COMPRISED OF (1) ACCRUED PAYROLL AND EMPLOYEE COMPENSATED ABSENCES, (2) ACCRUED INTEREST AND (3) ACCRUED LIABILITIES - OTHER.) AS COMPONENTS OF OTHER LIABILITIES ON LINE 25 OF PART X. HOWEVER, FOR THE 2015 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS ON LINE 17. TO INCREASE CONSISTENCY, ACCRUED EXPENSES IN THE AMOUNT OF $3,572,618 FOR THE 2014 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 25 TO LINE 17. Form 990, Part XI, line 9: NET CHANGE IN MEMBERSHIPS 38,885. PATRONAGE CAPITAL ASSIGNED 12,186,348. PATRONAGE CAPITAL RETIRED - DECLARED -2,200,000. PATRONAGE CAPITAL RETIRED - UNCLAIMED ADJUSTMENTS PER STATE LAW 2,484,270. OTHER COMPREHENSIVE INCOME 976,478. Form 990, Part XII, Line 2B AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FISCAL YEAR END OF FEBRUARY 28TH. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR YEAR END OF DECEMBER 31. Form 990, PART XII, Line 2C THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURES DID NOT CHANGE DURING THE YEAR.