2012-11-08T08:12:49-06:00 2012-06-30 621114363 HENDERSON HUTCHERSON & MCCULLOUGH PLLC 1200 MARKET STREET CHATTANOOGA TN 37402 990 2011-07-01 630182345 SAND MOUNTAIN ELECTRIC COOPERATIVE SAND 2566382153 402 MAIN ST WEST RAINSVILLE AL 35986 MARK MALONE 2566382153 2012-10-22 1 KEVIN STEPHEN ROSECPA P00839594 4237567771 2012-10-22 2011 2016-02-24 21:20:13Z MARK MALONE 402 MAIN STREET WEST RAINSVILLE AL 35986 70776708 0 X WWW.SMEC.COOP X 1940 AL THE COOPERATIVE PROVIDES ELECTRICITY TO ITS MEMBERS 9 9 80 0 0 0 0 0 73849914 69514540 292654 333834 723923 928334 74866491 70776708 0 0 0 0 5849816 5595496 0 0 0 65553492 62557717 71403308 68153213 3463183 2623495 98956717 98321481 51013671 47673723 47943046 50647758 TO PROVIDE ELECTRIC SERVICE TO THE PEOPLE IN RURAL AREAS AT THE LOWEST COST POSSIBLE, CONSISTENT WITH SOUND BUSINESS PRACTICES. 0 0 68153213 TO PROVIDE ELECTRICITY TO ITS 30,705 CONSUMERS. 68153213 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 39 0 1 80 1 0 0 0 0 0 69514540 1262168 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X MARK MALONE 2566382153 402 MAIN STREET WEST RAINSVILLE AL 35986 JAMES P CARMICHAEL 4.50 X X 19597 0 0 LARRY G GODWIN 4.00 X X 25907 0 0 R LEE BAILEY 4.00 X X 25721 0 0 LEO BOMIAN 3.00 X X 24145 0 0 DAVID HENDERSON 3.00 X X 16698 0 0 JERRY MASON 3.00 X X 18789 0 0 ROLAND HENDON 3.00 X X 20098 0 0 JAMIE BOWMAN 3.00 X X 18498 0 0 RAYMOND LONG 3.00 X X 19471 0 0 MIKE SIMPSON 45.00 X X 177826 0 80193 MARK MALONE 45.00 X X 126099 0 29837 KEVIN ANDERSON 45.00 X 116086 0 45658 BOYD GRABEN 45.00 X 113894 0 57928 BILLY MYERS 50.00 X 107797 0 29492 R BRIAN HORTON 50.00 X 118067 0 6063 JAMES TUCKER 50.00 X 106865 0 47982 ORVILLE HUGHES 0.00 X 12361 0 0 1067919 0 297153 7 1 1 0 SERVICE ELECTRIC COMPANY P O BOX 11154 CHATTANOOGA TN 37401 ELECTRIC CONSTRUCTION 1304660 ASPLUNDH P O BOX 532729 ATLANTA GA 30353 RIGHT OF WAY CLEARING 999264 BLACKOAK SERVICES INC P O BOX 2192 RAINSVILLE AL 35986 METER READING SERVICES 331854 SOUTHEASTERN DATA COOPERATIVE INC 100 ASHFORD CENTER NORTH SUITE 500 ATLANTA GA 30338 DATA PROCESSING SERVICES 316714 NOLIN RURAL ELECTRIC COOPERATIVE 411 RING ROAD ELIZABETHTOWN KY 42701 STORM WORK 314078 16 ELECTRIC SALES 221000 69514540 69514540 69514540 333834 333834 928334 0 928334 928334 928334 70776708 69514540 0 1262168 1055558 4539938 1619614 3559832 142288 COST OF POWER 50060534 DISTRIBUTION - MAINTENA 2968327 DISTRIBUTION - OPERATIO 2429530 TAX EXPENSE 2356800 -579208 68153213 965141 758697 8249480 9168006 1184253 817871 778146 1014710 123001522 40646697 83432691 82354825 2313246 2346211 2033760 1861161 98956717 98321481 11863965 12057276 28831109 27206741 6321483 3801514 3997114 4608192 51013671 47673723 X 458795 462815 0 0 47484251 50184943 47943046 50647758 98956717 98321481 X 2623495 81217 X X 0 1 1 X 1 0 150374 150374 3107150 1000840 2106310 116715275 39645857 77069418 3028723 3028723 82354825 CUSTOMER DEPOSITS 2783002 POSTRETIREMENT BENEFIT OBLIGATION 1825190 4608192 70776708 68153213 2623495 81217 81217 2704712 70776708 0 70776708 0 70776708 68153213 0 68153213 0 68153213 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: NOTE 11 UNCERTAIN TAX POSITIONS EFFECTIVE JANUARY 1, 2009, THE COOPERATIVE IMPLEMENTED THE ACCOUNTING GUIDANCE FOR UNCERTAINTY IN INCOME TAXES USING THE PROVISIONS OF ASC TOPIC 740, INCOME TAXES (PREVIOUSLY FASB INTERPRETATION NO. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH IS AN INTERPRETATION OF FASB STATEMENT NO. 109). THE ADOPTION OF FASB ASC 740 DID NOT HAVE A MATERIAL IMPACT ON THE COOPERATIVES FINANCIAL STATEMENTS. THE COOPERATIVE HAS CONCLUDED THAT THERE ARE NO SIGNIFICANT UNCERTAIN TAX POSITIONS REQUIRING DISCLOSURE, AND THERE ARE NO MATERIAL AMOUNTS OF UNRECOGNIZED TAX BENEFITS. THE COOPERATIVES EVALUATION WAS PERFORMED FOR TAX YEARS ENDED JUNE 30, 2009 THROUGH JUNE 30, 2012, THE YEARS THAT REMAIN SUBJECT TO EXAMINATION BY MAJOR TAX JURISDICTIONS AS JUNE 30, 2012. PART XI, LINE 8 - OTHER ADJUSTMENTS: INCREASE IN CAPITAL STOCK (MEMBERSHIPS) 4,020. OTHER COMPREHENSIVE GAIN - APBO 77,197. TOTAL TO SCHEDULE D, PART XI, LINE 8: 81,217. OTHER FIXED ASSETS IS MADE UP OF CONSTRUCTION WORK IN PROGRESS X X X 0 0 0 MIKE SIMPSON 177826 0 0 0 0 0 78673 0 1520 0 258019 0 0 0 MARK MALONE 126099 0 0 0 0 0 28317 0 1520 0 155936 0 0 0 KEVIN ANDERSON 116086 0 0 0 0 0 25154 0 20504 0 161744 0 0 0 BOYD GRABEN 113894 0 0 0 0 0 37424 0 20504 0 171822 0 0 0 JAMES TUCKER 106865 0 0 0 0 0 27478 0 20504 0 154847 0 0 0 ORVILLE HUGHES 12361 0 0 0 0 0 0 0 0 0 12361 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS 30,705 CONSUMERS THAT IT PROVIDES ELECTRICITY TO. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF SAND MOUNTAIN ELECTRIC COOPERATIVE ELECT THE BOARD OF DIRECTORS THROUGH A DEMOCRATIC PROCESS. FORM 990, PART VI, SECTION A, LINE 7B MEMBERS DECISIONS ARE LIMITED TO ELECTION OF TRUSTEES AND CHANGING BY-LAWS. FORM 990, PART VI, SECTION B, LINE 11 THE INDEPENDENT CPA HIRED BY SMEC WILL REVIEW THE 990 WITH THE BOARD OF DIRECTORS BEFORE IT IS SUBMITTED TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C KEY EMPLOYEES AND TRUSTEES ARE REQUIRED TO FILL OUT TWO SEPARATE QUESTIONNAIRES ANNUALLY DISCLOSING ANY CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS SETS THE GENERAL MANAGER'S COMPENSATION SEPARATELY FROM THE OTHER EMPLOYEES AFTER REVIEWING AREA (ALABAMA RURAL ELEC. ASSOC.) SALARY SURVEYS. THE GM HAS A WRITTEN EMPLOYMENT CONTRACT. THE OTHER OFFICERS, KEY EMPLOYEES (LISTED MANAGERS) SALARY IS SET BY THE BOARD WITH A RECOMMENDATION FROM THE GM. THEY USE THE AREA SALARY SURVEY IN THE PROCESS. ALL OF OUR EMPLOYEE PAY RATES ARE SET BY THE BOARD. THE MAJORITY ARE UNDER A UNION CONTRACT THAT IS NEGOTIATED BY A COMMITTEE OF THE BOARD AND APPROVED BY THE FULL BOARD. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: INCREASE IN CAPITAL STOCK (MEMBERSHIPS) 4,020. OTHER COMPREHENSIVE GAIN - APBO 77,197. TOTAL TO FORM 990, PART XI, LINE 5: 81,217. AUDIT OVERSIGHT PROCESS REMAINS UNCHANGED FROM THE PRIOR YEAR. EXPLANATION AS TO WHY ORGANIZATION HAS NOT UNDERGONE REQUIRED SINGLE AUDIT FOR 990, PG. 12, PART XII, QUESTION 3B SAND MOUNTAIN HAS NOT YET UNDERGONE THE REQUIRED SINGLE AUDIT FOR THE FEMA DISASTER GRANT RECEIVED DURING THE YEAR. THIS IS DUE TO THE FACT THAT FEMA HAS NOT YET FINISHED THEIR AUDIT AND THE FULL AMOUNT OF THE GRANT HAS NOT YET BEEN DETERMINED BY FEMA. HOWEVER, SAND MOUNTAIN IS IN THE PROCESS OF STARTING THIS AUDIT AND THE SINGLE AUDIT WILL BE COMPLETED BEFORE THE END OF THE CALENDAR YEAR.