Since I joined Decatur County REMC almost 10 years ago, I have taken pride in being available to our members. I encourage you to reach out with questions and appreciate the opportunity to listen and provide answers. Those conversations often leave me wondering: How many other members might be asking the same thing?

Recently, I’ve received calls about our cooperative’s finances — specifically, why certain numbers appear differently in our financial reports.

Even if financial reports aren’t your favorite reading material, you deserve to know how we manage your cooperative’s resources. Here are a few things that help explain the picture.

How our finances are reviewed
Our financial statements are audited annually by an independent accounting firm. We have consistently received clean audit opinions, meaning the auditors concluded that our statements fairly presented the cooperative’s financial position in all material respects.

In recent years, those audits have also required that no auditor-proposed adjusting journal entries be made. That means the auditors did not identify adjustments needed to the financial statements we provided for their review.

I also want to recognize Jennie Meyer, our senior accountant, and Matt Raver, our accounting and finance manager, for the care and expertise they bring to this work. Jennie’s attention to our accounting records and reports, and Matt’s leadership in financial planning, help keep your cooperative’s finances well-managed. I appreciate their dedication to accuracy, accountability, and the members we serve.

How financial reports organize information
Along with our annual audit, we file required reports with the IRS and the Rural Utilities Service, including Form 990 and the Financial and Operating Report, commonly called Form 7.

Each report has its own instructions for grouping and presenting information. For example, a debt amount shown on one line on the Form 990 may be divided between two categories on the Form 7. Those categories must be considered together to make a meaningful comparison.

Other differences between reports and audited statements may involve accounting or reporting requirements. A difference between individual lines does not, by itself, mean something is wrong. It does mean the comparison needs context, and we welcome the opportunity to explain it.

What expense categories include
Form 990 serves many types of tax-exempt organizations, so its expense categories are broad. For instance, “travel” can include operating and maintaining vehicles used for an organization’s work. At an electric cooperative, that can include the trucks crews use to maintain power lines, respond to outages, and serve members.

Similarly, “sales expenses” on our utility report includes employee time spent administering member rebate programs, as well as community support, such as sponsorships for youth activities and local events. Understanding what a category includes helps explain how those dollars serve members.

As we prepare next year’s budget, we apply that same attention to how resources are used. We consider daily operating costs alongside investments in equipment, system maintenance, and storm readiness. Each decision must balance today’s needs with the cooperative’s long-term financial health.

You count on us to provide safe, reliable electricity and manage costs carefully. Our responsibility also includes making financial information understandable.

If you have a question about a report, an expense, or how we plan for the future, please reach out. I welcome the conversation.