FOrm 990 Department of the Treasury Internal Revenue SerVIce Return of Organization Exempt From Income Tax Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private foundations) Do not enter social security numbers on this form as it may be made public. Information about Form 990 and its instructions is at OMB No 1545?0047 2015 Open to Public Inspection A For the 2015 calendar year, or tax year beginning and ending Check II Name of organIzatIon Employer identi?cation number NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION Eggs busmess return Number and street (or P.0. box ii man Is not deIIvered to street address) Room/surte Telephone number 21132,, 4301 WILSON BLVD (703)907?5960 ?rst?- City or town, state or province, country, and ZIP or foreIgn postal code Gross recemts rAe'iiIeriImd ARLINGTON H(a) is the a group return Ei?gglma' Name and address of prInCIpaI of?cer'JO ANN EMERSON for subordInates? i:iYes No SAME AS ABOVE H(b) Are all subordInates Included7i:i Yes i:i NO I Tax-exempt status. i__i 501(c)(3) iLi 501(c)( 5 )4 (insert no.) )i_i 4947(a)(1)0)r i_i 527 If attach a lIst. (see Instructions) Website: NRECA . COOP H(c) Group exemptlon number Form of organIzatIon: Corporation I ITrust AssomatIon Other Part Summary Year of formatIon: 9 4 2 State of legal domICIle: DC q, 1 Briefly describe the organization?s mission or most significant activitIes: MEMBERSHIP AS SOCIATI ON DED I CATED TO REPRESENTING THE NATIONAL INTERESTS OF COOPERATIVE ELECTRIC 2 Check this box i__i If the organization discontmued its operatIons or disposed of more than 25% of Its net assets. 3 3 Number of voting members of the governIng body (Part VI, line 1a) 3 4 7 4 Number of independent votIng members of the governing body (Part VITotal number of indIVIduals employed in calendar year 201 5 (Part V, IIne 2a) 5 8 5 8 6 Total number of volunteers (estImate if necessary) 6 ?53> 7a Total unrelated business revenue from Part column (0Net unrelated business taxable InOOme from Form 990Prior Year Current Year a 8 ContributIons and grants (Part line 1hE7352: 9 163I253I285- 155I557I230- 53% 10 Investment income (Part column (A), llnes Other revenue (PartVIll,column (A), lInes 5, 6d, 8c, 90, 10cTotal revenue - add lines 8 through 11 (must equal Part column (AGrants and SImilar amounts paid (Part IX, column (A), IInes 1-3) 0 - 0 - 14 Bene?ts paid to or for members (Part IX, column (A), line 4) 0 - 0 . 15 Salaries, other compensatIon, employee bene?ts (Part IX, column (A), lines 510163 Professional fundraIsmg fees (Part IX, colum (A), line's - 0 - Total fundraising expenses (Part IX, column D), i 0 - . 17 Otherexpenses (Part IX, column (A), lines1 ?an d,11f24e) 76 I 337 I 185- 59 I 379 I 252- 18 Totalexpenses Add lines1317(mustequa [?31 187 I605I520. 176, 347,990 . 19 mlI e12 9i *2,276,674. -3,321,753. Beginning of Current Year End of Year ?g 20 Totalassets(PartX,lIne16) LQGDEN UT bl 186I789I779- 179I704I549- 21 101I396I295- 92I446I227- 22 Net assets or fund balances. Subtract Me 21 from lIne [Part Signature Block Under penalties of perjury, I declare that have examined the return, IncludIng accompanying schedules and statements, and to the best of my knowledge and belief, It IS true, correct, and complete DeclaratIcn of preparer (other than officer) on all Information of which preparer has any knowledge. 6(0ch iD Sign SIgnature of officer Here VENEICIA LOCKHART VP FINANCE Type or prInt name and one Print/Type preparer's name Preparer's signature Date gilt-5k Paid sen-employed PfeParer FIrm's name FIrm's Elm Use Only Firm's address Phone no. Mayihe IRS dIscuss thIs return with the preparer shown above? _(see Instructions) i_i Yes i__i No 532001 1245-15 LHA For Paperwork Reduction Act Notice, see the separate instructions. Form 990 (2015) SEE SCHEDULE 0 FOR ORGANI ZATION MI SS I ON STATEMENT CONTINUATI ON NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION 53?0116145i-Pme2 Part Statement of Program Service Accomplishments Check if Schedule 0 contains a response or note to any line in this Part 1 Briefly describe the organization?s misSion' THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION (NRECA) IS THE SERVICE ORGANIZATION FOR 1,050 RURAL ELECTRIC COOPERATIVES, PUBLIC POWER DISTRICTS AND PUBLIC UTILITIY DISTRICTS. MISSION IS TO ENGAGE IN THE COMPILATION AND DISSEMINATION OF INFORMATION WITH 2 Did the organization undertake any significant program services during the year which were not listed on : Ye5 No the prior Form 990 or 990-EZ9 . If "Yes," describe these new serwces on Schedule 0. 3 Did the organization cease conducting, or make Signi?cant changes in how it conducts, any program serVices" :IYes No If "Yes," describe these changes on Schedule 0 4 Describe the organization's program service accomplishments for each of its three largest program serVices. as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program serVice reported. 4a (Code (Expenses 5 including grants of (Revenue 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. (Code - (Expenses including grants of (Revenue CONSULTING, TRAINING, CONFERENCES: NRECA PROVIDES MEMBERS WITH ESSENTIAL INDUSTRY SPECIFIC TRAINING AS WELL AS DIRECTOR, MANAGER, AND EMPLOYEE CONSULTING RELATED TO THE ORGANIZATION AND PROCESS IMPROVEMENTS, AND INDUSTRY AND TECHNOLOGICAL AND CONFERENCES AND MEMBERSHIP MEETINGS, PROMOTING COLLABORATION AND NETWORKING. 4c (Code (Expenses 5 including grants of (Revenue MULTIPLE EMPLOYER BENEFIT PLAN ADMINISTRATION: NRECA PROVIDES PLAN ADMINISTRATION SERVICES ON A COST REIMBURSABLE BASIS TO THREE MULTIPLE 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 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 PENSION PLANS ARE EXPEMPT FROM INCOME TAXES UNDER IRS SECTION 401 AND THE GROUP BENEFITS TRUST IS EXEMPT UNDER IRS SECTION 4d Other program sewices (Describe in Schedule 0.) (Expenses 5 including grants of (Revenue 4e Total program sewice expenses Form 990 (2015) ewe SEE SCHEDULE 0 FOR 12-1545 2 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Form 996(2015) COOPERATIVE ASSOCIATION 53?0116145 Page3 Checklist of Required Schedules Yes No 1 Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If "Yes, complete Schedule A 1 2 Is the organization reqUIred to complete Schedule 8, Schedule of ContnbutorS? 2 3 Did the organization engage in direct or indirect political campaign activities on behalf of or in oppOSition to candidates fer public office? If ?Yes,? complete Schedule C, Partl 3 4 Section 501(c)(3) organizations. Did the organization engage in IObbying actIVIties, or have a section 501 election in effect during the tax year? If Yes, complete Schedule C, Part ll 4 5 Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or Similar amounts as de?ned in Revenue Procedure 98-19? If ?Yes, complete Schedule C, Part Ill 5 6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide adVIce on the distribution or investment of amounts in such funds or accounts? If ?Yes, complete Schedule D, Part I 6 7 Did the organization receive or hold a conservation easement, Including easements to preserve open space, the environment, historic land areas, or historic structures? If "Yes, complete Schedule D, Part ll 7 8 Did the organization maintain collections of works of art, historical treasures, or other Similar assets? If "Yes, complete Schedule D, Part 3 9 Did the organization report an amount in Part X, line 21, for escrow or custodial account liability, serve as a custodian for amounts not listed' in Part X, or provide credit counseling, debt management, credit repair, or debt negotiation services? If" Yes, complete Schedule D, Part IV 9 10 Did the organization, directly or through a related Organization, hold assets in temporarily restricted endowments, permanent endowments, or quaSi-endowments? lf Yes complete Schedule D, Part 10 1 1 If the organization? 3 answer to any of the followmg questions IS "Yes, then complete Schedule D, Parts VI, VII, IX, or as applicable a Did the organization report an amount for land, bUIIdings, and equipment in Part X, line 10? If ?Yes, complete Schedule D, Part VI 1 1a Did the organization report an amount for investments - other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, Ilne 16? If "Yes, complete Schedule D, Part VII 11b Did the organization report an amount for investments- program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If ?Yes," complete Schedule D, Part 1 1c (1 Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part x, iine 159 ll Yes," complete Schedule D, Part IX 11d 6 Did the organization report an amount for other liabilities in Part X, line 25? If ?Yes,? complete Schedule D, Part 11e Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses the organization's liability for uncertain tax positions under FIN 48 (A80 740)? If complete Schedule D, Part 11f 12a Did the organization obtain separate, independent audited ?nancial statements for the tax year? If ?Yes, complete Schedule D, Parts Xl and 12a Was the organization included in consolidated, independent audited ?nancial statements for the tax year? If ?Yes, and if the organization answered "No to the 12a, then completing Schedule D, Parts XI and is optional 12b 13 IS the organization a school described in section 170(b)(1)(A)(iD? If ?Yes, complete Schedule 13 14a Did the organization maintain an office, employees, or agents outside of the United States? 14a Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraiSing, busmess, investment, and program sewice activities outSIde the United States, or aggregate foreign investments valued at $100,000 or more? ll? Yes," complete Schedule F, Parts I and 14b 15 Did the organization report on Part IX, column (A), line 3, more than 000 of grants or other aSSistance to or for any foreign organization? ll? Yes, complete Schedule F, Parts ll and IV 15 16 Did the organization report on Part IX, column (A), line 3, more than 000 of aggregate grants or other aSSistance to or for foreign individuals? lf I'Yes, complete Schedule Parts Ill and IV 16 17 Did the organization report a total of more than $15,000 of expenses for professional fundraising sewices on Part IX, column (A), lines 6 and 11e? If ?Yes, complete Schedule G, Partl 17 18 Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part lines 10 and 8a? If Yes complete Schedule G, Part ll 18 19 Did the organization report more than $15,000 of gross income from gaming actiwties on Part line 9a? If "Yes, complete Schedule G, Part Ill 19 Form 990 (2015) 532003 12?16-15 13091115 144857 3 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Form 990 (2015) COOPERATIVE ASSOCIATION LPart IV I Checklist Of Required schedules (contrnueoD 53-0116145 i? Page4 Yes No 203 Did the organization operate one or more hospital faculties? If "Yes, complete Schedule 20a If "Yes" to line 20a, did the organization attach a copy of its audited finanCiaI statements to this return? 20b 21 Did the organization report more than $5,000 of grants or other aSSistance to any domestic organization or domestic government on Part IX, column (A), line 1? If "Yes, complete Schedule I, Parts I and ll 21 22 Did the organization report more than 000 of grants or other assistance to or for domestic Individuals on Part IX, column (A), line 2? If" Yes," complete Schedule I Parts land Ill 22 23 Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organization? 5 current and former of?cers, directors, trustees, key employees, and highest compensated employees? lf "Yes, complete Schedule 23 24a Did the organization have a tax-exempt bond issue With an outstanding prinCipaI amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If "Yes, answer lines 24b through 24d and complete Schedule If "No" ,go to line 253 24a Did the organization invest any proceeds of tax- exempt bonds beyond a temporary period exception? 24b Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax- exempt bonds? 24c (1 Did the organization act as an "on behalf of? issuer for bonds outstanding at any time during the year? 24d 253 Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations. Did the organization engage in an excess bene?t transaction with a disqualified person during the year? If "Yes complete Schedule L, Partl 253 Is the organization aware that it engaged in an excess bene?t transaction with a disquali?ed person in a prior year, and that the transaction has not been reported on any of the organization" 5 prior Forms 990 or lf' Y'e's, complete Schedule L, Partl 25b 26 Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? If" "Yes, complete Schedule L, Part ll 26 27 Did the organization provrde a grant or other to an of?cer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If "Yes," complete Schedule L, Part 27 28 Was the organization a party to a busmess transaction With one of the followrng parties (see Schedule L, Part IV for applicable filing thresholds, conditions, and exceptions): 1 a A current or former officer, director, thstee, or key employee? If "Yes, complete Schedule L, Part IV 28a A family member of a current or former of?cer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV 28b An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an of?cer, director, trustee, or direct or indirect owner? If" Yes, complete Schedule L, Palt lV 28c 29 Did the organization receive more than $25,000 in non- -cash contributions? If" Yes, complete Schedule 29 30 Did the organization receive contributions of art, histoncai treasures, or other Similar assets, or qualif ed conservation contributions? If" Yes," complete Schedule 30 31 Did the organization liquidate, terrninate, or dissolve and cease operations? If "Yes," complete Schedule N, Partl 31 32 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets?lf "Yes" complete Schedule N, Part ll 32 33 Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301 7701 -2 and 301. 7701 If" Yes," complete Schedule H, Partl 33 34 Was_t_t_ie_orcanization related to any tax- exempt or taxable entity? If "Yes," complete Schedule H, Part ll, or IV, and Part V, line 1 34 35a Did the organization have a controlled entity within the meaning of section 512(b)(13)? 35a If "Yes" to line 35a, did the organization receive any payment from or engage in any transaction With a controlled entity wrthin the meaning of section 512(b)(13)? If "Yes" complete Schedule Fl, Part V, line 2 3513 36 Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If" Yes" complete Schedule Fl, Part V, line 2 35 37 Did the organization conduct more than 5% of its activities through an entity that IS not a related organization and that is treated as a partnership for federal income tax purposes? If" Yes," complete Schedule B, Part VI 37 38 Did the organization complete Schedule 0 and provrde explanations in Schedule 0 for Part VI, lines 11 and 19? Note. All Form 990 ?lers are required to complete Schedule 0 33 Form 990 (2015) 532004 12-15-15 4 13091115 144857 NATIONAL RURAL ELECTRIC COO NRECAH91 NATIONAL RURAL ELECTRIC Form sediao15) COOPERATIVE ASSOCIATION 53?0 116 145 Paqe5 [Part VI Statements Regarding Other IRS Filings and Tax Compliance Check if Schedule 0 contains a response or note to any line in this Part . Yes No 1a Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable 1a 6 3 2 Enter the number of Forms included in line 1a Enter -0- if not applicable 1b 0 Did the organization comply With backup withholding mles for reportable payments to vendors and reportable gaming (gambling) winnings to prize Winners? 1c 2a Enter the number of employees reported on Form 3, Transmittal of Wage and Tax Statements, filed for the calendar year ending or wrthin the year covered by this return 2a 8 5 3 If at least one IS reported on line 2a, did the organization file all requrred federal employment tax returns? 2b Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file (see 3a Did the organization have unrelated busrness gross income of $1,000 or more during the year? 3a If "Yes, has it ?led a Form 990- for this year? If to lme 3b, provrde an explanation in Schedule 0 3b 4a At any time during the calendar year, did the organization have an interest in, or a Signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other ?nancial account)? . 4a If "Yes," enter the name of the foreign country. See instructions for ?ling requirements for Form 114, Report of Foreign Bank and FinanCiaI Accounts (FEAR). 5a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? 5a Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? 5b If ?Yes, to line 5a or 5b. did the organizationi ?le Form 8886- 5c 6a Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization sohcrt any contributions that were not tax deductible as charitable contributions? 6a If "Yes,? did the organization include With every solicrtation an express statement that such contributions or gifts 6b were not tax deductible? 7 Organizations that may receive deductible contributions under section 170(c). a Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provrded to the payer? 7a If "Yes, did the organization notify the donor of the value of the goods or servrces provrded? 7b Did the organization sell, exchange, or otherwrse dispose of tangible personal property for which It was requrred to ?le Form 8282? . . . 7c If "Yes, indicate the number of Forms 8282 ?led during the year 7d I Did the organization receive any funds, directly or indirectly, to pay premiums on a personal bene?t contract? 7e Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? 71? If the organization received a contribution of qualif ed intellectual property. did the organizationr ?le Form 8899 as requrred? 7 If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organizationi ?le a Form 1098- 7h 8 Sponsoring organizations maintaining donor advised funds. Did a donor advrsed fund maintained by the sponsoring organization have excess busrness holdings at any time dunng the year? 8 9 Sponsoring organizations maintaining donor advised funds. a Did the sponsoring organization make any taxable distributions under section 4966? 9a Did the sponsoring organization make a distribution to a donor, donor adwsor, or related person? . 9b 10 Section 501(c)(7) organizations. Enter: a Initiation fees and caprtal contributions included on Part line 12 10a 1) Gross receipts, included on Form 990, Part line 12, for public use of club facilities . 10b 11 Section 501(c)(12) organizations. Enter: a Gross income from members or shareholders 113 Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) 11b 123 Section 4947(a)(1) non- exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041 12a If "Yes," enter the amount of tax-exempt interest received or accrued during the year 12b 13 Section 501 qualified nonprofit health insurance issuers. a Is the organization licensed to issue qualif ed health plans in more than one state? . 13a Note. See the instructions for additional information the organization must report on Schedule 0. Enter the amount of reserves the organization is reqUIred to maintain by the states In which the organization is licensed to issue qualified hearth plans . 1313 Enter the amount of reserves on hand 13c 14a Did the organization receive any payments for indoor tanning serVices during the tax year? 14a If ?Yes?as rt filed a Form 720 to report thesepayments? If "No, provrde an explanation in Schedule 0 14b Form 990 (2015) 552005 12-15-15 5 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Form 990 (2015) COOPERATIVE ASSOCIATION 53?0116145 -- pages Part VI Governance, Management, and Disclosure For each ?Yes? response to lines 2 through 7b below, and fora "No? response to Me 8a, 8b, or 10b below, descnbe the Circumstances, processes, or changes In Schedule 0. See Instructions Check It Schedule 0 contains a response or note to any lIne In the Part Section A. Governing Body and Management Yes No 1a Enter the number of voting members of the governing body at the end of the tax year 1a 4 7 If there are matenal differences In voting rights among members of the governing body, or If the govermng body delegated broad authority to an executIve commIttee or swim commIttee, explaIn in Schedule 0. Enter the number of votIng members included In ?no 1a, above, who are Independent 1b 4 7 2 any of?cer, dIrector, trustee or key employee have a famIIy relatIonshIp or a busmess relationshIp any other of?cer, director trustee, or key employee? 2 3 the organIzatIon delegate control over management duties customarily performed by or under the direct supervision of of?cers. directors or trustees, or key employees to a management company or other person? 4 Did the organIzation make any signIfIcant changes to Its govemIng documents since the prIor Form 990 was flied? Did the organIzation become aware during the year of a signl?oant diversron of the organIzatIon' assets? 6 the organIzatIon have members or stockholders? Ta the organIzation have members, stockholders or other persons who had the power to elect or appomt one or more members of the governing body? 7a Are any governance deClSionS of the organIzatIon reserved to (or subject to approval by) members, stockholders, or persons other than the govemIng bodyDid the organIzation contemporaneously document the meetings held or when actions undertaken during the year by the followmg: a The govermng body? 8a Each oommIttee WIth authorIty to act on behalf of the govermng body? 8b 9 is there any officer, director, tmstee, or key employee listed In Part VII, SectIon A who cannot be reached at the organrzatron mailing address? If ?Yes,? provrde the names and addresses In Schedule 0 9 Section B. Policies (ThlS Section 8 requests Information about polrcres not requrred by the Internal Revenue Code) MN Yes No 10a the organIzatIon have local chapters, branches, or aff' hates? 10a If ?Yes, dId the organization have written polICIes and procedures govermng the actIVItIes of such chapters, affIlIates, and branches to ensure theIr operatIons are conSIstent with the organIzatIon? exempt purposes? 10b 11a Has the orgamzation prowded a complete copy of this Form 990 to all members of Its govemIng body before hung the form? 11a Describe in Schedule 0 the process, If any, used by the organIzatIon to reVIew this Form 990 12a the organization have a wntten conflIct of Interest pollcy?? If go to [me 13 12a Were officers, dIrectors, or trustees, and key employees reqmred to disclose annually Interests that could give rise to conflIcts? 12b Did the organizatIon regularly and consistently monitor and enforce complIance the polIcy? lf" Yes,? describe In Schedule 0 how this was done 12c 13 the organizatlon have a written whistleblower policy? . 13 14 Did the organIzatIon have a wntten document retention and destructIon policy? '14 15 the process for deterrnIning compensation of the followrng persons Include a reVIew and approval by independent persons, comparabIlIty data, and contemporaneous substantiatIon of the deiIberatIon and deCISIon? a The organization?s CEO, ExecutIve Director, or top management of?cial 153 Other of?cers or key employees of the organIzatIon 15b If "Yes" to line 15a or 15b, descnbe the process In Schedule 0 (see instructIons). 16a the organIzatIon Invest in, contribute assets to, or partimpate In a jomt venture or SImIlar arrangement WIth a 163 taxable entity during the year? If ?Yes," did the organIzatIon follow a when policy or procedure requmng the organIzatIon to evaluate Its partICIpatIon In jOll?lt venture arrangements under applicable federal tax law, and take steps to safeguard the organization's exempt status with "3399015 to such arr?gements? 16b Section C. Disclosure 17 List the states a copy of this Form 990 is required to be ?led 18 SectIon 6104 reqmres an organIzatIon to make Its Forms 1023 (or 1024 If applIcable), 990, and 990-T (SectIon 501(c)(3)s only) available for publIc Inspection. Indicate how you made these avaIlable. Check all that apply. Own websrte Another's website Upon request i:i Other (explain In Schedule 0) 19 Descnbe In Schedule 0 whether (and If so, how) the organIzatIon made govemIng documents, con?Ict of interest policy, and ?nanCIal statements avaIlable to the publIc dunng the tax year. 20 State the name, address, and telephone number of the person who possesses the organization's books and records VENEICIA LOCKHART (703)907?5960 4301 WILSON BLVD ARLINGTON, VA 22203?1850 532006 12?16?rru-rl-r Form 990 (2015) 6 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC . Form COOPERATIVE ASSOCIATION 53?0116145 page? (Part Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors Check if Schedule 0 contains a response or note to any line in this Part VII Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees 1a Complete this table for all persons reqUIred to be listed. Report compensation for the calendar year ending With or within the organization?s tax year. 0 List all of the organization?s current of?cers, directors, trustees (whether indivrduals or organizations), regardless of amount Of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid. 0 List all of the organization's current key employees, if any. See instructions for de?nition of "key employee." 0 List the organization's ?ve currenthighest compensated employees (other than an officer, director, trustee, or key employee) who received report- able compensation (Box 5 of Form and/or Box 7 of Form of more than $100,000 from the organization and any related organizations 0 List all of the organization?s former officers, key employees, and highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations. 0 List all of the organization?s former directors or trustees that received, in the capaCity as a former director or trustee of the organization, more than $10,000 of reportable compensation from the organization and any related organizations List persons in the followmg order' trustees or directors; institutional trustees; of?cers, key employees; highest compensated employees; and former such persons. '3 Check this box if neither the organization nor any related organization compensated any current of?cer, director, or trustee. (A) (B) (C) (D) (E) (F) Name and Title Average ,do no, c?gfg'gg?man one Reportable Reportable Estimated hours per box. unless person rs both an compensation compensation amount of week ?f??er and a d'recmrmusme? from from related other (list any 33 the organizations compensation hours for w? 3 organization from the related gr, .3 organization organizations is: and related below 3 -.-. s, organizations llm3) .5: (1) TONY ANDERSON 5 . 00 BOARD MEMBER 31,050. 0. 0. (2) LAWRENCE BECKER 8 . 0 0 BOARD MEMBER 25,825. 0. 0. (3) PHIL CARSON 17.00 VICE PRESIDENT 57,950. 0. 12,050. (4) RAYMOND CLOUD 5.00 BOARD MEMBER 25,100. 0. 0. (5) MEL COLEMAN 26.00 PRESIDENT 89,300. 0. 0. (6) MICHELLE DAVIA 5 . 0 0 BOARD MEMBER 32,300. 0. 0. (7) DANIEL DYER 5.00 BOARD MEMBER 18,900. 0. 4,250. (8) LARRY ELKINS 9.00 BOARD MEMBER 21,150. 0. 0. (9) ROY FRIEDERSDORF 6 . 0 0 BOARD MEMBER 27,100. 0. 0. (10) ESTON CLOVER 6 . 00 BOARD MEMBER 20,000. 0. 0. (11) SCOTT HALLOWELL 6 . 0 0 BOARD MEMBER 25,825. 0. 0. (12) WILLIAM HART 15.00 BOARD MEMBER 32,200. 0. 0. (13) MARKHOFER 10.00 BOARD MEMBER 34,850. 0. 0. (14) KERRY KELTON 8 . 0 0 BOARD MEMBER 24,250. 0. 0. (15) MEERA KOHLER 10. 00 BOARD MEMBER 29,950. 0. 0. (16) THOMAS MADSEN 7.00 BOARD MEMBER 3,850. 0. 25,350. (17) TOM MCQUISTON 7 . 00 BOARD MEMBER 22,250. 0. 0. 532007 12-16-15 Form 990 (2015) 7 6 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Form 990 (2015) COOPERATIVE ASSOCIATION 53-0115145 Page3 [Pa? Section A. Officers, Directors, Trustees, Key Em aloyees, and Highest Compensated Employees (continued) (A) (B) (C) (D) (E) (F) Name and t'rtle Average (do not one Reportable Reportable Estimated hours per box, unless person l3 both an compensation compensation amount of week of?cer and a director/trustee) from from related other (?St any .2 the organizations compensation hours for 3 organization from the related 3. organization organizations 5 a and related below 2 Ex 5; organizations (18) DON MCQUITTY 4 . 00 BOARD MEMBER 24,950. 0. 0. (19) GALEN MILLS 6 . 00 BOARD MEMBER 7,950. 0. 27,300. (20) SAM NICHOLS 7 . 0 0 23,550. 0. 0. (21) RUSSELL NIELSEN 9 . 00 BOARD MEMBER 25,250. 0. 0. (22) CURTIS NOLAN 9.00 BOARD MEMBER 32,900. 0. 0. (23) ROBERT OCCHI 7 . 0 0 BOARD MEMBER 28,800. 0. 0. (24) GARY POTTER 6 . 0 0 BOARD MEMBER 25,800. 0. 0. (25) LANNY RODGERS 8.00 BOARD MEMBER 12,000. 0. 18,400. (26) KEITH ROSS 7.00 25,650. 0. 0. 1b Sub-total_ 728,700. 0. 87,350. Total from continuation sheets to Part VII, Section Total(addlines1band1c) 18,685,383. 0. 3,286,487. 2 Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 3 6 7 Yes No 3 Did the organization list any former of?cer, director, or trustee, key employee, or highest compensated employee on line 1a? lf Yes, complete Schedule for such 3 4 For any individual listed on line 121, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If ?Yes, complete Schedule for such indivrdual 4 5 Did any person listed on line 1a receive or accrue compensation from any unrelated organization or indiwdual for serVices rendered to the organization? If ?Yes, complete Schedule for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization Report compensation for the calendar year ending With or w'rthin the organization's tax year. 13091115 144857 M) (m (G Name and busmess address Description of sewices Compensation PRODUCTION RESOURCE GROUP 539 TEMPLE HILL RD, NEW WINDSOR, NY 12533 MEETINGS SERVICES 781,647. MICROSOFT LICENSING, 1401 ELM STREET, 5TH FLOOR DALLAS, TX 75202 OFTWARE LICENSING 570,343. KIVVIT PUBLIC AFFAIRS, 730 FRANKLIN ST, SUITE 450, CHICAGO, IL 60654 CONSULTING SERVICES 515,917. DANIELLE CORBIN 7400 NATHANIEL DRIVE, MOUNT AIRY, MD 21771 COMMISSIONS 487,176. CORESITE LP 1050 17TH ST, SUITE 800, DENVER, CO 80266 COMPUTER SERVICES 484,309. 2 Total number of independent contractors (including but not limited to those listed above) who received more than $1 00,000 of compensation from the organization 4 5 SEE PART VII, SECTION A CONTINUATION SHEETS 532008 12-15-15 8 2015.05000 NATIONAL RURAL ELECTRIC COO 1 NATIONAL RURAL ELECTRIC 5 3 -0 116145 Form 996 . COOPERATIVE ASSOCIATION [Part Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (B) (C) (D) (E) (F) Name and title Average POSItion Reportable Reportable Estimated hours (check all that apply) compensation compensation amount of per from from related other week 3a; the organizations compensation (list any ?5 organization from the hours for i 1:3 (W211 OQQ-MISC) organization related and related organizations :3 organizations below ,3 line) (27) RONALD SCHWARTAU 9 . 0 0 BOARD MEMBER 0. 0. 32,475. (28) DAVID SPRADLIN 7 . 00 BOARD MEMBER 26,800. 0. 0. (29) BRYAN WOLFE 13 . 00 BOARD MEMBER 26,900. 0. 0. (30) 12.(31) SANDRA GREEN 5.00 BOARD MEMBER 27,500. 0. 0. (32) WILLIAM NOEL 22.00 BOARD MEMBER 26,100. 0. 0. (33) MICHAEL PETERSON 8 . 0 0 BOARD MEMBER 24,650. 0. 0. (34) REUBEN RITTHALER 1 . 0 0 BOARD MEMBER 36,875. 0. 0. (35) CHARLES ED SHORT 6 . 00 BOARD MEMBER 30,200. 0. 0. (36) TIMOTHY SMITH 8 . 00 BOARD MEMBER 0 . 0 . 0 . (37) STEVEN WALTER 9 . 00 BOARD MEMBER 33,050. 0. 0. (38) ERIC ANDERSON 11.00 BOARD MEMBER 27,625. 0. 0. (39) CHRIS CHRISTENSEN 6 . 0 0 BOARD MEMBER 44,025. 0. 0. (40) LYNN JACOBSON 6 . 00 BOARD MEMBER 10,650. 0. 0. (41) JOE MARTIN 5.00 BOARD MEMBER 21,850. 0. 0. (42) MARE BROWN 1.00 BOARD MEMBER 0 . 0 . 0 . (43) KELLEY SMITH 9 . 00 BOARD MEMBER 32,050. 0. 0. (44) JIM STUART 3 . 00 BOARD MEMBER 19,000. 0. 0. (45) GREG WHITE 7 . 00 BOARD MEMBER 22,550. 0. 0. (46) KENNETH COLBURN 9 . 00 BOARD MEMBER 23,800. 0. 0. Total to Part V??ction A. line 10 . 532201 04-01-15 13091115 144857 9 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC megm) COOPERATIVE ASSOCIATION 53?0116145 Bart Section A. Officers, Directors, Trustees, Key Empl_oyees, and Highest Compensated Employees (A) (B) (C) (D) (E) (F) Name and trtle Average POSition Reportable Reportable Estimated hours (check all that apply) compensation compensation amount of per from from related other week a; the organizations compensation (list any 2 EL organization from the hours for 1E organization related 1; and related organizations ii 3 organizations hm?) (47) DAVID IHA 6.00 35,263. 0. 0. (48) JAMES BAUSELL 53 . 00 322,864. 0. 181,161. (49) PETER BAXTER 60.00 SR. VP INSURANCE a. FINANCI 501,687. 0. 147,436. (50) KIRK JOHNSON 61.00 354,887. 0. 117,943. (51) VENEICIA LOCKHART 43 . 00 SR,VP,anmm 294,045. 0. 163,459. (52) MARTIN LOWERY 40.00 EXEC VP, MEMBER a. ASSOC. RELATIONS 562,609. 0. 105,847. (53) LAURA MARSHALL SCHEPIS 54 . 0 0 VP, POLITICAL AFFAIRS 242,887. 0. 62,305. (54) RICH MEYER 46.00 329,302. 0. 118,630. (55) STEPHEN SANKER 69 . 00 VP, RELATIONSHIP MANAGEMENT 317,555. 0. 142,194. (56) MONICA SCHMIDT 48 . 0 0 VP NATIONAL CONSULTING GRO 277,936. 0. 110,386. (57) DANIELLE SIEVERLING 53 . 0 0 CHIEF RISK a COMPLIANCE OFFICER 284 (53) THOMAS STANGROOM 5 0 . 0 0 398,493. 0. 167,746. (M)Jom?mmE 48.00 VP, RISK HOT 6 CHIEF ACTUAR 209,589. 0. 76,957. (60) BRIAN CAVEY 50.00 VP, LEGISLATIVE AFFAIRS 296,718. 0. 109,973. (61) JEFFREY CONNOR 51 . 0 0 CHIEF OPERATING OFFICER (62) JAY MORRISON 59.00 260,273. 0. 103,285. 45.00 SR. VP HUMAN RESOURCES (64) TRACEY STEINER 5 2 . 0 0 276,357. 0. 126,927. (65) DENISE 48 . 00 COO, TOUCHSTONE ENERGY 195,450. 0. 9,272. (66) MARC HRESLAW 47.00 EXEC DIRECTOR, FOUND 180,470. 0 45,473. Total to Part VII, Section A, [me 10 532201 04-01-15 13091115 144857 NATIONAL RURAL ELECTRIC COO 1 NAT I ONAL RURAL ELECTRI meemi. COOPERATIVE ASSOCIATION 53-0116145 art Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (A) (B) (C) (D) (E) (F) Name and title Average Posrtlon Reportable Reportable Estimated hours (check all that apply) compensation compensation amount of per from from related other week i; the organizations compensation (list any .3 3 organization from the hours for organization related and related organizations 2 g. organizations below .5 a line) i 5 (67) JAMES SPIERS 40 . 00 VP, BUSINESS TECH. STRAT 327,357. 0. 129,062. (68) DAN WADDLE 58.00 276,844. 0. 221,319. (69) JODI FULLER 55.00 VP, BENEFITS PRODUCTS EMGMT 254,568. 0. 85,285. (70) STEPHEN 49 . 0 0 484,528. 0. 24,658. (71) MARKMAUS 64.00 VP, ACTUARIAI. SERVICES 5. CHIEF ACTUA 232 188 . 0 . 62 250 . (72) MARY 47.00 TOUCHSTONE ENERGY 230 444 . 0 . 6 7 119 . (73) TY THOMPSON 51.00 VP, DEPUTY GEN 8: MEMBER 223 237 . 0 . 99 105 . (74) MARKASHTON 47.00 SR. MGR., EQUITY PORTFOLIO 2,756,998. 0. 125,243. (75) PRADEA CARPENTER 45 . 0 0 SR. EQUITY PORTFOLIO 878,251. 0. 139,930. (76) DOUGLAS KERN 45.00 SR. MGR., FIXED INCOME PORTFOLIO 565,846 . 0. 107, 599. (77) PETER MORRIS 46 . 00 VP CHIEF INVESTMENT OFFICER 1,971,004. 0. 4,645. (78) STUART TEACH 46.00 SR. EQUITY PORTFOLIO MGR. 1,525,174. 0. 4,674. (79) JOANNEMERSON 48.00 FORMER CHIEF EXECUTIVE OFFICER 17,956,683. 3,199,137. 3389.115 11 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO Form 990 (2015) NATI ONAL RURAL ELECTRI Part Statement of Revenue Check rf Schedule 0 contains a response or note to any line In this Part COOPERATIVE AS SOC IATION 53-0116145 . Page9 Cl (A) Total revenue (B) Related or exempt function revenue (C) Unrelated busmess revenue Revenu excluded from tax under secnons 512 - 514 Contributions, Gifts, Grants and Other Similar Amounts 0 I Federated campaigns 1a Membership dues 1b Fundralsmg events 10 Related organizations 1d Government grants (contributions) 1e 1,812,109. All other contributons, gifts, grants, and similar amounts not included above 1f Total. Add lines ?Ia-1f hr 1,812,109. am Service evenue Frog; REIMBURSED COSTS Business Cod 524292 101,586,385. 101,586,385. MEMBERSHIP DUES 900099 30,134,143. 30,134,143. TRAINING PROFESSIONAL SERVICES 541900 9,971,348. 6,418,048. 3,553,300. ADVERTISING INCOME 511120 1,834,483. 1,834,483. SUBSCRIPTION INCOME 511120 1,102,039. 1,102,039. All other program servuce revenue Total. Add lines 2a?2f . 900099 11,028,832. 9,923,382. 1,105,450. 155,657,230. Other Revenue 0 Investment Income (including dividends, interest, and other amounts) Income from investment of tax-exempt bond proceeds Royalties . .. 133,742. 133,742. D- Dr 600,651. 14,650. 586,001. Real Hi) Personal Gross rents 13,226,550. Less: rental expenses '7 475 366 . Rental Income or (loss) 5. 751 . 134 - Net rental income or (loss) 5,751,184. 5,751,184. Gross amount from sales of (0 Securities 0th er assets other than inventory Less: cost or other bass and sales expenses Gain or (loss) Net gain or (loss) . . . Gross Income from fundraismg events (not including 35 of contributions reported on line 1c). See Part IV, line 18 a Less: direct expenses Net Income or (loss) from fundraismg events Gross Income from gaming activ'rties See Part IV, line 19 a 10 5' Less. direct expenses Net income or (loss) from gaming Gross sales of Inventory, less returns and allowances a Less cost of goods sold Net Income or (loss) from sales of inventory Miscellaneous Revenue usiness Cod 11 12 0 MEETINGS CONFERENCES 541900 9,071,321. 9,671,351. All other revenue Total. Add lines 11a-1'Id Total revenue. See instructions. 9,071,321. 173,026,237. 164,134,894. 7,079,234. 0 532009 12-16-15 13091115 144857 12 Form 990 (2015) 2015.05000 NATIONAL RURAL ELECTRIC COO Form 990 (2.015) NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION ?Part IX Statement of Functional Expenses SeCtion 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A). 53?0116145 Page-10 L: Check if Schedule 0 contains a response or note to any line in this Part IX Do not include amounts reported on lines 61" Total efgenses Manag??ent and Fun Easing 7t" 9b! and 10" ?f Part expenses general expenses expenses 1 Grants and other to domestic organ'nations and domestic governments. See Part IV, line 21 2 Grants and other aSSIstance to domestic individuals See Part IV, line 22 3 Grants and other to foreign organizations, foreign governments, and foreign indiwduals. See Part IV, lines 15 and 16 4 Bene?ts paid to or for members 5 Compensation of current officers, directors, trustees, and key employees Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) 7 Other salaries and wages Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributionsOther employee bene?Payrolltaxes 5,602,056. 11 Fees for services (non-employees). a Management Legal 1,953,789. Accounting 1 01 8 62 . Lobbying 649,445. Professmnal fundraising services. See Part IV, line 17 Investment management fees 9 Other. (If line 119 amount exceeds 10% of line 25, column (A) amount, list line 119 expenses Advertismg and promotion Office expenses 3 380 400 . 14 Information technology 1 515 2 70 . 15 Royalties 16 Occupancy 2,424,110. 17 Travel 5,152,362. 18 Payments of travel or entertainment expenses for any federal, state, or local public offiCiaIs 19 Conferences, conventions, and meetings Interest . 21 Payments to af?liates 22 Depreciation, depletion, and amortization Insurance Other expenses. Itemize expenses not covered above. (List miscellaneous expenses in line 24s. It line 24a amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule 0.) a UBIT 462,886. EQUIPMENT MAINTENANCE 3 262 749 . ELECTRONIC SUBSCRIPTION 2 124, 966 . PRINTING 1,132,599. All other expenses Totalfunctional expenses.Add lines 1through 24s 1 76 347 990 . 26 Joint costs. Complete this line only if the organization reported in column (B) jomt costs from a combined educational campaign and fundraismg solicitation Check here If followmg SOP 93-2 (A30 958-720) 532010 12-15-15 Form 99012015) 13091115 144857 13 2015.05000 NATIONAL RURAL ELECTRIC COO Form 99012015L NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION mart I Balance Sheet Check if Schedule 0 contains a response or note to any line in this Part 53?0116145 ?Page11 (B) Beginnfr?i?g?gJ of year End of year 1 Cash - non-interest-beanng 1 2 Savings and temporary cash investments Pledges and grants receivable, net 3 4 Accountsrecewablemet 41,143,186. 4 31,602,376. 5 Loans and other receivables from current and former officers. directors, trustees, key employees. and highest compensated employees. Complete Part II of Schedule 5 6 Loans and other receivables from other disquali?ed persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary ,3 employees' bene?ciary organizations (see instr). Complete Part II of 6 7 Notes and loans receivable, net 7 8 Inventories for sale Prepaid expenses and deferred charges 103 Land, bUIIdings, and equipment cost or other ba5ls Complete Part VI of Schedule 10a LessaccumulateddepreClation 10b 62,538,660. 89,493,200. 10c 87,740,386. 11 Investments - publicly traded securities Investments - other securities. See Part IV, line Investments - program-related. See Part IV, line 11 13 14 Intangible assets 14 15 Otherassets.SeePartIV,Ilne11 17,222,891. 15 12,666,656. 16 Total assets. Add lines1 through 15(must equal line 34L 186 Accounts payable and accrued expenses Grants payable 18 19 Deferredrevenue 30,746,620. 19 36,822,690. 20 Tax?exempt bond liabilities 20 21 Escrow or custodial account liability Complete Part IV of Schedule Loans and other payables to current and former of?cers, directors, trustees, key employees, highest compensated employees. and disqualified persons Complete Part II of Schedule 22 23 Secured mortgages and notes payable to unrelated third parties 23 24 Unsecured notes and loans payable to unrelated third parties 24 25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24) Complete Part of ScheduleD 39,817,805. 25 33,270,737. 26 Total liabilities. Add lines 17 through Organizations that follow SFAS 1 17 (ASC 958), check here and 3 complete lines 27 through 29, and lines 33 and 34. . 27 Unrestricted net assets 27 28 'g 29 Permanently restricted net assets 29 3 Organizations that do not follow SFAS 117 (ASC 953), check here '6 and complete lines 30 through 34. . *3 30 Capital stock or trust pnnCIpal, or current funds Paid-in or capital surplus, or land, bUIlding, or equipment fund Retained eamings, endowment, accumulated income, or other funds Totalnetassetsorfundbalances 85,393,484. 33 87,258,422. 34 Total liabilities and net assets/fund balances 532011 12-16-15 13091115 144857 14 Form 990 (2015) 2015.05000 NATIONAL RURAL ELECTRIC COO Form NATIONAL RURAL ELECTRIC 990(2015) COOPERATIVE ASSOCIATION Part XI Reconciliation of Net Assets Check If Schedule 0 contaIns a resganse or note to any Me in this Part XI 53?0116145 Pajle 173,026,237. 176, 347,990. ?3,321,753. 85,393,484. 5,186,691. Total revenue (must equal Part column (A), line 12) 1 Total expenses (must equal Part IX, column (A), IIne 25) 2 Revenue less expenses Subtract Me 2 from ?he 1 3 Net assets or fund balances at beginnIng of year (must equal Part X, Me 33, column 4 Net unreallzed gaIns (losses) on investments 5 Donated servrces and use of 6 Investment expenses 7 PrIor perIod adjustments 8 Other changes In net assets or fund balances (explaIn' In Schedule 0) 9 Net assets or fund balances at end of year. ?ms 3 through 9 (must equal Part X, line 33, column 10 87,258,422. I Part XII Ill Financial Statements and Reporting Check If Schedule 0 contains a resganse or note to any ?me In thIs Part XII 2a 3a Accounting method used to prepare the Form 990. I: Cash Accrual Other Yes No If the organization changed Its method of from a prIor year or checked "Other," explaIn In Schedule 0 Were the organIzatlon?s ?nancial statements complied or reVIewed by an Independent accountant? If "Yes," check a box below to indIcate whether the fInanoIal statements for the year were compiled or reVIewed on a separate consoIIdated basis, or both: Separate bass :1 ConsolIdated :1 Both consolIdated and separate baSlS Were the organIzatIon' fInanCIaI statements audIted by an Independent accountant? If "Yes, check a box below to IndIcate whether the fInancra] statements for the year were audIted on a separate basis, consolldated basis, or both. Separate Consolidated Both consolidated and separate baSlS If "Yes" to line 2a or 2b, does the organization have a commIttee that assumes responsibIlIty for overSIght of the audit, reVIew, or comleation of Its financial statements and selectlon of an Independent accountant? If the organizatlon changed either Its oversight process or selectIon process during the tax year, explaIn In Schedule 0 As a result of a federal award, was the organizatIon reqUIred to undergo an audIt or audIts as set forth In the SIngle Audit Act and OMB Circular . If ?Yes," dId the organIzatIon undergo the reqUIred audIt or audits? If the organIzatIon dId not undergo the required audit or audIts, explain why In Schedule 0 and descrIbe any steps taken to undergo such audIts 23 2b 20 3a 3b 532012 12-16-15 13091115 144857 15 Form 990 (2015) 2015.05000 NATIONAL RURAL ELECTRIC COO SCHEDULE 0 Political Campaign and Lobbying Activities 0MB ?215454047 (Form 990 or 990-EZ) . For Organizations Exempt From Income Tax Under Section 501(c) and section 527 Complete if the organization is described below. Attach to Form 990 or Form 990-EZ. . Department of the Treasury . . . Open to Public Interna Revenue Samoa Information about Schedule 0 (Form 990 or BSD-E2) and its instructions is at Inspection If the organization answered "Yes," on Form 990, Part IV, line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then 0 Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C 0 Section 501(c) (other than section 501(c)(3)) organizations Complete Parts I-A and below. Do not complete Part I-B. 0 Section 527 organizations: Complete Part I-A only If the organization answered "Yes," on Form 990, Part IV, line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then 0 Section 501(c)(3) organizations that have ?led Form 5768 (election under section 501(h)) Complete Part Do not complete Part 0 Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)) Complete Part II- B. Do not complete Part II-A If the organization answered "Yes," on Form 990, Part line 5 (Proxy Tax) (see separate instructions) or Form 990- E2, Part V, line 35c (Proxy Tax) (see separate instructions), then I Section 501(c)(4), (5), or (6) organizations: Complete Part Name of organization NATIONAL RURAL ELECTRIC Employer identification number COOPERATIVE ASSOCIATION 53?0116145 [Part l?A Complete if the organization is exempt under section 501(c) or is a section 527 organization. 1 Prowde a description of the organization's direct and indirect political campaign actIVities in Part IV. 2 Political expenditures . . . 3 Volunteer hours [Pa rt l- Complete if the organization is exempt under section 501(c)(3). 1 Enter the amount of any exmse tax incurred by the organization under section 4955 2 Enter the amount of any eXCise tax incurred by organization managers under section 4955 3 If the organization incurred a section 4955 tax, did it ?le Form 4720 for this year? . I_rYes LJ No 4a Was a correction made? El Yes No If ?Yes," describe in Part IV. [Part l-C Complete if the organization is exempt under section 501(c), except section 501(c)(3). 1 Enter the amount directly expended by the filing organization for section 527 exempt function activmes 2 Enter the amount of the f? ling organization's funds contributed to other organizations for section 527 exempt function activities 3 Total exempt function expenditures. Add lines 1 and 2 Enter here and on Form 1120- POL line 17b 4 Did the filing organization file Form 1120-POL for this year? . L1 Yes No 5 Enter the names, addresses and employer identi?cation number (EIN) of all section 527 political organizations to which the filing organization made payments. For each organization listed, enter the amount paid from the filing organization's funds Also enter the amount of political contributions received that were and directly delivered to a separate political organization. such as a separate segregated fund or a political action (PAC). If additional space is needed, provide information in Part IV Name Address EIN Amount paid from Amount of political filing organization's contributions received and funds. If none, enter -0-. and directly delivered to a separate political organization. If none, enter For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. Schedule (Form 990 or 990-EZ) 2015 LHA 532041 10?05-15 1 6 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Schedule (Form 990 or 990-152) 2015 COOPERATIVE ASSOCIATION Page 2 Part ll-A Complete if the organi?zatioTirs exempt under section 501(c)(3) and ?led Form 5768 (election under section 501 A Check if the ?ling organization belongs to an af?liated group (and list In Part IV each affiliated group member's name, address, expenses, and share of excess lobbying expenditures). Check :1 If the ?ling orggnization checked boxA and "limited control" provISIons apply. Limits on Lobbying Expenditures or?ghii?ggn's 111111313]: group (The term "expenditures" means amounts paid or incurred.) totals Total lobbying expenditures to influence public opinion (grass roots lobbying) Total lobbying expenditures to influence a legislative body (direct lobbying) Total lobbying expenditures (add lines 1a and 1b) Other exempt purpose expenditures Total exempt purpose expenditures (add lines 10 and 1d) Lobbying nontaxable amount. Enter the amount from the followmg table in both columns It the amount on line 16, column or is: The lobbying nontaxable amount is: Not over $500,000 20% of the amount on line 1e. Over $500,000 but not over $1,000,000 $100,000 plus 15% of the excess over $500,000 Over $1,000,000 but not over $1,500,000 $175,000 plus 10% of the excass over $1,000,000. Over $1,500,000 but not over $17,000,000 $225,000 plus 5% of the excess over $1,500,000. Over $17,000,000 $1,000,000 'h (D CL C) CT Grassroots nontaxable amount (enter 25% of line 1f) Subtract line 19 from line 1a If zero or less, enter -0- Subtract line 1f from line 1c If zero or less, enter -0- If there is an amount other than zero on erther line 1h or line 11, did the organization file Form 4720 reporting section 4911 tax for this year4-Year Averaging Period Under section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the separate instructions for lines 2a through 2f.) I?u Lobbying Expenditures During 4-Year Averaging Period (or ?scgf??gfiregimg m) 2012 2013 2014 2015 Total 2a Lobbying nontaxable amount Lobbying ceiling amount (150% of line 2a, column(e)) Total lobbying wendrtures Grassroots nontaxable amount Grassroots ceiling amount (150% of line 2d, column Grassroots lobbying expenditures Schedule (Form 990 or 990-EZ) 2015 532042 10?05-15 17 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Schedule 0 Form 990 or 990 2015 COOPERATIVE ASSOCIATION ?Page 3 Complete i'fl the organization is exempt uni er section 5i1(c)(3) ani Has Ni I filed Form 5768 (election under section 501 For each nYes, response on lines 1a through 1! below, prowde in Part [Va detailed description (3) of the lobbying actiwty. Yes No Amount 1 During the year, did the ?ling organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of: Volunteers? . Paid staff or management (include compensation in expenses reported on lines 1c through 10? Media advertisements? Mailings to members, legislators, or the public? Publications, or published or broadcast statements? Grants to other organizations for lobbying purposes? Direct contact with legislators, their staffs, government of?crals, or a legislative body? Rallies, demonstrations, seminars, conventions, speeches, lectures, or any Similar means? i Other activities? Total. Add lines 1c through 1i 23 Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? if "Yes, enter the amount of any tax incurred under section 4912 it "Yes, enter the amount of any tax incurred by organization managers under section 4912 If the ?ling organization incurred a section 4912 tax, did it ?le Form 4720 for this year? [Part Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section Were substantially all (90% or more) dues received nondeductible by members? 1 2 Did the organization make only in-house lobbying expenditures of 000 or less? 2 3 Did the organization aqree to cany over lobbying and political expenditures from the prior yeai?? 3 (Part Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either BOTH Part A, lines 1 and 2, are answered 0R Part Ill?A, line 3, is answered "Yes. 1 Dues, assessments and Similar amounts from members Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political expenses for which the section 527(f) tax was paid). aCurrentyear 23 2,371,000. Carryover from last year 2b cTotal 2c 2,371,000. 3 Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues notices were sent and the amount on line 20 exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? . 4 Taxable amount of lobbying and political expenditures (see instructionsSupplemental Information Provide the descriptions reqUired for Part -A, line 1, Part l-B, line 4; Part l-C, line 5; Part II-A (affiliated group list), Part lines 1 and 2 (see instructions); and Part line 1. Also, complete this part for any additional information Schedule (Form 990 or 990-EZ) 2015 532043 10-05-15 18 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO . . - SCHEDULE Supplemental FinanCIal Statements (F orm 990) Complete if the organization answered "Yes" on Form 990, 20 1 5 Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 123, or 12b. . Department of the Treasury Attach to Form 990. Open to. PUbllc Internal Revenue SerVIce information about Schedule (Form 990) and its instructions is at '"5P90t'0" Name of the organization NATIONAL RURAL ELECTRI Employer identification number COOPERATIVE ASSOCIATION 53?0116145 Part 1 Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts.Compiete if the organization answered "Yes? on Form 990, Part IV, line 6 Donor advised funds Funds and other accounts Total number at end of year Aggregate value of contributions to (during year) Aggregate value of grants from (during year) Aggregate value at end of year Did the organization Inform all donors and donor advrsors in writing that the assets held in donor advised funds are the organization' 5 property, subject to the organization? 5 exclusive legal control? I: Yes I: No 6 Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impernISSIble private benefit? . Yes I: No I P?i?t ll Conservation Easements. Complete If the organization answered "Yes" on Form 990, Part lV, line 7. 1 Purpose(s) of conservation easements held by the organization (check all that apply) Preservation of land for public use recreation or education) I: Preservation of a historically Important land area Protection of natural habitat El Preservation of a certified historic structure ("#60194 Preservation of open space 2 Complete lines 23 through 2d if the organization held a qualified conservation contribution In the form of a conservation easement on the last day of the tax year. Held at the End of the Tax Year a Total number of conservation easements . 2a Total acreage restricted by conservation easements 2b Number of conservation easements on a certi?ed historic structure Included In 2c Number of conservation easements included In achIred after 8/17/06, and not on a historic listed In the National Register 2d 3 Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the tax year 4 Number of states where property subject to conservation easement is located 5 Does the organization have a written policy regarding the periodic monitoring, Inspection, handling of Violations, and enforcement of the conservation easements It holds? I: Yes I: No 6 Staff and volunteer hours devoted to monitoring, Inspecting, handling of Violations, and enforcmg conservation easements during the year 7 Amount of expenses Incurred In monitoring, Inspecting, handling of Violations, and enforcmg conservation easements during the year 8 Does each conservation easement reported on line 2(d) above satisfy the reqUIrements of section and section 170(h)(4)(B Yes i: No 9 in Part describe how the organization reports conservation easements In its revenue and expense statement, and balance sheet, and Include, If applicable, the text of the footnote to the organization' 3 financial statements that describes the organization' 5 accounting for conservation easements. [Part Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete If the organization answered "Yes" on Form 990, Part lV, line 8. 1a If the organization elected, as permitted under SFAS 116 (A30 958). not to report in Its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research In furtherance of public serVIce, provide. In Part the text of the footnote to its finanCIal statements that describes these Items If the organization elected, as permitted under SFAS 116 (A80 958), to report In Its revenue statement and balance sheet works of art, historical treasures, or other Similar assets held for public exhibition, education, or research In furtherance of public service, prowde the followmg amounts relating to these ItemS' Revenue Included on Form 990, Part line 1 (ii) Assets included In Form 990, PartX 2 if the organization received or held works of art, historical treasures, or other Similar assets for financial gain, provrde the followmg amounts required to be reported under SFAS 116 (A80 958) relating to these items 3 Revenue included on Form 990, Part line 1 Assets Included In Form 990, PartX . . LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule (Form 990) 2015 ii?8?.?15 9 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATI ONAL RURAL ELECTRIC Schedule (Form 990) 2015 COOPERATIVE ASSOCIATION I Part 1 Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assetqcontinued) 3 Usmg the organization's acqwsition, acceSSion, and other records, check any of the foliowmg that are a Significant use of its collection items 53?0116145- Paqe2 a (check all that apply): a Public exhibition Scholarly research I: Preservation for future generations Loan or exchange programs Other 4 Prowde a description of the organization's collections and explain how they further the organization's exempt purpose in Part 5 During the year, did the organization soliCIt or receive donations of art, historical treasures, or other Similar assets to be sold to raise funds rather than to be maintained as part of the organization?s collection? I Part IV I Escrow and Custodial Arrangements. Complete if the organization answered "Yes" on Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. 1a Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990, Part X9 If "Yes" explain the arrangement in Part and complete the followmg table: Beginning balance Addrtions during the year Distributions during the year Ending balance 2a Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability? If "Yes," explain the arrangement in Part Check here it the explanation has been prowded on Part I Part I Endowment Funds. Complete if the organization answered "Yes" on Form 990, Part lV, line 10 I: Yes El Yes .No Amount No 1a Beginning of year balance Contributions Net investment earnings, gains, and losses Grants or scholarships Other expenditures for facnities and programs Administrative expenses 9 End of year balance Current year Prior year Two years back Three years back Four years back 2 Prowde the estimated percentage of the current year end balance (line 19, column held as a Board deSignated or quaSI-endowment Permanent endowment Temporarily restricted endowment The percentages on lines 2a, 2b, and 20 should equal 100% 3a Are there endowment funds not in the possessmn of the organization that are held and administered for the organization by: unrelated organizations (ii) related organizations If "Yes" on line 3a(ii), are the related organizations listed as required on Schedule R9 Describe in Part the intended uses of the organization's endowment funds Part VI [Land, Buildings, and Equipment. Complete if the organization answered "Yes" on Form 990, Part IV, line 11a See Form 990, Part X, line 10. Description of property Cost or other Cost or other Accumulated Book value basis (investment) basis (other) depreCIation 1a Land 11,916,966. '11,916,966. 88,248,903. 30,758,217. 57,490,686. Leaseholdimprovements 15,194,488. 9,287,272. 5,907,215. EqUIpment 34,918,689. 22,493,171. 12,425,518. Other Total. Add lines ?la through 1e (Column (09 must equal Form 990, Part X, column (B), line 100 532052 09-21-15 87,740,386. Schedule (Form 990) 2015 20 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Schedule QIForm 990) 2015 COOPERATIVE AS SOC IATI Paqe 3 [Part Investments - Other Securities. Complete if the organization answered "Yes" on Form 990. Part IV, line 11b. See Form 990, Part X. line 12. Description of security or category (including name of security) Book value Method of valuation: Cost or end-of-year market value (1) Financial derivatives (2) Closely-held eqUity interests COST (3) Other AA) CAPITAL TERM CERTIFICATES 827 307 . COST AB) COLLATERAL CERTIFI CATES 40) OF DEPOSIT 195 235. COST (D) 43 (F) (G) Total. (M must equal Form 990, Part X, col. (B) line 12Part Investments - Program Related. if the answered "Yes" on Form Part IV line 11c. See Form 990 Part line 13. Description of investment Book value Method of valuation: Cost or end-of-year market value Total. Col. must uaIForm Part col. linet3. answered "Yes" on Form 990, Part IV, line 11d See Form 990, Part X, line 15. Description Book value ATR I TIF CATE DEF MP TI Complete if the must Form 990 Part col. line 15 Complete if the organization answered "Yes" on Form 990, Part IV, line He or 11f. See Form 990, Part X, line 25. 1_ Description of liability Book value (1) Federal income taxes 42) POST RETIREMENT BENEFITS OTHER THAN PENSIONS 16,537,366. J4) DEF COMP FUND (EMPLOYEES) 11 040 660 . (5) EMPLOYEE EXEC OPT PLAN 755 085 . (6) COOPERATIVE RESEARCH NETWORK FUND 4 816 194 . 3) OTHER RESTRICTED FUNDS 121 43 2 . (8) 49) Total. (Column must equal Form 990, Part X, cot. (B) line 25Liability for uncertain tax posmons. In Part provide the text of the footnote to the organization's ?nanCial statements that reports the organization's liability for uncertain tax posmons under FIN 48 (A80 740) Check here if the text of the footnote has been prowded in Part Schedule (Form 990) 2015 532053 09-21-15 21 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Schedule (Form 990) 2015 COOPERATIVE ASSOCIATION Page 4 Part Xl I Reconciliation of Revenue per Audited Financial Statements With Revenue per Return. Complete If the organization answered "Yes" on Form 990, Part IV, IIne 12a. 1 Total revenue, gains, and other support per audIted finanCIal statements Amounts Included on km 1 but not on Form 990, Part ?me 12- a Net unrealIzed galns (losses) on investments 23 Donated services and use of faCIlIties . 2'3 Recoveries of prior year grants 2c Other (DescrIbe In Part Addlmes2athrough2d . 2e 4618991670' 3 3 173,025,237. 4 Amounts Included on Form 990, Part Investment expenses not Included on Form 990, Part line 7b 4a Other (Descnbe In Part 4b Add IInes 4a and 4b 4c 0 - Total revenue Add lines 3 and 4c. (ThIs must equal Form 990, PartP5art XII [Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete If the organizatlon answered "Yes" on Form 990, Part IV, IIne 12a. 1 Total expenses and losses per audited ?nanCIal statements . . Amounts Included on Me 1 but not on Form 990, Part IX, Me 25 a Donated serVIces and use of faCIlItIes 2a PrIor year adjustments 2b Other losses 2c Other (DescrIbe in Part 2d 41 712 977 . Addlineszathrouthd 7 2e 41I712I977- 3 . 3 176,347,990. 4 Amounts Included on Form 990, Part IX, line 25Investment expenses not included on Form 990, Part IIne 7b 4a Other (DescrIbe In Part 4b Add IInes 4a and 4b 4c 0 - Total expenses Add lines 3 and 4c. (T [us must equal Form 990, Part I [me 18P5art Supplemental Information. Prowde the descriptions required for Part II, lInes 3, 5, and 9; Part lines 1a and 4; Part IV, IInes 1b and 2b, Part V, km 4; Part X, ?we 2; Part XI, lInes 2d and 4b, and Part XII, lInes 2d and 4b Also complete the part to provide any additIonaI Information. PART IV, LINE 2B: SECURITY 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 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, 5B 46,899,670. 3323345 Schedule (Form 990) 2015 22 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Schedul? (Form 990) 2015 COOPERATIVE AS SOC IATI ON 53-0116145 Page5 [Pgrt I Supplemental Information (continued) PART XII, LINE 2D OTHER ADJUSTMENTS: EXP FROM SUBS NOT INCLUDED IN 990 PLUS TENANT EXP PART LINE SB 41,712,977. 532055 09-21-15 23 Schedule (Form 990) 2015 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO SCHEDULE Compensation Information OMB No 1545-0047 (Form 990) For certain Officers, Directors, Trustees, Key Employees, and Highest 20 1 5 Compensated Employees Complete if the organization answered "Yes" on Form 990, Part IV, line 23. . Open to Public Department of the Treasury >Attach to Form 990. '"Iema' Revenue 59?"69 Information about Schedule (Form 990) and its instructions is at Inspection Name of the organization NATIONAL RURAL ELECTRI Employer identification number COOPERATIVE ASSOCIATION 53?0116145 l?Pan I Questions Regarding Compensation Yes No 1a Check the appropriate box(es) if the organization provided any of the following to or for a person listed on Form 990, Part VII, Section A, line 1a. Complete Part to prowde any relevant information regarding these Items or charter travel Housmg allowance or reSIdence for personal use Travel for companions Payments for use of personal residence Tax indemni?cation and gross-up payments Hearth or somal club dues or initiation fees Discretionary spending account I: Personal semces (e maid, chauffeur, chef) If any of the boxes on line ?la are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If complete Part to explain 1b 2 Did the organization reqUire substantiation prior to reimbursmg or allowing expenses incurred by all directors, tmstees, and officers, including the CEO/Executive Director, regarding the items checked in line 1a? 2 3 Indicate which, if any, of the following the filing organization used to establish the compensation of the organization's CEO/Executive Director Check all that apply. Do not check any boxes for methods used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part Compensation committee Written employment contract Independent compensation consultant Compensation survey or study Form 990 of other organizations Approval by the board or compensation committee 4 During the year, did any person listed on Form 990, Part VII, Section A, line 1a, with respect to the filing organization or a related organization. a Receive a severance payment or change? -of- control payment? 4a Participate in, or receive payment from, a supplemental nonqualified retirement plan? 4b Participate in, or receive payment from, an equity- based compensation arrangement? . 4c If ?Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part Only section 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9. 5 For persons listed on Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the revenues of' a The organization? 5a Any related organization? 5b If "Yes" to line 5a or 5b, describe in Part 6 For persons listed on Form 990, Part VII, Section A, line 1a, did the organization pay or acane any compensation contingent on the net earnings of a The organization? 63 Any related organization? 6b If "Yes" on line 6a or 6b, describe in Part 7 For persons listed on Form 990, Part VII, Section A, line1a, did the organization provide any non-fixed payments not described on lines 5 and 69 If "Yes," describe' in Part 7 8 Were any amounts reported on Form 990, Part VII, paid or accrued pursuant to a contract that was subject to the initial contract exception described in Regulations section If "Yes," describe in Part 8 9 If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53 4958- . 9 LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule (Form 990) 2015 532111 10-14-15 24r 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC coo NATIONAL RURAL ELECTRIC Schedule (Form 990) 2015 COOPERATIVE ASSOCIATION 53?0116145 I Part II I Officers, Directors, Trustees, Key Employees. and Highest Compensated Employees. Use duplicate copies if additional space is needed. For each indiwdual whose compensation must be reported on Schedule J, report compensation from the organization on row (I) and from related organizations, described in the instructions, on row Do not list any individuals that are not listed on Form 990, Part VII. Note: The sum of columns for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that indiwdual. Page 2 (A) Name and Title (B) Breakdown of W-2 and/or 1099-MISC compensation Base compensation (ii) Bonus incentive compensation Other reportable compensation (0) Retirement and other deferred compensation (D) Nontaxable benefits (E) Total of columns (ENE) (F) Compensation in column (B) reported as deferred on prior Form 990 (1) JAMES BAUSELL SR. COMMUNICATIONS W) 314,906. 200. 7,758. 161,838. 19,323. 504,025. 0. 0. 0. 0. 0. (2) PETER BAXTER SR, VP INSURANCE FINANCI U0 439,226. 48,450. 14,011. 119,053. 28,383. 649,123(3) KIRK JOHNSON SR. VP, GOVERMENT RELATION 00 348,306. 200. 6,381. 94,599. 23,344. 472,830. 0. 0. 0. 0. 0. (4) VENEICIA LOCKHART SR. VP FINANCE I 290,797. 200. 3.048. OI 136,894. 26,565. 457,504(5) MARTIN LOWERY EXEC VP, MEMBER ASSOC. RELATIONS (m in 479,601. 200. 82,808. 82,166. 23,681. 668,456. 0 0. 0. 0. 0 (6) LAURA MARSHALL SCHEPIS VP POLITICAL AFFAIRS 238,078. 600. 4,209. 0. 55,780. 6,525. 305,192(7) RICH MEYER SR. VP, GENERAL COUNSEL 00 (m 307.672. 200. 21,430. 86,130. 32,500. 447,932(8) STEPHEN SANKER VP RELATIONSHIP MANAGEMENT I 305,293. 5.450. 6,812. 119.742. 22,452. 459,749(9) MONICA SCHMIDT VP NATIONAL CONSULTING GRO (m in 275,480. 350. 2,106. 90,706. 19,680. 388,322. 0. 0. 0. 0. (10) DANIELLE SIEVERLING CHIEF RISK COMPLIANCE OFFICER W) 279,959. 450. 0. 4,281. 58,042. 4,911. 347,643(11) THOMAS STANGROOM SR. VP CIO N) 387,126. 200. 11,167. 139,961. 27,785. 566,239. 0. 0. 0. 0. (12) JOHN WADE RISK MGT CHIEF ACTUAR in 187,465. 0. 22,124. 0. 72,112. 4,845. 286,546. 0. 0. 0. (13) BRIAN CAVEY VP LEGISLATIVE AFFAIRS .l (m 291.487. 1.550. 0. 3.681. 0. 77,546. 32,427. 406,691. 0. 0. 0. 0. 0. (14) JEFFREY CONNOR CHIEF OPERATING OFFICER in 331,091. 15.200. 1.628. 37,442. 29,266: 414,627. 0. 0. O. 0. (15) JAY MORRISON REGULATORY ISSUES 0. 258,183. 0. 1,200. 890. 77,306. 25,979. 363,558(16) SHAARA ROMAN SR. VP, HUMAN RESOURCES 00 308,043. 200. 7,248. 59,027. 10,836. 385,354CDC532112 10-14-15 25 Schedule (Form 990) 2015 NATIO I Schedule .J (Form 990) 2015 NAL RURAL ELECTRIC COOPERATIVE ASSOCIATION 53?0116145 (Part II 1 Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed. For each IndIVldual whose compensation must be reported on Schedule .1, report compensation from the organization on row Do not list any individuals that are not listed or'; Form 990, Part VII. Note: The sum of columns for each lis ed indiwdual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that indiVIdual. Page 2 and from related organizations, described in the instructions, on row (ii) (A) Name and Title (B) Breakdown of W-2 and/or 1099-MISC compensation Base compensation (ii) Bonus 8. incenhve compensation Other reportable compensation (C) Retirement and other deferred compensation (D) Nontaxable benefits (E) Total of columns Em?? (F) Compensation reported as deferred on prior Form 990 1.7 SR. VP, EDUCATION TRAININ 271,122. 200. 5, 035. 117,710. 9.217. 403.284(18) DENISE ARANOFF-BROWN COO, TOUCHSTONE ENERGY 195,324. 0. 126. 3,240. 6.032. 204,722(19) MARC BRESLAW EXEC DIRECTOR, FOUND 177,693. 200. 2, 577. 25,575. 19,898. 225,943(20) JAMES SPIERS BUSINESS TECH. STRAT 298,175. 200. 28, 982. 106,066. 22,996. 456,419(21) DAN WADDLE SR. VF, NRECA LTD (m 271,972. 200. 4, 672 0 199,429. 21,890. 498,163(22) JODI FULLER VP, BENEFITS PRODUCTS MGMT 251,742. 450. 2, 376. 72,223. 13.062. 339,853. ol 0. 0. 0. 0. (23) STEPHEN CEO, HOMESTEAD FUNDS W) 353,768. 125,200. 5. 560. 0. 0. 24,658. 509,186(24) MARK MAUS VP, ACTUARIAL SERVICES CHIEF 228.564. 2.850. 774. 40,633. 21,617. 294,438. 0. 0. 0. 0. 0. (25) MARY MCLAURY TOUCHSTONE ENERGY 00 227,005. 200. 3, 239. 56,842. 10,277. 297,563(25) TY THOMPSON VP, DEPUTY GEN MEMBER 00 220,991. 1,100. 1, 146. 73,349. 25,756. 322,342(27) MARK ASHTON SR. MGR., EQUITY PORTFOLIO an 346,406. 405,826. 2,004, 766. 112,135. 13,108. 2,882,241(23) PRABHA CARPENTER SR, EQUITY PORTFOLIO (m 341,072. 405,826. 131, 353. 111,951. 27,979. 1,018,181(29) DOUGLAS KERN SR. MGR., FIXED INCOME PORTFOLIO (m 378,885. 54.554. 132, 407. 84.390. 23,209. 673,445(30) PETER MORRIS VP CHIEF INVESTMENT OFFICER (m 94.565. 0.1,876, 439. 4,099. 546. 1,975,649. 0. 0. 0. 0. 0. (31) STUART TEACH SR, EQUITY PORTFOLIO MGR, (m 98,572. 689,981. 736, 621. 0. 3,693. 981. 1,529,848. O. 0. 0. 0. 0. (32) JO ANN EMERSON FORMER CHIEF EXECUTIVE OFFICER ?n 1,171,799. 200. 560, 0. 285. 85,707. 21,548. 1,839,539CDGZICD CD CD CD CD CD CDC: (3 C3 C) CD CD CDC: CD CD CD CDCD CD CD CD 532112 10-14-15 26 Schedule .1 (Form 995)) 2015 NATIONAL RURAL ELECTRIC Schedule (Form 990) 2015 COOPERATIVE ASSOCIATION Part Supplemental Information 53?0116145 pages Provnde the information, explanation, or descriptions reqwred for Part I, lines ta, ?Iband for Part ll. Also complete part for any additional information. 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 BONUS PLAN AND ON ELIGIBLE RELOCATION EXPENSES. 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 PRABHA CARPENTER JOANN EMERSON DOUG KERN MARTIN LOWERY RICH MEYER PETER MORRIS WADE MARK ASHTON STUART TEACH 532113 10-44-15 2 7 Schedule (Form 990) 2015 SCHEDULE Transactions With Interested Persons OMB No 1545-0047 (Form 990 or 990-EZ) Complete if the organization answered "Yes" on Form 990, Part IV, line 25a, 25b, 26, 27, 28a, 20 1 5 28b, or 28c, or Form 990-EZ, Part V, line 38a or 40b. Department or the Treasury Attach to Form 990 0" Form Open To Public Internal Flevenue Semee Information about Schedule (Form 990 or BSD-E2) and its instructions is at Inspection Name of the organization NATIONAL RURAL ELECTRIC Employer identification number COOPERATIVE ASSOCIATION 53?0116145 I I I Excess Bene?t Transactions (section 501(c)(3), section 501(c)(4), and 501 organizations only). Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form QQD-EZ, Part V, line 40b. Relationship between disquali?ed Corrected? person and organization Description of transaction Yes No 1 Name of disquali?ed person 2 Enter the amount of tax incurred by the organization managers or disquali?ed persons during the year under section 4958 3 Enter the amount of tax, if any, on line 2, above, reimbursed by the organization I Part II I Loans to and/or From Interested Persons. Complete if the organization answered "Yes" on Form QQD-EZ, Part V, line 38a or Form 990, Part JV, line 26; or if the organization an amount on Form 990 Part line 5 6 or 22 Name of (b Relationship Purpose 1? Original Balance due (9) In Written interested person organization of loan fr?m the board or princrpal amount default? committee? agreement?:1 To From Yes the ization answered "Yes" on Form Part lV line 27 Name of interested person Relationship between Amount of interested person and assistance the organization Type of assmtance Purpose of i LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. Schedule (Form 990 or 990-EZ) 2015 532131 10-02-15 28 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Schedure (Form 990 or 99045;) 2015 COOPERATIVE ASSOCIATION Page 2 1 Bart Business Transactions lnvofving Interested Persons. . Complete If the organizatlon answered ?Yes" on Form 990, Part lV, line 28a, 28b, or 280. Name of interested person Relationship between interested Amount Of Description of person and the organization transaction transaction revenues? Yes No COOPERATIVE ENERGY SERVICEFOR PROFIT SUBSIDIA RE ADVISORS CORPORATION OR PROFIT PAY COOPERATIVE BENEFIT ADMINIFOR PROFIT ELECTRIC COOPERATIVE LIFE FOR PROFIT SUBSIDIA NRECA UNITED FOR PROFIT SUBSIDIA 0.EXPENSE REI COOPERATIVE INSURANCE SERVFOR PROFIT SUBSIDIA 0.ADMINISTRAT ARKANSAS ELECTRIC COOPERATFOR PROFIT MEMBER SER ASSOCIATED ELECTRIC COOPERFOR PROFIT MEMBER SER WESTERN FARMERS ELECTRIC CFOR PROFIT MEMBER SER BASIN ELECTRIC POWER COOPEFOR PROFIT MEMBER SER P?a?ft Supplemental Information Provide additional Information for responses to questions on Schedule (see SCH L, PART IV, BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS: (A) NAME OF PERSON: COOPERATIVE ENERGY SERVICES (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT SUBSIDIARY-3 KEY EMPLOYEES ARE OFFICERS OF CES (C) AMOUNT OF TRANSACTION 250,647. (D) DESCRIPTION OF TRANSACTION: ADMINISTRATIVE SERVICES AGREEMENT (E) SHARING OF ORGANIZATION NO (A) NAME OF INTERESTED PERSON: RE ADVISORS CORPORATION AND RE INVESTMENT CORPORATION (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT 3 KEY EMPLOYEES SERVE AS OFFICERS DIRS (C) AMOUNT OF TRANSACTION 16,647,211. (D) DESCRIPTION OF TRANSACTION: ROYALTY PAYMENTS AND ADMISTRATIVE SERVICES AGREEMENT (E) SHARING OF ORGANIZATION NO (A) NAME OF PERSON: COOPERATIVE BENEFIT ADMINISTRATORS (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT KEY EMPLOYEES SERVE AS A DIRECTOR Schedule (Form 990 or QQD-EZ) 2015 532132 10?02-15 29 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Schedule Form 990 or 990-EZ) COOPERATIVE ASSOCIATION 53?01161415 Paqu Pa?i't Supplemental Information . Complete this part to provnde addmonal Information for responses to questions on Schedule (see Instructions). (C) AMOUNT OF TRANSACTION 11,968,411. (D) DESCRIPTION OF TRANSACTION: ADMINISTRATIVE SERVICES AGREEMENT (E) SHARING OF ORGANIZATION NO (A) NAME OF PERSON: ELECTRIC COOPERATIVE LIFE INSURANCE (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT KEY EMPLOYEES SERVE AS A DIRECTOR (C) AMOUNT OF TRANSACTION 4,802. (D) DESCRIPTION OF TRANSACTION: ADMINISTRATIVE SERVICES AGREEMENT (E) SHARING OF ORGANIZATION NO (A) NAME OF PERSON: NRECA UNITED (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT OFFICER, 2 KEY EMPLOYEES SERVE AS UNITED OFFICERS (C) AMOUNT OF TRANSACTION (D) DESCRIPTION OF TRANSACTION: EXPENSE REIMBURSEMENT (E) SHARING OF ORGANIZATION NO (A) NAME OF PERSON: COOPERATIVE INSURANCE SERVICES (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT KEY EMPLOYEES SERVE AS A DIRECTOR (C) AMOUNT OF TRANSACTION (D) DESCRIPTION OF TRANSACTION: ADMINISTRATIVE SERVICES AGREEMENT (E) SHARING OF ORGANIZATION NO (A) NAME OF PERSON: ARKANSAS ELECTRIC COOPERATIVE CORPORATION (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR 532461 04-01-15 Schedule (Form 990 or 990-EZ) 3 0 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO . NATIONAL RURAL ELECTRIC Schedule Form 990 or QQO-EZ) COOPERATIVE ASSOCIATION Page 2 Pairt Supplemental Information Complete this part to growde additional informa?uon for responses to questions on Schedule (see mstructuonsL (C) AMOUNT OF TRANSACTION 882,601. (D) DESCRIPTION OF TRANSACTION: VARIOUS SERVICES PROVIDED TO MEMBER (E) SHARING OF ORGANIZATION NO (A) NAME OF PERSON: ASSOCIATED ELECTRIC COOPERATIVE (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR (C) AMOUNT OF TRANSACTION 945,574. (D) DESCRIPTION OF TRANSACTION: VARIOUS SERVICES PROVIDED TO MEMBER (E) SHARING OF ORGANIZATION NO (A) NAME OF PERSON: WESTERN FARMERS ELECTRIC COOPERATIVE (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR (C) AMOUNT OF TRANSACTION 206,232. (D) DESCRIPTION OF TRANSACTION: VARIOUS SERVICES PROVIDED TO MEMBER (E) SHARING OF ORGANIZATION NO (A) NAME OF PERSON: BASIN ELECTRIC POWER COOPERATIVE (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT MEMBER OF NRECA WITH ONE SHARED DIRECTOR (C) AMOUNT OF TRANSACTION 1,231,211. (D) DESCRIPTION OF TRANSACTION: VARIOUS SERVICES PROVIDED TO MEMBER (E) SHARING OF ORGANIZATION NO (A) NAME OF PERSON: KAMO POWER (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: FOR PROFIT MEMBERSHIP WITH ONE SHARED DIRECTOR 532461 04?01-15 Schedule (Form 990 or 990-EZ) 31 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO NATIONAL RURAL ELECTRIC Schedule (Form 990 or 990.52) COOPERATIVE ASSOCIATION 5 3 0 1 6 1 45? Paqe 2 I Part Supplemental Information Complete this part to provide additional Information for responses to questions on Schedule (see (C) AMOUNT OF TRANSACTION 318,324. (D) DESCRIPTION OF TRANSACTION: VARIOUS SERVICES PROVIDED TO MEMBER (E) SHARING OF ORGANIZATION NO 532461 04-01-15 Schedule (Form 990 or 990-EZ) 3 2 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO . SCHEDULE 0 Supplemental Information to Form 990 or 990-EZ ?(Form 990 or 990?152) Complete to provide information for responses to specific questions on 20 1 5 Form 990 or or to provide any additional information. . Department of the Treasury Attach to Form 990 or Open to Public '"tema' Sen-"Ce Information about Schedule 0 [Form 990 or and its instructions is at wwarShgov/foerQO. Name of the organization NATI ONAL RURAL ELECTRI Employer identification number COOPERATIVE ASSOCIATION 53-0116145 FORM 990, PART I, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: UTILITIES AND THE CONSUMERS THEY SERVE. NRECA HAS MORE THAN 900 MEMBER COOPERATIVES THAT SERVE 42 MILLION CONSUMERS IN 47 STATES. FORM 990, PART LINE 1, DESCRIPTION OF ORGANIZATION MISSION: 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. FORM 990, PART LINE 4C, PROGRAM SERVICE ACCOMPLISHMENTS: 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 NRECA INTERNATIONAL NRECA INTERNATIONAL COOPERATING ENERGY RE ADVISORS RE INVESTMENT COOPERATIVE BENEFIT ELECTRIC COOPERATIVE LIFE INSURANCE COOPERATING INSURANCE AND NRECA WOOD QUALITY CONTROL. FORM 990, PART VI, SECTION A, LINE 6: ALL VOTING MEMBERS MUST BE ENTITIES WHOSE OPERATIONS ARE CONSISTENT WITH $331 For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. Schedule 0 (Form 990 or 990-EZ) (2015) 09-02-15 33 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO Schedule 0 (Form 990 or ago-Ea 9 Page 2 Name of the organization NATIONAL RURAL ELECTRIC Employer identification number, COOPERATIVE ASSOCIATION 53?0116145 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 (2) GENERATION AND TRANSMISSION (COOPERATIVES OR ASSOCIATIONS ENGAGED IN THE MARKETING, GENERATION TRANSMISSION WHOLESALE BULK AND (3) SERVICE MEMBERS (NOT ENGAGED IN DISTRIBUTION, GENERATION, OR TRANSMISSION OF ELECTRICITY BUT WHOSE MEMBERS CONSIST OF DISTRIBUTION OR 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 CHANGERS IN DUES FORMULAS AND AND REMOVAL OF AND (3) REMOVAL OF ANY OFFICER OR DIRECTOR. FORM 990, PART VI, SECTION B, LINE ll: 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 532212 09?02-15 Schedule 0 (Form 990 or QQO-EZ) (2015) 34 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO _3cheduie 0 (Form 990 or 990-EZ) (2015) Page 2 Name of the organization NATIONAL RURAL ELECTRIC Employer identi?cation number COOPERATIVE ASSOCIATION 53-0116145 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 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 COMPENSATION IS WITHIN A COMPETITIVE RANGE FOR 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 COMPENSATION ANNUALLY. LINE 15B (OTHER EMPLOYEE COMPENSATION: 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 BUDGETING CONSTRAINTS. HOWEVER, IT DOES NOT GUARANTEE AN 532212 09-02-15 Schedule 0 (Form 990 or 990-EZ) (2015) 35 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO Schedule 0 (Form 990 or 990-EZ) (2015) . Page 2 Name of the organization NATIONAL RURAL ELECTRI Employer identi?cation number' COOPERATIVE ASSOCIATION 53?0116145 INCREASE TO ANY EMPLOYEE. THE SALARY INCREASE PROCESS IS COMPRISED OF THE FOLLOWING STEPS: (1) APPROVAL OF SALARY INCREASE BUDGET BY THE NRECA BOARD OF DIRECTORS, WHICH IS BASED ON COMPETITIVE SALARY (2) COMPLETION OF WRITTEN ANNUAL PERFORMANCE SUMMARY REPORTS FOR EACH EMPLOYEE BY (3) RECOMMENDATION OF MERIT INCREASES FOR INDIVIDUAL EMPLOYEES BASED UPON (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, CHANGES IN NET ASSETS: NET INCOME OF SUBSIDIARIES 5,185,691. FORM 990, PART XII, LINE 2C: THIS PROCESS HAS NOT CHANGED FROM PRIOR YEAR. 532212 09-02-15 Schedule 0 (Form 990 or 990-EZ) (2015) 36 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO SCHEDULE (Form 990) Department of the Treasury Internal Revenue Service Related Organizations and Unrelated Partnerships Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37. Attach to Form 990. Information about Schedule (Form 990) and its instructions is at wwars.gov/form990. OMB No 1545-0037 2015 Open to Public Inspection Name of the organization NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION Part I Identification of Disregarded Entities Complete if the organization answered "Yes" on Form 990, Part IV, line 33 Employer identification number 53-0116145 Name. address. and EIN (if applicable) of disregarded entity lb) Primary activity (0) Id) Legal domicile (state or foreign country) Total Income (6) If) End-of-year assets Direct controlling entity Part organizations during the tax year Identification of Related Tax-Exempt Organizations Complete if the organization answered ?Yes" on Form 990, Part IV. line 34 because it had one or more related tax-exempt Name, address, and EIN of related organization Primary actiVity (0) Legal domiCIle (state or Exempt Code foreign country) section (6) Public charity Direct controlling convoned status (if section entity entity? 501 Yes No Section( NRECA INTERNATIONAL FOUNDATION 52?1409279 4301 WILSON BLVD ARLINGTON, VA 22203 CHARITIABLE ACT IVITES VIRGINIA 501(c)(3) TYPE II NRECA NRECA INTERNATIONAL LTD - 524387851 4301 WILSON BLVD ARLINGTON, VA 22203 INTERNATIONAL RURAL LECTRIFICATION VIRGINIA Bite) (6) NRECA FUNDACION ENERGETICA BOLIVIANA 4301 WILSON BLVD OLIVIAN RURAL ARLINGTON, VA 22203 LECTRIFICATION BOLIVIA LRECA NRECA WOOD QUALITY CONTROL INC - 52?1446650 4301 WILSON BLVD ARLINGTON, VA 22203 WOOD POLE TESTING VIRGINIA ECA For Paperwork Reduction Act Notice, see the Instructions for Form 990. 532161 09-05-15 LHA 37 Schedule (Form 990) 2015 NATIONAI RURAL ELECTRIC Schedule ?crm 990) COOPERATIVE ASSOCIATION Continuation of Identification of ligated Tax-Exempt Organizations 53-0116145 (bl Name. address. and EIN Primary actiwty of related organization lc) Legal domicne (state or foreign country) Exempt Code section Public charity status (if section scicxs? Direct controlling controlled entity organization? Yes No GLENN ENGLISH LEADERSHIP COOP FND 46?1424031, 4301 WILSON BLVD, ARLINGTON, VA 22203 AWARDING OF SCHOLARSHIPS VIRGINIA 501(c)(3) 509 (A) (3) TYPE I NRECA 532222 04-01-15 .38 NATIONAL RURAL ELECTRIC Schedule {Form 990) 2015 Part COOPERATIVE ASSOCIATION identification Of Related Organizations Taxable as a Pa organizations treated as a partnership during the tax year. 53-0116145 rtnership Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related . Page 2 Name. address, and EIN Primary actiVity of related organization Lega doml (state or iorel coun ry clle gl'l entity Direct controlling (0 Predominant income Share of total (related, unrelated, income excluded from tax under sections 512-514) (0) Share of en d-of-year assets allocations? Yes No 0) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065) Ye No U) (R) General or Percentage managing partner? Ownership Part IV Identification of Related Organizations Taxable as a organizations treated as a corporation or during the tax year. Corporation or Trust Complete if the organization answered ?Yes" on Form 990, Part IV, line 34 because it had one or more related Name, address. and EIN Of related organization Primary actiVity (C) Direct controlling entity Legal domicile (state or foreign country) Type of entity (C corp. corp, or trust) (0 Share of total Income (9) Share of end-of?year assets (hi 0 Sect on Percentage 512(b 13) ownership contro led entity? Yes No COOPERATIVE INSURANCE SERVICES - 52?1076274 4301 WILSON BLVD ARLINGTON, VA 22203 INSURANC AGENT INA NRECA UNITED CORP 54,359. 716,961. 100.00% ii ELECTRIC COOPERATIVE LIFE INSURANCE CO 86?0262046, 4301 WILSON BLVD, ARLINGTON, VA 22203 HOSPI I FE 8: TALIZATION INSURAN CE NRECA CORP 57,288. 1,805,883. 100.00% ii COOPERATIVE BENEFIT ADMINISTRATORS 52?1327041, 4301 WILSON BLVD, ARLINGTON, VA 22203 CLAIMS ADMINISTRATOR TEA NRECA UNITED CORP 2,151,457. 8,979,527. 100.00% COOPERATIVE ENERGY SERVICES 52?1490710 4301 WILSON BLVD ARLINGTON, VA 22203 OFTWARE DEVELOPM INT EGRAT I ON ENT NRECA UNITED CORP 281,531. ?879,128. 100.00% RE INVESTMENT INC - 52-1679315 4301 WILSON BLVD ARLINGTON VA 2 2203 INVESTMENT BROKER VGA NRECA UNITED CORP 144,439. 100.00% 532152 09-05-15 SEE PART VII FOR 39 CONTINUATIONS Schedule (Form 990) 2015 Continuation of identification of Re RURAL ELECTRIC FIVE ASSOCIATION lated Organizations Taxable as a Corporation or Trust 53-0116145 Name, address, and EIN of related organization Primary actIVIty (G) Legaldonucne (state or foreign counuy) Direct controlling entity Type of entity (C corp, corp, or trust) Share of total income (9) Share of end-of-year assets (U Secuon 512(bx13) conto?ed entny? No RE ADVISERS INC 52?1594000 4301 WILSON BLVD ARLINGTON, VA 22203 INVESTMENT ADVISER RE INVESTMENT INC CORP 19,600,146. 17,515,334. NRECA UNITED INC 52?1765915 4301 WILSON BLVD ARLINGTON, VA 22203 HOLDING COMPANY VVX ELCO CORP 897,932. 532224 04-01-15 4C) Schedule (Form 990) 2015 Part NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION Transactions With Related Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36. 53?0116145 Paqe 3 Note. 1 Complete line 1 if any entity is listed In Parts II, or IV of this schedule. During the tax year, did the organization engage in any of the followmg transactions With one or more related organizations listed in Parts ll-lV? Receipt of interest. (ii) annUIties, royalties. or (iv) rent from a controlled entity Gift, grant, or capital contribution to related organization(s) Gift, grant, or capital contribution from related organization(s) Loans or loan guarantees to or for related organization(s) Loans or loan guarantees by related organization(s) Dividends from related organization(s) Sale of assets to related organization(s) Purchase of assets from related organization(s) Exchange of assets With related organization(s) Lease of facmties, eqUIpment, or other assets to related organization(s) Lease of faCilities. eqUipment, or other assets from related organization(s) Performance of services or membership or fundraismg soliCItations for related organization(s) Performance of sennces or membership or fundraising solicnations by related organization(s) Sharing of faculties, eqUIpment. mailing lists. or other assets with related organization(s) Sharing of paid employees With related organization(s) Reimbursement paid to related organization(s) for expenses Reimbursement paid by related organization(s) for expenses Other transfer of cash or property to related organization(s) Other transfer of cash or property from related organization(MMNN 1qX 1r If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds. h) (M Name of related organization Transaction type Amount involved is Method of determining amount involved INTERNATIONAL (1) NRECA FOUNDATION 148,441. ACCOUNTING RECORDS (2) NRECA INTERNATIONAL FOUNDATION 22,761. ACCOUNTING RECORDS (3) NRECA INTERNATIONAL FOUNDATION 644,658. ACCOUNTING RECORDS (4) NRECA INTERNAT I ONAL LTD 2 i??l 756,220. ACCOUNTING RECORDS (5) NRECA INTERNATIONAL LTD 157,233. ACCOUNTING RECORDS NRECA INTERNATIONAL LTD 4,772,261. CCOUNTING RECORDS 532163 09-08-15 41 Schedule (Form 990) 2015 Schedule (Form 990) Continuation of Transactions With NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION Related Organizations (Schedule (Form 990), Part V. line 2) 53?0116145 to Name of other crganlzation (m Transaction type(a? b) Amount Involved w) Method of determining amount invoived WOOD QUALITY CONTROL INC 135.380. ACCOUNTING RECORDS WOOD QUALITY CONTROL INC 1,350,384. ACCOUNTING RECORDS WOOD QUALITY CONTROL INC 465,112. ACCOUNTING RECORDS INSURANCE SERVICES 0 ACCOUNTING RECORDS COOPERATIVE LIFE INSURANCE CO 0. ACCOUNTING RECORDS COOPERATIVE LIFE INSURANCE CO 4,802. ACCOUNTING RECORDS BENEFIT ADMINISTRATORS 5,264,956. ACCOUNTING RECORDS BENEFIT LDMINISTRATORS 645,050. ACCOUNTING RECORDS BENEFIT LDMINISTRATORS 6,243,497. ACCOUNTING RECORDS BENEFIT ADMINISTRATORS 0. ACCOUNTING RECORDS ENERGY SERVICES Cir?"I Oil?'l 17,813. ACCOUNTING RECORDS ENERGY SERVICES 0 ACCOUNTING RECORDS ENERGY SERVICES 232,834. ACCOUNTING RECORDS mmRE INVESTMENT INC 000 0. ACCOUNTING RECORDS mnRE INVESTMENT INC I??l 2,838,701. ACCOUNTING RECORDS maRE INVESTMENT INC 9,854. ACCOUNTING RECORDS umRE ADVISERS INC 4,726,052. ACCOUNTING RECORDS ADVISERS INC OI 9,164,234. ACCOUNTING RECORDS 532225 04-01- 15 42 NATIONAL RURAL ELECTRIC Schedule (Form COOPERATIVE ASSOCIATION Continuation of Transactions With Related Organizations (Schedule (Form 990), Part V, line 2) 53-0116145 Name of other organization Transaction type (C) Amount Method of determining amount involved ADVISERS INC 0 RECORDS ADVISERS INC 586,001. CCOUNTING RECORDS ENGLISH FOUNDATION RECORDS um (12(22) mm RM 532225 04-01-15 43 NATIONAL RURAL ELECTRIC 53?0116145 Page4 Schedule (Form 990) 2015 ASSOCIATION ership Complete If the organization answered ?Yes" on Form 990, Part IV. line 37 ganization conducted more than five percent of its (measured by total assets or gross revenue) Prowde the followng Information for each entity} taxed as a partnership through which the or that was not a related organization. See Instructions regarding exciusnon for certain Investment partnerships. la) (C) Ate)? if) Name. address. and EIN Legal domicile P(recliotm?nant migim Share of Share of Cod? V-?lBl 20 Gall-grail or Percentage re a ,unre a 501 3 10"? amoun In ox ma 9'19 of entity (state or foreign excluded from tax under MEL) total end-of-year alloca [0,157 of Schedule K-1 De?ner? ownership sections 512-514) Yes No income assets Yes No (Form 1065) yes No Part Vi Unrelated Organizations Taxable a Partn Primary activity Schedule (Form 990) 2913 w. 44 532154 09-08- 15 NATIONAL RURAL ELECTRIC .Schedule? (Form 990) 2015 COOPERATIVE ASSOCIATION 53?0116145 Page_5 Part Supplemental Information Prowde additional Information for responses to questrons on Schedule (see Instructions). PART IV, IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS CORP OR TRUST: NAME OF RELATED ORGANIZATION: ELECTRIC COOPERATIVE LIFE INSURANCE CO DIRECT CONTROLLING ENTITY: NRECA NAME OF RELATED ORGANIZATION: COOPERATIVE BENEFIT ADMINISTRATORS DIRECT CONTROLLING ENTITY: NRECA UNITED NAME OF RELATED ORGANIZATION: COOPERATIVE ENERGY SERVICES DIRECT CONTROLLING ENTITY: NRECA UNITED NAME OF RELATED ORGANIZATION: RE INVESTMENT INC DIRECT CONTROLLING ENTITY: NRECA UNITED OF RELATED ORGANIZATION: RE ADVISERS INC DIRECT CONTROLLING ENTITY: RE INVESTMENT INC NAME OF RELATED ORGANIZATION: NRECA UNITED INC DIRECT CONTROLLING ENTITY: ELCO 532155 09-05-15 Schedule (Form 990) 2015 45 13091115 144857 2015.05000 NATIONAL RURAL ELECTRIC COO