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Spring 2007.Pmd Electric Cooperative QUARTERLY CHAPTER NEWSLETTER 1st Quarter 2007 National Director Russ Wasson T he President’s Messag e National Rural Electric Co-op Association (NRECA) On January 1 1, 2007 your ECC Directors met in the Delta (703) 907-5802 Crown meeting room at the Atlanta, GA airport to plan the 6th President Annual ECC Tax, Accounting, and Finance Conference. It was Gary Bartlett an historic occasion. This will be the first ECC conference Peace River Electric Co-op, Inc. offered to its members that is being held in conjunction with the (863) 767-4608 National Society of Accountants for Cooperatives (NSAC) Vice President Annual Convention and Tax Seminar. This arrangement will Eileen Goodwin provide members several benefits, including: WIN Energy REMC (812) 882-5140 • More economies of scale to offer higher quality facilities Secretary and speakers. Theresa Crepes, CMA, CPA • An opportunity for the electric cooperative finance and Mid-Carolina Electric Co-op accounting professional to increase their strategic (803) 749-6468 perspective by interacting with other type co-op issues. Treasurer • A more focused and concentrated content agenda Todd Gabel specifically developed for top finance and accounting Midwest Energy , Inc. (785) 625-1412 professionals. IN THIS ISSUE: Silver Star Coordinator The conference fee will be less than what members would Craig Lewis Rappahannock Electric have to pay to attend the NRECA Tax, Accounting, and n President’s Message - 1 Cooperative Finance Conference plus the electric cooperative tax pre- n National Directors’ Report - 2 (540) 891-5880 n Tackling the Removable conference will be free to ECC members. In addition, Device Threat - 4 Membership Chair attendees will be given a significant discount to the T eler gee n AccountingWeb.com - 5 Jeanette Johnson CFO Conference which will be held October 24-26 in n Treasurer’s Report - 7 Boone REMC Monterey, CA. T eler gee is a consortium of CPA firms from n Chapter New Members - 8 (765) 482-2390 around the country representing hundreds of telephone and Mentor Coordinator electric cooperatives. Y ou will be hearing more about Mark Maxwell Teler gee in future communications. Clay Electric Cooperative (352) 473-8000 This is an historic year , one that will expand the electric Newsletter Editor cooperative finance and accounting professional’ s strategic Russ Wasson National Rural Electric Co-op perspective necessary to confront the issues of tomorrow. Association (NRECA) (703) 907-5802 Gary Bartlett, Pr esident Electric Co-op National Office 136 South Keowee Street Dayton, OH 45402 937-222-6707 T el 937-222-5794 Fax Electric Cooperative Quarterly Chapter Newsletter N ational in 2007 than previous years. W e significant economic and social will also be reaching out to our roles in their communities. Below Director’s Re por t cooperative neighbors such as the are some facts about the Movement We are currently in the process of National Cooperative Business that demonstrate their relevance planning the Electric Cooperative Association, the credit unions, and contribution to economic and Chapter meeting as well as the telephone, housing, purchasing, etc. social development. NSAC Annual Meeting which will NCBA currently estimates that 154 take place August 5-8 th in million Americans are members of Large segments of the Minneapolis, Minnesota. I recently cooperatives. Many of us are population are members returned from the National Council members of multiple cooperatives. of co-operatives of Farmer Cooperatives annual The cooperative business model is meeting where the NSAC the only business model that • In Ar gentina, there are over Planning Committee synchronizes the needs of the 17,941 co-operative societies chaired by Don owners with the needs of the with 9.1 million members. Frederick of USDA and customers. • In Belgium, there were 29,933 the NSAC Board met The increased activity at the FASB co-operative societies in 2001. • to plan the agenda ensures that we must view In Canada, 1 in 3 individuals is a for the annual accounting as a strategic necessity , member of a co-operative (33%). meeting. I believe not as something to be done after The Desjardins co-operative that we are working the fact. As you all know, many of movement in Québec has over 5 with an outstanding the FASB proposals can have a million members. • agenda at this point, one drastic impact upon our financial In Colombia over 3.3 million which will offer statements. We must continue to be people are members of co- cooperative accountant proactive now and in the future, operatives or 8.01% of the professionals insights into particularly as international population. (Sour ce: CONFECOOP. complex technical topics as they convergence of accounting Sector Cooperativo Colombiano 2005) • relate specifically to cooperatives. standards continues to evolve. The Costa Rica counts over 10% of its population as members of Also, we will have speakers on international cooperative community is significantly larger co-operatives. related issues such as technology • Finland, S-Group has a and economics. Y ou will be than the cooperative community in the United States. membership of 1,468,572 learning more about the Electric individuals which represents Cooperative chapter meeting as Statistical 62% of Finnish households. well as the NSAC Annual Meeting (Sour ce: SOK Corporation Annual in the near future. I look forward Inform ation on the Report 2004) to seeing you in Minneapolis! Co-operative • In Germany, there are 20 million The NSAC Board has been M ovement people who are members of co- discussing reaching out to other operatives, 1 out of 4 people. cooperative’ s and focusing on The Co-operative Movement • In Japan, 1 out of every 3 cooperative specific education for brings together over 800 million families is a member of a co- all of our cooperative accountant people around the world. The operative. brothers and sisters. Specifically , United Nations estimated in 1994 • Kenya 1 in 5 is a member of a we are focused on delivering more that the livelihood of nearly 3 co-operative or 5.9 million and value to the membership by billion people, or half of the and 20 million Kenyans directly keeping the cost per CPE dollar as world’s population, was made or indirectly derive their low as possible. In light of this, secure by co-operative enterprise. livelihood from the Co-operative we will be offering more webinars These enterprises continue to play Movement. 2 Electric Cooperative Quarterly Chapter Newsletter • In India, over 239 million people health care services for 15.5% USD 11 billion. The Korean are members of a co-operative. of the population. Coffee co- fishery co-operatives also report • In Malaysia, 5.4 million people operatives market 33.78% of a market share of 71%. are members of co-operatives. Colombian coffee. Financial co- • In Kuwait, the Kuwaiti Union of • In Singapore, 32% of the operatives hold 5.8% of the Consumer Co-operative population (1.4 million people) financial service market. Societies handled 80% of the are members of a co-operative. (Sour ce: CONFECOOP. Sector national retail trade. • In the United States, 4 in 10 Cooperativo Colombiano 2005) • In Latvia, the Latvian Central individuals is a member of a co- • In Cyprus, the co-operative Co-operative Union is operative (25%). movement held 30% of the responsible for 12.3% of the market in banking services, and market in the food Co-operative are handled 35% of all marketing of industry sector . significant economic agricultural produce. • In Moldova, the actors in national • In Denmark, consumer co- Central Union of economies operatives in 2004 held 37% of Consumer Co- the market. (Sour ce: Coop Norden A B operatives were • In Belgium, co-operative annual r epor t 2004) responsible for pharmacies have a market share • Finnish co-operative groups 6.8% of the of 19.5%. within Pellervo were consumer market. • In Benin, FECECAM, a savings responsible for 74% of the meat • In Norway, dairy and credit co-operative products, 96% of dairy products; co-operatives are federation provided USD 16 50% of the egg production, 34% responsible for million in rural loans in 2002. of forestry products and handled 99% of the milk • In Brazil, co-operatives are 34.2% of the total deposits in production; responsible for 72% of the wheat Finnish banks. consumer co- production, 44% of barely, 43% • Hungary, consumer co- operatives held of soy, 39% of milk, 38% of operatives members of Co-op 25% of the market; fisheries co- cotton, 21% of coffee and 16% of Hungary are responsible for operatives were responsible for maize. Agricultural co-operatives 14.4% of the national food and 8.7% of total Norwegian exports; exported over USD 1.3 billion. general retail sales in 2004. forestry co-operatives were • In Bolivia, Cooperativa de (Sour ce: Co-op Hungar y, S tatistical Data responsible for 76% of timber Ahorro y Crédito “Jesús 2004) and that 1.5 million people of the Nazareno” Ltda. (CJN) handled • In Japan, the agricultural co- 4.5 million Norwegians are 25% of the savings in Bolivia in operatives report outputs of member of co-operatives. 2002. USD 90 billion with 91% of all • In Poland, dairy co-operatives • Canadian maple sugar co- Japanese farmers in are responsible for 75% of dairy operatives produce 35% of the membership. production. world’s maple sugar production. • In Kenya, co-operatives are • In Singapore, consumer co- • In Côte d’Ivoire co-operatives responsible for 45% of the GDP operatives hold 55% of the invested USD 26 million for and 31% of national savings and market in supermarket purchases setting up schools, building rural deposits. They have 70% of the and have a turnover of USD 700 roads and establishing maternal cof fee market, 76% dairy, 90% million.
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