2024-05-14T09:52:17-05:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 850084968 SOCORRO ELECTRIC COOPERATIVE INC SOCO 5758350560 PO BOX H SOCORRO NM 87801 JOSEPH HERRERA CEO/GENERAL MANAGER 5758350560 2024-05-08 1 JOSEPH HERRERA 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-05-07 X 2 AAL1 IAL1 2023 2023-04-26 12:10:37Z JOSEPH HERRERA PO BOX H SOCORRO NM 87801 25684316 0 X WWW.SOCORROELECTRIC.COM X 1945 NM TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 6 6 46 0 0 0 0 0 24480288 25412429 236619 210929 127854 60958 24844761 25684316 370 500 1304332 913567 2944839 2667057 0 0 0 20575833 22036559 24825374 25617683 19387 66633 82005802 82679369 48973053 49521616 33032749 33157753 IT SHALL BE THE AIM OF THE SOCORRO ELECTRIC COOPERATIVE, INC. TO MAKE ELECTRIC ENERGY AVAILABLE TO ITS MEMBERS AT THE LOWEST COST CONSISTENT WITH SOUND ECONOMY AND GOOD MANAGEMENT. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 13,082 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 38 0 46 1 0 0 0 0 0 25790277 530301 0 0 0 X 6 6 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X JIMMY CAPPS CFO 5758350560 215 E MANZANARES AVE SOCORRO NM 87801 X JAMES NELSON PRESIDENT (JAN-APRIL) 12.70 X X 2219 0 0 LEROY ANAYA PRESIDENT 21.00 X X 10321 0 0 LUIS AGUILAR VICE PRESIDENT (JAN-APRIL) 5.40 X X 1292 0 0 RONALD BURNETT VICE PRESIDENT 5.80 X X 5397 0 0 DONALD WOLBERG SECRETARY/TREASURER (JAN-JULY) 1.00 X X 3231 0 0 JUDITH HOLCOMB SECRETARY/TREASURER (APRIL-NOV) 1.00 X X 5502 0 0 STEPHEN ROSAS SECRETARY/TREASURER (AUG-DEC) 5.50 X X 2075 0 0 MICHAEL BOWDEN TRUSTEE (APRIL-DEC) 3.00 X 2529 0 0 WARD MCCARTNEY III TRUSTEE 2.00 X 1001 0 0 DAVID WADE TRUSTEE 5.30 X 4417 0 0 JOSEPH HERRERA CEO/GENERAL MANAGER 68.50 X 209282 0 65905 JIMMY W CAPPS JR CFO 45.00 X 115828 0 52737 DAVID MONTOYA SAFETY COOR./LINE SUPER. 40.00 X 117944 0 50779 TONY LOPEZ LEAD LINE FOREMAN 40.00 X 136239 0 50398 DANIEL CHAVEZ LINE FOREMAN 40.00 X 105415 0 37880 ERNEST TORRES LINE FOREMAN 40.00 X 110839 0 29809 JAMES LIZER LINE FOREMAN 40.00 X 104485 0 52267 938016 0 339775 8 0 1 0 T & D SERVICES LLC 9550 SAN MATEO BLVD NE STE G ALBUQUERQUE NM 87113 ENGINEERING SERVICES 831860 1 X SALES OF ELECTRICITY 221000 25031728 25031728 PATRONAGE DIVIDENDS 221000 260085 260085 SERVICE FEES 221000 120616 120616 25412429 190124 190124 20805 0 20805 20805 20805 POLE ATTACHMENT INCOME 221000 48436 48436 MISCELLANEOUS REVENUE 221000 12522 12522 60958 25684316 25445756 0 238560 X 500 913567 481736 1426113 231678 392708 134822 1389986 2651439 PURCHASED POWER 14637338 DISTRIBUTION EXPENSE 2408368 CONSUMER EXPENSE 528029 OTHER DEDUCTIONS 153318 268081 25617683 9900767 3421765 3000000 2133559 2063341 31104 29087 571736 629466 3227822 2921077 98659263 42002468 52573579 56656795 12941212 13118915 626023 838923 82005802 82679369 1793359 3710047 430707 517597 45116234 43282999 1632753 2010973 48973053 49521616 X 0 0 0 0 33032749 33157753 33032749 33157753 82005802 82679369 X 66633 6162 52209 X X 0 1 X 0 0 0 1 X 86261 86261 1000414 896591 103823 91115547 41105877 50009670 6457041 6457041 56656795 PATRONAGE CAPITAL - CFC 139023 C PATRONAGE CAPITAL - FEDERATED INSURANCE 384169 C PATRONAGE CAPITAL - SEDC 141525 C PATRONAGE CAPITAL - TSG&T 11025783 C PATRONAGE CAPITAL - WUESC 17227 C PATRONAGE CAPITAL - COBANK 591001 C PATRONAGE CAPITAL - CRC 6772 C CAPITAL TERM CERTIFICATES - CFC 470920 C HOMESTEAD INVESTMENTS-FOUNDATION 336291 C MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 5600 C OTHER INVESTMENTS 604 C 13118915 CONSUMER DEPOSITS 392768 ACCUMULATED PROVISION FOR POST-RETIREMENT BENEFITS 198627 UNCLAIMED CAPITAL CREDITS & OTHER LIABILITIES 1060899 ACCRUED OPERATING TAXES 358165 DEBT COST ADJUSTMENT 514 2010973 X 25690478 6162 6162 25684316 0 25684316 24704116 0 24704116 913567 913567 25617683 PART IV, LINE 2B: PURSUANT TO THE ARTICLE X, SECTION 10.14 OF THE COOPERATIVE'S BYLAWS, THE COOPERATIVE SHALL ACCOUNT FOR UNCLAIMED RETIREMENTS OF PATRONAGE CAPITAL IN ACCORDANCE WITH N.M. STAT. ANN. 7-8A-26. ACCORDINGLY, RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF TWO YEARS, ARE TRANSFERRED TO THE SOCORRO ELECTRIC FOUNDATION (THE FOUNDATION), A TAX-EXEMPT CHARITABLE TRUST. ANY MEMBER MAY ALSO IRREVOCABLY ASSIGN ALL OR A PORTION OF HIS/HER CAPITAL CREDITS TO THE FOUNDATION. AMOUNTS TRANSFERRED TO THE FOUNDATION ARE USED FOR (1) SCHOLARSHIPS TO ENABLE SELECTED STUDENTS TO ATTEND COLLEGE, TECHNICAL SCHOOL OR OTHER POST SECONDARY EDUCATION INSTITUTION AND (2) OTHER EDUCATIONAL OPPORTUNITIES AND CHARITABLE PURPOSES AS PROVIDED FOR IN THE FOUNDATION'S TRUST AGREEMENT. A PORTION OF THESE UNCLAIMED CAPITAL CREDITS PAYMENTS ARE MAINTAINED IN A DESIGNATED ACCOUNT HELD BY THE COOPERATIVE. PART X, LINE 2: THE COOPERATIVE HAS ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COOPERATIVE IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COOPERATIVE DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 913,567. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS, SCHEDULE D, PART IX HAS BEEN LEFT BLANK. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID OR ALLOCATED TO THE MEMBERS IS REPORTED AS AN INCREASE IN EQUITY AND NOT AS AN EXPENSE. THEREFORE, NET INCOME PER THE AUDITED FINANCIAL STATEMENTS IS REPORTED GROSS OF THE AMOUNT OF PATRONAGE DIVIDENDS THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". X 0 0 0 JOSEPH HERRERA CEO/GENERAL MANAGER 201181 0 8101 0 0 0 35329 0 30576 0 275187 0 0 0 TONY LOPEZ LEAD LINE FOREMAN 135411 0 828 0 0 0 19822 0 30576 0 186637 0 0 0 DAVID MONTOYA SAFETY COOR./LINE SUPER. 114576 0 828 0 2540 0 29206 0 21573 0 168723 0 0 0 JIMMY W CAPPS JR CFO 115000 0 828 0 0 0 31164 0 21573 0 168565 0 0 0 JAMES LIZER LINE FOREMAN 103657 0 828 0 0 0 31869 0 20398 0 156752 0 0 0 SCHEDULE J, PART II, COLUMN C: INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE, YEARS OF SERVICE AND THE CURRENT INTEREST RATE ENVIRONMENT. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. JOSEPH HERRERA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,246 EMPLOYER CONTRIBUTION TO 401(K) PLAN 14,083 TOTAL REPORTED IN COLUMN C $ 35,329 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,246) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,416 EXPENSE TO THE COOPERATIVE $ 41,499 TONY LOPEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,638 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,184 TOTAL REPORTED IN COLUMN C $ 19,822 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,638) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,976 EXPENSE TO THE COOPERATIVE $ 21,160 DAVID MONTOYA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,216 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,990 TOTAL REPORTED IN COLUMN C $ 29,206 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,216) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,417 EXPENSE TO THE COOPERATIVE $ 21,407 JIMMY W CAPPS JR.: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,114 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,050 TOTAL REPORTED IN COLUMN C $ 31,164 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,114) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,227 EXPENSE TO THE COOPERATIVE $ 24,277 JAMES LIZER ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,819 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,050 TOTAL REPORTED IN COLUMN C $ 31,869 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,819) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 11,167 EXPENSE TO THE COOPERATIVE $ 19,217 FORM 990, PART I: IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET BOOK INCOME/(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL BE $0. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19 REPORTS NET GAIN OF $66,633, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE, $72,795, AND PER FORM 990 INSTRUCTIONS, REDUCED BY NET UNREALIZED GAIN ON INVESTMENTS, $6,162. THE GAAP BASIS FINANCIAL STATEMENTS INCLUDE AN ACCRUAL FOR UNBILLED REVENUE BECAUSE THE COOPERATIVE'S BILLING CYCLE DOES NOT END ON THE LAST DAY OF THE MONTH. THEREFORE, IT HAS REVENUE IN DECEMBER OF EACH YEAR THAT IT HAS EARNED BUT WILL NOT BILL UNTIL THE FIRST BILLING CYCLE OF THE FOLLOWING YEAR. THE COOPERATIVE ESTIMATES THIS REVENUE AND RECORDS IT AS ACCRUED UNBILLED REVENUE IN ORDER TO MATCH THE REVENUE WITH THE YEAR EARNED. HOWEVER, THE COOPERATIVE ALLOCATES THE REVENUE TO MEMBERS IN THE YEAR IT IS BILLED RATHER THAN WHEN ACCRUED. THIS TIMING DIFFERENCE IS FAIR AND EQUITABLE BECAUSE IT MATCHES THE PATRONAGE DIVIDEND ALLOCATED WITH THE BILLING RECORDS USED TO ALLOCATE THE MARGINS. DUE TO THE TIMING OF WHEN THE COOPERATIVE ALLOCATES ACCRUED UNBILLED REVENUE, PAGE 1, PART I, LINE 19 ANNUALLY REPORTS NET INCOME EQUAL TO THE NET INCREASE IN ACCRUED UNBILLED REVENUE OR A NET LOSS EQUAL TO THE NET DECREASE IN UNBILLED REVENUE. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/23 $ 646,219 LESS: UNBILLED REVENUE 12/31/22 (573,424) (A) - NET INCREASE IN UNBILLED REVENUE $ 72,795 LESS: NET UNREALIZED GAIN ON INVESTMENTS 6,162 NET GAIN ON PAGE 1, PART I, LINE 19 $ 66,633 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 913,567 TOTAL 2023 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 986,362 FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAD 6 TRUSTEES AT THE END OF THE YEAR; ALL ARE ALLOWED TO VOTE. HOWEVER, THE BOARD PRESIDENT VOTES ONLY IN THE CASE OF A TIE. FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF TRUSTEES. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE: 1. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 2. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 3. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 4. AMENDMENTS TO THE ARTICLES OF INCORPORATION 5. AMENDMENTS TO THE BYLAWS FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE HAS NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, THE QUESTION HAS BEEN ANSWERED "NO". FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED FIRST BY THE BOARD PRESIDENT, CEO/GENERAL MANAGER AND ACCOUNTING STAFF. AFTER THE INITIAL REVIEW PROCESS, A DRAFT IS PROVIDED TO THE ENTIRE BOARD OF TRUSTEES FOR DISCUSSION AND REVIEW AT A MEETING IMMEDIATELY PRECEDING THE FILING OF THE FORM 990. AFTER DISCUSSION AND REVIEW, THE FORM 990 IS SIGNED BY THE GENERAL MANAGER AND FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF TRUSTEES AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF TRUSTEES AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS REVIEWED BY THE COOPERATIVE'S ETHICS COMMITTEE ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 15A WHEN DETERMINING THE COMPENSATION OF THE CEO/GENERAL MANAGER, THE BOARD OF TRUSTEES UTILIZES INTERNAL RESOURCES TO OBTAIN COMPENSATION DATA FOR GENERAL MANAGERS OF OTHER ELECTRIC COOPERATIVES LOCATED IN THE COOPERATIVE'S GEOGRAPHIC REGION. ADJUSTMENTS TO COMPENSATION ARE DELIBERATED AND APPROVED BY THE BOARD OF TRUSTEES. THE CEO UTILIZES COMPARATIVE COMPENSATION DATA WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE DATA REFLECTS COMPARATIVE SALARIES FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN NEW MEXICO AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE BYLAWS AND ARTICLES OF INCORPORATION ARE POSTED ON THE COOPERATIVE'S WEBSITE. ADDITIONALLY, AND PURSUANT TO SECTION 10.13 OF THE BYLAWS, MEMBERS HAVE THE RIGHT TO INSPECT CORPORATE RECORDS AT REASONABLE TIMES AND PLACES FOR PROPER PURPOSES REASONABLY RELATED TO THE MEMBER'S INTEREST IN THE COOPERATIVE. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH TRUSTEE WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE AND TIME LOG. THE COMPLETED QUESTIONNAIRES ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG TRUSTEES, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. TRUSTEE DONALD WOLBERG PASSED AWAY JULY 2023, THEREFORE THE COOPERATIVE WAS UNABLE TO OBTAIN A QUESTIONNAIRE AND HAS RELIED UPON THE INFORMATION FROM THE PRIOR YEAR QUESTIONNAIRE. THE COOPERATIVE WAS ALSO UNABLE TO OBTAIN QUESTIONNAIRES FROM TRUSTEES NELSON AND HOLCOMB, SO TRUSTEE NELSON'S QUESTIONNARE FOR THE PRIOR YEAR WAS RELIED UPON FOR THIS RETURN, AS THERE WERE NO KNOWN CHANGES FROM 2022 TO 2023. THERE WERE NO KNOWN TRANSACTIONS THAT MUST BE REPORTED IN DETAIL ON SCHEDULE L FOR TRUSTEE HOLCOMB. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN UNDER SECTION 401(K) OF THE INTERNAL REVENUE CODE. EMPLOYER CONTRIBUTIONS TO THE PLAN ARE MADE PURSUANT TO THE PLAN DOCUMENT. ADDITIONALLY, THE COOPERATIVE PARTICIPATES IN A MULTI-EMPLOYER DEFINED BENEFIT PLAN. CONTRIBUTIONS TO THIS PLAN ARE BASED ON THE FULL FUNDING LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION, AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS RESULT FROM THE PURCHASE OF WHOLESALE POWER FROM A GENERATION & TRANSMISSION COOPERATIVE. PATRONAGE DIVIDENDS ALSO RESULT FROM THE PAYMENT OF INTEREST FROM COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF THE COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RURAL UTILITIES SERVICE (RUS) UNIFORM SYSTEM OF ACCOUNTS (USOA) PRESCRIBED FOR RUS ELECTRIC BORROWERS. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS, AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. FORM 990, PART IX, LINE 4: PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "PATRONS") SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO ITS PATRONS AND TO DO SO ON A COOPERATIVE BASIS. TAX LAW DEFINES "OPERATING ON A COOPERATIVE BASIS" AS SUBORDINATION OF CAPITAL, DEMOCRATIC CONTROL, AND OPERATION AT COST. THE COOPERATIVE OPERATES AT COST THROUGH THE ALLOCATION OF TRUE PATRONAGE DIVIDENDS (ALSO REFERRED TO AS ALLOCATIONS OF PATRONAGE CAPITAL) TO ITS PATRONS. PATRONAGE DIVIDENDS ARE CONSIDERED PAID IF THE ALLOCATION IS MADE (1) PURSUANT TO A PRE-EXISTING OBLIGATION, (2) FROM THE MARGINS PRODUCED FROM THE TRANSACTIONS DONE WITH OR FOR PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). ADDITIONALLY, THE ALLOCATION OF PATRONAGE DIVIDENDS SHOULD BE MADE WITHIN A REASONABLE TIME PERIOD AFTER THE CLOSE OF THE COOPERATIVE'S YEAR-END OF DECEMBER 31. EACH ONE OF THESE REQUIREMENTS FOR A PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE COOPERATIVE'S BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2023 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS ARE THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS PATRONS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED SUCH AMOUNTS AS AN EXPENSE FOR FORM 990 REPORTING. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. FORM 990, PART IX, LINES 5-7: SALARIES AND WAGES ARE ALLOCATED TO ASSET, LIABILITY, AND EXPENSE ACCOUNTS BASED ON THE ACCOUNTING SYSTEM DESCRIBED ABOVE. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 1,907,849 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (37,984) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (118,642) PLUS: SALARIES ALLOCATED TO POWER 92 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 9,693 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 740,376 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 120,566 TOTAL WAGES ACCRUED AND/OR PAID $ 2,621,950 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: SALES $ 13,863 ADMINISTRATIVE & GENERAL 122,009 TAXES 132,209 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 268,081 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, AND OTHER $ 745,953 OFFICE SUPPLIES 107,580 INJURIES & DAMAGES 6,264 OUTSIDE SERVICES 88,472 REGULATORY COMMISSION 6,551 DIRECTORS 72,058 DUES AND SUBSCRIPTIONS 129,426 ANNUAL MEETING 53,029 SCHOLARSHIP FUND 21,081 MISCELLANEOUS GENERAL 66,260 MAINTENANCE OF GENERAL PLANT 72,873 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 1,369,547 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (500) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (37,984) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (805,350) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (403,704) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 122,009 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 913,567. PATRONAGE CAPITAL RETIRED - TOTAL -888,239. PATRONAGE CAPITAL RETIRED - DISCOUNT 6,985. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSION & BENEFITS 19,896. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. SOCORRO ELECTRIC FOUNDATION PO BOX H SOCORRO NM 878010278 237044964 PROVIDE SCHOLARSHIPS & EDUCATIONAL OPPORTUNITIES IN THE COOP'S SERVICE AREA NM 501(C)(3) PF SOCORRO ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 SOCORRO ELECTRIC FOUNDATION N N/A - LESS THAN $50,000 SOCORRO ELECTRIC FOUNDATION O N/A - LESS THAN $50,000