2024-11-14T14:40:08-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 750263046 FARMERS ELECTRIC COOPERATIVE INC FARM 9034551715 2000 I-30 EAST GREENVILLE TX 75402 MARK STUBBS CEO/GENERAL MANAGER 9034551715 2024-11-14 1 0 WILLIAM M MILLER P00439459 8067473806 2024-10-30 X 2023 2024-10-15 13:58:12Z MARK STUBBS 2000 I-30 EAST GREENVILLE TX 75402 205060128 0 X WWW.FARMERSELECTRIC.COOP X 1937 TX TO PROVIDE QUALITY ELECTRIC SERVICE TO MEMBER-OWNERS AT A REASONABLE COST. 9 9 208 0 20 0 0 0 222604716 203936861 160724 256843 1055914 874203 223821354 205067907 28533 32713 18235475 15575145 13685560 16805540 0 0 0 187710533 173268658 219660101 205682056 4161253 -614149 432838169 485382315 244494947 285407480 188343222 199974835 TO PROVIDE QUALITY ELECTRIC SERVICE TO MEMBER-OWNERS AT A REASONABLE COST. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 94,562 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 1 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 1 26 0 208 1 0 0 0 0 0 200306404 7279018 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X KATHY SCROGGINS CFO 9034551715 2000 I-30 EAST GREENVILLE TX 75402 X MARTIN ALLAIN DIRECTOR 4.10 1.00 X 26007 0 0 WAYNE DOUGLAS DIRECTOR 4.80 1.00 X 28465 0 0 TOMMY PULLIAM VICE PRESIDENT 4.40 1.00 X X 26993 0 0 BOB MIDDLETON JR SECRETARY 6.20 1.00 X X 31142 0 0 DON PHILLIPS DIRECTOR 3.60 1.00 X 25873 0 0 BILL SAMUELS PRESIDENT 6.50 1.00 X X 28229 0 0 MARVIN FULLER DIRECTOR 5.10 1.00 X 26007 0 0 PAUL TALLANT DIRECTOR 4.90 1.00 X 28479 0 0 LARRY LANE DIRECTOR 5.80 1.00 X 30083 0 0 MARK STUBBS CEO/GENERAL MANAGER 48.00 1.00 X 662418 0 180924 KATHY SCROGGINS CFO/DIRECTOR OF FINANCE 45.00 X 300358 0 122800 SAMANTHA CROUCH BAXTER GEN COUNSEL/SR DIRECTOR 50.00 X 367166 0 91139 BRIAN GREEN SR DIRECTOR OF ENGINEERING/OP 50.00 X 366131 0 123979 DAVID MARK LYLES DIRECTOR OF ADMINISTRATION 50.00 X 298423 0 109553 DAVID EARLS MANAGER OF OPERATIONS 60.00 X 199617 0 63065 ANTHONY GRANT MANAGER OF IT 50.00 X 187392 0 85666 SHAUN CHRONISTER MANAGER OF ENGINEERING 50.00 X 172613 0 62232 MICHAEL HALE MANAGER OF POWER QUALITY 50.00 X 162563 0 71965 ROSA GARMON MANAGER OF MEMBER CARE 50.00 X 161783 0 79229 CRAIG ANDERSON CREW FOREMAN 48.50 X 158164 0 41248 JAMES NIMMO MGR OF COMMUNICATIONS 50.00 X 158156 0 61836 TABITHA BRYANT MGR OF HR & DEVELOPMENT 50.00 X 156787 0 46062 BRIAN SIMS LINE SUPERINTENDENT 55.00 X 146732 0 58870 JASON BAIR BUCKET OPERATOR 47.00 X 140877 0 35116 BRANDAN BLUNT CREW FOREMAN 45.00 X 140619 0 46126 GARY GILES LINE SUPERINTENDENT 50.00 X 136081 0 68436 FRANK SPATARO SR PROJECT COORDINATOR 41.00 X 135888 0 41278 4303046 0 1389524 69 0 1 0 TALLEY-RIGGINS CONSTRUCTION GROUP 1217 DIGITAL DR STE 100 RICHARDSON TX 75081 CAMPUS BUILDING PROJECT CONTRACTOR 4636179 J&L UTILITY SERVICE PO BOX 407 EDGEWOOD TX 75117 LINE AND ROW CONTRACTOR 4471532 TEXAR LINE CLEARANCE LLC 4106 FAIRGROUND RD TEXARKANA AR 71854 ROW CONTRACTOR 4205392 PCI UTILITIES INC PO BOX 2967 MCKINNEY TX 75070 LINE CONTRACTOR 3554648 DCG CONSTRUCTION LLC 213 IRON HORSE CT RHOME TX 76078 LINE CONTRACTOR 2268848 21 X SALES OF ELECTRICITY 221000 175413421 175413421 SERVICE FEES 221000 18585948 18585948 PATRONAGE DIVIDENDS 221000 8258223 8258223 OTHER PROGRAM REVENUE 221000 919650 919650 TRANSMISSION WHEELING 221000 759619 759619 203936861 200724 200724 9914 0 9914 9914 9914 48310 -7809 56119 56119 56119 50 30 20 20 BOND SECURITIZATION P'SHIP INCOME 221000 447074 447074 POLE ATTACHMENT INCOME 221000 417195 417195 864269 205067907 204440054 20 627833 X 32713 15575145 4742547 8248002 909850 2183529 721612 9674389 14595020 PURCHASED POWER 128853201 DISTRIBUTION EXPENSE 13792275 ADMIN & GENERAL EXPENSE 4810248 CONSUMER EXPENSE 1502303 41222 205682056 3001615 2012764 2486964 1559883 6605953 5901231 119970 89249 3614318 2759910 525490398 125069615 349808960 400420783 54194537 61105431 13005852 11533064 432838169 485382315 67669203 71615389 81025 91793 167561533 203989984 9183186 9710314 244494947 285407480 X 1346188 1441568 0 0 186997034 198533267 188343222 199974835 432838169 485382315 X -614149 12245762 X X 0 1 X 1 0 0 1 X 4049443 4049443 10765197 5727930 5037267 474580703 119341685 355239018 36095055 36095055 400420783 PATRONAGE CAPITAL - CFC 1381094 C PATRONAGE CAPITAL - TEC 5154042 C PATRONAGE CAPITAL - RCEC 44082473 C PATRONAGE CAPITAL - NISC 266692 C PATRONAGE CAPITAL - CRC 28538 C PATRONAGE CAPITAL - COBANK 5638444 C PATRONAGE CAPITAL - NRTC 5547 C MEMBERSHIPS IN ASSOC. ORGANIZATIONS 13075 C CAPITAL TERM CERTIFICATES 965813 C MEMBER CAPITAL SECURITIES - CFC 1000000 C INVESTMENT IN BOND SECURITIZATION PARTNERSHIP 2569713 C 61105431 POST-RETIREMENT BENEFIT OBLIGATION 1560287 CONSUMER DEPOSITS 2592446 DEFERRED CREDITS - UNAMORTIZED GAIN ON REACQUIRED DEBT 49155 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 1770600 DEFERRED CREDITS - OTHER 257875 OTHER ACCRUED LIABILITIES 176260 ACCRUED OPERATING TAXES 3303691 9710314 X 205067907 0 205067907 0 205067907 190106911 0 190106911 15575145 15575145 205682056 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE REPORTED TO THE STATE OF TEXAS AND CAN ONLY BE USED FOR SCHOLARSHIPS TO ENABLE STUDENTS FROM RURAL AREAS TO ATTEND COLLEGE, TECHNICAL SCHOOL OR OTHER POST SECONDARY EDUCATION INSTITUTION. ANY AMOUNTS SO DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. PART X, LINE 2: THE COOPERATIVE 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 THEIR TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), OR OTHER STATE TAXING AUTHORITY 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 15,575,145. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS ALLOCATED OR TO BE 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". 0 HUNT COUNTY FAIR & LIVESTOCK SHOW PO BOX 1403 GREENVILLE TX 75403 237065485 501(C)(3) 5341 0 SUPPORT COMMUNITY YOUTH AT LIVESTOCK SHOW. YOUTH FAIR OF ROCKWALL PO BOX 1441 ROCKWALL TX 75087 452756854 501(C)(3) 5100 0 SUPPORT COMMUNITY YOUTH AT LIVESTOCK SHOW. NORTHEAST TEXAS LIVESTOCK ASSOCIATION (NETLA) PO BOX 1587 SULPHUR SPRINGS TX 75482 750129530 501(C)(3) 7336 0 SUPPORT COMMUNITY YOUTH AT LIVESTOCK SHOW PART II: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X 1 1 X X X X 0 0 0 MARK STUBBS CEO/GENERAL MANAGER 577976 0 3950 0 80492 0 150637 0 30287 0 843342 0 0 0 BRIAN GREEN SR DIRECTOR OF ENGINEERING/OP 307382 0 5450 0 53299 0 89494 0 34485 0 490110 0 0 0 SAMANTHA CROUCH BAXTER GEN COUNSEL/SR DIRECTOR 308206 0 5450 0 53510 0 57479 0 33660 0 458305 0 0 0 KATHY SCROGGINS CFO/DIRECTOR OF FINANCE 249916 0 5450 0 44992 0 89878 0 32922 0 423158 0 0 0 DAVID MARK LYLES DIRECTOR OF ADMINISTRATION 256259 0 5450 0 36714 0 94096 0 15457 0 407976 0 0 0 ANTHONY GRANT MANAGER OF IT 170737 0 1450 0 15205 0 50360 0 35306 0 273058 0 0 0 DAVID EARLS MANAGER OF OPERATIONS 172971 0 1850 0 24796 0 32655 0 30410 0 262682 0 0 0 ROSA GARMON MANAGER OF MEMBER CARE 144165 0 1450 0 16168 0 51949 0 27280 0 241012 0 0 0 SHAUN CHRONISTER MANAGER OF ENGINEERING 169363 0 1850 0 1400 0 29734 0 32498 0 234845 0 0 0 MICHAEL HALE MANAGER OF POWER QUALITY 143140 0 450 0 18973 0 41787 0 30178 0 234528 0 0 0 JAMES NIMMO MGR OF COMMUNICATIONS 134747 0 1450 0 21959 0 27911 0 33925 0 219992 0 0 0 BRIAN SIMS LINE SUPERINTENDENT 119018 0 450 0 27264 0 27510 0 31360 0 205602 0 0 0 GARY GILES LINE SUPERINTENDENT 117447 0 450 0 18184 0 39431 0 29005 0 204517 0 0 0 TABITHA BRYANT MGR OF HR & DEVELOPMENT 136859 0 1450 0 18478 0 15194 0 30868 0 202849 0 0 0 CRAIG ANDERSON CREW FOREMAN 156888 0 450 0 826 0 16941 0 24307 0 199412 0 0 0 BRANDAN BLUNT CREW FOREMAN 138977 0 850 0 792 0 12896 0 33230 0 186745 0 0 0 FRANK SPATARO SR PROJECT COORDINATOR 105681 0 950 0 29257 0 21608 0 19670 0 177166 0 0 0 JASON BAIR BUCKET OPERATOR 140173 0 450 0 254 0 10509 0 24607 0 175993 0 0 0 PART I, LINE 1A A MINIMUM AMOUNT OF COMPENSATION IS PROVIDED IN CONJUCTION WITH THE COOPERATIVE'S WELLNESS PROGRAM. THE COOPERATIVE WILL PAY UP TO $500 ANNUALLY TO A FITNESS CENTER ON BEHALF OF THE EMPLOYEE AND IS AVAILABLE TO ALL EMPLOYEES. 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. 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. MARK STUBBS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 140,737 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,900 TOTAL REPORTED IN COLUMN C $ 150,637 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLANS (140,737) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 57,987 EXPENSE TO THE COOPERATIVE $ 67,887 BRIAN GREEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 79,594 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,900 TOTAL REPORTED IN COLUMN C $ 89,494 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (79,594) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 52,715 EXPENSE TO THE COOPERATIVE $ 62,615 SAMANTHA CROUCH BAXTER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,579 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,900 TOTAL REPORTED IN COLUMN C $ 57,479 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,579) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 52,715 EXPENSE TO THE COOPERATIVE $ 62,615 KATHY SCROGGINS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 81,133 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,745 TOTAL REPORTED IN COLUMN C $ 89,878 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (81,133) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,524 EXPENSE TO THE COOPERATIVE $ 51,269 DAVID MARK LYLES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 85,662 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,434 TOTAL REPORTED IN COLUMN C $ 94,096 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (85,662) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,929 EXPENSE TO THE COOPERATIVE $ 52,363 ANTHONY GRANT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,638 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,722 TOTAL REPORTED IN COLUMN C $ 50,360 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,638) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,187 EXPENSE TO THE COOPERATIVE $ 35,909 DAVID EARLS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 26,878 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,777 TOTAL REPORTED IN COLUMN C $ 32,655 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (26,878) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,169 EXPENSE TO THE COOPERATIVE $ 34,946 ROSA GARMON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,075 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,874 TOTAL REPORTED IN COLUMN C $ 51,949 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,075) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,884 EXPENSE TO THE COOPERATIVE $ 29,758 SHAUN CHRONISTER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,482 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,252 TOTAL REPORTED IN COLUMN C $ 29,734 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,482) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,522 EXPENSE TO THE COOPERATIVE $ 34,774 MICHAEL HALE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,887 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,900 TOTAL REPORTED IN COLUMN C $ 41,787 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,887) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,655 EXPENSE TO THE COOPERATIVE $ 30,555 JAMES NIMMO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,196 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,715 TOTAL REPORTED IN COLUMN C $ 27,911 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,196) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,504 EXPENSE TO THE COOPERATIVE $ 28,219 BRIAN SIMS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,088 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,422 TOTAL REPORTED IN COLUMN C $ 27,510 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,088) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,207 EXPENSE TO THE COOPERATIVE $ 24,629 GARY GILES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,304 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,127 TOTAL REPORTED IN COLUMN C $ 39,431 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,304) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,558 EXPENSE TO THE COOPERATIVE $ 24,685 TABITHA BRYANT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 10,451 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,743 TOTAL REPORTED IN COLUMN C $ 15,194 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (10,451) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,266 EXPENSE TO THE COOPERATIVE $ 28,009 CRAIG ANDERSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,119 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,822 TOTAL REPORTED IN COLUMN C $ 16,941 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,119) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,923 EXPENSE TO THE COOPERATIVE $ 22,745 BRANDAN BLUNT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,549 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,347 TOTAL REPORTED IN COLUMN C $ 12,896 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,549) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,923 EXPENSE TO THE COOPERATIVE $ 22,270 ANTHONY GRANT FAMILY RELATIONSHIP - KEY EMPLOYEE (ROSA GARMON) 187392 EMPLOYMENT 0 ROSA GARMON FAMILY RELATIONSHIP - KEY EMPLOYEE (ANTHONY GRANT) 161783 EMPLOYMENT 0 FORM 990, PART I, LINE 19: 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 LOSS OF $(614,149), WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE PLUS THE RETENTION OF NON-OPERATING MARGINS. 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/(LOSS) AS FOLLOWS: 1) NET INCREASE/(DECREASE) IN ACCRUED UNBILLED REVENUE PLUS 2) NON-OPERATING MARGINS TRANSFERRED TO OTHER EQUITIES. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/23 $ 10,157,000 LESS: UNBILLED REVENUE 12/31/22 (11,479,000) NET DECREASE IN ACCRUED UNBILLED REVENUE $ (1,322,000) ADD: NON-OPERATING MARGINS RETAINED 707,851 (A) - NET LOSS ON PAGE, 1, PART I, LINE 19 $ (614,149) (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 15,575,145 TOTAL 2023 NET MARGIN (A + B) $ 14,960,996 FORM 990, PART VI, SECTION A, LINE 4 DURING 2023, THE COOPERATIVE MADE AMENDMENTS TO ITS BYLAWS. THESE INCLUDED: ARTCLE III, MEETING OF MEMBERS, SECTION 3.01, ANNUAL MEETING OF THE MEMBERS, HAS BEEN REVISED TO SAY, "FOR THE PURPOSES OF ANNOUNCING THE RESULTS OF THE ELECTION OF DIRECTORS IF CONDUCTED, OF HEARING AND PASSING UPON REPORTS COVERING THE PREVIOUS FISCAL YEAR, AND OF TRANSACTING SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING, THE ANNUAL MEETING OF THE MEMBERS SHALL BE HELD EACH YEAR, AS THE BOARD OF DIRECTORS SHALL FROM YEAR TO YEAR FIX, AT SUCH PLACE IN ONE OF THE COUNTIES IN TEXAS WITHIN WHICH THE COOPERATIVE SERVES." ARTICLE III, MEETING OF MEMBERS, SECTION 3.05, VOTING, HAS BEEN REVISED TO SAY, "EACH MEMBER SHALL BE INSTRUCTED THAT SUCH MEMBER'S MAIL BALLOT MUST BE RECEIVED AT THE COOPERATIVE'S MAIN OFFICE OR SUCH OTHER LOCATION AS DETERMINED BY THE BOARD BY 5:00 P.M. OF THE SEVENTH (7TH) DAY BEFORE THE DATE OF THE MEETING OF THE MEMBERS AT WHICH THE ELECTION RESULTS WILL BE ANNOUNCED." ARTICLE III, MEETING OF MEMBERS, SECTION 3.06, QUALIFICATIONS AND ELECTION COMMITTEE, HAS BEEN AMENDED TO EXPLAIN THAT IT IS THE RESPONSIBILITY OF THE COMMITTEE TO "(6) DECLARE AN UNCONTESTED ELECTION EXISTS BY DETERMINING THAT THE NUMBER OF QUALIFIED NOMINEES DOES NOT EXCEED THE NUMBER OF DIRECTORS TO BE ELECTED FROM A PARTICULAR DIRECTORATE DISTRICT." ARTICLE III, MEETING OF MEMBERS, SECTION 3.07 AGENDA AND ORDER OF BUSINESS, HAS BEEN REVISED TO SAY, "THE ORDER OF BUSINESS AT THE ANNUAL MEETING OF THE MEMBERS AND INSOFAR AS PRACTICABLE OR DESIRABLE AT ALL OTHER MEETINGS OF THE MEMBERS, SHALL BE SUBSTANTIALLY AS FOLLOWS: (1) REPORT ON THE NUMBER OF MEMBERS PRESENT IN PERSON AND BY MAIL BALLOT IN ORDER TO DETERMINE THE EXISTENCE OF A QUORUM; (2) PROOF OF THE PROPER GIVING OF THE NOTICE OF THE MEETING OR OF THE WAIVER OR WAIVERS OF NOTICE OF THE MEETING, AS THE CASE MAY BE; (3) PRESENTATION OF UNAPPROVED MINUTES OF PREVIOUS MEETINGS OF THE MEMBERS FOR CONSENT OR CORRECTIONS, IF NEEDED; (4) PRESENTATION OF REPORTS OF OFFICERS, DIRECTORS AND COMMITTEES; (5) PRESENTATION OF THE RESULTS OF THE ELECTION OF DIRECTORS, IF CONDUCTED; (6) PRESENTATION OF THE RESULTS OF OTHER BUSINESS PROPERLY NOTICED AND BROUGHT BEFORE THE MEMBERS AS PROVIDED IN THIS SECTION; AND (7) ADJOURNMENT." ARTICLE IV, DIRECTORS, SECTION 4.03, ELECTION, HAS BEEN REVISED TO SAY, "THE DIRECTOR CANDIDATE DRAWING THE SLIP MARKED "ELECTED" SHALL BE ELECTED TO THE DIRECTOR POSITION IN QUESTION. WHEN THE NUMBER OF NOMINEES DOES NOT EXCEED THE NUMBER OF DIRECTORS TO BE ELECTED FROM A PARTICULAR DIRECTORATE DISTRICT WRITTEN BALLOTING MAY BE DISPENSED WITH, IN RESPECT OF THAT PARTICULAR ELECTION." ARTICLE IV, DIRECTORS, SECTION 4.04, TENURE, HAS BEEN REVISED TO SAY, "THE PERSONS SERVING AS DIRECTORS OF THE COOPERATIVE SHALL COMPOSE THE BOARD UNTIL THEIR RESPECTIVE TERMS HAVE EXPIRED AND THEIR RESPECTIVE SUCCESSORS ARE DULY QUALIFIED. THE DIRECTORS SHALL EACH BE ASSIGNED A DISTRICT. FAILURE TO HOLD AN ELECTION FOR A GIVEN YEAR SHALL ALLOW THE INCUMBENTS WHOSE DIRECTORSHIPS WOULD HAVE BEEN VOTED ON TO HOLD OVER FOR ANOTHER FOUR-YEAR TERM. THE DISTRICTS SHALL BE NUMBERED SO THAT THE DIRECTOR ELECTIONS SHALL OCCUR, AND DIRECTOR TERMS SHALL EXPIRE, AS FOLLOWS: (A) DISTRICTS 5, 6, AND 9, ELECTIONS FOR FOUR-YEAR TERMS BEGINNING IN 2024 AND EVERY FOUR YEARS THEREAFTER; (B) DISTRICTS 1 AND 3, ELECTIONS FOR FOUR-YEAR TERMS BEGINNING IN 2025 AND EVERY FOUR YEARS THEREAFTER; (C) DISTRICTS 2 AND 4, ELECTIONS FOR FOUR-YEAR TERMS BEGINNING IN 2026 AND EVERY FOUR YEARS THEREAFTER; (D) DISTRICTS 7 AND 8, ELECTIONS FOR FOUR-YEAR TERMS BEGINNING IN 2027 AND EVERY FOUR YEARS THEREAFTER." ARTICLE IV, DIRECTORS, SECTION 4.05, DIRECTORATE DISTRICTS, DIRECTORATE DISTRICT NUMBER THREE, HAS BEEN AMENDED TO SAY, "ROCKWALL COUNTY SERVICE AREA NORTH OF INTERSTATE 30, WEST OF FARM TO MARKET ROAD 548, NORTH OF STATE HIGHWAY 66, AND EAST OF LAKE RAY HUBBARD; ROCKWALL COUNTY SERVICE AREA SOUTH OF INTERSTATE 30, NORTH OF FARM TO MARKET ROAD 550, WEST OF FARM TO MARKET ROAD 548, SOUTH OF STATE HIGHWAY 276 AND EAST OF STATE HIGHWAY 205; HUNT COUNTY SERVICE AREA SOUTH OF STATE HIGHWAY 276 AND WEST OF FARM TO MARKET ROAD 1565; AND KAUFMAN COUNTY SERVICE AREA EAST OF COUNTY ROAD 245 AND WEST OF COUNTY ROAD 331." 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 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 HAVE THE ABILITY TO ELECT THE COOPERATIVE'S NINE MEMBER BOARD OF DIRECTORS. THE DIRECTORS ARE ELECTED "AT LARGE" AT THE ANNUAL MEETING AND SERVE STAGGERED, THREE YEAR TERMS SO THAT EACH YEAR THREE DIRECTORS ARE ELECTED. DIRECTORS ARE NOMINATED BY A NOMINATING COMMITTEE OR BY NOMINATING PETITION FROM EACH OF THE NINE DIRECTOR DISTRICTS. 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 WITH ANOTHER COOPERATIVE ORGANIZATION 3. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 4. AMENDMENT TO THE ARTICLES OF INCORPORATION 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 MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD OF DIRECTORS FOR DISCUSSION, REVIEW AND APPROVAL PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C CONFLICTS OF INTEREST INVOLVING DIRECTORS, OFFICERS, AND EMPLOYEES ARE COVERED BY BOTH BOARD AND EMPLOYEE COOPERATIVE POLICIES. THE BOARD OF DIRECTORS REVIEW AND ENFORCE CONFLICTS OF INTEREST INVOLVING DIRECTORS AND THE GENERAL MANAGER. THE GENERAL MANAGER REVIEWS AND ENFORCES CONFLICTS OF INTEREST ARISING FROM EMPLOYEES. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE PROFESSIONAL SALARY SURVEYS AND COMPENSATION EXPERTS FROM THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION AND A COMPARISON OF FORMS 990 OF SIMILARLY SITUATED ELECTRIC COOPERATIVES TO DETERMINE THE COMPENSATION (PAY AND BENEFITS) OF THE CEO/GENERAL MANAGER. THE BOARD STRIVES TO HIRE AND RETAIN A MANAGEMENT TEAM THAT IS EXPERIENCED IN THE INDUSTRY AND THE BEST FIT FOR THE COOPERATIVE. THE BOARD PLACES IMPORTANCE ON LONGEVITY AND EXPERIENCE. IT BELIEVES THAT THE RECRUITMENT AND RETENTION OF ALL COMPETENT EMPLOYEES IS CRITICAL TO THE LONG-TERM SUCCESS AND STABILITY OF THE COOPERATIVE. THEREFORE, THE BOARD ATTEMPTS TO MAINTAIN A COMPENSATION STRUCTURE FOR THE CEO/GENERAL MANAGER AND MANAGEMENT LEVEL STAFF THAT IS IN THE THIRD QUARTILE AMONG INDUSTRY PEERS, WHERE APPROPRIATE. THE BOARD ALSO ANNUALLY REVIEWS THE PERFORMANCE OF THE CEO/GENERAL MANAGER. AS PART OF ITS PERFORMANCE REVIEW, THE BOARD TAKES INTO CONSIDERATION THE EMPLOYMENT MARKET, EXPERIENCE OF THE CEO/GENERAL MANAGER, STABILITY OF THE BASE RATES, EMPLOYEE/LABOR RELATIONS, STABILITY AND COST EFFECTIVENESS OF THE WHOLESALE POWER SUPPLY AGREEMENT BY PARTICIPATION ON THE BOARD OF THE RESPECTIVE GENERATION & TRANSMISSION COOPERATIVE, AND INVOLVEMENT AND LEADERSHIP WITHIN THE ELECTRIC UTILITY COOPERATIVE INDUSTRY. THE CEO/GENERAL MANAGER ALSO PROVIDES AN ANNUAL SELF-EVALUATION AND LIST OF ACCOMPLISHMENTS ACHIEVED BY THE COOPERATIVE DURING THE PRIOR YEAR(S). KEY AREAS INCLUDE MEMBER COMMUNICATIONS, OPERATIONS, ELECTRIC UTILITY PLANT CONSTRUCTION, METER GROWTH, RATES, FINANCE, HUMAN RESOURCES, RETIREMENT OF PATRONAGE CAPITAL, PARTICIPATION ON BOARD OF OTHER INDUSTRY RELATED ORGANIZATIONS, AND IMPACT TO WHOLESALE POWER COSTS THROUGH PARTICIPATION ON THE BOARD OF THE COOPERATIVE'S WHOLESALE POWER SUPPLIER COOPERATIVE. KEY ACCOMPLISHMENTS INCLUDE, LOW TURNOVER OF EMPLOYEES, AN ONGOING EQUITY MANAGEMENT PLAN FOR CONSISTENTLY RETIRING PATRONAGE CAPITAL, A DECREASE IN POWER COST, AND NO CHANGE IN THE BASE ELECTRIC RATE SINCE 2007. THE CEO/GENERAL MANAGER USES THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT, A COMPENSATION SURVEY, AND COMPARES COMPENSATION REPORTED ON OTHER COOPERATIVES' IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 COOPERATIVE DOCUMENTS ARE MADE AVAILABLE UPON REQUEST OF MEMBERS, AFTER REVIEW ACCORDING TO COOPERATIVE POLICY. THE COOPERATIVE'S ANNUAL FINANCIAL STATEMENTS ARE ALSO PROVIDED TO THE MEMBERS DURING THE ANNUAL MEETING. 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, KEY EMPLOYEES 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, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF ACTUARIAL INCREASES 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, 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 COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. FORM 990, PART IX: ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR ELECTRIC BORROWERS OF RUS. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1 - 23. THE COOPERATIVE SEPARETLY 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, 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 $12,990,549 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (251,278) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (303,724) LESS: KEY EMPLOYEE BENEFITS REPROTED IN LINE 5 (835,974) PLUS: SALARIES AND WAGES ALLOCATED TO PURCHASED POWER 729,793 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 5,939,655 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSES INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 195,042 TOTAL WAGES ACCRUED AND OR PAID $18,464,063 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,145,546 OFFICE SUPPLIES 113,877 SALES 898,036 DIRECTORS 310,498 ASSOCIATED DUES 143,692 PENSIONS & BENEFITS 801,460 BANK CHARGES 763,781 MISCELLANEOUS GENERAL 2,570,216 UTILITY COMMISSION 315,846 MAINTENANCE OF GENERAL PLANT 755,549 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 8,818,501 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (251,278) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,632,539) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,124,436) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 4,810,248 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 TRUE 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 15,575,145. PATRONAGE CAPITAL RETIRED - TOTAL -6,000,349. PATRONAGE CAPITAL RETIRED - DISCOUNT 2,575,586. NET CHANGE IN MEMBERSHIPS 95,380. FORM 990,PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE APPOINTED AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. FARMERS ELECTRIC CHARITABLE FOUNDATION 2000 I-30 E GREENVILLE TX 75402 260749479 CHARITABLE TX 501(C)3 LINE 7 FARMERS ELECTRIC COOPERATIVE TX 1 MULTI-SERVICE UTILITIES INC 2000 I-30 EAST GREENVILLE TX 754029084 752718501 INACTIVE TX FARMERS ELECTRIC COOPERATIVE INC C 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 FARMERS ELECTRIC CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 FARMERS ELECTRIC CHARITABLE FOUNDATION O N/A - LESS THAN $50,000 FARMERS ELECTRIC CHARITABLE FOUNDATION S 143721 CASH RECEIVED