2024-11-15T15:28:16-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 741095072 CENTRAL TEXAS ELECTRIC COOPERATIVE INC CENT 8309922380 PO BOX 553 FREDERICKSBURG TX 78624 ATANACIO HINOJOSA CEO 8309922380 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z ATANACIO HINOJOSA PO BOX 553 FREDERICKSBURG TX 78624 81640323 0 X WWW.CTEC.COOP X 1947 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 11 11 149 0 0 0 0 0 69995692 80685458 289692 341175 543255 560369 70828639 81587002 40626 14159 4291546 5894386 8495870 9079845 0 0 0 58000597 66598612 70828639 81587002 0 0 241941832 244930841 138549742 135547918 103392090 109382923 PROVIDING OUR MEMBERS SAFE, RELIABLE, HIGH QUALITY SERVICE AT A REASONABLE COST. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 46,950 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 44 0 1 149 1 0 0 0 0 0 80407651 4432020 0 0 0 X 11 11 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X SHAWN STANLEY CFO 8309972126 386 FRIENDSHIP LANE FREDERICKSBURG TX 78624 X MARK HAHN PRESIDENT 14.00 X X 18339 0 0 JOSEPH WIESER VICE PRESIDENT 7.00 X X 15590 0 0 CONNIE STOCKBRIDGE TREASURER 3.40 X X 16140 0 0 DOYLENE BODE SECRETARY 5.50 X X 15990 0 0 MARK REEVE DIRECTOR 7.10 X 14040 0 0 TIM LEHMBERG DIRECTOR 3.00 X 14540 0 0 SCOTT OLGUIN DIRECTOR 2.70 X 15390 0 0 WYNNE WHITWORTH DIRECTOR 5.30 X 14190 0 0 FERMIN ORTIZ DIRECTOR 3.10 X 15240 0 0 WAYNE SEIPP DIRECTOR 5.30 X 14340 0 0 JAMES A LOW DIRECTOR 3.25 X 13890 0 0 ATANACIO HINOJOSA CEO 50.00 X 240330 0 57907 SHAWN STANLEY CFO 47.20 2.00 X 189400 0 84467 DENNIS ELMORE DIRECTOR OF ENGINEERING/OP 41.60 X 193373 0 68763 STEVE MURROW DISTRICT OP SUPERVISER 41.40 X 129086 0 52627 ARTHUR WUNDERLICH FOREMAN 40.90 X 125072 0 66399 PATRICK STAHL SYSTEM SERVICES SUPERVISOR 40.90 X 120350 0 118906 ROBERT SAGEBIEL LEAD SUBSTATION TECH 40.20 X 117002 0 34363 DENNIS CRENWELGE DISTRIC OPERATION SUPERVIS 41.50 X 114617 0 86330 1396919 0 569762 16 0 1 0 JAMES POWER LINE CONSTRUCTION 43 SHOOTING CLUB ROAD BOERNE TX 78006 LINE CONSTRUCTION 5307089 TOWNSEND TREE SERVICE PO BOX 7015 MUNCIE IN 47304 ROW CLEARING 3294935 SCHNEIDER ENGINEERING LTD 191 MENGER SPRINGS PARKWAY BOERNE TX 78006 ENGINEERING SERVICES 1388089 DAS UNDERGROUND UTILITIES LLC PO BOX 2391 BOERNE TX 78006 CONTRACT LABOR LINE CONSTRUCTION 1258144 LAMBDA CONSTRUCTION I LTD 211 JESSE CIRCLE NEW BRAUNFELS TX 78132 CONTRACT LABOR SUBSTATION 957312 8 X SALES OF ELECTRICITY 221000 78842339 78842339 PATRONAGE DIVIDENDS 221000 1144634 1144634 SERVICE FEES 221000 698485 698485 80685458 297077 297077 97419 53321 44098 44098 44098 129566 0 129566 129566 POLE ATTACHMENT INCOME 221000 430803 430803 430803 81587002 80859122 0 727880 X 14159 5894386 1001929 5521902 858626 1288525 408863 4100326 8468739 PURCHASED POWER 44448089 DISTRIBUTION EXPENSE 6486262 ADMIN & GENERAL EXPENSE 1749460 CONSUMER EXPENSE 1011119 334617 81587002 1507206 2206323 10133863 591073 13678036 11009783 5114992 5478440 6103033 4857239 303641039 90579106 198470298 213061933 5897155 6690026 1037249 1036024 241941832 244930841 8797840 9894448 4350000 2175000 204040 220535 99176053 100943949 26021809 22313986 138549742 135547918 X 680620 698325 0 0 102711470 108684598 103392090 109382923 241941832 244930841 X 0 5990833 X X 0 1 X 1 0 0 1 X 2546571 2546571 15992946 3906715 12086231 277309363 86672391 190636972 7792159 7792159 213061933 ACCRUED OPERATING TAXES 964523 CONSUMER DEPOSITS 957488 CUSTOMER ADVANCES FOR CONSTRUCTION 331148 PATRONAGE CAPITAL PAYABLE 1867759 OVERBILLED POWER COST ADJUSTMENT 16872116 POSTRETIREMENT BENEFITS PROVISION 563911 DEFERRED CREDIT - ECON DEV GRANT 400000 DEFERRED CREDIT - OTHER 357041 22313986 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 TEXAS STATE LAW. AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE APPROVED BY 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER TEXAS STATE LAW. AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR THE STIMULATION AND IMPROVEMENT OF BUSINESS AND COMMERCIAL ACTIVITY FOR ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES. ANY AMOUNTS SO DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ENERGY EFFICIENCY ASSISTANCE FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER TEXAS STATE LAW. AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED TO ASSIST MEMBERS OF AN ELECTRIC COOPERATIVE IN REDUCING THEIR ENERGY CONSUMPTION AND ELECTRICITY BILLS. ANY AMOUNTS SO DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. PART VIII: THE AMOUNT OF INVESTMENTS-PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 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 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. 0 COOPERATIVE FINANCE CORPORATION 20701 COOPERATIVE WAY DULLES VA 20166 520891669 501(C)(4) 8614 0 INTEGRITY FUND CONTRIBUTION 1 0 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 X 0 0 0 ATANACIO HINOJOSA CEO 200000 0 400 0 39930 0 37515 0 20392 0 298237 0 0 0 SHAWN STANLEY CFO 187013 0 400 0 1987 0 64359 0 20108 0 273867 0 0 0 DENNIS ELMORE DIRECTOR OF ENGINEERING/OP 184662 0 400 0 8311 0 49549 0 19214 0 262136 0 0 0 PATRICK STAHL SYSTEM SERVICES SUPERVISOR 114355 0 500 0 5495 0 87351 0 31555 0 239256 0 0 0 DENNIS CRENWELGE DISTRIC OPERATION SUPERVIS 107659 0 2500 0 4458 0 67744 0 18586 0 200947 0 0 0 ARTHUR WUNDERLICH FOREMAN 120750 0 500 0 3822 0 48011 0 18388 0 191471 0 0 0 STEVE MURROW DISTRICT OP SUPERVISER 124180 0 500 0 4406 0 33756 0 18871 0 181713 0 0 0 ROBERT SAGEBIEL LEAD SUBSTATION TECH 115660 0 800 0 542 0 15112 0 19251 0 151365 0 0 0 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 CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. ATANACIO HINOJOSA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 29,515 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,000 TOTAL REPORTED IN COLUMN C $ 37,515 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (29,515) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,480 EXPENSE TO THE COOPERATIVE $ 46,480 SHAWN STANLEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 56,878 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,481 TOTAL REPORTED IN COLUMN C $ 64,359 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (56,878) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,632 EXPENSE TO THE COOPERATIVE $ 42,133 DENNIS ELMORE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 42,068 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,481 TOTAL REPORTED IN COLUMN C $ 49,549 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (42,068) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,632 EXPENSE TO THE COOPERATIVE $ 42,113 PATRICK STAHL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 82,039 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,312 TOTAL REPORTED IN COLUMN C $ 87,351 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (82,039) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,595 EXPENSE TO THE COOPERATIVE $ 29,907 DENNIS CRENWELGE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 63,344 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,400 TOTAL REPORTED IN COLUMN C $ 67,744 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (63,344) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,372 EXPENSE TO THE COOPERATIVE $ 24,772 ARTHUR WUNDERLICH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,287 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,724 TOTAL REPORTED IN COLUMN C $ 48,011 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,287) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,824 EXPENSE TO THE COOPERATIVE $ 20,548 STEVE MURROW: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 28,543 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,213 TOTAL REPORTED IN COLUMN C $ 33,756 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (28,543) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,135 EXPENSE TO THE COOPERATIVE $ 29,348 ROBERT SAGEBIEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,541 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,571 TOTAL REPORTED IN COLUMN C $ 15,112 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,541) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,472 EXPENSE TO THE COOPERATIVE $ 20,043 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 DIRECTORS. 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. 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 FOR DISCUSSION AND REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, THE COOPERATIVE REQUIRES THE BOARD OF DIRECTORS, PRINCIPAL OFFICERS, AND COMMITTEE MEMBERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. THE BOARD OF DIRECTORS ALSO COMPLETE AND SIGN THE FORM 990 DISCLOSURE QUESTIONNAIRE. ALL INDIVIDUALS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD AS SOON AS POSSIBLE. PERIODIC REVIEWS ARE DONE TO ENSURE COMPLIANCE WITH THE COOPERATIVE CONFLICT OF INTEREST POLICIES. FORM 990, PART VI, SECTION B, LINE 15 AT THE BEGINNING OF THE YEAR, THE CEO MEETS WITH THE COOPERATIVE'S GOVERNING BOARD AND SETS SPECIFIC WRITTEN GOALS FOR THE UPCOMING YEAR. THESE GOALS ARE INCORPORTED INTO A MATRIX THAT IS USED FOR REVIEW AND EVALUATION OF THE CEO'S PERFORMANCE. IF THE BOARD DETERMINES THAT THE WRITTEN GOALS HAVE BEEN MET, THE CEO'S COMPENSATION IS DETERMINED USING CONSULATANT COMPENSATION STUDY RESULTS, AVAILABLE CEO COMPENSATION DATA FOR REGIONAL ELECTRIC COOPERATIVES OF SIMILAR SIZE AND THE MOST CURRENT COMPENSATION SURVEY CONDUCTED BY THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION. THE CEO USES CONSULTANT COMPENSATION STUDY RESULTS, AVALAIBLE DATA FOR REGIONAL ELECTRIC COOPERATIVES AND THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. THE COOPERATIVE BYLAWS ARE ALSO AVAILABLE ON COOPERATIVE'S WEBSITE. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. 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 IS 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. 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, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE 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, 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 $ 6,523,831 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (167,689) LESS: OFFICER EMPLOYEE BENEFITS REPORTED ON LINE 5 (142,374) LESS: KEY EMPLOYEE BENEFITS INCLUDED ON LINE 5 (68,763) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 14,403 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,216,220 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 659,195 TOTAL WAGES ACCRUED AND/OR PAID $10,034,823 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,570,736 OFFICE SUPPLIES 177,327 OUTSIDE SERVICES EMPLOYED 140,519 INSURANCE 588,960 REGULATORY COMMISSION 126,910 DUES 113,223 DIRECTORS 261,078 MAINTENANCE OF GENERAL PLANT 75,644 MISCELLANEOUS GENERAL 431,748 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,486,145 LESS: RECLASS OF NON-OPERATING ADMIN EXPENSE (78,000) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (167,689) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,028,054) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (462,942) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,749,460 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: OTHER DEDUCTIONS $ 160,064 TAXES - OTHER 174,160 TRANSMISSION 393 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 334,617 FORM 99O, 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 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 5,894,386. PATRONAGE CAPITAL RETIRED - TOTAL -2,429,394. PATRONAGE CAPITAL RETIRED - DISCOUNT 228,051. NET CHANGE IN MEMBERSHIPS 17,705. OTHER COMPREHENSIVE INCOME - POST RETIREMENT BENEFITS 24,096. EQUITY METHOD INCOME FROM SUBSIDIARY 80,989. DEFERRED REVENUE RECOGNIZED 2,175,000. FORM 990, PART XII, LINE 2C: THE EXECUTIVE COMMITTEE OVERSEES THE FINANCIAL STATEMENT AUDIT AND RECOMMENDS THE INDEPENDENT AUDITOR TO THE FULL BOARD. CENTRAL TEXAS ELECTRIC OPERATION ROUNDUP INC PO BOX 553 FREDERICKSBURG TX 78624 743072134 DISBURSMENT OF FUNDS FOR CHARITABLE PURPOSES IN COOPERATIVE'S SERVICE AREA TX 501(C)(3) 7 CENTRAL TEXAS ELECTRIC COOPERATIVE INC 1 CENTRAL TEXAS EXTRA-SERVICES COORPORATION PO BOX 553 FREDERICKSBURG TX 78624 742863542 INTERNET ACCESS PROVIDER TX CENTRAL TEXAS ELECTRIC COOPERATIVE INC C 874765 1433241 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 CENTRAL TEXAS ELECTRIC OPERATION ROUNDUP INC O N/A - LESS THAN $50,000 CENTRAL TEXAS EXTRA-SERVICES CORPORATION Q 500224 INVOICES AND OTHER RECORDS CENTRAL TEXAS EXTRA-SERVICES CORPORATION R 863369 BILLING & COLLECTING CENTRAL TEXAS EXTRA-SERVICES CORPORATION O 302882 LABOR HOURS AND RATES