2024-11-15T15:57:37-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 750458545 NAVARRO COUNTY ELECTRIC COOPERATIVE INC NAVA 9038747411 PO BOX 616 CORSICANA TX 75151 COURTNEY SADBERRY GENERAL MANAGER/CEO 9038747411 2024-10-23 1 0 WILLIAM M MILLER P11439459 8067473806 2024-10-23 X 2023 2024-10-15 13:58:12Z COURTNEY SADBERRY PO BOX 616 CORSICANA TX 75151 70165527 0 X WWW.NAVARROEC.COM X 1937 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 48 0 0 0 0 0 69490807 68722937 327897 681743 66724 760847 69885428 70165527 591 565 2442185 3987419 3792530 4138198 0 0 0 63650122 62039345 69885428 70165527 0 0 111808693 117808267 39240120 42314950 72568573 75493317 TO PROVIDE ELECTRICITY TO OUR MEMBERS IN THE RURAL COMMUNITIES WE SERVE. 0 0 SALE OF ELECTRIC POWER TO OUR MEMBERS AT COST ON COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 19,694 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 0 0 0 1 42 0 48 1 0 0 0 0 0 70107482 1690996 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X KIM DERDEN CFO 9038747411 PO BOX 616 CORSICANA TX 75151 X BENNY MELTON DIRECTOR 2.00 X 37302 0 0 BILLY SOUTHARD DIRECTOR 2.00 X 37009 0 0 GARY MURPHY DIRECTOR 2.00 X 32787 0 0 GEORGE SMITH SECRETARY 2.00 X X 37652 0 0 JULIE MRAZ DIRECTOR 2.00 X 21366 0 0 ROBERT SHEFFIELD VICE PRESIDENT 2.00 X X 37302 0 0 RON BUCKLEY PRESIDENT 4.00 X X 36117 0 0 BILLY JONES GENERAL MANAGER/CEO 40.00 X 217486 0 84332 COURTNEY SADBERRY CFO/OFFICE MANAGER 40.00 X 168711 0 56841 LINDY SHAW MANAGER OF ADMINISTRATION 50.00 X 178343 0 56466 MIKE LAWRENCE MANAGER OF CONS & OPS 45.00 X 143945 0 80076 MARK RASH CUSTOMER SERVICE MANAGER 40.00 X 145334 0 36873 SAMUEL MILLER SAFETY COORDINATOR 40.00 X 131697 0 44267 CLARENCE BARBER LINEMAN 48.50 X 127733 0 29703 JERAD TAYLOR FOREMAN 45.00 X 124539 0 28763 ALBERT FISHER LINEMAN 47.60 X 123854 0 40104 1601177 0 457425 19 0 1 0 NORTHEAST SERVICE INC PO BOX 1185 KINNEDALE TX 76060 TREE TRIMMING 1693975 S&H POWERLINE CONSTRUCTION 725 BELLVIEW CRAWFORD TX 76638 LINE CONSTRUCTION 590369 OSMOSE UTILITIES SERVICES INC PO BOX 114284 ATLANTA GA 30368 POLE INSPECTION 314291 USIC LOCATING SERVICES PO BOX 715409 CINCINNATI OH 45271 LINE LOCATION 228365 SCHNEIDER ENGINEERING LLC 191 MENGER SPRINGS PARKWAY BOERNE TX 78006 ENGINEERING 119647 6 X SALES OF ELECTRICITY 221000 67641067 67641067 PATRONAGE DIVIDENDS 221000 554093 554093 SERVICE FEES 221000 527777 527777 68722937 681743 681743 BOND SECURITIZATION P'SHIP INCOME 221000 687406 687406 POLE ATTACHMENT INCOME 221000 70552 70552 MISCELLANEOUS REVENUE 221000 2889 2889 760847 70165527 69413232 0 752295 X 565 3987419 1225735 2140159 238318 344191 189795 1019952 3119234 PURCHASED POWER 52979207 DISTRIBUTION EXPENSE 3067508 ADMINISTRATIVE AND GENE 1133758 CONSUMER EXPENSE 702513 17173 70165527 96671 507758 8424417 10801099 6401984 8362116 1086205 1201602 279197 286326 89865800 24782918 62151535 65082882 30438836 31256419 2929848 310065 111808693 117808267 12875480 5898961 23487995 31374959 2876645 5041030 39240120 42314950 X 143945 147525 0 0 72424628 75345792 72568573 75493317 111808693 117808267 X 0 2924744 X X 0 1 X 0 0 0 1 X 350650 350650 2024645 2024645 87294778 24782918 62511860 195727 195727 65082882 PATRONAGE CAPITAL - CFC 214740 C CAPITAL TERM CERTIFICATES - CFC 415317 C PATRONAGE CAPITAL - TEC 688870 C PATRONAGE CAPITAL - BRAZOS 27121157 C PATRONAGE CAPITAL - NISC 114035 C MEMBERSHIPS 1080 C OTHER INVESTMENTS 13814 C MEMBER CAPITAL SECURITIES - CFC 2000000 C INVESTMENT IN BOND SECURITIZATION PARTNERSHIP 687406 C 31256419 ADVANCES FOR CONSTRUCTION 886864 RETURNED CHECKS - ESCHEATABLE 1269101 BRUSHIE SUBSTATION 2779500 SCHOLARSHIP RESTRICTED FUNDS 12334 OTHER DEFERRED CREDITS 93231 5041030 X 70147789 0 70147789 17738 17738 70165527 66160370 0 66160370 4005157 4005157 70165527 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 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. PART X, LINE 2: THE COOPERATIVE UTILIZES 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 XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFY DONATIONS TO PART IX, LINE 1 565. RECLASSIFY OTHER DEDUCTIONS TO PART IX, LINE 24E 17,173. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,987,419. RECLASSIFY DONATIONS TO PART IX, LINE 1 565. RECLASSIFY OTHER DEDUCTIONS TO PART IX, LINE 24E 17,173. X X 0 0 0 BILLY JONES GENERAL MANAGER/CEO 195876 0 2000 0 19610 0 45394 0 38938 0 301818 0 0 0 LINDY SHAW MANAGER OF ADMINISTRATION 151692 0 2000 0 24651 0 35669 0 20797 0 234809 0 0 0 COURTNEY SADBERRY CFO/OFFICE MANAGER 164436 0 2000 0 2275 0 30771 0 26070 0 225552 0 0 0 MIKE LAWRENCE MANAGER OF CONS & OPS 128179 0 3000 0 12766 0 59124 0 20952 0 224021 0 0 0 MARK RASH CUSTOMER SERVICE MANAGER 129491 0 3000 0 12843 0 14814 0 22059 0 182207 0 0 0 SAMUEL MILLER SAFETY COORDINATOR 114691 0 3000 0 14006 0 24977 0 19290 0 175964 0 0 0 ALBERT FISHER LINEMAN 117016 0 2000 0 4838 0 21425 0 18679 0 163958 0 0 0 CLARENCE BARBER LINEMAN 125223 0 2000 0 510 0 10185 0 19518 0 157436 0 0 0 JERAD TAYLOR FOREMAN 115117 0 3000 0 6422 0 9738 0 19025 0 153302 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, 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. BILLY JONES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 45,394 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (45,394) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,563 EXPENSE TO THE COOPERATIVE $ 43,563 LINDY SHAW: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,669 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,669) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,238 EXPENSE TO THE COOPERATIVE $ 31,238 JILL SADBERRY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,771 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,771) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,063 EXPENSE TO THE COOPERATIVE $ 35,063 MIKE LAWRENCE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 59,124 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (59,124) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,562 EXPENSE TO THE COOPERATIVE $ 26,562 MARK RASH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 14,814 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,814) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,562 EXPENSE TO THE COOPERATIVE $ 26,562 SAMUEL MILLER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,977 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,977) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,375 EXPENSE TO THE COOPERATIVE $ 23,375 ALBERT FISHER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,425 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,425) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,666 EXPENSE TO THE COOPERATIVE $ 18,666 CLARENCE BARBER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 10,185 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (10,185) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,576 EXPENSE TO THE COOPERATIVE $ 19,576 JERAD TAYLOR: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 9,738 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (9,738) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,375 EXPENSE TO THE COOPERATIVE $ 23,375 FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAS 7 BOARD MEMBERS; ALL 7 ARE ALLOWED TO VOTE. 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. 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. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ONCE A CONFLICT OF INTEREST IS DETERMINED TO BE PRESENT, ALL ACTIONS GO THROUGH UPPER MANAGEMENT OR BOARD OF DIRECTORS APPROVAL. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE THE EXPERTISE OF A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE BOARD AND THE GENERAL MANAGER USE THE EXPERTISE OF A COMPENSATION SURVEY 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 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ANNUALLY, THE COOPERATIVE PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. THE ANNUAL REPORT AND BYLAWS CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE: WWW.NAVARROEC.COM. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH EMPLOYEE OFFICER AND DIRECTOR WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, 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. THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE FOR EMPLOYEE OFFICER BILLY JONES, WHO RETIRED FROM THE COOPERATIVE JANUARY 2024. THEREFORE, HIS PRIOR YEAR QUESTIONNAIRE WAS RELIED UPON WHILE PREPARING THE RETURN. THERE WERE NO KNOWN CHANGES FROM 2022 TO 2023. FORM 990, PART VII, COLUMN F: 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 IS COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. FORM 990, PART VIII, LINE 2B: 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 AN RUS BORROWER, THE ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RURAL UTILITIES SERVICE (RUS) UNIFORM SYSTEM OF ACCOUNTS (USOA). THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARETLY STATES 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 $ 3,365,894 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (239,535) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (277,715) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,012,074 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 77,607 TOTAL WAGES ACCRUED AND/OR PAID $ 3,938,324 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 IX, LINE 1: 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. EACH GRANT, SPONSORSHIP, AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART IX, LINE 24C: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 747,199 OFFICE SUPPLIES 59,450 OUTSIDE SERVICES 305,757 INSURANCES 63,905 REGULATORY COMMISSION EXPENSE 129,949 MISCELLANEOUS GENERAL 169,463 EMPLOYEE BENEFITS 48,415 UTILITIES 69,729 DIRECTORS 308,304 ANNUAL MEETING 23,127 DUES AND SUBSCRIPTIONS 61,554 MAINTENANCE OF GENERAL PLANT 58,445 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,045,297 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (239,535) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (491,018) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (180,986) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,133,758 FORM 990, PART XI, LINE 9: NET CHANGE IN MEMBERSHIPS 3,580. PATRONAGE CAPITAL ASSIGNABLE 3,987,419. PATRONAGE CAPITAL RETIRED - TOTAL -1,066,255.