2024-11-15T23:10:19-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 740620793 FAYETTE ELECTRIC COOPERATIVE INC FAYE 9799683181 PO BOX 490 LA GRANGE TX 78945 DOUGLAS LAMBERT GENERAL MANAGER 9799683181 2024-11-14 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-14 X 2023 2024-10-15 13:58:12Z DOUGLAS LAMBERT PO BOX 490 LA GRANGE TX 78945 39268638 0 X WWW.FAYETTE.COOP X 1939 TX TO PROVIDE RELIABLE, COST EFFECTIVE ELECTRIC SERVICE TO OUR MEMBER-OWNERS. 7 7 41 0 0 0 0 0 35251921 39150123 45916 54197 86487 8388 35384324 39212708 18009 16856 903998 803052 3473580 3631662 0 0 0 31186966 34413342 35582553 38864912 -198229 347796 95911280 108158589 59322211 70962747 36589069 37195842 IT IS THE MISSION OF FAYETTE ELECTRIC COOPERATIVE, INC. TO PROVIDE RELIABLE, COST EFFECTIVE SERVICE TO OUR MEMBERS. 0 0 SALE OF ELECTRIC ENERGY TO MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 16,137 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 0 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 21 0 41 1 0 0 0 0 0 40410643 1149327 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X GARY DON NIETSCHE 9799683181 357 N WASHINGTON ST LA GRANGE TX 78945 X DAVID G LEHMANN PRESIDENT 3.50 X X 18531 0 0 JOSEPH C KRUPPA VICE PRESIDENT 7.00 X X 20571 0 0 BILL BRISCOE SECRETARY/TREASURER 3.50 X X 19911 0 0 DAVID A STANCIK DIRECTOR 6.60 X 19462 0 0 LEO C HENKE JR DIRECTOR 4.10 X 19036 0 0 DAVID ANDERLE DIRECTOR 3.60 X 17921 0 0 GALE LINCKE DIRECTOR 3.50 X 18061 0 0 GARY DON NIETSCHE GENERAL MANAGER 80.00 X 168137 0 66561 LINDA GADDES ACCOUNTING SUPERVISOR 50.00 X 119584 0 20538 LEO J WICK ASST ENG SUPERVISOR 40.00 X 114041 0 49475 LARRY SULAK SAFETY COORDINATOR 40.00 X 108759 0 74747 ROBERT THOMAS LINE SUPERINTENDENT 40.00 X 108957 0 64253 CHARLES SRUBAR LINE FOREMAN 40.00 X 104537 0 52365 857508 0 327939 6 0 1 0 SMITH POWER LINE CONSTRUCTION LLC 264 S REYNOLDS STREET LA GRANGE TX 78945 CONSTRUCTION AND ROW CONTRACTOR 5012332 LAMAR TECHNICAL SERVICES INC 2002 WINDY TERRACE CEDAR PARK TX 78613 TECHNICAL AND ENG SERVICES 408186 COLUMBUS TREE & LAWN 1220 LAKE LANE LA GRANGE TX 78945 TREE TRIMMING CONTRACTOR 388960 SCHNEIDER ENGINEERING INC 191 MENGER SPRINGS PARKWAY BOERNE TX 78006 ENGINEERING SERVICES 311041 DIG TECH INC 798 GLOBE HILL ROAD GIDDINGS TX 78942 TRENCHING & INSTALLING CONDUIT 199493 5 X SALES OF ELECTRICITY 221000 38142323 38142323 PATRONAGE DIVIDENDS 221000 722441 722441 SERVICE FEES 221000 224164 224164 OTHER PROGRAM REVENUE 221000 61195 61195 39150123 54197 54197 382 0 382 382 382 59291 55930 3361 3361 POLE ATTACHMENT INCOME 221000 4645 4645 4645 39212708 39153866 0 58842 X 16856 803052 368191 2162068 281055 641135 179213 2545840 3377889 PURCHASED POWER 23417200 DISTRIBUTION EXPENSE 3736454 ADMIN & GENERAL EXPENSE 989813 CONSUMER EXPENSE 337494 8652 38864912 182338 309167 2304041 2891788 3271136 3201327 4389878 2957613 121958193 27984850 81647562 93973343 3464534 3825822 651791 999529 95911280 108158589 4432871 6116532 156615 169790 47223996 58181136 7508729 6495289 59322211 70962747 X 237450 247090 0 0 36351619 36948752 36589069 37195842 95911280 108158589 X 347796 258977 X X 0 1 X 1 0 0 1 X 611370 611370 2046084 710186 1335898 109596679 27274664 82322015 9704060 9704060 93973343 CONSUMER DEPOSITS 476685 DEFERRED CREDITS - REFUNDABLE AID TO CONSTRUCTION 3301988 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 992451 DEFERRED CREDITS - SPECIAL EQUIPMENT INSTALLATION 696658 DEFERRED CREDITS - ENERGY SERVICES PROGRAM 326705 DEFERRED CREDITS - CONSUMER PREPAYMENTS 15693 LEASE LIABILITY - OPERATING LEASES 115816 A/P-PCRF (OVERRECOVERY) 308723 ACCRUED PROPERTY TAXES 260570 6495289 X 39212708 0 39212708 0 39212708 38061860 0 38061860 803052 803052 38864912 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 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 THEIR 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 803,052. 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 VIII 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. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE CAPITAL 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". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. X X 0 0 0 GARY DON NIETSCHE GENERAL MANAGER 159907 0 270 0 7960 0 36420 0 30141 0 234698 0 0 0 LARRY SULAK SAFETY COORDINATOR 105338 0 271 0 3150 0 45350 0 29397 0 183506 0 0 0 ROBERT THOMAS LINE SUPERINTENDENT 105897 0 271 0 2789 0 38036 0 26217 0 173210 0 0 0 LEO J WICK ASST ENG SUPERVISOR 111296 0 271 0 2474 0 23694 0 25781 0 163516 0 0 0 CHARLES SRUBAR LINE FOREMAN 103276 0 271 0 990 0 24559 0 27806 0 156902 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. GARY DON NIETSCHE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,420 TOTAL REPORTED IN COLUMN C 36,420 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,420) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,924 EXPENSE TO THE COOPERATIVE $ 29,924 LARRY SULAK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 45,350 TOTAL REPORTED IN COLUMN C 45,350 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (45,350) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,443 EXPENSE TO THE COOPERATIVE $ 19,443 ROBERT THOMAS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,036 TOTAL REPORTED IN COLUMN C 38,036 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,036) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,359 EXPENSE TO THE COOPERATIVE $ 17,359 LEO J. WICK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,694 TOTAL REPORTED IN COLUMN C 23,694 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,694) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 14,700 EXPENSE TO THE COOPERATIVE $ 14,700 CHARLES SRUBAR: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,559 TOTAL REPORTED IN COLUMN C 24,559 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,559) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,954 EXPENSE TO THE COOPERATIVE $ 15,954 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 INCOME OF $347,797, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE. 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 $ 994,157 LESS: UNBILLED REVENUE 12/31/22 (646,360) (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 347,797 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 803,052 TOTAL 2023 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 1,150,849 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. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT AND PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. BOARD REVIEWS ANNUAL FILINGS AT MONTHLY MEETINGS. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD MUST ANNUALLY DISCLOSE, SIGN AND ATTEST TO ANY CONFLICT OF INTERESTS BETWEEN SUCH BOARD MEMBER AND THE COOPERATIVE. THE COOPERATIVE'S BYLAWS ADDRESS HOW A BOARD MEMBER WOULD BE IN CONFLICT IF SUCH BOARD MEMBER HOLDS A PUBLIC OFFICE FOR WHICH A SALARY IS PAID OR IS EMPLOYED BY OR FINANCIALLY INTERESTED IN A COMPETING BUSINESS OR ENTERPRISE FROM WHICH THE COOPERATIVE BUYS FROM OR SELLS TO. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES OF SUCH POSITIONS FROM TEXAS AND THE NATION. OTHER THAN THE GENERAL MANAGER, THE COOPERATIVE DID NOT HAVE ANY EMPLOYEES MEETING THE DEFINITION OF OFFICER OR KEY EMPLOYEE. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, LINE 15B HAS BEEN ANSWERED "NO". 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. THE COOPERATIVE PROVIDES ANNUALLY A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE IN THE NOTICE OF ANNUAL MEETING MAILED TO ALL MEMBERS AND AT THE ANNUAL MEETING. FINALLY, THE BYLAWS ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE. 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 THE PLAN IS AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER AND HIGHLY COMPENSATED EMPLOYEE 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. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. FORM 990, PART VII, SECTION A: THE BOARD OF DIRECTORS CONSIDERS THE GENERAL MANAGER TO BE BOTH THE TOP MANAGEMENT OFFICIAL AND THE TOP FINANCIAL OFFICIAL. THEREFORE, ONLY THE GENERAL MANAGER IS LISTED AS AN EMPLOYEE OFFICER. FORM 990, PART VIII, LINE 2B: PATRONAGE DIVIDENDS 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 ELECTRIC SERVICE PROVIDED BY THE ORGANIZATION TO ITS MEMBERS. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (CFC). 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 $ 2,530,259 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (133,493) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (66,561) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 3,740 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 754,514 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 190,570 TOTAL WAGES ACCRUED AND/OR PAID $ 3,279,029 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 709,002 OFFICE SUPPLIES 274,711 OUTSIDE SERVICES EMPLOYED 203,808 WORKER'S COMP, GENERAL LIAB. & OTHER INSURANCE 32,886 REGULATORY COMMISSION 61,313 DIRECTOR FEES 168,559 CAPITAL CREDITS 101,306 MISCELLANEOUS GENERAL 292,730 DUES TO ASSOCIATED ORGANIZATIONS 72,578 MAINTENANCE OF GENERAL PLANT 186,041 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,102,934 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (133,493) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (652,551) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (327,077) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 989,813 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 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 GAAP, 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 803,052. PATRONAGE CAPITAL RETIRED -553,715. NET CHANGE IN MEMBERSHIP EQUITIES 9,640. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE ANNUAL FINANCIAL STATEMENT AUDIT AND TO HELP SELECT THE INDEPENDENT AUDITOR WHO WILL PERFORM THE AUDIT. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR.