2024-11-15T23:42:54-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 740866703 NAVASOTA VALLEY ELECTRIC COOPERATIVE INC NAVA 9798283232 PO BOX 848 FRANKLIN TX 778560848 STEVE JONES GENERAL MANAGER 9798283232 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z STEVE JONES PO BOX 848 FRANKLIN TX 778560848 61542132 0 X WWW.NAVASOTAVALLEY.COM X 1941 TX TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 9 9 69 0 0 0 0 0 60220187 60633844 82518 74770 283706 303511 60586411 61012125 0 0 5162913 0 5985430 6427542 0 0 0 49438068 57138105 60586411 63565647 0 -2553522 109425993 108980268 22417206 24047828 87008787 84932440 OUR MISSION IS TO PROVIDE SAFE, RELIABLE, COMPETITIVELY PRICED ELECTRIC AND RELATED SERVICES TO OUR MEMBERS/CONSUMERS. 0 0 PROVIDING ELECTRIC POWER TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 21,370 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 30 0 69 1 0 0 0 0 0 62683623 617241 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X STEVE JONES GENERAL MANAGER 9798283232 2281 E US HWY 79 FRANKLIN TX 77856 X JEFF GONZALES PRESIDENT 3.90 X X 14303 0 0 KENNETH ELLIOTT JAN-OCT SECRETARY/TREASURER 2.60 X X 12778 0 0 CHARLIE CARRIGAN DIRECTOR 3.70 X 14303 0 0 JERRY ROBERTSON JAN-OCT VICE PRESIDENT 2.00 X X 9212 0 0 JERRY HUBBARD JAN-OCT DIRECTOR 2.10 X 10172 0 0 BENNIE KIRVEN DIRECTOR 3.00 X 12172 0 0 CRAIG DUNLAP SECRETARY 3.50 X X 12803 0 0 GRANVILLE DAWSON DIRECTOR 4.70 X 17303 0 0 TERRANCE SMITHERMAN NOV-DEC DIRECTOR 2.80 X 0 0 0 MICHAL AUTRY NOV-DEC DIRECTOR 1.30 X 1500 0 0 JAMES MATTHEWS NOV-DEC DIRECTOR 0.90 X 2500 0 0 KEITH NICKELSON JAN-APRIL DIRECTOR 2.80 X 2500 0 0 WILL SMITH MAY-DEC DIRECTOR 1.60 X 0 0 0 STEVE JONES GENERAL MANAGER 41.50 X 159420 0 37283 JACK HANCOCK LINE SUPERVISOR 40.00 X 120312 0 50855 FERNANDO JACKSON LINEMAN 40.00 X 134745 0 19165 JEFF HRNCIR LINEMAN 40.00 X 121021 0 23074 PIOQUINTO STEARNS LINEMAN 40.00 X 121679 0 9845 DARRYL MCCORMICK LINEMAN 40.00 X 110564 0 27295 877287 0 167517 16 0 1 0 COLD CREEK CONSTRUCTION PO BOX 839 JEWITT TX 75846 TREE TRIMMING 1949829 S&H POWERLINE CONSTRUCTION 725 BELLVIEW RD CRAWFORD TX 76638 LINE CONSTRUCTION 1609133 JOHNNY COULTER DBA JCS TREE SERVICE PO BOX 259 HEMPHILL TX 75948 TREE TRIMMING 842660 ROW LINE CONSTRUCTION PO BOX 400 JEWETT TX 75846 TREE TRIMMING 659492 D & J POWER 15507 HUDDLESTON DR CYPRESS TX 77429 LINE CONSTRUCTION 625812 6 X SALES OF ELECTRICITY 221000 59763287 59763287 SERVICE FEES 221000 646934 646934 PATRONAGE DIVIDENDS 221000 223623 223623 60633844 26060 26060 578717 530007 48710 48710 48710 BOND SECURITIZATION P'SHIP INCOME 221000 303511 303511 303511 61012125 60986065 0 26060 X 306249 3792039 856563 839155 633536 544548 3070362 PURCHASED POWER 45563770 DISTRIBUTION EXPENSE 5910136 ADMIN & GENERAL EXPENSE 1621775 OPERATING TAXES 1912 425602 63565647 X 2280153 607129 10960 0 6542663 4357266 26140 12694 100478 143175 108454433 31215083 74265180 77239350 26193701 26613997 6718 6657 109425993 108980268 5174038 3789017 55925 36387 5446201 13367942 11741042 6854482 22417206 24047828 X 479180 486575 0 0 86529607 84445865 87008787 84932440 109425993 108980268 X -2553522 477175 X X 0 1 X 0 0 0 1 X 104267 104267 3471862 1287069 2184793 101816112 29928014 71888098 3062192 3062192 77239350 MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 2316 C PATRONAGE CAPITAL-CFC 596501 C PATRONAGE CAPITAL-NRTC 62466 C PATRONAGE CAPITAL-BRAZOS 24232279 C PATRONAGE CAPITAL-PRODUCERS 3964 C PATRONAGE CAPITAL-TEC 552527 C CAPITAL TERM CERTIFICATES 587727 C INVESTMENT IN BOND SECURITIZATION PARTNERSHIP 576217 C 26613997 POST RETIREMENT BENEFIT OBLIGATION 1857454 CONSUMER DEPOSITS 305881 ADVANCE BILLING TO CUSTOMERS 466843 ACCRUED OPERATING TAXES 23198 DEFERRED CREDITS - UNCLAIMED PATRONAGE CAPITAL CHECKS 256601 DEFERRED CREDITS - REFUNDABLE AID TO CONSTRUCTION 3689574 DEFERRED CREDITS - OTHER 254931 6854482 X 61012125 0 61012125 0 61012125 63565647 0 63565647 0 63565647 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DETERMINED 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 ITS TAX POSITION 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 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. X 0 0 0 STEVE JONES GENERAL MANAGER 158248 0 0 0 1172 0 37283 0 0 0 196703 0 0 0 JACK HANCOCK LINE SUPERVISOR 120312 0 0 0 0 0 50855 0 0 0 171167 0 0 0 FERNANDO JACKSON LINEMAN 134745 0 0 0 0 0 19165 0 0 0 153910 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. STEVE JONES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,338 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,945 TOTAL REPORTED IN COLUMN C $ 37,283 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,338) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 41,018 EXPENSE TO THE COOPERATIVE $ 45,963 JACK HANCOCK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,171 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,684 TOTAL REPORTED IN COLUMN C $ 50,855 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,171) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,437 EXPENSE TO THE COOPERATIVE $ 34,121 FERNANDO JACKSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 16,696 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,469 TOTAL REPORTED IN COLUMN C $ 19,165 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (16,696) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,261 EXPENSE TO THE COOPERATIVE $ 22,730 FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE COOPERATIVE'S BYLAWS WERE AMENDED. A COPY OF THE COOPERATIVE'S BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.NAVASOTAVALLEY.COM/BYLAWS-0 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 PROVIDED A COMPLETE 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 WILL REQUIRE THE BOARD OF DIRECTORS AND OFFICERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. LEGAL COUNSEL WILL REVIEW THE POLICY WITH THE DIRECTORS BEFORE SIGNING. DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS PERFORM AN ANNUAL REVIEW AND UTILIZE INTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. 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. ANNUALLY THE COOPERATIVE PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO 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. AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER 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. 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 VII, SECTION A: THE BOARD OF DIRECTORS CONSIDER 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 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 UTILITY 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, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 634,377 OFFICE SUPPLIES 614,791 OUTSIDE SERVICES 283,439 DIRECTORS 30,221 ASSOCIATED DUES 55,149 MISCELLANEOUS GENERAL 437,686 UTILITY COMMISSION 98,663 INJURIES & DAMAGES INSURANCE 179,483 EMPLOYEE MEDICAL, WELFARE & BENEFIT 2,097,938 MAINTENANCE OF GENERAL PLANT 116,732 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,548,479 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (109,546) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,084,157) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,733,001) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,621,775 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 4,098,288 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (109,546) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (37,283) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 996,000 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 106,880 TOTAL WAGES ACCRUED AND/OR PAID $ 5,054,339 FORM 990, PART IX, LINE 4: 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. FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 425,602 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 425,602 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL RETIRED -6,515. NET CHANGE IN MEMBERSHIPS 7,395. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS 476,295. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR.