2024-11-26T06:01:32-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 730177775 CENTRAL RURAL ELECTRIC COOPERATIVE INC CENT 8003752884 PO BOX 1809 STILLWATER OK 74076 JAMES WELLS PRESIDENT 8003752884 2024-11-26 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z HUNTER ROBINSON PO BOX 1809 STILLWATER OK 74076 77622846 0 X WWW.MYCENTRAL.COOP X 1938 OK TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 105 0 7114627 0 0 0 65539757 69938099 290587 409023 3784192 7275724 69614536 77622846 17717 15937 5016199 5654267 10397524 10006741 0 0 0 57136787 65875646 72568227 81552591 -2953691 -3929745 254793736 303773578 170411661 217304142 84382075 86469436 EMPOWERING OUR MEMBERS AND COMMUNITIES. 0 0 SALE OF ELECTRIC POWER TO MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 24,283 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 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 1 1 1 0 0 1 128 0 105 1 1 1 0 0 0 0 67975858 8377099 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 OK X X SONDRA WHITE VP OF FINANCE 4053722884 3305 S BOOMER ROAD STILLWATER OK 74076 X JAMES WELLS VICE PRESIDENT 7.90 X X 28500 0 0 CAROL DVORAK PRESIDENT 8.80 X X 24000 0 0 GARY MCCUNE TRUSTEE (JAN-OCT) 10.80 X 22000 0 0 JOHN GREG TYTENCIZ SECRETARY/TREASURER 7.20 X X 19250 0 0 SID SPERRY TRUSTEE 8.10 X 18500 0 0 BILL DAVIS TRUSTEE (JAN-OCT) 4.40 X 9500 0 0 KEN STARKS TRUSTEE (MAY-DEC) 4.50 X 8500 0 0 MARK PITTMAN TRUSTEE (JAN-FEB) 5.50 X 4500 0 0 RANDY ETHRIDGE TRUSTEE (OCT-DEC) 2.70 X 3000 0 0 RANDY WEDEL TRUSTEE (OCT-DEC) 3.20 X 3000 0 0 HUNTER ROBINSON CHIEF EXECUTIVE OFFICER 50.00 X 305838 0 266327 SONDRA WHITE VP OF FINANCE 50.00 X 156128 0 37427 MARK PRATHER PRESIDENT OF FIBER & TECHNOLOGY 50.00 X 149992 0 71135 YUVARAJ KONDASWAMY SYSTEM PLANNING ENGINEER 40.00 X 135231 0 53475 MICHELLE PHELPS DIRECTOR OF HUMAN RESOURCES 40.00 X 130004 0 59393 LEE LINSENMEYER LINEMAN 52.20 X 135831 0 41742 MICHAEL MUSIL LINEMAN 54.80 X 135666 0 46895 1289440 0 576394 27 0 1 0 ERVIN CABLE CONSTRUCTION PO BOX 10 STURGIS KY 42459 FIBER CONSTRUCTION 21350531 MDR CONSTRUCTION 621 E BAYLIS CHAPEL RD COLUMBIA MS 39429 ELECTRIC CONSTRUCTION 8221773 DAVIS H ELLIOT CONSTRUCTION CO INC 673 BLUE SKY PARKWAY LEXINGTON KY 40509 ELECTRIC CONSTRUCTION 6643991 CONEXON LLC 2001 GRAND BLVD STE 700 KANSAS CITY OK 64108 FIBER CONSTRUCTION, PROJECT MGT 4488843 RIGGS TREE SERVICE INC PO BOX 453225 GROVE OK 74345 TREE CLEARING 3725439 14 X SALES OF ELECTRICITY 221000 66360577 66360577 PATRONAGE DIVIDENDS 221000 3364967 3364967 SERVICE FEES & OTHER CHARGES 221000 168952 168952 SOLAR & OTHER PROGRAM REVENUE 221000 43603 43603 69938099 409023 409023 64980 3240 0 0 64980 3240 68220 64980 3240 BROADBAND REVENUE 517000 7111387 7111387 POLE ATTACHMENT INCOME 221000 81748 81748 MISC NON-OPERATING REVENUE 221000 14369 14369 7207504 77622846 70017448 7114627 490771 X 15937 5654267 906470 5909114 1109545 1603728 477884 6112664 8874023 PURCHASED POWER 39081496 DISTRIBUTION EXPENSE 4719691 COST OF INTERNET SALES 2312642 ADMIN & GENERAL EXPENSE 1909564 2865566 81552591 6099129 1912984 7301966 5588519 6272470 4748696 21120 6046281 5488943 777517 702826 319309758 78020727 186535266 241289031 38777286 41438981 2983821 2582478 254793736 303773578 10915178 9382254 143925257 194233563 15571226 13688325 170411661 217304142 X 874265 894985 0 0 83507810 85574451 84382075 86469436 254793736 303773578 X -3929745 6017106 X X 0 1 X 1 1 1 1179946 1179946 22187157 8974034 13213123 235434321 68904035 166530286 60508334 142658 60365676 241289031 CAPITAL TERM CERTIFICATES - CFC 933754 C PATRONAGE CAPITAL - CFC 151747 C PATRONAGE CAPITAL - KAMO POWER 36948128 C PATRONAGE CAPITAL - NISC 165687 C PATRONAGE CAPITAL - COBANK 638122 C PATRONAGE CAPITAL - AECI 1980384 C PATRONAGE CAPITAL - OTHER 479417 C INVESTMENTS IN OTHERS 141742 C 41438981 CONSUMER DEPOSITS 2797798 CUSTOMER ADVANCES FOR CONSTRUCTION 991791 OIL LOAD REVENUE DEFERRAL PLAN 5185007 DEFERRED CREDITS 1863049 PROVISION FOR POST-RETIREMENT BENEFIT 2633326 ACCOUNTS PAY - GROSS RECEIPTS TAX 116054 OVER/UNDER COLLECTION OF POWER COSTS 101300 13688325 X 77585653 0 77585653 37193 37193 77622846 75861131 0 75861131 5691460 5691460 81552591 PART X, LINE 2: THE COOPERATIVE AND SUBSIDIARIES FOLLOWS 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 AND SUBSIDIARIES DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS 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: RECLASS OF NONOPERATING EXPENSES 37,193. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,654,267. RECLASS OF NONOPERATING EXPENSES 37,193. 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 DIVIDENDS PAID OR 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". X X 0 0 0 HUNTER ROBINSON CHIEF EXECUTIVE OFFICER 286572 0 0 0 19266 0 238390 0 27937 0 572165 0 0 0 MARK PRATHER PRESIDENT OF FIBER & TECHNOLOGY 144219 0 0 0 5773 0 39098 0 32037 0 221127 0 0 0 SONDRA WHITE VP OF FINANCE 152298 0 0 0 3830 0 20625 0 16802 0 193555 0 0 0 MICHELLE PHELPS DIRECTOR OF HUMAN RESOURCES 126040 0 762 0 3202 0 30833 0 28560 0 189397 0 0 0 YUVARAJ KONDASWAMY SYSTEM PLANNING ENGINEER 131312 0 762 0 3157 0 20435 0 33040 0 188706 0 0 0 MICHAEL MUSIL LINEMAN 132052 0 762 0 2852 0 16262 0 30633 0 182561 0 0 0 LEE LINSENMEYER LINEMAN 132417 0 1282 0 2132 0 16174 0 25568 0 177573 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. HUNTER ROBINSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 229,145 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,245 TOTAL REPORTED IN COLUMN C $ 238,390 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (229,145) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 65,416 EXPENSE TO THE COOPERATIVE $ 74,661 MARK PRATHER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,421 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,677 TOTAL REPORTED IN COLUMN C $ 39,098 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,421) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,704 EXPENSE TO THE COOPERATIVE $ 43,381 SONDRA WHITE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 15,848 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,777 TOTAL REPORTED IN COLUMN C $ 20,625 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (15,848) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,035 EXPENSE TO THE COOPERATIVE $ 40,812 MICHELLE PHELPS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 26,817 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,016 TOTAL REPORTED IN COLUMN C $ 30,833 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (26,817) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,156 EXPENSE TO THE COOPERATIVE $ 33,172 YUVARAJ KONDASWAMY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 16,125 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,310 TOTAL REPORTED IN COLUMN C $ 20,435 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (16,125) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,982 EXPENSE TO THE COOPERATIVE $ 37,292 MICHAEL MUSIL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,565 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,697 TOTAL REPORTED IN COLUMN C $ 16,262 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,565) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,158 EXPENSE TO THE COOPERATIVE $ 24,855 LEE LINSENMEYER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,382 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,792 TOTAL REPORTED IN COLUMN C $ 16,174 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,382) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,775 EXPENSE TO THE COOPERATIVE $ 25,567 FORM 990, PART I, LINE 19: THE COOPERATIVE PROVIDES BROADBAND INTERNET SERVICES WITHIN ITS SERVICE AREA ON A NON-PATRONAGE BASIS. SUCH SERVICES ARE PROVIDED THROUGH A WHOLLY-OWNED SUBSIDIARY THAT IS TREATED AS A DISREGARDED ENTITY UNDER FEDERAL TAX LAW. BECAUSE THE LOSSES FROM THESE OPERATIONS ARE USED TO OFFSET FUTURE NET MARGINS DERIVED FROM THE SUBSIDIARY AND ARE NOT ALLOCATED TO THE MEMBERS, PART I, LINE 19 IS REFLECTIVE OF NET INCOME (LOSS) FROM THE BROADBAND OPERATIONS. 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 BY DISTRICT. 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 5. AMENDMENT TO THE BYLAWS 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 COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY, AND ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS PERIODICALLY REVIEWED WITH EMPLOYEES AND TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE CEO. THE BOARD AND THE CEO UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. FORM 990, PART VI, SECTION C, LINE 18 ONCE THE FORM 990 FOR THE YEAR IS ELECTRONICALLY FILED, THE COOPERATIVE WILL UPLOAD A PDF COPY TO GUIDESTAR AT WWW.GUIDESTAR.ORG. THIS WILL ENSURE THAT THE PUBLIC HAS TIMELY ACCESS TO THE FORM 990. THE COOPERATIVE ALSO PROVIDES A LINK TO GUIDESTAR FROM ITS OWN WEBSITE. ENSURING A COPY OF THE FORM 990 IS UPLOADED STARTED WITH THE 2020 FORM 990. HOWEVER, UPON IMPLEMENTATION, THE COOPERATIVE ALSO UPLOADED THE 2019 FORM 990 TO GUIDESTAR SO THAT ALL YEARS SUBJECT TO PUBLIC INSPECTION ARE AVAILABLE. 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'S BYLAWS AND ANNUAL REPORT ARE AVAILABLE ON ITS WEBSITE AS WELL AS A SUMMARY OF THE CURRENT YEAR REGULAR BOARD MEETINGS AT WWW.MYCENTRAL.COOP. 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 AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND THE INSURANCE PREMIUMS PAID 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 VIII, LINE 2: 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 THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. 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 $ 6,815,584 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (140,750) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (303,754) PLUS: SALARIES & WAGES ALLOCATED TO NONOPERATING MARGINS 8,179 PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 997,498 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,131,641 TOTAL WAGES ACCRUED AND/OR PAID $ 8,508,398 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 2,595,078 OFFICE SUPPLIES 233,348 OUTSIDE SERVICES EMPLOYED 231,234 INJURIES AND DAMAGES 79,799 DUPLICATE CHARGES - CREDIT (53,936) ADVERTISING 112,218 MISCELLANEOUS GENERAL 222,695 DISTRICT & ANNUAL MEETINGS 180,943 DUES TO ASSOCIATED ORGANIZATIONS 165,180 TRUSTEES 211,028 MAINTENANCE OF GENERAL PLANT 960,766 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,938,353 LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (140,750) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,864,985) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,023,054) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,909,564 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, DONATIONS, AND/OR SPONSORSHIPS 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, DONATION, AND/OR SPONSORSHIP MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS 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 ITS 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 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: BROADBAND EXPENSES $ 532,489 SALES 924,859 TAXES 36,458 CONSUMER 551,286 OTHER DEDUCTIONS 820,474 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $2,865,566 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,654,267. PATRONAGE CAPITAL RETIRED - TOTAL -686,647. UNCLAIMED PATRONAGE CAPITAL RETAINED PER STATE LAW 331,348. DONATED CAPITAL 21,116. NET CHANGE IN MEMBERSHIPS 20,720. OCI - PENSIONS & BENEFITS 676,302. FORM 990, PART XII, LINE 2C: THE BOARD OF TRUSTEES HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. INNOVATION POINTE LLC PO BOX 1809 STILLWATER OK 74076 454383291 SOFTWARE OK 130935 1351445 CENTRAL RURAL ELECTRIC COOPERATIVE INC CENTRANET LLC PO BOX 1809 STILLWATER OK 74076 BROADBAND OK 7111387 2875593 CENTRAL RURAL ELECTRIC COOPERATIVE INC CENTRAL COMMUNITY FOUNDATION PO BOX 1809 STILLWATER OK 74076 204700369 DONATIONS OK 501(C)(3) 10 CENTRAL RURAL ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 CENTRAL COMMUNITY FOUNDATION N N/A - LESS THAN $50,000 CENTRAL COMMUNITY FOUNDATION O N/A - LESS THAN $50,000 CENTRAL COMMUNITY FOUNDATION Q N/A - LESS THAN $50,000