2024-11-13T15:48:00-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 740711255 JASPER NEWTON ELECTRIC COOPERATIVE INC JASP 4094232241 812 SOUTH MARGARET AVE KIRBYVILLE TX 75956 SHELLEY POWELL DIRECTOR OF FINANCE 4094232241 2024-11-13 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-11 X 2023 2024-10-15 13:58:12Z MARK TAMPLIN 812 SOUTH MARGARET AVE KIRBYVILLE TX 75956 62860809 0 X WWW.JNEC.COM X 1944 TX TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 9 9 123 0 0 0 0 0 65114603 62451901 68520 115286 43515 97671 65226638 62664858 1685 6870 1665373 1259426 9447244 10108640 0 0 0 54112336 51289922 65226638 62664858 0 0 155982953 160922012 80830935 85624178 75152018 75297834 NONE 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 23,783 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 1 1 0 0 1 32 0 123 1 0 0 0 0 0 62138625 1818817 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 0 1 1 1 1 0 X SHELLEY POWELL DIRECTOR OF FINANCE 4094232241 812 S MARGARET AVE KIRBYVILLE TX 75956 X HENRY BISCAMP PRESIDENT (JAN-APRIL) 5.30 X X 4634 0 0 PATRICK BROWN PRESIDENT 8.50 X X 16901 0 0 DAVID JONES DIRECTOR 4.90 X 21301 0 0 ALISON MATHEWS DIRECTOR 7.00 X 9784 0 0 DENNIS MULDROW SECRETARY/TREASURER 35.50 X X 21537 0 0 MACK ROSE VICE PRESIDENT 38.20 X X 19901 0 0 GARY SATTERWHITE DIRECTOR 2.50 X 14301 0 0 PAUL SIMMONS DIRECTOR 8.20 X 11401 0 0 DOUGLAS SMITH DIRECTOR 26.10 X 13108 0 0 GODWIN TURK DIRECTOR 35.50 X 13108 0 0 MARK TAMPLIN GENERAL MANAGER 50.00 X 252201 0 123078 SHELLEY POWELL DIRECTOR OF FINANCE 40.00 X 132958 0 38121 KEVIN ALEX STARK ENERGY AUDITOR 54.00 X 146082 0 37623 AARON CRAWFORD ASST. MANAGER OF OPERATION 40.00 X 139758 0 52614 DENNIS JOEY DAVIS ASST. MANAGER ADMIN 40.00 X 135965 0 64720 JOHN HANCOCK DIRECTOR OF CONSTRUCTION 40.00 X 126437 0 98819 BRANDON WELLMAN SERVICEMAN 50.00 X 122869 0 33659 1202246 0 448634 24 0 1 0 BRIGHT STAR SOLUTIONS INC PO BOX 667 SOUR LAKE TX 77659 UTILITY CONTRACTOR WORK 501454 PARKLINE SOUTH LLC 300 VESTAVIA PARKWAY STE 1200 BIRMINGHAM AL 35216 SUBSTATION UPGRADE 279112 POWER ENGINEERS INC 3940 GLENBROOK DR HAILEY ID 83333 PROFESSIONAL ENGINEERING SERVICES 270792 REI UTILITY SERVICES LLC 710 LUCAS DRIVE ATHENS TX 75751 UTILITY CONTRACTOR WORK 265835 CLEAR VIEW UNLIMITED INC 3417 OLD SPURGER HIGHWAY SILSBEE TX 77656 ROW TREE TRIMMING 192523 9 X SALES OF ELECTRICITY 221000 58524792 58524792 PATRONAGE DIVIDENDS 221000 1880256 1880256 TRANSMISSION LEASE 221000 1315729 1315729 SERVICE FEES 221000 731124 731124 62451901 115286 115286 260239 195951 64288 64288 POLE ATTACHMENT INCOME 221000 33383 33383 33383 62664858 62516189 0 148669 X 6870 1259426 692334 6093598 1312146 1538505 472057 3249244 5099721 PURCHASED POWER 37686253 DISTRIBUTION EXPENSE 2582428 ADMIN & GENERAL EXPENSE 1460676 CONSUMER EXPENSE 839898 371702 62664858 1793974 1448591 155397 3594607 2671629 2496056 1264822 1483061 3079181 2649473 184628348 67722764 114378839 116905584 27812811 29303934 4826300 3040706 155982953 160922012 9573346 10036617 102375 114194 62453974 62465716 8701240 13007651 80830935 85624178 X 352800 355290 0 0 74799218 74942544 75152018 75297834 155982953 160922012 X 0 145816 X X 0 1 X 0 0 0 1 X 1244104 1244104 3123438 2913332 210106 171263554 64809432 106454122 8997252 8997252 116905584 MEMBERSHIPS IN ASSOC ORGS 3005 C PATRONAGE CAPITAL-TEC 504206 C PATRONAGE CAPITAL-CFC 646811 C PATRONAGE CAPITAL-COBANK 2065865 C CAPITAL TERM CERTIFICATES 1198098 C INVESTMENT IN SUBSIDIARY 12630 C PATRONAGE CAPITAL-ETEC 24873319 C 29303934 CONSUMER DEPOSITS 1501284 POSTRETIREMENT MEDICAL INSURANCE 5183899 ACCRUED OPERATING TAXES 43312 DEFERRED CREDITS - UNCLAIMED PATRONAGE CAPITAL 1317484 DEFERRED CREDITS - OTHER 4961672 13007651 X 62662358 0 62662358 2500 2500 62664858 61402932 0 61402932 1261926 1261926 62664858 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 REPORTED TO 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 STATE LAW. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE REPORTED TO 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 STATE LAW. THE AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE REPORTED TO 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. FINALLY, THE COOPERATIVE HAS PUT INTO PLACE AN "OPERATION ROUND-UP" PLAN. MEMBERS WHO WISH TO PARTICIPATE IN THE PLAN VOLUNTARILY ROUND THEIR ELECTRIC BILLS UP TO THE NEAREST WHOLE DOLLAR. THE DIFFERENCE IS USED TO FUND THE PLAN. THE "OPERATION ROUND-UP" FUNDS ARE MAINTAINED IN A SEPARATE ACCOUNT AND USED TO SUPPORT EDUCATION PROJECTS, YOUTH PROJECTS, COMMUNITY PROJECTS, AND EMERGENCY ASSISTANCE WITHIN THE COMMUNITIES AND AREAS SERVED BY THE COOPERATIVE. 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 POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, 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: NON-OPERATING EXPENSES RECLASSED TO DONATIONS 2,500. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 1,259,426. NON-OPERATING EXPENSES RECLASSED TO DONATIONS 2,500. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS 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". 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 X X 0 0 0 MARK TAMPLIN GENERAL MANAGER 244325 0 250 0 7626 0 110803 0 12275 0 375279 0 0 0 JOHN HANCOCK DIRECTOR OF CONSTRUCTION 122262 0 250 0 3925 0 74447 0 24372 0 225256 0 0 0 DENNIS JOEY DAVIS ASST. MANAGER ADMIN 131700 0 225 0 4040 0 40396 0 24324 0 200685 0 0 0 AARON CRAWFORD ASST. MANAGER OF OPERATION 139758 0 0 0 0 0 28488 0 24126 0 192372 0 0 0 KEVIN ALEX STARK ENERGY AUDITOR 143512 0 0 0 2570 0 13222 0 24401 0 183705 0 0 0 SHELLEY POWELL DIRECTOR OF FINANCE 132858 0 100 0 0 0 37923 0 198 0 171079 0 0 0 BRANDON WELLMAN SERVICEMAN 122869 0 0 0 0 0 9533 0 24126 0 156528 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. MARK TAMPLIN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 99,301 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,502 TOTAL REPORTED IN COLUMN C $ 110,803 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (99,301) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 48,920 EXPENSE TO THE COOPERATIVE $ 60,422 JOHN HANCOCK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 68,480 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,967 TOTAL REPORTED IN COLUMN C $ 74,447 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (68,480) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,963 EXPENSE TO THE COOPERATIVE $ 32,930 DENNIS JOEY DAVIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,913 EMPLOYER CONTRIBUTION TO 401(K) PLAN 483 TOTAL REPORTED IN COLUMN C $ 40,396 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,913) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,041 EXPENSE TO THE COOPERATIVE $ 27,524 AARON CRAWFORD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,899 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,589 TOTAL REPORTED IN COLUMN C $ 28,488 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,899) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,838 EXPENSE TO THE COOPERATIVE $ 35,427 KEVIN ALEX STARK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 6,362 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,860 TOTAL REPORTED IN COLUMN C $ 13,222 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (6,362) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,761 EXPENSE TO THE COOPERATIVE $ 25,621 SHELLEY POWELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,944 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,979 TOTAL REPORTED IN COLUMN C $ 37,923 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,944) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,892 EXPENSE TO THE COOPERATIVE $ 33,871 BRANDON WELLMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 3,726 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,807 TOTAL REPORTED IN COLUMN C $ 9,533 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (3,726) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,761 EXPENSE TO THE COOPERATIVE $ 24,568 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. THE DISCUSSION AND REVIEW TOOK PLACE AT A REGULAR BOARD MEETING PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY, GENERAL APPRAISAL, AND FORMS 990 OF OTHER COOPERATIVES 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 GENERAL MANAGER UTILIZES A COMPENSATION SURVEY, GENERAL APPRAISAL, AND FORMS 990 OF OTHER COOPERATIVES 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 PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING, AND WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER UPON REQUEST. 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 ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE 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 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 $ 6,785,932 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (145,976) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (161,199) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 18,282 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,008,479 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 952,068 TOTAL WAGES ACCRUED AND/OR PAID $ 9,457,586 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,385,525 OFFICE SUPPLIES 452,723 OUTSIDE SERVICES 90,474 PROPERTY INSURANCE 449,168 INJURIES AND DAMAGES 39,927 REGULATORY COMMISSION 102,472 DIRECTORS 221,145 ANNUAL MEETING 8,342 ADVERTISING AND DUES 67,996 MISCELLANEOUS GENERAL 50,306 MAINTENANCE OF GENERAL PLANT 344,374 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,212,452 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (145,976) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,044,257) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (561,543) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,460,676 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 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: SALES EXPENSE 62,279 TAXES 44,896 TRANSMISSION 261,763 OTHER DEDUCTIONS $ 2,764 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 371,702 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 1,259,426. PATRONAGE CAPITAL RETIRED -1,000,000. NET CHANGE IN MEMBERSHIPS 2,490. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSIONS AND BENEFITS -116,100. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. JASPER-NEWTON RURAL DEVELOPMENT INC 812 SOUTH MARGARET AVENUE KIRBYVILLE TX 75956 752732687 SELL/MONITOR ALARMS AND SECURITY SYSTEMS TX JASPER-NEWTON ELECTRIC COOPERATIVE INC C 12630 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0