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 750199752 COLEMAN COUNTY ELECTRIC COOPERATIVE INC COLE 3256252128 PO BOX 860 COLEMAN TX 76834 SYNDA SMITH GENERAL MANAGER/CEO 3256252128 2024-10-23 1 0 WILLIAM M MILLER P00439459 8067473806 2024-10-23 X 2023 2024-10-15 13:58:12Z SYNDA SMITH PO BOX 860 COLEMAN TX 76834 17568981 0 X WWW.COLEMANELECTRIC.ORG X 1937 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 42 0 22718 27230 0 0 19074677 17328175 42812 25805 46925 88861 19164414 17442841 6703 6403 1244090 3088710 2460354 2422784 0 0 0 15453267 11924944 19164414 17442841 0 0 35332893 38634414 10586505 11460846 24746388 27173568 X COLEMAN COUNTY ELECTRIC COOPERATIVE, INC. DEDICATES ITSELF TO THE IMPROVEMENT OF ITS MEMBERS' LIFESTYLE AND THE ECONOMIC ENVIRONMENT OF ITS SERVICE AREA. THE COOPERATIVE IS COMMITTED TO PROVIDING SAFE, RELIABLE ELECTRIC SERVICE AT THE LOWEST PRACTICAL COST AND TO MEETING THE CHANGING NEEDS OF ITS MEMBERSHIP WITH A WELL-TRAINED, QUALITY WORK FORCE AND WITH THE USE OF SOUND BUSINESS PRACTICES. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 9,034 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 0 0 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 16 0 42 1 1 1 0 0 0 0 15426918 814796 0 0 0 X 7 7 1 0 0 0 1 1 1 1 0 0 0 1 1 1 0 1 1 1 0 0 X SYNDA SMITH GENERAL MANAGERCEO 3256252128 3300 N HWY 84 COLEMAN TX 76834 X ROGER KRUSE VICE PRESIDENT 3.50 X X 20703 0 0 BOB FUCHS DIRECTOR 3.00 X 13135 0 0 BRENT MCMILLAN PRESIDENT 3.00 X X 19842 0 0 RICHARD LANGE DIRECTOR 2.50 X 13288 0 0 DARLA WISE SECRETARY/TREASURER 2.10 X X 17551 0 0 DAVID WRIGHT DIRECTOR 2.00 X 9633 0 0 LES DOBBINS DIRECTOR 2.50 X 7536 0 0 SYNDA SMITH GENERAL MANAGER/CEO 45.00 X 138353 0 109609 240041 0 109609 1 0 1 0 M&M POWER GROUP LLC PO BOX 368 TUSCOLA TX 79562 POLE REPLACEMENT/TREE TRIMMING 886950 1 X SALES OF ELECTRICITY 221000 14812788 14812788 PATRONAGE DIVIDENDS 221000 2412522 2412522 SERVICE FEES 221000 102865 102865 17328175 25805 25805 6012 -6012 -6012 -6012 164833 120128 44705 44705 TWN INTERNET COMMISSION 517000 28730 28730 POLE ATTACHMENT INCOME 221000 21438 21438 50168 17442841 17372880 22718 47243 X 6403 3088710 349650 1439869 214624 299075 119566 356350 1416167 PURCHASED POWER 8810103 DISTRIBUTION EXPENSE 760524 ADMIN & GENERAL EXPENSE 487729 UNRELATED BUS. INC. TAX 5600 88471 17442841 X 901307 1007593 294832 1375705 1139822 3993 120460 116900 62674 47478086 25581841 20239369 21896245 12271994 14279619 128793 128001 35332893 38634414 1605374 1390357 67157 67541 8055907 9004102 858067 998846 10586505 11460846 X 47130 47485 0 0 24699258 27126083 24746388 27173568 35332893 38634414 X 0 2427180 X X 0 0 0 0 1 X 83511 83511 919163 897506 21657 45939456 24684335 21255121 535956 535956 21896245 PATRONAGE CAPITAL - CFC 402093 C PATRONAGE CAPITAL - TEC 583909 C PATRONAGE CAPITAL - OTHER 85357 C PATRONAGE CAPITAL - GSEC 12733231 C CAPITAL TERM CERTIFICATES - CFC 472959 C MEMBERSHIPS IN ASSOCIATED ORGS. 2070 C 14279619 CONSUMER DEPOSITS 455229 ACCRUED OPERATING TAXES 72891 POWER COST - OVERCOLLECTED 373852 DEFERRED CREDITS 96874 998846 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 REPORTED TO THE STATE OF TEXAS AND ARE 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 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 1 1 X X 0 0 0 SYNDA SMITH GENERAL MANAGER/CEO 132139 0 3228 0 2986 0 92875 0 16734 0 247962 0 0 0 PART I, LINE 1A PURSUANT TO TRAVEL POLICIES, THE COOPERATIVE WILL PAY FOR AIRLINE FLIGHTS AND MEALS FOR ANY SPOUSE ACCOMPANYING AN EMPLOYEE OR DIRECTOR ON A BUSINESS TRIP. DURING THE YEAR, FIVE INDIVIDUALS REPORTED ON PART VII OF THE FORM 990 (KRUSE, WRIGHT, MCMILLAN, DOBBINS, AND LANGE) RECEVIED THIS BENEFIT. SINCE THE COOPERATIVE CONSIDERS THE REIMBURSEMENT TO BE CONSISTENT TO A BONA FIDE BUSINESS PURPOSE, SUCH REIMBURSEMENTS WERE TREATED AS EXPENSES EXCLUDED FROM THE REPORTABLE COMPENSATION OF EACH. 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. SYNDA SMITH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 88,867 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,008 TOTAL REPORTED IN COLUMN C $ 92,875 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (88,867) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,387 EXPENSE TO THE COOPERATIVE $ 28,395 FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN SYNDA SMITH (EMPLOYEE OFFICER) AND BRENT MCMILLAN (DIRECTOR). BOTH SERVE ON THE BOARD OF GOLDEN SPREAD ELECTRIC COOPERATIVE AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. 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 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. THE 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 15A THE BOARD OF DIRECTORS UTILIZE A COMPENSATION SURVEY WHEN DETERMINING AND SETTING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT 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 PROVIDES A SUMMARIZED COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY. ALL NEW MEMBERS ARE GIVEN A COPY OF THE COOPERATIVE'S MEMBERS' BILL OF RIGHTS. FORM 990, PART VII, SECTION A, 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. EMPLOYEE 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, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND THE INSURANCE PREMIUMS PAID ON BEHALF OF AND FOR THEIR BENEFIT. 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 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, 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 $ 1,789,519 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (101,688) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (109,609) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 460,290 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 51,776 TOTAL WAGES ACCRUED AND/OR PAID $ 2,090,288 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 333,094 OFFICE SUPPLIES 67,494 OUTSIDE SERVICES 169,792 UTILITY COMMISSION 23,672 ANNUAL MEETING 47,095 MISCELLANEOUS GENERAL 146,461 DIRECTORS 119,894 ASSOCIATED DUES 33,053 MAINTENANCE OF GENERAL PLANT 29,045 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 969,600 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (101,688) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (258,506) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (121,677) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 487,729 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 CALENDAR TAX 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,088,710. PATRONAGE CAPITAL RETIRED - TOTAL -819,603. PATRONAGE CAPITAL RETIRED - DISCOUNT 157,718. NET INCREASE IN MEMBERSHIPS 355.