2024-11-11T14:47:30-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 880106922 MT WHEELER POWER INC MTWH 7752898981 1600 GREAT BASIN BLVD ELY NV 89301 KEVIN ROBISON CEO 7752898981 2024-10-17 1 0 WILLIAM M MILLER P00439459 8067473806 2024-10-17 X 2023 2024-10-15 13:58:12Z KEVIN ROBISON 1600 GREAT BASIN BLVD ELY NV 89301 42698536 0 X WWW.MWPOWER.NET X 1963 NV TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 9 44 0 1977 0 0 0 41125758 42231355 36532 166744 254197 259941 41416487 42658040 8760 7614 1904482 838741 4877929 5321836 0 0 0 34786635 36559634 41577806 42727825 -161319 -69785 62568313 63550937 25137466 27295136 37430847 36255801 X TO PROVIDE ITS MEMBERS WITH SAFE, RELIABLE, CONVENIENT AND EQUITABLE ENERGY SERVICES AND OTHER PRODUCTS DEEMED NECESSARY AND BENEFICIAL TO MEMBERS. MT. WHEELER POWER ALSO RECOGNIZES ITS EMPLOYEES AS ITS MOST VALUABLE ASSET AND SEEKS TO PROVIDE OPPORTUNITIES FOR THEM WHILE KEEPING A BALANCE BETWEEN THE NEEDS OF THE COOPERATIVE'S MEMBERS AND EMPLOYEES. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 7,605 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 1 0 0 0 0 0 0 0 0 0 1 114 0 44 1 1 1 0 0 0 0 43506216 896420 0 0 0 X 9 9 1 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X KEVIN ROBISON CEO 7752898981 1600 GREAT BASIN BLVD ELY NV 89315 X JERALD ANDERSON SECRETARY 11.50 X X 16470 0 0 RICK HENDRIX PRESIDENT 14.00 X X 17220 0 0 MARY KERNER TREASURER 2.30 X X 11720 0 0 RONALD MILLER SECRETARY (JAN-MAY) 2.20 X X 4456 0 0 RON NIMAN VICE PRESIDENT 2.30 X X 10720 0 0 CODY ODGERS DIRECTOR 2.30 X 10970 0 0 MARTIN PLASKETT DIRECTOR 2.30 X 11470 0 0 ROBERT PRATT DIRECTOR 3.20 X 11470 0 0 WADE ROBISON DIRECTOR 5.10 X 11970 0 0 MONICA SIMON DIRECTOR (JUNE-DEC) 9.80 X 8370 0 0 KEVIN ROBISON CEO 55.00 X 252505 0 119665 PATRICIA STANTON ACCOUNTING MANAGER 40.00 X 154544 0 95633 SHELLIE WATTS MEMBER SERVICES MANAGER/HR 40.00 X 151546 0 108580 MARTIN BURDICK SENIOR FOREMAN LINEMAN 52.00 X 170482 0 104204 WILLIAM RICCI OPERATIONS MANAGER 40.00 X 149617 0 107028 TIM UHALDE ENGINEERING MANAGER 50.00 X 147466 0 107299 PHILIP HECKETHORN SENIOR FOREMAN LINEMAN 45.00 X 143427 0 107044 JASON MCNUTT LINEMAN 46.00 X 142532 0 102744 1426955 0 852197 23 0 1 0 INTERMOUNTAIN CONSUMER PROF ENGINEERS 1145 E SOUTH UNION AVE MIDVALE UT 84047 ENGINEERING SERVICES 242310 CACHE VALLEY ELECTRIC COMPANY 875 NORTH 1000 WEST LOGAN UT 84323 LINE CONSTRUCTION 241942 PROFESSIONAL COMPUTER SOLUTIONS PO BOX 70 DENISON LA 51442 SOFTWARE FEES AND MAINTENANCE 195653 CHAVIRA TREE TRIMMING 670 26TH STREET BATTLEMOUNTAIN NV 89820 TREE TRIMMING SERVICES 138270 4 X SALES OF ELECTRICITY 221000 41909467 41909467 PATRONAGE DIVIDENDS 221000 230972 230868 104 SERVICE FEES 221000 90916 90916 42231355 148094 148094 1500 0 1500 1500 1500 18650 0 18650 18650 18650 38216 40496 -2280 -2004 -276 POLE ATTACHMENT INCOME 221000 258572 258572 SECURITY SYSTEM REVENUE 561700 1385 1385 INTERNET SERVICE 517000 764 764 260721 42658040 42247897 1977 408166 X 7614 838741 997309 3106878 323034 647476 247139 879465 2520177 PURCHASED POWER 29921680 DISTRIBUTION EXPENSE 1416205 ADMIN & GENERAL EXPENSE 712468 CONSUMER EXPENSE 443333 666306 42727825 2668126 737059 2334001 3072196 2736154 4264404 5153941 856997 941568 93458745 46822344 46605259 46636401 5101331 5011813 62568313 63550937 4921879 4518742 995616 1031604 17338196 19765848 1881775 1978942 25137466 27295136 X 23860 23860 0 0 37406987 36231941 37430847 36255801 62568313 63550937 X -69785 -1105261 X X 0 1 X 0 0 0 1 X 629047 629047 12082107 4042810 8039297 79263214 42779534 36483680 1484377 1484377 46636401 PATRONAGE CAPITAL - CFC 987752 C PATRONAGE CAPITAL - CRC 6852 C PATRONAGE CAPITAL - NISC 13288 C PATRONAGE CAPITAL - NRTC 96774 C PATRONAGE CAPITAL - FEDERATED 278674 C PATRONAGE CAPITAL - DESERET GENERATION & TRANSMISSION 2807048 C CAPITAL TERM CERTIFICATES - CFC 501771 C INVESTMENT IN MEMBERSHIPS 12000 C ENERGY CONSERVATION LOANS 71959 C MEMBER CAPITAL SECURITIES - CFC 200000 C PATRONAGE CAPITAL - WESTERN UNITED 35695 C 5011813 CONSUMER DEPOSITS 1513832 OTHER DEFERRED CREDITS 55856 ACCRUED TAXES AND FRANCHISE FEES 277627 UNAMORTIZED GAIN ON REACQUIRED DEBT 131627 1978942 X 42656041 0 42656041 1999 1999 42658040 41887085 0 41887085 840740 840740 42727825 PART IV, LINE 2B: PURSUANT TO SECTION 81.507 OF THE NEVADA REVISED STATUTES CODE AND THE COOPERATIVE'S BYLAWS, THE COOPERATIVE CAN RETAIN ANY CAPITAL CREDIT OF A MEMBER, WHO IS RESIDENT OF NEVADA, WHICH REMAINED UNCLAIMED FOR A PERIOD OF ONE YEAR. THE COOPERATIVE HAS CHOSEN TO APPLY THESE UNCLAIMED PATRONAGE CAPITAL CREDITS TOWARDS (A) YOUTH LEADERSHIP AND WORK SCHOLARSHIPS TO QUALIFYING INDIVIDUALS AND (B) GRANTS, SPONSORSHIPS AND DONATIONS TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. IN THE STATE OF UTAH, PURSUANT TO UTAH'S UNIFORM AGRICULTURAL COOPERATIVE ASSOCIATION ACT (TITLE 3, CHAPTER 1, SECTION 11), THE COOPERATIVE CAN RETAIN CAPITAL CREDITS GIVEN TO ITS MEMBERS THAT REMAIN UNCLAIMED FOR A PERIOD OF THREE YEARS, BUT CAN ONLY APPLY THESE UNCLAIMED CAPITAL CREDITS TO UTILITY BILL ASSISTANCE OF LOW-INCOME PERSONS AND SCHOLARSHIPS FOR HIGH SCHOOL SENIORS. THEREFORE UNCLAIMED CAPITAL CREDITS ASSOCIATED WITH ACCOUNTS RESIDING IN THE STATE OF UTAH ARE ALSO HELD BY THE COOPERATIVE TO (A) ASSIST LOW-INCOME PERSONS TO PAY THEIR UTILITY BILLS, AND (B) TO PROVIDE SCHOLARSHIPS TO LOCAL GRADUATING HIGH SCHOOL SENIORS. PART X, LINE 2: THE CORPORATION HAS ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE CORPORATION IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE CORPORATION DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS 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: EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 1,999. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 1,999. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 838,741. 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 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". X 0 0 X X 0 0 0 KEVIN ROBISON CEO 213591 0 15000 0 23914 0 33225 0 86440 0 372170 0 0 0 MARTIN BURDICK SENIOR FOREMAN LINEMAN 110662 0 21086 0 38734 0 17551 0 86653 0 274686 0 0 0 SHELLIE WATTS MEMBER SERVICES MANAGER/HR 137364 0 3750 0 10432 0 21837 0 86743 0 260126 0 0 0 WILLIAM RICCI OPERATIONS MANAGER 136486 0 2000 0 11131 0 21520 0 85508 0 256645 0 0 0 TIM UHALDE ENGINEERING MANAGER 142293 0 4000 0 1173 0 22312 0 84987 0 254765 0 0 0 PHILIP HECKETHORN SENIOR FOREMAN LINEMAN 112591 0 15364 0 15472 0 18405 0 88639 0 250471 0 0 0 PATRICIA STANTON ACCOUNTING MANAGER 141684 0 3750 0 9110 0 21837 0 73796 0 250177 0 0 0 JASON MCNUTT LINEMAN 111733 0 23439 0 7360 0 17732 0 85012 0 245276 0 0 0 PART I, LINE 1A PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL REIMBURSE DIRECTORS AND EMPLOYEES FOR THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE. TWO INDIVIDUALS REPORTED ON FORM 990 PART VII, DIRECTOR ANDERSON AND NIMAN, RECEIVED THIS BENEFIT DURING THE YEAR. ZEKE STANTON FAMILY RELATIONSHIP - OFFICER (P. STANTON) 139060 EMPLOYMENT 0 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 LOSS OF $69,785, WHICH IS THE EFFECT OF THE TRANSFERS FROM OTHER EQUITIES TO ALLOCATED PATRONAGE CAPITAL. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: (A) - NET LOSS ON PAGE 1, PART I, LINE 19 $ (69,785) (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 838,741 TOTAL 2023 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 768,956 FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN RICK HENDRIX (PRESIDENT), AND KEVIN ROBISON (CEO). BOTH INDIVIDUALS SERVED ON THE BOARD OF DESERET GENERATION & TRANSMISSION AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE III BOARD OF DIRECTORS SECTION 3.04 NOMINATIONS, AMENDED 3.04.1 TO STATE "SUCH NOMINATION SHALL BE MADE IN WRITING ON A FORM PROVIDED BY THE COOPERATIVE AND THE WRITTEN FORM MUST BE DELIVERED TO THE COOPERATIVE'S OFFICE IN ELY, NEVADA, BY THE DATE AND TIME SO DETERMINED BY THE BOARD OF DIRECTORS, AT WHICH TIME AND DATE NOMINATIONS SHALL CLOSE. MEMBERS SHALL HAVE NO LESS THAN 30 CALENDAR DAYS TO GATHER SIGNATURES IN SUPPORT OF A PETITION FOR NOMINATION." SECTION 3.06, DIRECTORATE DISTRICTS STATES THAT THE COOPERATIVE SHALL HAVE NINE (9) DIRECTORATE DISTRICTS, EACH REPRESENTED BY ONE DIRECTOR. THE SECTION ALSO INCLUDES NUMBERS AND DESCRIPTIONS OF EACH DISTRICT. SECTION 3.07 ELECTION OF DIRECTORS, AMENDED 3.07.1 TO STATE "AS OF SUCH A DATE AND TIME TO BE DETERMINED BY THE BOARD OF DIRECTORS NO LATER THAN JANUARY OF THE ELECTION YEAR." THE SECTION GOES ON TO STATE IN 3.07.2 "AT A TIME DETERMINED BY THE BOARD OF DIRECTORS, BUT NO LATER THAN JANUARY OF THE ELECTION YEAR, THE BOARD OF DIRECTORS SHALL SET THE DATE AND TIME THAT THE RESULTS OF ALL THE VOTES CAST FOR THE ELECTION OF DIRECTORS WILL BE ANNOUNCED." 3.07.6 WAS AMENDED TO STATE " MEMBERS MAY VOTE BY MAIL-IN BALLOT, IN PERSON AT THE PLACE(S) DESIGNATED, OR BY OTHER MEANS, INCLUDING ELECTRONIC MEANS, AS IDENTIFIED IN THE VOTING INSTRUCIONS PROVIDED TO THE MEMBER. AFTER NOMINATIONS ARE CLOSED, ALL MEMEBERS ENTITLED TO VOTE WILL BE MAILED, BY REGULAR MAIL AN OFFICIAL BALLOT PACKAGE. THE BALLOT PACKAGE SHALL INCLUDE AN OFFICIAL BALLOT AND VOTING PROCEDURES AND INSTRUCTIONS. IN ORDER FOR ANY PAPER BALLOT TO BE COUNTED, THE RETURNED BALLOT OR ENVELOPE MUST CONTAIN THE SIGNATURE OF THE MEMBER. IN ORDER FOR AN ELECTRONIC BALLOT TO BE COUNTED, THE BALLOT MUST BE VERIFIED BY THE THIRD PARTY ADMINISTRATOR. EACH MEMBER WILL ONLY BE ALLOWED TO VOTE BY ONE BALLOT, PAPER OR ELECTRONIC. IN THE EVENT TWO BALLOTS ARE CAST, BOTH WILL BE VOIDED." PART 3.07.7 WAS ALSO AMENDED TO STATE "BALLOTS SHALL BE RECEIVED AT THE ADDRESS ON THE BUSINESS REPLY MAIL ENVELOPE BY THE TIME AND DATE SPECIFIED IN THE VOTING INSTRUCTIONS, FOR EITHER HAND DELIVERY OR MAILING, WHICH DATE SHALL BE DETERMINED BY THE BOARD OF DIRECTORS NO LATER THAN JANUARY OF THE ELECTION YEAR." THE SECTION GOES ON TO STATE "ALL ELECTRONIC BALLOTS MUST BE CAST BY 4:00 P.M. (NEVADA TIME) ON THE ABOVE DATE." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.MWPOWER.NET. 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, 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 12C THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF 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. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. WHEN A CONTRACT OR BUSINESS TRANSACTION IS UNDER CONSIDERATION AND A DIRECTOR OR EMPLOYEE KNOWS THAT HE, SHE, OR A CLOSE RELATIVE HAS A FINANCIAL INTEREST, THIS INTEREST IS REQUIRED TO BE DISCLOSED FULLY TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS SHALL DECIDE IF SUCH AN INTEREST SHOULD PREVENT THE COOPERATIVE FROM ENTERING INTO A PARTICULAR TRANSACTION OR CONTRACT. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS AND GENERAL MANAGER UTILIZE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER AND OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER. THE COMPENSATION SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN NEVADA 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. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO SUBMITS A WRITTEN REQUEST, SUBJECT TO APPROVAL. 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. EMPLOYER CONTRIBUTIONS 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 THE TOTAL AMOUNTS CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THEIR BENEFIT. 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 BORROWER OF THE RURAL UTILITIES SERVICE (RUS), THE ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RUS. 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 $ 4,104,187 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (114,836) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (323,878) PLUS: SALARIES AND WAGES ALLOCATED TO PURCHASE POWER 37,911 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 10,546 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 618,817 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 179,331 TOTAL WAGES ACCRUED AND/OR PAID $ 4,512,078 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $1,353,719 PUBLIC RELATIONS 66,134 ANNUAL MEETING 74,910 DUES AND SUBSCRIPTIONS 70,167 DIRECTORS 151,166 OUTSIDE SERVICES EMPLOYED 127,093 INSURANCE 137,756 MAINTENANCE OF GENERAL PLANT 454,835 MISCELLANEOUS GENERAL 25,487 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,461,267 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (7,614) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (114,836) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,144,869) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (481,480) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 712,468 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: INTERNET $ 1,277 SECURITY SYSTEM 722 SALES 83,250 TAXES 422,184 TRANSMISSION 156,583 OTHER DEDUCTIONS 2,290 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 666,306 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 ALL 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 838,741. PATRONAGE CAPITAL RETIRED - TOTAL -2,136,393. PATRONAGE CAPITAL RETIRED - DISCOUNT 192,391. 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.