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 850027414 CENTRAL VALLEY ELECTRIC COOPERATIVE INC CENT 5757463571 PO BOX 230 ARTESIA NM 88211 CHARLES PINSON EXECUTIVE VP/GENERAL MANAGER 5757463571 2024-10-28 1 0 WILLIAM M MILLER P00439459 8067473806 2024-10-28 X 2023 2024-10-15 13:58:12Z CHARLES PINSON PO BOX 230 ARTESIA NM 88211 72100384 0 X WWW.CVECOOP.ORG X 1937 NM TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 92 0 0 0 0 0 89284619 71336039 135064 662539 30604 30618 89450287 72029196 4995 10718 1664532 4301542 7420536 8017783 0 0 0 80348224 59506742 89438287 71836785 12000 192411 225823114 223211520 103972513 98729317 121850601 124482203 CENTRAL VALLEY ELECTRIC IS A MEMBER-FOCUSED ELECTRIC COOPERATIVE DEDICATED TO PERSONALIZED QUALITY SERVICE FOR ITS MEMBERS AND THE ECONOMIC VITALITY OF OUR COMMUNITY. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 14,985 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 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 1 1 0 0 1 50 0 92 1 0 0 0 0 0 76806850 821626 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X MICHAEL ANDERSON MGR OF FINANCE & ADMINISTRATION 5757463571 1403 N 13TH STREET ARTESIA NM 88210 X CHARLES WAGNER PRESIDENT 7.90 0.50 X X 32828 0 0 MICHAEL BENNETT VICE PRESIDENT 7.90 0.50 X X 33268 0 0 WESLEY PILLEY SECRETARY/TREASURER 6.10 0.50 X X 30547 0 0 JASON CIEMPA TRUSTEE 4.90 X 30118 0 0 STEVE SPENCE TRUSTEE 6.00 X 31142 0 0 LARRY BENEDICT TRUSTEE 7.70 X 25876 0 0 RUSTY GWYNNE TRUSTEE 9.20 X 32280 0 0 CHARLES PINSON JR GENERAL MANAGER & EXECUTIVE VP 41.60 0.50 X 263021 0 207377 MICHAEL ANDERSON MGR OF FINANCE & ADMINISTRATION 40.30 X 179806 0 144722 PHILIP MCKEE MGR OF OPERATIONS ENGINEERING 40.00 X 158139 0 56541 WADE NELSON MGR OF DISTRIBUTION ENGINEERING 43.30 X 147320 0 74494 AARON HORNER LINE SUPERINTENDENT 40.70 X 129852 0 103504 NICHOLAS DALEY SERVICEMAN 44.80 X 122914 0 39737 LUKE DAVIS SERVICEMAN 44.00 X 122764 0 37686 1339875 0 664061 41 0 1 0 ARC POWER-LINE CONSTRUCTION PO BOX 1745 ARTESIA NM 88211 CONSTRUCTION CONTRACTOR 943139 DEANS INC 409 COMMERCE ROAD ARTESIA NM 88210 CONSTRUCTION CONTRACTOR 625277 RMA ENGINEERING LLC PO BOX 673 CONCORDIA KS 66901 ENGINEERING SURVEYS 181373 HARCROW SURVEYING 2314 WEST MAIN STREET ARTESIA NM 88210 ENGINEERING SURVEYS 112199 4 X SALES OF ELECTRICITY 221000 68346283 68346283 PATRONAGE DIVIDENDS 221000 2968561 2968561 SERVICE FEES 221000 14715 14715 OTHER PROGRAM REVENUE 221000 6480 6480 71336039 439420 4866 434554 294307 71188 223119 223119 223119 POLE ATTACHMENT INCOME 221000 30618 30618 30618 72029196 71564024 0 465172 X 10718 4301542 1010985 4820898 793013 1008212 384675 1885602 6429417 PURCHASED POWER 46754312 DISTRIBUTION EXPENSE 2089677 ADMIN & GENERAL EXPENSE 1593632 CONSUMER EXPENSE 507178 246924 71836785 7602570 1854130 11007921 12512559 4444337 4429562 270604 258437 7465858 7712088 621636 665322 216211271 42298073 172413284 173913198 3798 3798 20596775 21862426 1396331 0 225823114 223211520 8383401 5961580 75338900 70949715 20250212 21818022 103972513 98729317 X 0 0 0 0 121850601 124482203 121850601 124482203 225823114 223211520 X 192411 1031721 1407470 X X 0 0 0 230767 230767 13756805 4046789 9710016 202223699 38251284 163972415 173913198 CAPITAL CREDITS-COBANK 991754 C CAPITAL CREDITS-FEDERATED 451649 C CAPITAL CREDITS-PVT 820 C CAPITAL CREDITS-WUESC 74826 C CAPITAL CREDITS-NRTC 162445 C CAPITAL CREDITS-NRUCFC 3573 C CAPITAL CREDITS-LEACO TEL 35103 C CAPITAL CREDITS-NISC 95491 C WFEC G&T-DONATED CAPITAL 17062027 C WFEC G&T 2984738 C 21862426 CUSTOMER DEPOSITS 202436 DEFERRED CREDITS 18984801 ACCUMULATED PROVISION FOR PENSIONS AND BENEFITS 248370 ACCRUED OPERATING TAXES 808827 FUEL COST ADJUSTMENT 1531885 CUSTOMER ADVANCES FOR CONSTRUCTION 41703 21818022 PART VII: THE AMOUNT OF INVESTMENTS - OTHER SECURITIES ON FORM 990, PAGE 11, PART X, LINE 12 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 VII HAS BEEN LEFT BLANK. X X 1 1 X X 0 0 0 CHARLES PINSON JR GENERAL MANAGER & EXECUTIVE VP 249044 0 4326 0 9651 0 177017 0 30360 0 470398 0 0 0 MICHAEL ANDERSON MGR OF FINANCE & ADMINISTRATION 163004 0 5956 0 10846 0 114362 0 30360 0 324528 0 0 0 AARON HORNER LINE SUPERINTENDENT 119155 0 3655 0 7042 0 73636 0 29868 0 233356 0 0 0 WADE NELSON MGR OF DISTRIBUTION ENGINEERING 134805 0 5472 0 7043 0 45134 0 29360 0 221814 0 0 0 PHILIP MCKEE MGR OF OPERATIONS ENGINEERING 142029 0 3920 0 12190 0 41641 0 14900 0 214680 0 0 0 NICHOLAS DALEY SERVICEMAN 120780 0 1858 0 276 0 10827 0 28910 0 162651 0 0 0 LUKE DAVIS SERVICEMAN 120596 0 1858 0 310 0 12376 0 25310 0 160450 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL REIMBURSE THE TRUSTEES AND GENERAL MANAGER FOR THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE. DURING THE YEAR, FOUR INDIVIDUAL REPORTED ON FORM 990, PART VII - (BENNETT, SPENCE, WAGNER AND GWYNNE) - RECEIVED 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. HEALTH CLUB DUES - PURSUANT TO THE COOPERATIVE'S WELLNESS PROGRAM, THE COOPERATIVE WILL REIMBURSE 50% OF HEALTH CLUB DUES FOR EMPLOYEES. DURING THE YEAR, FOUR INDIVIDUALS REPORTED ON FORM 990, PART VII - (ANDERSON, L. DAVIS, DALEY, AND HORNER) - RECEIVED THIS BENEFIT. 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS AND REPRESENT THE TRUE COST TO THE COOPERATIVE. CHARLES PINSON JR.: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 171,796 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,221 TOTAL REPORTED IN COLUMN C $ 177,017 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (171,796) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 56,460 EXPENSE TO COOPERATIVE $ 61,681 MICHAEL ANDERSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 110,861 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,501 TOTAL REPORTED IN COLUMN C $ 114,362 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (110,861) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,852 EXPENSE TO COOPERATIVE $ 41,353 AARON HORNER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 71,069 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,567 TOTAL REPORTED IN COLUMN C $ 73,636 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (71,069) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,760 EXPENSE TO COOPERATIVE $ 30,327 WADE NELSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 42,217 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,917 TOTAL REPORTED IN COLUMN C $ 45,134 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (42,217) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,538 EXPENSE TO COOPERATIVE $ 34,455 PHILIP MCKEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,753 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,888 TOTAL REPORTED IN COLUMN C $ 41,641 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,753) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,223 EXPENSE TO COOPERATIVE $ 34,111 NICHOLAS DALEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,548 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,279 TOTAL REPORTED IN COLUMN C $ 10,827 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,548) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,255 EXPENSE TO COOPERATIVE $ 26,534 LUKE DAVIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 10,084 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,292 TOTAL REPORTED IN COLUMN C $ 12,376 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (10,084) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,255 EXPENSE TO COOPERATIVE $ 26,547 FORM 990, PART I, LINE 19: 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 INCOME OF $192,411, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE AND FORM 990 REPORTING OF UNREALIZED GAINS AND LOSSES AS A COMPONENT OF OTHER CHANGES IN NET ASSETS IN LIEU OF REPORTING AS AN ITEM OF REVENUE OR INCOME. THE GAAP BASIS FINANCIAL STATEMENTS INCLUDE AN ACCRUAL FOR UNBILLED REVENUE BECAUSE THE COOPERATIVE'S BILLING CYCLE DOES NOT END ON THE LAST DAY OF THE MONTH. THEREFORE, IT HAS REVENUE IN DECEMBER OF EACH YEAR THAT IT HAS EARNED BUT WILL NOT BILL UNTIL THE FIRST BILLING CYCLE OF THE FOLLOWING YEAR. THE COOPERATIVE ESTIMATES THIS REVENUE AND RECORDS IT AS ACCRUED UNBILLED REVENUE IN ORDER TO MATCH THE REVENUE WITH THE YEAR EARNED. HOWEVER, THE COOPERATIVE ALLOCATES THE REVENUE TO MEMBERS IN THE YEAR IT IS BILLED RATHER THAN WHEN IT IS ACCRUED. THIS TIMING DIFFERENCE IS FAIR AND EQUITABLE BECAUSE IT MATCHES THE PATRONAGE DIVIDEND ALLOCATED WITH THE BILLING RECORDS USED TO ALLOCATE THE MARGINS. DUE TO THE TIMING OF WHEN THE COOPERATIVE ALLOCATES ACCRUED UNBILLED REVENUE, PAGE 1, PART I, LINE 19 ANNUALLY REPORTS NET INCOME EQUAL TO THE NET INCREASE IN ACCRUED UNBILLED REVENUE OR A NET LOSS EQUAL TO THE NET DECREASE IN UNBILLED REVENUE. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/23 $ 735,000 LESS: UNBILLED REVENUE 12/31/22 (633,000) ADD: OTHER CHANGES 90,411 (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 192,411 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 4,301,542 (C) - UNREALIZED GAIN - PART XI, LINE 5 $ 1,031,721 TOTAL 2023 NET MARGINS (A + B + C) $ 5,525,674 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. 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, 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. FORM 990, PART VI, SECTION B, LINE 12C TRUSTEES MUST DISCLOSE TO THE BOARD PRESIDENT AND EMPLOYEES MUST DISCLOSE TO THE GENERAL MANAGER ANY SITUATION, WHICH, IN HIS OR HER OPINION, VIOLATES, MAY VIOLATE, OR COULD APPEAR TO VIOLATE THE INTENT OF THIS POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S GENERAL MANAGER. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT NEW MEXICO AND THE NATION. THE GENERAL MANAGER USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT NEW MEXICO AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ANNUALLY, THE COOPERATIVE MAILS 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 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, DENTAL, VISION, 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 THE 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 TO RETIREES PRIOR TO JANUARY 1, 1995 THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. FORM 990, PART VIII, LINE 2C: 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 VIII, LINE 2B: THE COOPERATIVE AND WESTERN FARMERS ELECTRIC COOPERATIVE (WFEC), A RURAL ELECTRIC GENERATION AND TRANSMISSION COOPERATIVE, HAVE ENTERED INTO A WHOLESALE POWER CONTRACT WHERE WFEC WILL PROVIDE THE COOPERATIVE WITH ELECTRIC POWER. AS PART OF THE AGREEMENT THE COOPERATIVE MUST CONTRIBUTE EQUITY TO WFEC IN A MANNER AND AMOUNT SUCH THAT, AS OF JUNE 1, 2026, THE COOPERATIVE HAS CONTRIBUTED EQUITY TO WFEC COMPARABLE TO THE AMOUNT OF EQUITY CONTRIBUTED TO WFEC BY PRIOR EXISTING MEMBERS. THE PURPOSE OF THE CONTRIBUTION IS TO OBTAIN A POWER SUPPLY IN ORDER TO MEET THE TERMS OF THE WHOLESALE PURCHASE CONTRACT. PURSUANT TO APPROVAL BY THE NEW MEXICO PUBLIC REGULATION COMMISSION, THE EQUITY CONTRIBUTION IS RECOVERED MONTHLY FROM THE MEMBERS THROUGH THE SALE OF ELECTRICITY. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICES (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 $ 5,831,883 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (216,059) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (352,099) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,666,712 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 457,936 TOTAL WAGES ACCRUED AND/OR PAID $ 8,388,373 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,751,078 OFFICE SUPPLIES 201,781 OUTSIDE SERVICES 73,331 INJURIES AND DAMAGES 101,005 REGULATORY COMMISSION 450,566 MISCELLANEOUS GENERAL 326,172 TRUSTEES 299,211 DUES AND SUBSCRIPTIONS 162,628 MAINTENANCE OF GENERAL PLANT 60,469 MAINTENANCE OF SCADA 65,456 DUPLICATE CHARGES (32,571) ADVERTISING 52,213 ANNUAL MEETING 32,503 CAPITAL CREDITS 8,711 RENTS 38,429 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,590,982 LESS: RECLASS OF TRUSTEES FEES TO PART IX, LINE 5 (216,059) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,205,319) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (575,972) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,593,632 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 4,301,542. PATRONAGE CAPITAL RETIRED - TOTAL -2,919,177. UNRECOGNIZED POST RETIREMENT BENEFIT COSTS 25,105. FORM 990, PART XII, LINE 2B: AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR-END OF JUNE 30. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31. THE BOARD HAS AN APPOINTED AUDIT COMMITTEE WHICH IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. CENTRAL VALLEY ELECTRIC EDUCATION FOUNDATION PO BOX 230 ARTESIA NM 88211 850323120 SCHOLARSHIPS TO MEMBERS AND CHILDREN TO GO TO COLLEGE/UNIVERSITY NM 501(C)(3) PF CENTRAL VALLEY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 CENTRAL VALLEY ELECTRIC EDUCATION FOUNDATION N N/A - LESS THAN $50,000 CENTRAL VALLEY ELECTRIC EDUCATION FOUNDATION O N/A - LESS THAN $50,000