2025-11-17T15:57:07-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 741095072 CENTRAL TEXAS ELECTRIC COOPERATIVE INC CENT 8309922380 PO BOX 553 FREDERICKSBURG TX 78624 ATANACIO HINOJOSA CEO 8309922380 2025-11-14 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-14 X 2024 2025-03-06 01:10:19Z ATANACIO HINOJOSA PO BOX 553 FREDERICKSBURG TX 78624 86998278 0 X WWW.CTEC.COOP X 1947 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 11 11 162 0 0 0 0 0 80685458 85928408 341175 380730 560369 592983 81587002 86902121 14159 13712 5894386 2406081 9079845 10151298 0 0 0 66598612 74331030 81587002 86902121 0 0 244930841 257653207 135547918 145761063 109382923 111892144 PROVIDING OUR MEMBERS SAFE, RELIABLE, HIGH QUALITY SERVICE AT A REASONABLE COST. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 48,088 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 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 1 0 1 120 0 1 162 1 0 0 0 0 0 90584902 1608455 0 0 0 X 11 11 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X SHAWN STANLEY CFO 8309972126 386 FRIENDSHIP LANE FREDERICKSBURG TX 78624 X MARK HAHN PRESIDENT 15.80 X X 19440 0 0 JOSEPH WIESER VICE PRESIDENT 6.00 X X 16590 0 0 CONNIE STOCKBRIDGE TREASURER 4.00 X X 16890 0 0 JAMES LOW SECRETARY 4.30 X X 14340 0 0 MARK REEVE DIRECTOR 7.10 X 14940 0 0 TIM LEHMBERG DIRECTOR 3.40 X 14190 0 0 SAMUEL SCOTT OLGUIN DIRECTOR 1.40 X 13240 0 0 WYNNE WHITWORTH DIRECTOR 2.00 X 14190 0 0 FERMIN ORTIZ DIRECTOR 3.10 X 15840 0 0 WAYNE W SEIPP DIRECTOR 2.00 X 13940 0 0 DEBRA WHITE DIRECTOR (AUG-DEC) 10.00 X 6550 0 0 DOYLENE BODE DIRECTOR (JAN-JULY) 5.50 X 9610 0 0 ATANACIO HINOJOSA CEO 42.50 X 267462 0 62545 SHAWN STANLEY CFO 49.00 2.00 X 203690 0 81997 STEVE MURROW DIRECTOR OF OPERATIONS 40.80 X 172976 0 60927 DOUGLAS HENEDERSON FOREMAN 40.30 X 121246 0 34554 PATRICK STAHL SYSTEM SERVICES SUPERVISOR 40.50 X 146070 0 57745 JERMOY MORRISON FOREMAN 40.00 X 124213 0 37313 GREGORY KINDLE IT MANAGER 63.60 X 122513 0 43204 FERNANDO ALBITER DIRECTOR OF ENGINEERING 40.80 X 142123 0 36964 1470053 0 415249 23 0 1 0 JAMES POWER LINE CONSTRUCTION 43 SHOOTING CLUB ROAD BOERNE TX 78006 LINE CONSTRUCTION 4586930 TOWNSEND TREE SERVICE PO BOX 7015 MUNCIE IN 47304 ROW CLEARING 3766766 DAS UNDERGROUND UTILITIES LLC PO BOX 2391 BOERNE TX 78006 CONTRACT LABOR LINE CONSTRUCTION 1268147 SCHNEIDER ENGINEERING LTD 191 MENGER SPRINGS PARKWAY BOERNE TX 78006 ENGINEERING SERVICES 903462 NATIONAL INFORMATION SERVICES PO BOX 1147 MANDEN ND 58554 COMPUTER SERVICES 674540 9 X SALES OF ELECTRICITY 221000 84378930 84378930 PATRONAGE DIVIDENDS 221000 827527 827527 SERVICE FEES 221000 721951 721951 85928408 328541 328541 94763 42574 52189 52189 52189 205564 53583 151981 151981 POLE ATTACHMENT INCOME 221000 441002 441002 441002 86902121 86132578 0 769543 X 13712 2406081 1019357 6357631 983112 1330296 460902 4645582 9076443 PURCHASED POWER 49501406 DISTRIBUTION EXPENSE 7446032 ADMIN & GENERAL EXPENSE 2070046 CONSUMER EXPENSE 1100178 491343 86902121 2206323 3003796 591073 50000 11009783 11449335 5478440 3649130 4857239 4206099 323530204 96560411 213061933 226969793 6690026 7405056 1036024 919998 244930841 257653207 9894448 10923842 2175000 220535 432967 100943949 112874851 22313986 21529403 135547918 145761063 X 698325 711135 0 0 108684598 111181009 109382923 111892144 244930841 257653207 X 0 2509221 X X 0 1 X 1 0 0 1 X 2573042 2573042 15992946 3850116 12142830 288002388 92710295 195292093 16961828 16961828 226969793 ACCRUED OPERATING TAXES 1023451 CONSUMER DEPOSITS 951719 CUSTOMER ADVANCES FOR CONSTRUCTION 173 PATRONAGE CAPITAL PAYABLE 1985608 OVERBILLED POWER COST ADJUSTMENT 16342861 POSTRETIREMENT BENEFITS PROVISION 513505 DEFERRED CREDIT - ECON DEV GRANT 400000 DEFERRED CREDIT - OTHER 312086 21529403 X 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 TEXAS STATE LAW. AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE APPROVED BY 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 TEXAS STATE LAW. AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY 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 TEXAS STATE LAW. AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE APPROVED BY 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. PART X, LINE 2: THE COMPANIES HAVE 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 PRIMARY TAX POSITIONS FOR CTESC ARE THE TIMING DIFFERENCES IMPACTING TAXABLE INCOME. THE COMPANIES DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT THEIR TAX POSITIONS 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 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 IX HAS BEEN LEFT BLANK. 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 0 0 0 ATANACIO HINOJOSA CEO 224922 0 500 0 42040 0 38413 0 24132 0 330007 0 0 0 SHAWN STANLEY CFO 197267 0 500 0 5923 0 60536 0 21461 0 285687 0 0 0 STEVE MURROW DIRECTOR OF OPERATIONS 166134 0 500 0 6342 0 38707 0 22220 0 233903 0 0 0 PATRICK STAHL SYSTEM SERVICES SUPERVISOR 138030 0 500 0 7540 0 35489 0 22256 0 203815 0 0 0 FERNANDO ALBITER DIRECTOR OF ENGINEERING 139068 0 500 0 2555 0 10340 0 26624 0 179087 0 0 0 GREGORY KINDLE IT MANAGER 119800 0 500 0 2213 0 23383 0 19821 0 165717 0 0 0 JERMOY MORRISON FOREMAN 123056 0 500 0 657 0 19232 0 18081 0 161526 0 0 0 DOUGLAS HENEDERSON FOREMAN 119674 0 500 0 1072 0 16042 0 18512 0 155800 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. ATANACIO HINOJOSA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 28,113 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,300 TOTAL REPORTED IN COLUMN C $ 38,413 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (28,113) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,304 EXPENSE TO THE COOPERATIVE $ 49,604 SHAWN STANLEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 52,612 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,924 TOTAL REPORTED IN COLUMN C $ 60,536 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (52,612) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,579 EXPENSE TO THE COOPERATIVE $ 44,503 STEVE MURROW: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,962 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,745 TOTAL REPORTED IN COLUMN C $ 38,707 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,962) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,053 EXPENSE TO THE COOPERATIVE $ 32,798 PATRICK STAHL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 29,862 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,627 TOTAL REPORTED IN COLUMN C $ 35,489 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (29,862) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,978 EXPENSE TO THE COOPERATIVE $ 31,605 FERNANDO ALBITER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 4,634 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,706 TOTAL REPORTED IN COLUMN C $ 10,340 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (4,634) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,272 EXPENSE TO THE COOPERATIVE $ 25,978 GREGORY KINDLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 18,543 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,840 TOTAL REPORTED IN COLUMN C $ 23,383 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,543) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,105 EXPENSE TO THE COOPERATIVE $ 27,945 JEROMY MORRISON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 15,422 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,810 TOTAL REPORTED IN COLUMN C $ 19,232 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (15,422) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,047 EXPENSE TO THE COOPERATIVE $ 20,857 DOUGLAS HENDERSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,262 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,780 TOTAL REPORTED IN COLUMN C $ 16,042 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,262) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,418 EXPENSE TO THE COOPERATIVE $ 20,198 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 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, THE COOPERATIVE REQUIRES THE BOARD OF DIRECTORS, PRINCIPAL OFFICERS, AND COMMITTEE MEMBERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. THE BOARD OF DIRECTORS ALSO COMPLETE AND SIGN THE FORM 990 DISCLOSURE QUESTIONNAIRE. ALL INDIVIDUALS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD AS SOON AS POSSIBLE. PERIODIC REVIEWS ARE DONE TO ENSURE COMPLIANCE WITH THE COOPERATIVE CONFLICT OF INTEREST POLICIES. FORM 990, PART VI, SECTION B, LINE 15 AT THE BEGINNING OF THE YEAR, THE CEO MEETS WITH THE COOPERATIVE'S GOVERNING BOARD AND SETS SPECIFIC WRITTEN GOALS FOR THE UPCOMING YEAR. THESE GOALS ARE INCORPORTED INTO A MATRIX THAT IS USED FOR REVIEW AND EVALUATION OF THE CEO'S PERFORMANCE. IF THE BOARD DETERMINES THAT THE WRITTEN GOALS HAVE BEEN MET, THE CEO'S COMPENSATION IS DETERMINED USING CONSULATANT COMPENSATION STUDY RESULTS, AVAILABLE CEO COMPENSATION DATA FOR REGIONAL ELECTRIC COOPERATIVES OF SIMILAR SIZE AND THE MOST CURRENT COMPENSATION SURVEY CONDUCTED BY THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION. THE CEO USES CONSULTANT COMPENSATION STUDY RESULTS, AVALAIBLE DATA FOR REGIONAL ELECTRIC COOPERATIVES AND THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE. 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 BYLAWS ARE ALSO AVAILABLE ON COOPERATIVE'S WEBSITE. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. 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, KEY EMPLOYEES 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, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF 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. 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 $ 7,376,988 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (169,760) LESS: OFFICER EMPLOYEE BENEFITS REPORTED ON LINE 5 (144,542) LESS: KEY EMPLOYEE BENEFITS INCLUDED ON LINE 5 (60,927) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 10,541 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,611,279 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 722,144 TOTAL WAGES ACCRUED AND/OR PAID $11,345,723 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,261,042 OFFICE SUPPLIES 207,998 OUTSIDE SERVICES EMPLOYED 164,432 INSURANCE 666,876 REGULATORY COMMISSION 141,001 DUES 93,705 DIRECTORS 252,890 MAINTENANCE OF GENERAL PLANT 94,554 MISCELLANEOUS GENERAL 571,716 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,454,214 LESS: RECLASS OF NON-OPERATING ADMIN EXPENSE (71,500) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (169,760) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,503,188) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (639,720) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,070,046 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: OTHER DEDUCTIONS $ 295,680 TAXES - OTHER 195,197 TRANSMISSION 466 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 491,343 FORM 99O, 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 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 2024 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,406,081. PATRONAGE CAPITAL RETIRED - TOTAL -2,473,762. PATRONAGE CAPITAL RETIRED - DISCOUNT 201,281. NET CHANGE IN MEMBERSHIPS 12,810. OTHER COMPREHENSIVE INCOME - POST RETIREMENT BENEFITS -129. EQUITY METHOD INCOME FROM SUBSIDIARY 187,940. DEFERRED REVENUE RECOGNIZED 2,175,000. FORM 990, PART XII, LINE 2C: THE EXECUTIVE COMMITTEE OVERSEES THE FINANCIAL STATEMENT AUDIT AND RECOMMENDS THE INDEPENDENT AUDITOR TO THE FULL BOARD. CENTRAL TEXAS ELECTRIC OPERATION ROUNDUP INC PO BOX 553 FREDERICKSBURG TX 78624 743072134 DISBURSMENT OF FUNDS FOR CHARITABLE PURPOSES IN COOPERATIVE'S SERVICE AREA TX 501(C)(3) 7 CENTRAL TEXAS ELECTRIC COOPERATIVE INC 1 CENTRAL TEXAS EXTRA-SERVICES CORPORATION PO BOX 553 FREDERICKSBURG TX 78624 742863542 INTERNET ACCESS PROVIDER TX CENTRAL TEXAS ELECTRIC COOPERATIVE INC C 689260 1614063 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 CENTRAL TEXAS ELECTRIC OPERATION ROUNDUP INC O N/A - LESS THAN $50,000 CENTRAL TEXAS EXTRA-SERVICES CORPORATION Q 285468 INVOICES AND OTHER RECORDS CENTRAL TEXAS EXTRA-SERVICES CORPORATION R 558317 BILLING & COLLECTING CENTRAL TEXAS EXTRA-SERVICES CORPORATION O 206898 LABOR HOURS AND RATES