2025-11-17T12:39:26-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 750712525 RITA BLANCA ELECTRIC COOPERATIVE INC RITA 8062494506 PO BOX 1947 DALHART TX 790225947 GRACE SUBEALDEA CEO/GENERAL MANAGER 8062494506 2025-11-14 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-14 X 2024 2025-03-06 01:10:19Z GRACE SUBEALDEA PO BOX 1947 DALHART TX 790225947 64001588 0 X WWW.RITABLANCAELECTRIC.COM X 1945 TX TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 9 9 45 0 0 0 0 0 79033062 62696883 595608 1267883 9181 4320 79637851 63969086 24730 7740 19620098 12700790 3703872 3810729 0 0 0 56291720 47449827 79640420 63969086 -2569 0 150809043 161863768 29651686 31656316 121157357 130207452 NONE 0 0 SALE OF ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 9,885 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 46 0 45 1 0 0 0 0 0 68072957 2515630 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X TAMMY RINNE INSIDE OPERATIONS MANAGER 8062494506 12198 US HWY 87 DALHART TX 790225947 X CARL D FINCH CHAIRMAN 5.00 X X 30324 0 0 BRAD GREEN DIRECTOR 1.80 X 30324 0 0 BRADLEY MCBRYDE VICE CHAIRMAN 4.00 X X 30249 0 0 DARREN STALLWITZ DIRECTOR 3.00 X 24825 0 0 SHAD MCDANIEL DIRECTOR 3.30 X 27333 0 0 BRENT SPURLOCK SECRETARY/TREASURER 3.00 X X 30324 0 0 CHRIS SHELDON DIRECTOR 2.00 X 24825 0 0 WADE LENZ DIRECTOR 2.50 X 33250 0 0 DAWSON HIGGINS DIRECTOR 5.00 X 24900 0 0 ERIK BADILLO IT/OT MANAGER 50.00 X 118756 0 60548 PRESTON MEAD OUTSIDE OPERATIONS MANAGER 40.00 X 126051 0 50617 TAMMY RINNE INSIDE OPERATIONS MANAGER 40.00 X 153041 0 68686 GRACE SUBEALDEA CEO/GENERAL MANAGER 50.00 X 243055 0 92591 LARRY ARAGON LINEMAN 40.00 X 137739 0 72974 TRENT NEWMAN FOREMAN 40.00 X 130286 0 54440 JOHN POPE SUPERVISOR 40.00 X 135057 0 51920 SHAUN SCOFIELD LINE SUPERVISOR 40.00 X 148635 0 64104 DAWN STEPHENS EXECUTIVE ASSISTANT 40.00 X 126934 0 79023 1575908 0 594903 16 0 1 0 COOKE ELECTRICAL CONTRACTING INC 1000 N FOREST ST AMARILLO TX 79106 ELECTRICAL CONTRACTOR 1227301 MCNABB ENTERPRISES LLC PO BOX 309 HARTLEY TX 79044 CONSTRUCTION CONTRACTOR 1053487 PANHANDLE LINE SERVICE INC PO BOX 708 BORGER TX 79008 ELECTRICAL CONTRACTOR 357504 BURNS AND MCDONNELL PO BOX 411883 KANSAS CITY MO 64141 ENGINEERING CONTRACTOR 237164 VIZ ENGINEERING LLC 7717 MILWAUKEE AVE STE 500 103 LUBBOCK TX 79424 ENGINEERING CONTRACTOR 183020 7 X SALES OF ELECTRICITY 221000 59196667 59196667 PATRONAGE DIVIDENDS 221000 3383903 3383903 SERVICE FEES 221000 106292 106292 OTHER PROGRAM REVENUE 221000 10021 10021 62696883 1059893 1059893 207990 0 207990 207990 207990 33147 32502 645 645 POLE ATTACHMENT INCOME 221000 3675 3675 3675 63969086 62905518 0 1063568 X 7740 12700790 1169699 1647112 268258 550989 174671 457183 3501827 PURCHASED POWER 41956964 ADMIN & GENERAL EXPENSE 954612 DISTRIBUTION EXPENSE 433042 CONSUMER EXPENSE 129452 16747 63969086 5098528 6935731 8845621 12516597 5597171 4551401 1587319 1203165 284923 275051 121635944 32396236 84377808 89239708 5660 5660 42905715 45102294 2106298 2034161 150809043 161863768 6341053 5552968 10627 20126 11707573 10106004 11592433 15977218 29651686 31656316 X 8780 8785 0 0 121148577 130198667 121157357 130207452 150809043 161863768 X 0 9050095 X X 0 0 0 0 1 X 638401 638401 4536363 1250791 3285572 110189276 31145445 79043831 6271904 6271904 89239708 OTHER INVESTMENTS 228560 C CAPITAL TERM CERTIFICATES 380029 C PATRONAGE CAPITAL - GSEC 44198425 C INVESTMENTS IN ASSOCIATED ORGANIZATIONS - OTHER 1045 C PATRONAGE CAPITAL - TEC 294235 C 45102294 ACCUMULATED PROVISION FOR PENSIONS & BENEFITS 98746 CONSUMER DEPOSITS 99195 ACCRUED OPERATING TAXES 151198 DEFERRED CREDITS - GSEC REFUNDS 7416974 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 1317382 DEFERRED CREDITS - OTHER 6893723 15977218 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. 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. 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. 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. CONSEQENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS, SCHEDULE D, PART IX HAS BEEN LEFT BLANK. X 0 0 0 GRACE SUBEALDEA CEO/GENERAL MANAGER 200464 0 21891 0 20700 0 52124 0 40467 0 335646 0 0 0 TAMMY RINNE INSIDE OPERATIONS MANAGER 132939 0 13620 0 6482 0 31334 0 37352 0 221727 0 0 0 SHAUN SCOFIELD LINE SUPERVISOR 127680 0 11494 0 9461 0 26644 0 37460 0 212739 0 0 0 LARRY ARAGON LINEMAN 116851 0 10901 0 9987 0 35197 0 37777 0 210713 0 0 0 DAWN STEPHENS EXECUTIVE ASSISTANT 102632 0 10505 0 13797 0 40360 0 38663 0 205957 0 0 0 JOHN POPE SUPERVISOR 115543 0 10901 0 8613 0 33557 0 18363 0 186977 0 0 0 TRENT NEWMAN FOREMAN 116664 0 10110 0 3512 0 17638 0 36802 0 184726 0 0 0 ERIK BADILLO IT/OT MANAGER 106516 0 11433 0 807 0 19789 0 40759 0 179304 0 0 0 PRESTON MEAD OUTSIDE OPERATIONS MANAGER 108375 0 11909 0 5767 0 15765 0 34852 0 176668 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, 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. GRACIELA SUBEALDEA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,432 EMPLOYER CONTRIBUTION TO 401(K) PLAN 20,692 TOTAL REPORTED IN COLUMN C $ 52,124 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,432) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,176 EXPENSE TO THE COOPERATIVE $ 42,868 TAMMY RINNE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,572 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,762 TOTAL REPORTED IN COLUMN C $ 31,334 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,572) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,691 EXPENSE TO THE COOPERATIVE $ 29,453 SHAUN SCOFIELD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 15,332 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,312 TOTAL REPORTED IN COLUMN C $ 26,644 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (15,332) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,948 EXPENSE TO THE COOPERATIVE $ 25,260 LARRY ARAGON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,917 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,280 TOTAL REPORTED IN COLUMN C $ 35,197 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,917) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,691 EXPENSE TO THE COOPERATIVE $ 26,971 DAWN STEPHENS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 29,816 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,544 TOTAL REPORTED IN COLUMN C $ 40,360 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (29,816) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 14,529 EXPENSE TO THE COOPERATIVE $ 25,073 JOHN POPE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,333 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,224 TOTAL REPORTED IN COLUMN C $ 33,557 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (22,333) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,401 EXPENSE TO THE COOPERATIVE $ 26,625 TRENT NEWMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 7,783 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,855 TOTAL REPORTED IN COLUMN C $ 17,638 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (7,783) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,657 EXPENSE TO THE COOPERATIVE $ 23,512 ERIK BADILLO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,427 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,362 TOTAL REPORTED IN COLUMN C $ 19,789 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,427) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,255 EXPENSE TO THE COOPERATIVE $ 26,617 PRESTON MEAD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 4,886 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,879 TOTAL REPORTED IN COLUMN C $ 15,765 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (4,886) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,657 EXPENSE TO THE COOPERATIVE $ 24,536 FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAS 9 BOARD MEMBERS; ALL 9 ARE ALLOWED TO VOTE, HOWEVER, THE BOARD CHAIRMAN VOTES ONLY IN THE CASE OF A TIE. 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. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, THE COOPERATIVE WILL REQUIRE THE BOARD OF DIRECTORS TO DISCLOSE ALL POTENTIAL CONFLICTS OF INTERESTS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE INTERNAL RESOURCES AND A PERFORMANCE REVIEW WHEN DETERMINING AND SETTING THE COMPENSATION OF THE GENERAL MANAGER. THE GENERAL MANAGER UTILIZIES INTERNAL RESOURCES AND PERFORMANCE REVIEWS WHEN DETERMINING AND SETTING THE COMPENSATION OF EMPLOYEES MEETING THE DEFINITION OF OFFICER OR KEY EMPLOYEE, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, FINANCIAL STATEMENTS AND CONFLICT OF INTEREST POLICY TO ANY MEMBER WHO MAKES A WRITTEN REQUEST OF ANY SUCH DOCUMENT. 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 HIGLY 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 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 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: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 2,816,811 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (256,354) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (272,442) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 919,579 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 624,946 TOTAL WAGES ACCRUED AND/OR PAID $ 3,832,540 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 687,587 OFFICE SUPPLIES 99,998 OUTSIDE SERVICES 73,739 SAFETY, INJURY & DAMAGE PREVENTION 132,322 EMPLOYEE BENEFITS 129,134 DIRECTOR FEES 349,615 ANNUAL MEETING 55,885 INSTITUTIONAL & GOODWILL ADVERTISING 34,958 DUES TO ASSOCIATED ORGANIZATIONS 228,837 MAINTENANCE OF GENERAL PLANT 125,093 MISCELLANEOUS GENERAL EXPENSE 17,645 PUBLIC UTILITY COMMISSION 104,951 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,039,764 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (7,740) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (256,354) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (528,530) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (292,528) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 954,612 FORM 990, PART IX, LINE 4: PURSUANT TO FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO 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 MARGINS PRODUCED BY 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 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 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 12,700,790. PATRONAGE CAPITAL RETIRED - TOTAL -3,669,638. PATRONAGE CAPITAL RETIRED - DISCOUNT 2,992. NET CHANGE IN MEMBERSHIPS 5. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSION & BENEFITS 15,946. FORM 990, PART XII, LINE 2C: AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR-END OF JUNE 30TH. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31ST. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR.