2025-12-02T13:13:46-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 750273171 LIGHTHOUSE ELECTRIC COOPERATIVE INC LIGH 8069832814 PO BOX 600 FLOYDADA TX 79235 ALBERT DANIEL GENERAL MANAGER/EXECUTIVE VP 8069832814 2025-11-26 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-26 X 2024 2025-03-06 01:10:19Z X ALBERT DANIEL PO BOX 600 FLOYDADA TX 79235 39553150 0 X WWW.LIGHTHOUSE.COOP X 1939 TX TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 9 9 50 0 30027 28527 0 0 42348904 39274933 131160 123448 29637 20955 42509701 39419336 28136 34927 6197480 2246923 4323909 4680632 0 0 0 31960176 32456854 42509701 39419336 0 0 112090914 113602023 51546687 51808197 60544227 61793826 EMPOWERING OUR MEMBERS BY PROVIDING THE SAFEST, MOST RELIABLE, AND AFFORDABLE ENERGY SOLUTIONS THAT SAFE PRACTICES AND INFORMED PLANNING ALLOWS. 0 0 SALE OF ELECTRIC POWER TO MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 9,502 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 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 30 0 50 1 1 1 0 0 0 0 38531848 1228091 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 0 1 0 1 0 0 X ALBERT DANIEL GENERAL MANAGEREXECUTIVE VP 8069832814 703A HWY 70 EAST FLOYDADA TX 79235 X WESLEY CAMPBELL DIRECTOR 1.20 X 21770 0 0 RON GRAVES VICE PRESIDENT 1.50 X X 21770 0 0 MARK HEGI PRESIDENT 3.90 X X 21840 0 0 RONALD MULLIN DIRECTOR 1.70 X 21770 0 0 MATTHEW RAINWATER DIRECTOR 2.10 X 21770 0 0 BRIAN TEEPLE DIRECTOR 1.40 X 21840 0 0 WD THORNBERRY SECRETARY/TREASURER 3.60 X X 21840 0 0 CLIFF TIPPETT DIRECTOR (MAY-DEC) 2.30 X 14490 0 0 CHASE YOUNG DIRECTOR (MAY-DEC) 1.00 X 14490 0 0 PAUL SCHACT DIRECTOR (JAN-APRIL) 1.60 X 7450 0 0 DEAN YARBROUGH DIRECTOR (JAN-APRIL) 3.20 X 7203 0 0 ALBERT DANIEL GENERAL MANAGER/EXECUTIVE VP 60.00 X 185307 0 66543 HECTOR RODRIGUEZ CONSTRUCTION FOREMAN 50.00 X 134998 0 25175 DANNY NIXON LINE SUPERINTENDENT 60.00 X 130836 0 88530 CHAD BUIE DIRECTOR OF ENGINEERING 50.00 X 126945 0 47173 LARRY SMITH WORKING FOREMAN 50.00 X 124423 0 69720 TRACY SMITH WAREHOUSE FOREMAN 40.00 X 118671 0 50076 1017413 0 347217 19 0 1 0 HI RANGE ELECTRIC INC PO BOX 2688 HEREFORD TX 79045 ELECTRIC CONTRACTOR 404130 BRANDON & CLARK INC 3623 INTERSTATE 27 LUBBOCK TX 79404 RECLOSURES REPAIRS 163119 SGS ENGINEERING LLC 401 50TH STREET LUBBOCK TX 79404 ENGINEERING SERVICES 117359 POLE TECH SERVICES LLC 885 COUNTY ROAD 231 THORSBY AL 35171 ELECTRIC INSPECTION CONTRACTOR 108538 4 X SALES OF ELECTRICITY 221000 36918208 36918208 PATRONAGE DIVIDENDS 221000 1612092 1612092 SERVICE FEES 221000 744633 744633 39274933 130749 130749 41339 48640 -7301 -7301 -7301 69656 85174 -15518 -15518 INTERNET COMMISSION 517000 30027 30027 POLE ATTACHMENT INCOME 221000 3777 3777 MISCELLANEOUS INCOME 221000 2669 2669 36473 39419336 39254783 30027 134526 X 34927 2246923 448083 2865062 340281 800656 226550 2029464 3504496 PURCHASED POWER 23782149 DISTRIBUTION EXPENSE 2069843 ADMIN & GENERAL EXPENSE 704744 UNRELATED BUS. INC. TAX 4060 362098 39419336 2392641 3098770 734196 734196 1838368 1486543 1982543 2171439 4706898 4020549 108541035 41823631 65591318 66717404 34832409 35360241 12541 12881 112090914 113602023 2196311 1914799 122610 146354 46237207 45305289 2990559 4441755 51546687 51808197 X 0 0 0 0 60544227 61793826 60544227 61793826 112090914 113602023 X 0 1249599 X X 0 1 X 0 0 0 1 X 112088 112088 2686292 1905503 780789 105456757 39918128 65538629 285898 285898 66717404 PATRONAGE CAPITAL - CFC 542206 C PATRONAGE CAPITAL - COBANK 10877 C PATRONAGE CAPITAL - TEC 534866 C PATRONAGE CAPITAL - GSEC 33197602 C PATRONAGE CAPITAL - NISC 63570 C PATRONAGE CAPITAL - FEDERATED 57704 C OTHER INVESTMENTS IN ASSOCIATED ORGS. 15225 C MEMBERSHIPS IN ASSOCIATED ORGS. 2695 C CAPITAL TERM CERTIFICATES - CFC 836120 C CONTRIBUTED CAPITAL - GSEC 99376 C 35360241 CONSUMER DEPOSITS 670660 DEFERRED CREDITS - UNCLAIMED PROPERTY 220559 POWER COST OVER COLLECTED 3416165 ACCRUED OPERATING TAXES 63512 CONSUMER ENERGY PREPAYMENTS 68324 OTHER PREPAYMENTS 2535 4441755 X 39415276 0 39415276 4060 4060 39419336 37168353 0 37168353 2250983 2250983 39419336 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. PART X, LINE 2: THE COOPERATIVE HAS 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 COOPERATIVE DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 4,060. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,246,923. EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 4,060. 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. 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". 0 FLOYD COUNTY STOCK SHOW ASSOCIATION PO BOX 364 LOCKNEY TX 79241 752395820 501(C)(3) 6200 0 STOCK SHOW DONATION FOR ANIMAL SALES 1 PART II: 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. X 1 1 X X 0 0 0 ALBERT DANIEL GENERAL MANAGER/EXECUTIVE VP 180187 0 1128 0 3992 0 47364 0 19179 0 251850 0 0 0 DANNY NIXON LINE SUPERINTENDENT 120423 0 1200 0 9213 0 52009 0 36521 0 219366 0 0 0 LARRY SMITH WORKING FOREMAN 120056 0 1200 0 3167 0 33080 0 36640 0 194143 0 0 0 CHAD BUIE DIRECTOR OF ENGINEERING 122333 0 588 0 4024 0 24415 0 22758 0 174118 0 0 0 TRACY SMITH WAREHOUSE FOREMAN 79784 0 792 0 38095 0 35898 0 14178 0 168747 0 0 0 HECTOR RODRIGUEZ CONSTRUCTION FOREMAN 134355 0 300 0 343 0 6443 0 18732 0 160173 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL PAY THE TRAVEL EXPENSES OF A BOARD MEMBER'S SPOUSE WHO ACCOMPANIES HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE AUTHORIZED BY THE PRESIDENT OR BY THE BOARD. THE COOPERATIVE WILL ALSO REIMBURSE AN EMPLOYEE FOR AUTHORIZED EXPENSES OF A SPOUSE WHO ACCOMPANIES HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE WITH APPROVAL FROM THE GENERAL MANAGER OR IN THE CASE OF THE GENERAL MANAGER'S SPOUSE, APPROVAL FROM THE BOARD OF DIRECTORS. NO INDIVIDUALS REPORTED ON PART VII RECEIVED THIS BENEFIT DURING THE YEAR. 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. ALBERT DANIEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,364 EMPLOYER CONTRIBUTION TO 401(K) PLAN (0) TOTAL REPORTED IN COLUMN C $ 47,364 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,364) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,426 EXPENSE TO THE COOPERATIVE $ 25,426 DANNY NIXON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 48,390 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,619 TOTAL REPORTED IN COLUMN C $ 52,009 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,390) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,735 EXPENSE TO THE COOPERATIVE $ 22,354 LARRY SMITH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,470 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,610 TOTAL REPORTED IN COLUMN C $ 33,080 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,470) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,384 EXPENSE TO THE COOPERATIVE $ 17,994 CHAD BUIE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,494 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,921 TOTAL REPORTED IN COLUMN C $ 24,415 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,494) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,345 EXPENSE TO THE COOPERATIVE $ 20,266 TRACY SMITH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,777 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,121 TOTAL REPORTED IN COLUMN C $ 35,898 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (33,777) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 10,580 EXPENSE TO THE COOPERATIVE $ 12,701 HECTOR RODRIGUEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 3,996 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,447 TOTAL REPORTED IN COLUMN C $ 6,443 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (3,996) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 14,703 EXPENSE TO THE COOPERATIVE $ 17,150 FORM 990, PART VI, SECTION A, LINE 2: THE 2024 FORM 990 WAS AMENDED TO REMOVE THE CHECKBOX ON PART VI, LINE 2 AS WELL AS THE DISCLOSURE STATING THAT THERE WAS A BUSINESS RELATIONSHIP BETWEEN RON GRAVES AND FORMER DIRECTOR JOHN DUNLAP DURING 2024. THE CHECKBOX AND DISCLOSURE WERE APPLICABLE FOR THE 2023 FORM 990, BUT WERE NO LONGER APPLICABLE FOR 2024 SINCE FORMER DIRECTOR, JOHN DUNLAP, WAS NOT A DIRECTOR FOR ANY PART OF 2024. 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. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 2. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 3. MERGER OR CONSOLIDATION WITH ANOTHER COOPERATIVE ORGANIZATION 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 OCCURRED AT THE BOARD MEETING IMMEDIATELY AFTER FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS PERFORM AN ANNUAL REVIEW AND UTILIZE INTERNAL RESOURCES WHEN DETERMINING AND APPROVING COMPENSATION FOR THE GENERAL MANAGER. 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 WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENTS. ANNUALLY, THE COOPERATIVE PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. PAUL SCHACT AND DEAN YARBROUGH LEFT DURING 2024; THEREFORE, THEIR PRIOR YEAR QUESTIONNAIRES WERE RELIED UPON WHILE PREPARING THE RETURN. THERE WERE NO KNOWN CHANGES. 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, 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 OFFICERS 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 VII, SECTION A: THE BOARD OF DIRECTORS CONSIDER 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 ORGANIZATION 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 $ 3,313,145 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (196,233) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (66,543) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 926,847 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 525,064 TOTAL WAGES ACCRUED AND/OR PAID $ 4,502,280 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,308,141 OFFICE SUPPLIES 70,740 OUTSIDE SERVICES 186,167 INJURIES & DAMAGES 99,017 DIRECTORS 296,387 UTILITY COMMISSION 59,334 MISCELLANEOUS GENERAL 159,664 ADVERTISING 15,803 ANNUAL & DISTRICT MEETINGS 83,104 CAPITAL CREDIT ALLOCATION 18,136 UNIFORMS - EMPLOYEES 50,388 MAINTENANCE OF GENERAL PLANT 50,779 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,397,660 ADD: RECLASS OF DONATIONS TO PART IX, LINE 1 25 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (196,233) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,018,089) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (478,619) TOTAL ADMIN & GENERAL EXP PER FORM 990, PART IX $ 704,744 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 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 2,246,923. PATRONAGE CAPITAL RETIRED - TOTAL -1,011,924. NET CHANGE IN OTHER EQUITIES 14,600. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE AUDIT AND SELECTING THE CPA WHO WILL PERFORM THE AUDIT. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR.