2025-11-13T10:00:01-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 750124533 BAILEY COUNTY ELECTRIC COOPERATIVE ASSOCIATION BAIL 8062724504 PO BOX 1013 MULESHOE TX 793471013 DAVID MARRICLE PRESIDENT/CEO 8062724504 2025-11-12 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-11 X 2024 2025-03-06 01:10:19Z DAVID MARRICLE PO BOX 1013 MULESHOE TX 793471013 33457760 0 X WWW.BCECOOP.COM X 1938 TX TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 53 0 0 0 0 0 37521775 33196562 297299 229997 7392 15300 37826466 33441859 2500 0 2079253 5403435 4323262 4320711 0 0 0 30896451 23717713 37301466 33441859 525000 0 97666210 103011664 49750647 51890153 47915563 51121511 NONE 0 0 SALES OF ELECTRIC ENERGY TO MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 9,131 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 1 0 0 0 0 0 0 0 0 0 1 19 0 53 1 0 0 0 0 0 29142051 1463438 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 0 0 X DAVID MARRICLE PRESIDENTCEO 8062724504 610 E AMERICAN BLVD MULESHOE TX 79347 X KEITH HICKS CHAIRMAN 5.00 X X 25773 0 0 GREG WELCH VICE CHAIRMAN 1.50 X X 13248 0 0 JERRY NICHOLS SECRETARY/TREASURER 1.10 X X 25373 0 0 RONNIE ALTMAN DIRECTOR 1.30 X 25573 0 0 RONNIE BARRETT DIRECTOR 1.30 X 25773 0 0 LARRY CLAWSON DIRECTOR 1.20 X 25373 0 0 KEITH LAYTON DIRECTOR 1.30 X 26373 0 0 DAVID MARRICLE PRESIDENT/CEO 45.00 X 176567 0 70256 RUTH LANCE OFFICE MANAGER 40.00 X 122488 0 98279 CHARLES SMITH ENGINEERING ASST. CONSULTANT 40.00 X 122412 0 58899 JAMES MARRICLE ENGINEERING SUPERINTENDENT 52.00 X 119775 0 37988 DONALD RICHARDSON OPERATIONS MANAGER 50.00 X 119083 0 105775 LUIS SAENZ FOREMAN 45.00 X 118464 0 31157 946275 0 402354 17 0 1 0 PRIMARY UTILITY SERVICES 4231 CR 230 SNYDER TX 79549 CONTRACTOR FOR LINE EXT 743914 1 X SALES OF ELECTRICITY 221000 28445898 28445898 PATRONAGE DIVIDENDS 221000 4508921 4508921 SERVICE FEES 221000 240198 240198 OTHER PROGRAM REVENUE 221000 1545 1545 33196562 126226 126226 1750 394 1356 1356 1356 119278 15507 103771 103771 103771 13944 0 13944 13944 33441859 33314277 0 127582 X 5403435 414309 2662048 455879 584768 203707 1886590 3680103 PURCHASED POWER 15003253 DISTRIBUTION EXPENSE 2093174 ADMIN & GENERAL EXPENSE 550330 CONSUMER EXPENSE 326594 177669 33441859 1112870 993630 1354031 2680211 1907073 1054631 2263553 3926882 2644952 1832263 107536466 50490740 55485118 57045726 32189796 35560505 708817 -82184 97666210 103011664 2265005 2992423 18061 42713 46787686 45153748 679895 3701269 49750647 51890153 X 7295 7260 0 0 47908268 51114251 47915563 51121511 97666210 103011664 X 0 3205948 X X 0 0 1 0 0 1 X 288562 288562 5366010 2233698 3132312 99447402 48257042 51190360 2434492 2434492 57045726 PATRONAGE CAPITAL - CFC 866700 C PATRONAGE CAPITAL - TEC 453142 C PATRONAGE CAPITAL - GSEC 33463055 C PATRONAGE CAPITAL - FIVE AREA TELEPHONE 10739 C PATRONAGE CAPITAL - LAMB COUNTY ELECTRIC 1259 C PATRONAGE CAPITAL - NRTC 10943 C PATRONAGE CAPITAL - COBANK 1395 C CAPITAL TERM CERTIFICATES - CFC 742229 C MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 3060 C OTHER INVESTMENTS 7983 C 35560505 CONSUMER DEPOSITS 130292 ACCRUED OPERATING TAXES 17178 FUEL COST ADJUSTMENT AND REFUND 3553799 3701269 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DETERMINED 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH AMOUNTS DETERMINED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE REPORTED TO 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. 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 1 1 X 0 0 0 DAVID MARRICLE PRESIDENT/CEO 163340 0 0 0 13227 0 45713 0 24543 0 246823 0 0 0 DONALD RICHARDSON OPERATIONS MANAGER 116525 0 0 0 2558 0 81560 0 24215 0 224858 0 0 0 RUTH LANCE OFFICE MANAGER 115441 0 0 0 7047 0 77713 0 20566 0 220767 0 0 0 CHARLES SMITH ENGINEERING ASST. CONSULTANT 111120 0 0 0 11292 0 47288 0 11611 0 181311 0 0 0 JAMES MARRICLE ENGINEERING SUPERINTENDENT 114896 0 0 0 4879 0 17417 0 20571 0 157763 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - 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. DURING 2024, HIGHLY COMPENSATED EMPLOYEES, JAMES MARRICLE AND RUTH LANCE, RECEIVED THIS BENEFIT. NO EMPLOYEE OFFICERS OR DIRECTORS 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. DAVID MARRICLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,920 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,793 TOTAL REPORTED IN COLUMN C $ 45,713 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,920) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,130 EXPENSE TO THE COOPERATIVE $ 36,923 DONALD RICHARDSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 76,611 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,949 TOTAL REPORTED IN COLUMN C $ 81,560 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (76,611) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,954 EXPENSE TO THE COOPERATIVE $ 26,903 RUTH LANCE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 72,787 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,926 TOTAL REPORTED IN COLUMN C $ 77,713 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (72,787) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,853 EXPENSE TO THE COOPERATIVE $ 26,779 CHARLES SMITH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 42,749 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,539 TOTAL REPORTED IN COLUMN C $ 47,288 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (42,749) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,982 EXPENSE TO THE COOPERATIVE $ 24,521 JAMES MARRICLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,468 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,949 TOTAL REPORTED IN COLUMN C $ 17,417 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,468) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,954 EXPENSE TO THE COOPERATIVE $ 26,903 JAMES RYAN MARRICLE FAMILY RELATIONSHIP - EMPLOYEE OFFICER (D. MARRICLE) 119775 EMPLOYMENT 0 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. AMENDMENTS TO THE ARTICLES OF INCORPORATION 2. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 3. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 4. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 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 ALL NEW EMPLOYEES AND DIRECTORS ARE REQUIRED TO SIGN A CONFLICT OF INTEREST CERTIFICATION WHEN THEY BEGIN EMPLOYMENT WITH THE COOPERATIVE. ALL EMPLOYEES, DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY AND ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. THE PRESIDENT/CEO REGULARLY MONITORS AND ENFORCES THIS POLICY. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS UTILIZE INTERNAL RESOURCES AND CONDUCT AN ANNUAL REVIEW BEFORE DETERMINING AND APPROVING THE COMPENSATION OF THE PRESIDENT/CEO. OTHER THAN THE PRESIDENT/CEO, 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 PROVIDES A SUMMARIZED COPY OF ITS FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. A COPY OF THE COOPERATIVE BYLAWS ARE PROVIDED (1) TO EVERY NEW MEMBER AT THE TIME OF THEIR MEMBERSHIP AND (2) TO ALL MEMBERS WHEN AN ADMENDMENT IS MADE TO THE COOPERATIVE BYLAWS. 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, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER IS COMPRISED OF THE 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 PRESIDENT/CEO TO BE BOTH THE TOP MANAGEMENT OFFICIAL AND THE TOP FINANCIAL OFFICIAL. THEREFORE, ONLY THE PRESIDENT/CEO IS LISTED AS AN EMPLOYEE OFFICER. 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 COMPANY IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS 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 $ 3,076,357 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (167,486) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (70,256) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 476,590 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 752,755 TOTAL WAGES ACCRUED AND/OR PAID $ 4,067,960 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 858,188 OFFICE SUPPLIES 132,832 OUTSIDE SERVICES 78,508 DIRECTORS 203,044 ANNUAL MEETING 55,978 INSTITUTIONAL AND GOODWILL ADVERTISING 56,700 MEMBER EDUCATION AND YOUTH PROGRAM 24,879 DUES TO ASSOC. ORGANIZATIONS 45,013 MISCELLANEOUS GENERAL 71,966 REGULATORY COMMISSION 55,142 MAINTENANCE OF GENERAL PLANT 511,957 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,094,207 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (167,486) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (940,725) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (435,666) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 550,330 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 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 IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: TRANSMISSION $ 76,014 SALES EXPENSE 3,077 TAXES 96,546 OTHER DEDUCTIONS 2,032 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 177,669 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,403,435. PATRONAGE CAPITAL RETIRED -2,252,698. NET CHANGE IN MEMBERSHIPS -35. NET CHANGE IN OTHER EQUITIES 55,246. FORM 990, PART XII, LINE 2: AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR-END OF SEPTEMBER 30. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31. THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR.