2026-07-31T11:14:53-05:00 2025-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2025-01-01 740880083 SAN BERNARD ELECTRIC COOPERATIVE INC SANB 9798653171 PO BOX 1208 BELLVILLE TX 77418 MIKE ABLES CEO/GENERAL MANAGER 9798653171 2026-07-29 1 PATRICK COOPER P00856177 8067473806 2026-07-29 X 2025 2025-03-06 01:10:19Z MIKE ABLES PO BOX 1208 BELLVILLE TX 77418 113326762 0 X WWW.SBEC.ORG X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 9 117 0 20357 18757 0 0 105489008 112656395 217610 193643 158222 160568 105864840 113010606 60661 77399 10566472 10943812 8253894 8454150 0 0 0 86920489 93443624 105801516 112918985 63324 91621 280283668 293502719 163187605 167235813 117096063 126266906 SBEC PROVIDES AFFORDABLE, RELIABLE ELECTRICITY AND INNOVATIVE AND PERSONALIZED ENERGY SERVICES FOR OUR MEMBER-OWNERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 33,684 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 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 74 0 117 1 1 1 0 0 0 0 120605101 1144555 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 0 0 1 1 0 X JARED JANICEK CFO 9798653171 309 WEST MAIN STREET BELLVILLE TX 77418 X LARRY CHANEY DIRECTOR 9.00 X 18810 0 0 SAMMY CONDRA PRESIDENT 6.00 X X 21846 0 0 DAVID EHLER DIRECTOR 8.80 X 22710 0 0 VANCE R ELLIOTT SECRETARY/TREASURER 10.00 X X 22610 0 0 COLT HAACK DIRECTOR 10.00 X 35172 0 0 JASON JOHNSON DIRECTOR 8.00 X 24210 0 0 NORMAN KIECKE 1ST VICE PRESIDENT 10.00 X X 20410 0 0 KARL N MICKLITZ DIRECTOR (JAN-MAY) 8.50 X 6001 0 0 ROYCE RAPE DIRECTOR (MAY-DEC) 6.20 X 14507 0 0 LORI WALKER 3RD CHAIR 12.00 X X 17710 0 0 MICHAEL ABLES CEO/GENERAL MANAGER 42.00 X 263124 0 226162 JARED JANICEK CFO 45.00 X 173381 0 91140 JAMES JOUETT ELECTRIC SYSTEMS MANAGER 50.00 X 199032 0 121608 JOHN SPIESS MEMBER SERVICES MANAGER 45.00 X 152301 0 106793 SHAWN BARD IT GROUP MANAGER 41.00 X 157004 0 78332 ROBERT HROMADKA LINE CREW LEADER 47.00 X 147694 0 105277 JAMES PHILLIPS 1ST CLASS LINE TECH 59.00 X 162111 0 77641 WILLIAM PESCHEL MAINT CONSTRUCTION MANAGER 41.00 X 132713 0 68260 ROBERT PINA 1ST CLASS LINE TECH 49.00 X 127695 0 63120 1719041 0 938333 33 0 1 0 D & J POWER INC 20207 ROLLING VISTA DR CYPRESS TX 77433 LINE MAINTENANCE & CONSTRUCTION 5360340 OVER & UNDER LLC 15483 CR 424 SOMERVILLE TX 77879 LINE MAINTENANCE & CONSTRUCTION 1696939 CM JOSLIN CO INC PO BOX 647 CONROE TX 77305 ROW CLEARING 1028255 LINETEC SERVICES LLC 19820 N 7TH AVE STE 120 PHOENIX AZ 85027 LINE MAINTENANCE & CONSTRUCTION 988702 ABC PROFESSIONAL TREE SERVICES INC 201 FLINT RIDGE RD WEBSTER TX 77598 ROW CLEARING 906752 14 X SALES OF ELECTRICITY 221000 105769835 105769835 PATRONAGE DIVIDENDS 221000 6044920 6044920 SERVICE FEES 221000 732551 732551 OTHER PROGRAM REVENUE 221000 104339 104339 LEASE INCOME FROM LCRA 221000 4750 4750 112656395 149639 149639 47359 3355 44004 44004 44004 420901 312801 108100 87743 20357 POLE ATTACHMENT INCOME 221000 52468 52468 52468 113010606 112788142 20357 202107 X 77399 10943812 1537527 4929223 738766 874217 374417 5567436 8190255 PURCHASED POWER 70930757 DISTRIBUTION EXPENSE 5716742 CONSUMER EXPENSE 1472244 ADMIN & GENERAL EXPENSE 1055112 511078 112918985 700272 1005378 4219942 3968438 29108 13857 4757894 5807691 60722388 55794647 270583769 86500368 172792923 184083401 35591811 41255810 1469330 1573497 280283668 293502719 8778513 9780106 19460 137774 142057373 140686832 12332259 16631101 163187605 167235813 X 47075 45755 0 0 117048988 126221151 117096063 126266906 280283668 293502719 X 91621 9079222 X X 0 1 X 0 0 0 1 X 195332 195332 6753585 4815077 1938508 255584041 81685291 173898750 8050811 8050811 184083401 PATRONAGE CAPITAL - CFC 3235992 C PATRONAGE CAPITAL - TEC 854098 C PATRONAGE CAPITAL - NISC 165145 C PATRONAGE CAPITAL - COBANK 119798 C PATRONAGE CAPITAL - PRODUCERS 148025 C PATRONAGE CAPITAL - NRTC 74758 C PATRONAGE CAPITAL - STEC 17311701 C PATRONAGE CAPITAL - FEDERATED 207835 C CAPITAL TERM CERTIFICATES - CFC 1114013 C CONTRIBUTED CAPITAL - STEC 18021860 C MEMBERSHIPS IN ASSOC. ORGS. 2585 C 41255810 ACCUMULATED PROVISION FOR POST RETIREMENT BENEFITS 2758097 CONSUMER DEPOSITS 996708 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 1982127 DEFERRED CREDITS - ADVANCES FOR CONSTRUCTION 10101253 DEFERRED CREDITS - ENERGY PREPAYMENTS 569074 DEFERRED CREDITS - OTHER 1379 POWER COST ADJUSTMENT - OVER COLLECTED 138531 OTHER LIABILITIES 83932 16631101 X 113010606 0 113010606 0 113010606 101975173 0 101975173 10943812 10943812 112918985 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 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. THE COOPERATIVE HAS PUT INTO PLACE AN "OPERATION ROUNDUP" PLAN. MEMBERS WHO WISH TO PARTICIPATE IN THE PLAN VOLUNTARILY ROUND THEIR ELECTRIC BILLS UP TO THE NEAREST WHOLE DOLLAR. THE DIFFERENCE IS USED TO FUND THE PLAN. THE "OPERATION ROUNDUP" FUNDS ARE MAINTAINED IN A SEPARATE ACCOUNT AND USED TO SUPPORT EDUCATION PROJECTS, YOUTH PROJECTS, COMMUNITY PROJECTS AND EMERGENCY ASSISTANCE WITHIN THE COMMUNITIES AND AREAS SERVED BY THE COOPERATIVE. 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 POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 10,943,812. 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 PAID OR 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 AUSTIN COUNTY FAIR ASSOCIATION PO BOX 141 BELLVILLE TX 77418 741048551 501(C)(3) 7400 0 2025 DONATION COLORADO COUNTY FAIR ASSOCIATION INC 316 SPRING ST COLUMBUS TX 78934 742181450 501(C)(3) 5650 0 2025 DONATION WALLER COUNTY FAIR ASSOCIATION 21988 FM 359 HEMPSTEAD TX 77445 741481196 501(C)(3) 16975 0 2025 DONATION 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 X X X 0 0 0 MICHAEL ABLES CEO/GENERAL MANAGER 251738 0 5000 0 6386 0 192231 0 33931 0 489286 0 0 0 JAMES JOUETT ELECTRIC SYSTEMS MANAGER 189209 0 3863 0 5960 0 96797 0 24811 0 320640 0 0 0 JARED JANICEK CFO 169123 0 3403 0 855 0 62480 0 28660 0 264521 0 0 0 JOHN SPIESS MEMBER SERVICES MANAGER 145760 0 2884 0 3657 0 94717 0 12076 0 259094 0 0 0 ROBERT HROMADKA LINE CREW LEADER 140521 0 2979 0 4194 0 78232 0 27045 0 252971 0 0 0 JAMES PHILLIPS 1ST CLASS LINE TECH 157128 0 3095 0 1888 0 49477 0 28164 0 239752 0 0 0 SHAWN BARD IT GROUP MANAGER 151395 0 3120 0 2489 0 49695 0 28637 0 235336 0 0 0 WILLIAM PESCHEL MAINT CONSTRUCTION MANAGER 124401 0 2581 0 5731 0 39829 0 28431 0 200973 0 0 0 ROBERT PINA 1ST CLASS LINE TECH 123546 0 2338 0 1811 0 49715 0 13405 0 190815 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. MICHAEL ABLES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 176,774 EMPLOYER CONTRIBUTION TO 401(K) PLAN 15,457 TOTAL REPORTED IN COLUMN C $ 192,231 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (176,774) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 56,024 EXPENSE TO THE COOPERATIVE $ 71,481 JAMES JOUETT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 85,092 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,705 TOTAL REPORTED IN COLUMN C $ 96,797 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (85,092) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 45,979 EXPENSE TO THE COOPERATIVE $ 57,684 JARED JANICEK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 51,980 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,500 TOTAL REPORTED IN COLUMN C $ 62,480 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (51,980) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,429 EXPENSE TO THE COOPERATIVE $ 47,929 JOHN SPIESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 85,957 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,760 TOTAL REPORTED IN COLUMN C $ 94,717 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (85,957 ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,200 EXPENSE TO THE COOPERATIVE $ 41,960 ROBERT HROMADKA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 71,304 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,928 TOTAL REPORTED IN COLUMN C $ 78,232 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (71,304) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,797 EXPENSE TO THE COOPERATIVE $ 33,725 JAMES PHILLIPS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 43,716 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,761 TOTAL REPORTED IN COLUMN C $ 49,477 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (43,716) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,913 EXPENSE TO THE COOPERATIVE $ 27,674 SHAWN BARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 40,259 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,436 TOTAL REPORTED IN COLUMN C $ 49,695 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (40,259) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,668 EXPENSE TO THE COOPERATIVE $ 46,104 WILLIAM PESCHEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,012 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,817 TOTAL REPORTED IN COLUMN C $ 39,829 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,012) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,267 EXPENSE TO THE COOPERATIVE $ 38,084 ROBERT PINA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,149 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,566 TOTAL REPORTED IN COLUMN C $ 49,715 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,149) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,154 EXPENSE TO THE COOPERATIVE $ 26,720 FORM 990, PART I: 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 $91,621, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE AND NON-OPERATING MARGINS RETAINED. 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 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 12/31/25 $ 1,542,927 LESS: UNBILLED REVENUE 12/31/24 (1,438,762) (A) - NET INCREASE IN UNBILLED REVENUE $ 91,621 (B) - NON-OPERATING MARGINS RETAINED 12,544 (C) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $10,943,812 TOTAL 2025 NET MARGIN (A + B + C) $11,035,433 FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAD 9 BOARD MEMBERS AT YEAR END; 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 4 DURING THE YEAR, THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE III MEETINGS OF MEMBERS SECTION 3.06. CREDENTIALS AND ELECTION COMMITTEE, WAS AMENDED TO STATE "AT LEAST 10 DAYS BEFORE MEETINGS OF THE MEMBERS, THE BOARD OF DIRECTORS SHALL APPOINT A CREDENTIALS AND ELECTION COMMITTEE. THE COMMITTEE SHALL CONSIST OF 2 MEMBERS FROM EACH DISTRICT PRESCRIBED BY THESE BYLAWS. COMMITTEE MEMBERS MAY NOT BE EXISTING COOPERATIVE EMPLOYEES, AGENTS, OFFICERS, DIRECTORS, OR CANDIDATES FOR DIRECTOR, NOR MAY COMMITTEE MEMBERS BE CLOSE RELATIVES (AS HEREINAFTER DEFINED) OF SUCH PERSONS. THE COMMITTEE MAY NOT AFFIRMATIVELY ACT ON ANY MATTER UNLESS A MAJORITY OF COMMITTEE MEMBERS IS PRESENT. THE ACT OR DECISION OF A MAJORITY OF THOSE PRESENT AND VOTING SHALL CONSTITUTE THE COMMITTEE'S ACT OR DECISION, AND IT SHALL BE FINAL. PRIOR TO, OR UPON, APPEARING AT THE MEMBER MEETING, THE COMMITTEE SHALL ELECT ITS CHAIR AND SECRETARY. THE COMMITTEE SHALL: (A) ESTABLISH OR APPROVE THE MANNER OF CONDUCTING MEMBER REGISTRATION AND VOTING; (B) RULE UPON ALL QUESTIONS THAT MAY ARISE WITH RESPECT TO THE REGISTRATION OF MEMBERS AND THE NOMINATION AND QUALIFICATION OF CANDIDATES; (C) COUNT ALL BALLOTS OR OTHER VOTES CAST;(D) RULE UPON THE EFFECT OF ANY BALLOTS OR OTHER VOTES WHICH ARE, OR APPEAR TO BE, IRREGULARLY OR INDECISIVELY MARKED OR CAST; (E) RULE UPON ALL OTHER QUESTIONS THAT MAY ARISE RELATING TO VOTING OF MEMBERS; AND (F) HEAR AND RULE UPON ANY PROPER CONTEST OF ELECTION RESULTS." ARTICLE IV DIRECTORS SECTION 4.03. ELECTION AND CONTEST OF RESULTS, WAS AMENDED TO STATE "DIRECTORS SHALL BE ELECTED BY SECRET, WRITTEN BALLOTS, EXCEPT THAT THE BOARD MAY SUSPEND DISTRIBUTION OF BALLOTS FOR DIRECTORS WHEN THE ELECTION IS UNCONTESTED. IN ANY ELECTION IN WHICH THERE IS ONLY ONE CANDIDATE FOR DIRECTOR FOR A DISTRICT, THE GENERAL COUNSEL OF THE COOPERATIVE MAY CERTIFY TO THE BOARD THAT THE ELECTION FOR THAT DIRECTOR POSITION IS UNCONTESTED, AND THE MEMBERS SHALL BE DEEMED TO HAVE ELECTED THE DIRECTOR BY GENERAL CONSENT. EACH MEMBER PRESENT AT A MEETING TO ELECT DIRECTORS SHALL BE ENTITLED TO CAST 1 VOTE FOR DIRECTOR FOR EACH DISTRICT IN WHICH THERE IS A CONTESTED ELECTION. VOTES SHALL BE TABULATED SEPARATELY FOR EACH CONTESTED DISTRICT. THE CANDIDATE RECEIVING THE MOST VOTES FOR A DISTRICT SHALL BE DECLARED ELECTED AS DIRECTOR OF THAT DISTRICT. THE CHAIR OF THE CREDENTIALS AND ELECTION COMMITTEE SHALL REPORT THE RESULTS BEFORE THE MEETING ADJOURNS. IN THE EVENT OF A TIE VOTE, BALLOTS SHALL BE DELIVERED TO THE MEMBERS PRESENT AS IN THE FIRST INSTANCE, AND VOTING AND TABULATION OF VOTES SHALL BE CONDUCTED IN THE SAME MANNER, UNTIL THE CHAIR OF THE CREDENTIALS AND ELECTION COMMITTEE IS ABLE TO REPORT A WINNING CANDIDATE. CONTESTS OF ELECTION RESULTS MUST BE MADE IN WRITING AND MUST:(A) IDENTIFY THE NAMES, ADDRESSES, PHONE NUMBERS AND EMAIL ADDRESSES OF THE PERSONS PRESENTING THE CONTEST;(B) SPECIFY WITH REASONABLE PARTICULARITY THE FACTUAL AND LEGAL BASIS FOR THE CONTEST; AND (C) BE MAILED OR OTHERWISE DELIVERED TO THE SECRETARY WITHIN 3 BUSINESS DAYS FOLLOWING THE ADJOURNMENT OF THE MEETING IN WHICH THE VOTING WAS CONDUCTED. IN THE ABSENCE OF A TIMELY AND PROPER CONTEST OF AN ELECTION RESULT, THE RESULT AS ANNOUNCED SHALL BE FINAL. THE SECRETARY SHALL PROMPTLY FORWARD ALL CONTESTS TO THE CREDENTIALS AND ELECTION COMMITTEE CHAIR. THE CHAIR SHALL PROMPTLY SET AND CONDUCT A HEARING, WITH REASONABLE NOTICE TO ALL COMMITTEE MEMBERS AND TO THE ELECTION CONTESTANTS OF THE DATE, TIME AND PLACE THEREOF AND THE RIGHT TO BE HEARD AND TO PRESENT EVIDENCE. WITHIN 30 DAYS AFTER THE CONCLUSION OF THE HEARING, THE COMMITTEE SHALL RENDER ITS DECISION TO EITHER AFFIRM THE ELECTION OR TO SET IT ASIDE." SECTION 4.04. TENURE, WAS AMENDED TO STATE "IRECTORS SHALL SERVE BEGINNING IMMEDIATELY AFTER THEIR ELECTION OR APPOINTMENT UNTIL THE EARLIER OF THEIR DEATH, RESIGNATION, REMOVAL, OR THE COMMENCEMENT OF THEIR SUCCESSOR'S TERM. IF A REQUIRED ELECTION IS NOT HELD ON THE DAY DESIGNATED HEREIN FOR THE ANNUAL MEETING OR AT ANY ADJOURNMENT THEREOF, A SPECIAL MEETING OF THE MEMBERS SHALL BE HELD FOR THE PURPOSE OF ELECTING DIRECTORS WITHIN A REASONABLE TIME THEREAFTER." SECTION 4.06. NOMINATIONS, WAS AMENDED TO STATE "IT SHALL BE THE DUTY OF THE BOARD OF DIRECTORS TO APPOINT NOT LESS THAN EIGHTY (80) DAYS, NOR MORE THAN ONE-HUNDRED THIRTY (130) DAYS BEFORE THE DATE OF AN ANNUAL MEETING OF THE MEMBERS, A COMMITTEE OF NOMINATIONS FOR EACH DISTRICT FROM WHICH A DIRECTOR IS TO BE ELECTED CONSISTING OF THREE MEMBERS AND TWO ALTERNATES, ALL OF WHOM SHALL BE MEMBERS IN GOOD STANDING OF THE COOPERATIVE AND SHALL RESIDE WITHIN THE DISTRICT. THE COOPERATIVE WILL, BY MAIL, NOTIFY THE MEMBERS OF EACH DISTRICT FROM WHICH A DIRECTOR IS TO BE ELECTED OF THE NAMES, ADDRESSES AND TELEPHONE NUMBERS OF SAID MEMBERS AND ALTERNATES FOR EACH RESPECTIVE DISTRICT. SAID NOTICE SHALL BE GIVEN WITHIN FORTY (40) DAYS AFTER SAID MEMBERS AND ALTERNATES ARE DESIGNATED BY THE BOARD OF DIRECTORS. EACH COMMITTEE SHALL NOMINATE AT LEAST ONE BUT NOT MORE THAN TWO MEMBERS FROM THEIR RESPECTIVE DISTRICTS AND SHALL PREPARE AND POST AT THE PRINCIPAL OFFICE OF THE COOPERATIVE AT LEAST THIRTY (30) DAYS BEFORE THE MEETING A LIST OF NOMINATIONS FOR EACH DIRECTORSHIP UP FOR ELECTION. A MEMBER OF THE NOMINATING COMMITTEE IS NOT ELIGIBLE TO RUN AS A DIRECTOR AND CANNOT NOMINATE HIS OR HER SELF FOR DIRECTORSHIP. ANY FIFTY OR MORE MEMBERS ACTING TOGETHER MAY MAKE OTHER NOMINATIONS BY PETITION NOT LESS THAN THIRTY (30) DAYS PRIOR TO THE MEETING AND THE SECRETARY SHALL POST SUCH NOMINATIONS AT THE SAME PLACE WHERE THE LIST OF NOMINATIONS MADE BY THE COMMITTEE IS POSTED. THE SECRETARY SHALL MAIL WITH THE NOTICE OF THE MEETING, A STATEMENT OF THE NUMBER OF DIRECTORS TO BE ELECTED AND THE NAMES AND ADDRESSES OF THE CANDIDATES, SPECIFYING SEPARATELY THE NOMINATIONS MADE BY THE COMMITTEE ON NOMINATIONS AND ALSO THE NOMINATIONS MADE BY PETITION, IF ANY. BALLOTS SHALL BE PREPARED BY DISTRICT DESIGNATION AND PRESENTED TO MEMBERS WHEN THEY REGISTER. ANY MEMBER MAKING A NOMINATION BY PETITION SHALL BE A MEMBER IN GOOD STANDING OF THE COOPERATIVE AND SHALL RESIDE WITHIN THE DISTRICT FOR WHICH THE NOMINATION IS MADE. EACH MEMBER SHALL MARK THE BALLOT AND DEPOSIT SAME FOR COUNTING BY THE CREDENTIALS AND ELECTION COMMITTEE. THE CANDIDATE FROM EACH DISTRICT FROM WHICH A DIRECTOR IS TO BE ELECTED RECEIVING THE MAJORITY OF VOTES OF THOSE MEMBERS AT THIS MEETING WHO CAST BALLOTS SHALL BE DECLARED ELECTED AS DIRECTOR. THE CREDENTIALS AND ELECTION COMMITTEE SHALL REPORT THE RESULTS THEREOF BEFORE THE MEETING ADJOURNS. IN THE EVENT OF A TIE VOTE, ANY NOMINEE INVOLVED IN SAID TIE VOTE MAY DEMAND A RE-COUNT. IN THE EVENT A RUNOFF BECOMES NECESSARY BECAUSE OF TIE VOTE, BALLOTS SHALL BE DELIVERED TO THE MEMBERS PRESENT AS IN THE FIRST INSTANCE, AND THEY SHALL CAST THEIR VOTES AND THE SAME SHALL BE COUNTED ACCORDINGLY AND THE CREDENTIALS AND ELECTION COMMITTEE THEN SHALL REPORT THE RESULTS THEREOF BEFORE THE MEETING ADJOURNS FOR FINAL APPROVAL OF SAME BY THE MEMBERSHIP PRESENT." SECTION 4.07. REPEALED SECTION 4.08. REMOVAL OF DIRECTORS BY MEMBERS, WAS AMENDED TO STATE "DIRECTORS MAY BE REMOVED FOR CAUSE AT A SPECIAL MEETING OF THE MEMBERS. A CALL FOR SUCH MEETING SHALL INCLUDE THE NAMES OF THE DIRECTORS TO BE REMOVED AND WRITTEN ALLEGATIONS SUPPORTING CAUSE FOR REMOVAL. NOTICE OF THE MEETING SHALL STATE THAT THE PURPOSE IS TO ACT ON A PETITION TO REMOVE ONE OR MORE DIRECTORS, AND IT SHALL IDENTIFY THE DIRECTORS NAMED IN THE CALL FOR THE MEETING." SECTION 4.09. VACANCIES, WAS AMENDED TO STATE "SUBJECT TO THE PROVISIONS OF THESE BY-LAWS WITH RESPECT TO THE FILLING OF VACANCIES, A VACANCY OCCURRING IN THE BOARD OF DIRECTORS INCLUDING, BUT NOT LIMITED TO, THE REMOVAL OF DIRECTORS BY THE MEMBERS, RESIGNATION, DEATH OR FAILURE TO QUALIFY UNDER SECTION 4.02 QUALIFICATIONS, SHALL, AT THE SOLE DISCRETION OF THE BOARD OF DIRECTORS, BE FILLED BY MAJORITY VOTE OF THE BOARD OF DIRECTORS OR BY THE MEMBERS AT THE NEXT REGULAR ELECTION OF DIRECTORS. IF AT SUCH TIME A VACANCY OCCURS AND THE BOARD OF DIRECTORS CHOOSES TO FILL THE VACANCY BEFORE THE NEXT REGULAR ELECTION OF DIRECTORS, AT LEAST TWO (2) BUT NO MORE THAN FOUR (4) CANDIDATES WILL BE CONSIDERED TO FILL THE VACANCY. THESE CANDIDATES WILL BE REVIEWED IN PERSON BY THE BOARD OF DIRECTORS AND THE CANDIDATE WITH THE MAJORITY OF VOTES SHALL BE DECLARED THE APPOINTED DIRECTOR. A DIRECTOR THUS ELECTED SHALL SERVE THE BALANCE OF THE UNEXPIRED TERM OF, AND BE FROM THE SAME DISTRICT AS WAS, THE DIRECTOR WHOSE OFFICE WAS VACATED." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: WWW.SBEC.ORG. 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 PER DISTRICT. 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 THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 14: THE COOPERATIVE DOES NOT HAVE A WRITTEN DOCUMENT RETENTION AND DESTRUCTION POLICY IN PLACE, BUT FOLLOWS THE RUS RECOMMENDATIONS REGARDING DOCUMENT RETENTION AND DESTRUCTION. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS AND A COMPENSATION COMMITTEE COMPARE FORMS 990 OF OTHER COOPERATIVES AND USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO/GM. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE CEO/GM UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT, FORMS 990 OF OTHER COOPERATIVES, AND A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. 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 WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. FINALLY, THE COOPERATIVE'S FINANCIAL STATEMENTS AND BYLAWS CAN BE FOUND ON ITS WEBSITE. 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. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. 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) 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 $ 6,466,750 LESS: DIRECTORS FEES REPORTED ON FORM 1099-NEC (203,986) LESS: OFFICER & KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (545,703) PLUS: SALARIES & WAGES ALLOCATED TO POWER 54,245 PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 3,724,088 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 495,258 TOTAL WAGES ACCRUED AND/OR PAID $ 9,990,652 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: TAXES - PROPERTY & OTHER $ 508,185 TRANSMISSION 2,893 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 511,078 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 2025 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS IS 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 ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,330,057 OFFICE SUPPLIES 293,912 OUTSIDE SERVICES EMPLOYED 86,525 REGULATORY COMMISSION 178,401 DUPLICATE CHARGES (CREDIT) (98,181) DIRECTORS 290,011 DUES PAID TO ASSOCIATED ORGANIZATIONS 100,698 MISCELLANEOUS GENERAL 776,306 MAINTENANCE OF GENERAL PLANT 331,582 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,289,311 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (76,557) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (203,986) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,357,729) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (595,927) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,055,112 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 10,943,812. PATRONAGE CAPITAL RETIRED - TOTAL -2,621,481. PATRONAGE CAPITAL RETIRED - DISCOUNT 481,717. NET CHANGE IN MEMBERSHIPS -1,320. OTHER COMPREHENSIVE INCOME-PROVISION FOR POST-RETIREMENT BENEFIT OBLIGATION 276,494.