2026-08-18T08:45:05-05:00 2025-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2025-01-01 750594971 SWISHER ELECTRIC COOPERATIVE INC SWIS 8069953567 PO BOX 67 TULIA TX 79088 CORY MORTON GENERAL MANAGER 8069953567 2026-07-29 1 PATRICK COOPER P00856177 8067473806 2026-07-29 2025 2025-03-06 01:10:19Z CORY MORTON PO BOX 67 TULIA TX 79088 23589746 0 X WWW.SWISHERELECTRIC.ORG X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 7 7 50 0 -14647 0 0 0 23083280 22577715 418847 716515 23426 37948 23525553 23332178 13260 8850 1469884 1157784 3663006 3741778 0 0 0 18346768 18423766 23492918 23332178 32635 0 74981720 76013975 30552500 30142547 44429220 45871428 X TO SUPPLY THE PRESENT AND FUTURE ELECTRICAL SERVICE NEEDS TO ITS MEMBERS IN AN EFFICIENT AND ECONOMICAL MANNER AND TO HAVE A SOUND FINANCIAL BASE IN ORDER TO PROVIDE THE HIGHEST RELIABILITY OF SERVICE WITH INTEGRITY, INNOVATION, ACCOUNTABILITY AND COMMITMENT TO COMMUNITY THEREBY ENHANCING THE QUALITY OF LIFE FOR ALL OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 7,918 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 0 0 1 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 60 0 50 1 1 1 0 0 0 0 22719550 1672695 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X TYGER SIMPSON MANAGER OF FIN & ADMINISTRATION 8069953567 401 SW 2ND STREET TULIA TX 79088 X JEFF HARRELL DIRECTOR 1.20 X 31445 0 0 RALPH FROST DIRECTOR 1.00 X 30664 0 0 DWAIN STRANGE PRESIDENT 1.07 X X 30473 0 0 MACE MIDDLETON VICE PRESIDENT 1.00 X X 30470 0 0 BILLY COGDELL ASST. SECRETARY/TREASURE 0.80 X X 30461 0 0 JIMMY BURSON SECRETARY/TREASURER 1.20 X X 15680 0 0 BRAD SHARP DIRECTOR 1.00 X 15677 0 0 HENRY CRUZ JR DIRECTOR OF OPS & INTERIM GM 46.00 X 120293 0 37417 TYGER SIMPSON DIRECTOR OF FINANCE & ADMIN 42.00 X 93102 0 37309 PAUL ERICKSON GM (JAN-APR) 40.00 X 70639 0 51688 CORY MORTON CEO (JULY-DEC) 45.00 X 90236 0 23811 JASMINE WATSON DIRECTOR OF FINANCE & ADMIN (JAN) 40.00 X 11586 0 4309 TIMOTHY VARGAS LINE SUPERINTENDENT 42.00 X 116272 0 51295 HOMERO VEGA SAFETY COORDINATOR 42.00 X 104518 0 49561 ROBERT STURGESS FIELD ENGINEER 44.00 X 105373 0 47865 JORGE LARA FOREMAN 44.00 X 101347 0 40786 ROBERT BOOTH JR FOREMAN 47.00 X 102207 0 34848 1100443 0 378889 6 0 1 0 DAVIS WELDING AND CONSTRUCTION LLC 502 S HARRIS TULIA TX 79088 GENERAL CONTRACTOR FOR NEW BUILDING 670203 TL MORGAN GENERAL CONTRACTORS LTD 7845 CANYON DR SUITE 200 AMARILLO TX 79110 WIND STORM ROOF REPLACEMENT 510380 POLE TECH SERVICES 885 COUNTY RD 231 THORSBY AL 35171 POLE INSPECTIONS 201574 3 X SALES OF ELECTRICITY 221000 21431285 21431285 PATRONAGE DIVIDENDS 221000 948407 948407 OTHER PROGRAM REVENUE 221000 96173 120000 -23827 SERVICE FEES 221000 84450 84450 ELECTRIC WHEELING 221000 17400 17400 22577715 271194 271194 9180 0 9180 9180 9180 588587 143266 445321 445321 445321 131586 114302 17284 17284 POLE ATTACHMENT INCOME 221000 10985 10985 SCRAP SALES 221000 499 499 11484 23332178 23064646 -14647 282179 X 7700 1150 1157784 725260 1990720 290991 482849 251958 972151 2086699 PURCHASED POWER 12939690 DISTRIBUTION EXPENSE 1216454 ADMIN & GENERAL EXPENSE 837014 OPERATING TAXES 205716 166042 23332178 420836 275703 1708067 1031353 1223871 1240300 209680 187843 2620716 2623762 79688380 36642776 41434342 43045604 27335824 27583492 28384 25918 74981720 76013975 1662464 1550434 99086 98291 25363979 24358018 3426971 4135804 30552500 30142547 X 0 0 0 0 44429220 45871428 44429220 45871428 74981720 76013975 X 0 1442208 X X 0 1 X 0 0 0 1 X 167225 167225 3963972 1119059 2844913 301482 301482 75220487 35523717 39696770 35214 35214 43045604 PATRONAGE CAPITAL - TEC 496998 C PATRONAGE CAPITAL - CFC 430338 C PATRONAGE CAPITAL - GSEC 23544930 C PATRONAGE CAPITAL - NISC 50690 C PATRONAGE CAPITAL - OTHER 54593 C CAPITAL TERM CERTIFICATES - CFC 644948 C SCHOLARSHIP FUNDS & OPERATIONS RESERVE 1319466 C CFC MEMBER CAPITAL SECURITIES 500000 C PATRONAGE CAPITAL - FEDERATED RURAL INSURANCE EXCHANGE 208529 C MEDIUM TERM NOTES - CFC 333000 C 27583492 CONSUMER DEPOSITS 508801 DEFERRED CREDITS - UNAMORTIZED GAIN ON LTD 369372 DEFERRED CREDIT - UNCLAIMED CAPITAL CREDIT CHECKS 248436 DEFERRED CREDIT - OVERBILLED POWER COST 2792201 DEFERRD CREDIT - AMI METER INSTALL COST 155486 ACCRUED OPERATING TAXES 51809 OTHER LIABILITIES 9699 4135804 X 23353340 21162 21162 23332178 0 23332178 22195556 21162 21162 22174394 1157784 1157784 23332178 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. THE 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. 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), OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: RECLASSIFY NON-OPERATING EXPENSES TO PART IX 21,162. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASSIFY NON-OPERATING EXPENSES TO PART IX 21,162. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ASSIGNED OR TO BE ASSIGNED 1,157,784. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART IX, 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". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. X 1 1 X X 0 0 0 TIMOTHY VARGAS LINE SUPERINTENDENT 114384 0 1180 0 708 0 16431 0 34864 0 167567 0 0 0 HENRY CRUZ JR DIRECTOR OF OPS & INTERIM GM 110912 0 7450 0 1931 0 2365 0 35052 0 157710 0 0 0 HOMERO VEGA SAFETY COORDINATOR 102873 0 1500 0 145 0 13576 0 35985 0 154079 0 0 0 ROBERT STURGESS FIELD ENGINEER 99990 0 1055 0 4328 0 14217 0 33648 0 153238 0 0 0 PART I, LINE 1A PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL REIMBURSE DIRECTORS FOR THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE. NO INDIVIDUALS REPORTED ON PART VII RECEIVED THIS BENEFIT DURING THE YEAR. PART I, LINE 3 THE GENERAL MANAGER AND BOARD OF DIRECTORS USE AN INDPENDENT CONSULTANT IN DETERMING COMPENSATION FOR OTHER OFFICERS AND KEY EMPLOYEES. 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 AND REPRESENT THE TRUE COST TO THE COOPERATIVE. TIMOTHY VARGAS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 14,216 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,215 TOTAL REPORTED IN COLUMN C $ 16,431 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,216) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,793 EXPENSE TO THE COOPERATIVE $ 26,008 HENRY CRUZ JR.: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ -0- EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,365 TOTAL REPORTED IN COLUMN C $ 2,365 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (-0-) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,307 EXPENSE TO THE COOPERATIVE $ 27,672 HOMERO VEGA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,683 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,893 TOTAL REPORTED IN COLUMN C $ 13,576 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,683) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,811 EXPENSE TO THE COOPERATIVE $ 21,704 ROBERT STURGESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,445 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,772 TOTAL REPORTED IN COLUMN C $ 14,217 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,445) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,034 EXPENSE TO THE COOPERATIVE $ 20,806 STEVEN GARCIA SON IN LAW - DIRECTOR OF OPERATIONS/INTERIM GM (HENRY CRUZ JR.) 93411 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. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 2. MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 3. THE 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 WILL REQUIRE THE BOARD AND ITS EMPLOYEES TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. THE BOARD WILL ALSO COMPLETE AND SIGN THE FORM 990 DISCLOSURE QUESTIONNAIRE. THE SIGNED COPIES WILL BE KEPT IN THE PERSONNEL FILE FOR EACH INDIVIDUAL. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS DISCUSS AND EVALUATE THE PERFORMANCE OF THE GENERAL MANAGER FOR DETERMINING COMPENSATION. THE BOARD AND THE GENERAL MANAGER USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 A SUMMARY OF THE ANNUAL FINANCIAL STATEMENTS ARE HANDED OUT TO MEMBERS AT THE ANNUAL MEMBERSHIP MEETING. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY. THE COOPERATIVE'S CONFLICT OF INTEREST POLICY IS AVAILABLE TO THE PUBLIC UPON REQUEST AT THE COOPERATIVE'S HEADQUARTERS. 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, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS 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. 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 WILL BE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 WILL BE 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 $ 2,715,980 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (184,870) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (154,534) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 520,625 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 341,980 TOTAL WAGES ACCRUED AND/OR PAID $ 3,239,181 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 762,198 OFFICE SUPPLIES 26,401 SOFTWARE MAINTENANCE 208,554 OUTSIDE SERVICES EMPLOYED 163,685 INJURIES AND DAMAGES INSURANCE 112,049 EMPLOYEE PENSION & BENEFITS 5,543 DIRECTORS 192,748 DUES TO ASSOCIATED ORGANIZATIONS 27,398 EMPLOYEE TRAVEL 17,706 ADVERTISING 18,659 MISCELLANEOUS GENERAL 115,798 ANNUAL MEETING 50,146 COMMUNITY PUBLIC RELATIONS & AREA DEVELOPMENT 30,377 MEMBER SERVICES RELATIONS 50,244 MAINTENANCE OF GENERAL PLANT 133,427 REGULATORY COMMISSION 36,603 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 1,951,536 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (184,870) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (621,153) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (308,499) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 837,014 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 CURRENT 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 1: 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. EACH GRANT, SPONSORSHIP, AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 1,157,784. PATRONAGE CAPITAL RETIRED - TOTAL -14,902. PATRONAGE CAPITAL RETIRED - DISCOUNT 4,839. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSION & BENEFITS 294,487. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. RURAL ENERGY SOLUTIONS LLC PO BOX 67 TULIA TX 79088 923942909 ENERGY SERVICES TX -23363 128152 SWISHER ELECTRIC COOPERATIVE INC