2024-11-14T12:13:05-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 480499309 THE VICTORY ELECTRIC COOPERATIVE ASSOCIATION INC VICT 6202272139 PO BOX 1335 DODGE CITY KS 678011335 SHANE LAWS CEO 6202272139 2024-11-11 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-11 X 2023 2024-10-15 13:58:12Z SHANE LAWS PO BOX 1335 DODGE CITY KS 678011335 72401378 0 X WWW.VICTORYELECTRIC.NET X 1945 KS TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 11 11 80 0 0 0 0 0 87476090 71744215 194831 576285 58510 63916 87729431 72384416 59458 80374 7386691 5674137 8400523 7373441 0 0 0 71698848 58683017 87545520 71810969 183911 573447 184950618 190296293 108224506 108409666 76726112 81886627 TO PROVIDE A SAFE, RELIABLE SERVICE AT A COMPETITIVE RATE, PROVIDE ECONOMIC DEVELOPMENT OPPORTUNITIES AND SERVICES FOR OUR MEMBERS, AND ENSURE THE FINANCIAL STABILITY OF THE COOPERATIVE THROUGH THE USE OF PRUDENT BUSINESS PRACTICES AND THE LATEST TECHNOLOGY. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 20,313 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 46 0 80 1 0 0 0 0 0 71871959 1872848 0 0 0 X 11 11 1 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X ANGELA UNRUH CFO 6202272139 3230 N 14TH AVE DODGE CITY KS 67801 X KENNY WEHKAMP TRUSTEE 5.00 X 26032 0 0 JOHN LEIS TRUSTEE 6.00 X 35260 0 0 JIM IMEL TRUSTEE 7.00 X 28005 0 0 PATRICK MORSE PRESIDENT 5.30 X X 30832 0 0 KENNETH SCHULTE TRUSTEE 4.50 X 5940 0 0 JAMES DARYL TIEBEN VICE PRESIDENT 6.40 X X 29932 0 0 CEDRIC DREWES SECRETARY/TREASURER 7.00 X X 42460 0 0 RANDY QUINT TRUSTEE 4.00 X 24832 0 0 GARY GILLESPIE TRUSTEE (JAN-FEB) 5.00 X 4239 0 0 TERRI LARSON TRUSTEE 4.30 X 28432 0 0 JAMES L OCHS TRUSTEE 8.00 X 38260 0 0 MEGAN EVANS TRUSTEE (FEB-DEC) 3.00 X 31568 0 0 ANTHONY S LAWS CEO 60.00 X 394064 0 143433 ANGELA K UNRUH CFO 48.00 X 195811 0 83701 DENZIL MCGILL CIO 45.00 X 182522 0 98516 RYAN MILLER VP OF OPERATIONS 48.00 X 154842 0 122488 ROB HENRY VP OF ENGINEERING 50.00 X 141896 0 76696 AMY GRASSER VP OF CORPORATE SERVICES 45.00 X 137310 0 64754 TED MCATEE JOURNEYMAN LINEMAN 50.00 X 130073 0 85478 ERIC SPEER MANAGER OF OPERATIONS 48.00 X 129984 0 90859 AUSTIN GOODER JOURNEYMAN LINEMAN 49.00 X 126815 0 22231 1919109 0 788156 32 0 1 0 PENNICK SERVICES INC 23903 12 RD MONTEZUMA KS 67867 DIRECTIONAL DRILLING SERVICES 466476 ELECTRICOMM INC PO BOX 8324 TOPEKA KS 66608 OIL SITE SAMPLES, SITE SURVEYS, ENGINEER 462686 NISC PO BOX 1147 MANDAN ND 58554 BILLING & SOFTWARE SERVICES 392653 KANSAS ELECTRIC COOPERATIVES PO BOX 4267 TOPEKA KS 66604 ASSESSMENTS, SUBSCRIPTION DUES, SAFETY M 306054 AL'S H20 SERVICE 11174 YUCCA ROAD MINNEOLA KS 67865 CONCRETE SERVICES 138844 6 X SALES OF ELECTRICITY 221000 67984575 67984575 PATRONAGE DIVIDENDS 221000 2568229 2568229 SERVICE FEES 221000 996490 996490 TRANSMISSION/WHEELING 221000 194921 194921 71744215 415551 415551 4747 0 4747 4747 4747 161978 1244 160734 160734 160734 12880 15718 -2838 -2838 POLE ATTACHMENT INCOME 221000 62007 62007 62007 72384416 71906858 0 477558 X 70374 10000 5674137 1701169 3516856 885147 979795 290474 3680001 5465527 PURCHASED POWER 43862114 DISTRIBUTION EXPENSE 3005348 ADMIN & GENERAL EXPENSE 1561141 TRANSMISSION EXPENSE 553290 555596 71810969 4168099 4534386 5012210 2265137 7346173 7666372 8193 4156 4745901 4751952 1664187 1305831 196300071 67321966 122038745 128978105 39104853 40770531 862257 19823 184950618 190296293 6123396 6267467 98884036 97405993 3217074 4736206 108224506 108409666 X 0 0 0 0 76726112 81886627 76726112 81886627 184950618 190296293 X 573447 4587068 X X 0 1 X 0 0 790555 790555 8445756 2361904 6083852 171827916 58595912 113232004 15235844 6364150 8871694 128978105 CFC MEMBER CAPITAL SECURITIES 100000 C CFC CAPITAL TERM CERTIFICATES 305839 C PATRONAGE CAPITAL - COBANK 373259 C PATRONAGE CAPITAL - NRUCFC 280357 C PATRONAGE CAPITAL - NISC 155284 C PATRONAGE CAPITAL - KEPCO 5446418 C PATRONAGE CAPITAL - SEPCO 32471342 C PATRONAGE CAPITAL - OTHER 506189 C CONTRIBUTED CAPITAL - SEPCO 1131843 C 40770531 CONSUMER DEPOSITS 1519442 ACCRUED OPERATING TAXES & FEES 1564321 DEFERRED CREDITS 1652443 4736206 X 72384416 0 72384416 0 72384416 66136832 0 66136832 5674137 5674137 71810969 PART X, LINE 2: THE COOPERATIVE UTILIZES 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, OR OTHER STATE TAXING AUTHORITY 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 5,674,137. 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". 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. 1 FORD COUNTY 100 GUNSMOKE DODGE CITY KS 67801 480967227 GOVERNMENT 0 11000 DONATION OF GENERATORS DODGE CITY AREA CHAMBER OF COMMERCE PO BOX 939 DODGE CITY KS 67801 480198165 501(C)(6) 5429 0 ANNUAL MEMBERSHIP, STATE OF THE CITY ADDRESS, ANNUAL GOLF TOURNAMENT, DODGE CITY DAYS SALUTE THE TROOPS DODGE CITY-FORD COUNTY DEVELOPMENT CORPORATION PO BOX 818 DODGE CITY KS 67801 480990726 501(C)(6) 5500 0 ANNUAL PLEDGE, YOUTH ENTREPRENEURSHIP COMPETITION PERFECT FIT FOUNDATION OF SWK 2603 CENTRAL AVE DODGE CITY KS 67801 834530012 501(C)(3) 10500 0 AUTISM THERAPY & TREATMENT, COBANK SHARING SUCCESS 2 2 SECONDARY EDUCATION SCHOLARSHIPS FOR COOPERATIVE MEMBERS AND/OR THEIR DEPENDENTS. 10 10000 CASH RECEIVED PART I, LINE 2: SCHOLARSHIPS FOR SECONDARY EDUCATION ARE AWARDED ANNUALLY TO ASSIST QUALIFIED INDIVIDUALS IN FURTHERING THEIR EDUCATION. TO BE ELIGIBLE A CANDIDATE OR CANDIDATE'S PARENTS OR LEGAL GUARDIAN MUST BE AN ACTIVE MEMBER OF THE VICTORY ELECTRIC COOPERATIVE ASSOCIATION. APPLICANT MUST ENROLL OR BE ENROLLED AT AN ACCREDITED EDUCATIONAL OR TRAINING INSTITUTION AND HAVE A GPA OF 3.5 OR BETTER. 10 SCHOLARSHIPS ARE AWARDED BY AN INDEPENDENT SCHOLARSHIP COMMITTEE AND ARE BASED ON A SCHOLARSHIP APPLICATION PROCESS. 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 0 1 0 ANTHONY S LAWS CEO 390826 0 0 0 3238 0 106790 0 36643 0 537497 0 0 0 DENZIL MCGILL CIO 177421 0 2500 0 2601 0 64807 0 33709 0 281038 0 0 0 ANGELA K UNRUH CFO 190052 0 2500 0 3259 0 47876 0 35825 0 279512 0 0 0 RYAN MILLER VP OF OPERATIONS 148902 0 1000 0 4940 0 87083 0 35405 0 277330 0 0 0 ERIC SPEER MANAGER OF OPERATIONS 123350 0 2750 0 3884 0 57613 0 33246 0 220843 0 0 0 ROB HENRY VP OF ENGINEERING 137754 0 2500 0 1642 0 43761 0 32935 0 218592 0 0 0 TED MCATEE JOURNEYMAN LINEMAN 129355 0 0 0 718 0 51326 0 34152 0 215551 0 0 0 AMY GRASSER VP OF CORPORATE SERVICES 134115 0 0 0 3195 0 30950 0 33804 0 202064 0 0 0 PART I, LINE 4B DURING THE YEAR, SHANE LAWS RECEIVED $47,177 FROM A DEFERRED COMPENSATION PLAN. 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. ANTHONY S. LAWS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 83,690 EMPLOYER CONTRIBUTION TO 401(K) PLAN 23,100 TOTAL REPORTED IN COLUMN C $ 106,790 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (83,690) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 104,955 EXPENSE TO THE COOPERATIVE $ 128,055 DENZIL MCGILL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 52,391 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,416 TOTAL REPORTED IN COLUMN C $ 64,807 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (52,391) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 56,324 EXPENSE TO THE COOPERATIVE $ 68,740 ANGELA UNRUH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,327 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,549 TOTAL REPORTED IN COLUMN C $ 47,876 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,327) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 60,928 EXPENSE TO THE COOPERATIVE $ 74,477 RYAN MILLER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 76,579 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,504 TOTAL REPORTED IN COLUMN C $ 87,083 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (76,579) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,260 EXPENSE TO THE COOPERATIVE $ 57,764 ERIC SPEER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 48,953 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,660 TOTAL REPORTED IN COLUMN C $ 57,613 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,953) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,011 EXPENSE TO THE COOPERATIVE $ 47,671 ROB HENRY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,075 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,686 TOTAL REPORTED IN COLUMN C $ 43,761 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,075) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,581 EXPENSE TO THE COOPERATIVE $ 53,267 TED MCATEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,861 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,465 TOTAL REPORTED IN COLUMN C $ 51,326 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,861) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,764 EXPENSE TO THE COOPERATIVE $ 31,229 AMY GRASSER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,397 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,553 TOTAL REPORTED IN COLUMN C $ 30,950 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,397) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,907 EXPENSE TO THE COOPERATIVE $ 52,460 KISA UNRUH FAMILY RELATIONSHIP - EMPLOYEE OFFICER (A. UNRUH) 1000 SCHOLARSHIP SECONDARY EDUCATION FORM 990, PART IV, LINE 27: SECONDARY EDUCATION SCHOLARSHIPS ARE AWARDED ANNUALLY TO ASSIST QUALIFIED INDIVIDUALS IN FURTHERING THEIR EDUCATION. TO BE ELIGIBLE A CANDIDATE OR CANDIDATE'S PARENTS OR LEGAL GUARDIAN MUST BE AN ACTIVE MEMBER OF THE VICTORY ELECTRIC COOPERATIVE ASSOCIATION. APPLICANT MUST ENROLL OR BE ENROLLED AT AN ACCREDITED EDUCATIONAL OR TRAINING INSTITUTION AND HAVE GPA OF 3.5 OR BETTER. SCHOLARSHIP RECIPIENTS ARE DECIDED BY AN INDEPENDENT SCHOLARSHIP COMMITTEE AND CHOSEN THROUGH A SCHOLARSHIP APPLICATION PROCESS. DURING THE YEAR, EMPLOYEE OFFICER ANGELA UNRUH'S DAUGHTER, KISA UHRUH, WENT THROUGH THE APPLICATION PROCESS AND WAS SELECTED BY THE SCHOLARSHIP COMMITTEE. FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAS 11 BOARD MEMBERS; ALL 11 ARE ALLOWED TO VOTE, HOWEVER, THE BOARD PRESIDENT VOTES ONLY IN THE CASE OF A TIE SHOULD ALL MEMBERS OF THE BOARD NOT BE PRESENT AT ANY GIVEN MEETING. FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN KENNY WEHKAMP (TRUSTEE), CEDRIC DREWES (TRUSTEE), AND SHANE LAWS (CEO). ALL SERVE ON THE BOARD OF SUNFLOWER ELECTRIC POWER CORPORATION AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. ANGELA UNRUH (CFO) SERVES AS ALTERNATE FOR SHANE LAWS' POSITION ON SUNFLOWER'S BOARD. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR THE COOPERATIVE AMENDED THE ARTICLES OF INCORPORATION. THE FOLLOWING IS A SUMMARY OF THE CHANGE: PARAGRAPH FIFTH OF THE ARTICLES ADDED THE FOLLOWING: "K) BECOME AN INCORPORATOR, PROMOTER, MANAGER, MEMBER, STOCKHOLDER OR OWNER OF OTHER CORPORATIONS OR COOPERATIVES, AND CONDUCT ITS BUSINESS AND EXERCISE ITS POWERS WITHIN THIS STATE AND TO PARTICIPATE WITH OTHER PERSONS OR ENTITIES, IN ANY CORPORATION, LIMITED LIABILITY COMPANY, COOPERATIVE, PARTNERSHIP, LIMITED PARTNERSHIP, JOINT VENTURE OR OTHER ASSOCIATION OF ANY KIND, OR IN ANY TRANSACTION, UNDERTAKING, OR ARRANGEMENT WHICH THE PARTICIPATING PERSON OR ENTITY WOULD HAVE POWER TO CONDUCT BY ITSELF, FOR ANY LAWFUL BUSINESS UNDER THE GENERAL CORPORATION LAWS OF THE STATE, WHETHER OR NOT SUCH PARTICIPATION INVOLVES SHARING OR DELEGATION OF CONTROL WITH OR TO OTHERS". 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 TRUSTEES. 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 5. AMENDMENT TO THE BYLAWS 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 TRUSTEES AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF TRUSTEES AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF TRUSTEES AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE BOARD AND THE CEO USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICERS AND KEY EMPLOYEES, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ANNUALLY, THE COOPERATIVE PROVIDES A COPY OF THE BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. THE ANNUAL REPORT AND BYLAWS CAN BE FOUND ON THE COOPERATIVE'S 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 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. 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 TO 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 RURAL UTILITIES SERVICE (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, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,963,882 TRAINING 50,552 OFFICE SUPPLIES 338,625 OUTSIDE SERVICES 156,587 INSURANCE 109,725 EMPLOYEE ACTIVITIES 27,202 TRUSTEES 393,553 MISCELLANEOUS GENERAL 466,735 MAINTENANCE OF GENERAL PLANT 188,484 REGULATORY COMMISSION 1,804 MEMBER MEETING 99,912 ADVERTISING 17,335 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,814,396 LESS: RECLASS OF SCHOLARSHIPS TO PART IX, LINE 2 (10,000) LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (325,792) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,839,689) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,077,774 TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,561,141 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 $ 5,218,025 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (325,792) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (448,138) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,632,382 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 373,068 TOTAL WAGES ACCRUED AND/OR PAID $ 7,449,545 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. 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 2023 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: CUSTOMER ACCOUNTS $ 306,254 CUSTOMER SERVICE AND INFORMATION 203,015 SALES EXPENSE 46,327 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 555,596 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,674,137. PATRONAGE CAPITAL RETIRED - TOTAL -1,379,586. PATRONAGE CAPITAL RETIRED - DISCOUNT 292,474. DONATED CAPITAL 43. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR REVIEWING, OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR.