2024-11-15T15:57:26-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 356043583 SOUTH CENTRAL INDIANA RURAL ELECTRIC MEMBERSHIP CORPORATION SOUT 7653423344 300 MORTON AVENUE MARTINSVILLE IN 46151 RANDY ELLIOTT CHIEF OPERATING OFFICER 8002647362 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z RANDY ELLIOTT 300 MORTON AVENUE MARTINSVILLE IN 46151 108367088 0 X WWW.SCIREMC.COM X 1939 IN TO PROVIDE SAFE, RELIABLE, COST-EFFECTIVE ELECTRICITY AND ENERGY SOLUTIONS. 9 9 197 0 542947 0 0 0 101394278 107530679 -142085 75892 546768 555026 101798961 108161597 12414 4645 3469030 6038209 13781436 14260456 0 0 0 85995261 89364484 103258141 109667794 -1459180 -1506197 299011194 319263013 204022421 219925750 94988773 99337263 SCI REMC IS A TRUSTED ELECTRIC COOPERATIVE SERVING OUR DIVERSE COMMUNITIES WITH INNOVATIVE ENERGY SOLUTIONS AND LIFE-ENHANCING SERVICES. 0 0 ELECTRIC DIVISION:PROVIDING RELIABLE ELECTRICITY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 35,352 ACTIVE SERVICES AT YEAR END. FIBER DIVISION:A SEPERATE DIVISION OF THE COOPERATIVE WAS CREATED TO PROVIDE BROADBAND INTERNET SERVICES TO ITS MEMBERS THROUGH THE CONSTRUCTION OF A FIBER OPTIC NETWORK. THE FIRST CONNECTIONS BEGAN RECEIVING SERVICE DURING 2019. FIBER OPTIC BROADBAND SERVICES OF THIS DIVISION WILL BE PROVIDED TO MEMBERS ON A PATRONAGE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL TO THE EXTENT NET MARGINS WILL EXCEED CUMULATIVE LOSSES FOR SUCH DIVISION. 0 0 1 0 0 0 0 0 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 0 0 0 0 0 0 1 1 1 0 0 1 59 0 197 1 1 1 0 0 0 0 105535721 2732826 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 IN X CHARITY COFFMAN VP OF FINANCE 7653423344 300 MORTON AVE MARTINSVILLE IN 46151 X BRAD SHIELDS DIRECTOR 3.70 X 14110 0 0 REX FRANKLIN DIRECTOR 9.50 X 33287 0 0 KENNETH SEBASTIAN DIRECTOR 4.40 X 15985 0 0 LISA PROSSER DIRECTOR 3.90 X 15635 0 0 JERRY PHEIFER SECRETARY-TREASURER 5.20 X X 9606 0 0 BRUCE HAMLIN CHAIRMAN 6.50 X X 15760 0 0 MARK SMITH DIRECTOR 1.50 X 23396 0 0 HEATHER MOLLO VICE CHAIRMAN 4.50 X X 13375 0 0 DONALD LEE RENNER DIRECTOR 11.40 X 16285 0 0 JAMES TANNEBERGER PRESIDENT & CEO 70.00 0.50 X 321301 0 132452 RANDY ELLIOTT CHIEF OPERATING OFFICER 50.00 X 190170 0 147093 TAMMY HAENLEIN VP OF MEMBER SERVICES 40.00 X 154392 0 79747 GREGG HOPSICKER VP OF DISTRIBUTION SERVICES 45.00 X 216110 0 11229 MARILOU IDLAND VP OF HUMAN RESOURCES 55.00 X 176850 0 51570 AARON HANSEN LINE FOREMAN 54.00 X 163270 0 44313 BRET HOPKINS LINE FOREMAN 54.00 X 162736 0 69702 CHAD GRIFFIN LEAD LINE FOREMAN 53.00 X 162173 0 55015 ANDREW POLLEY LINE FOREMAN 52.00 X 159371 0 45919 JOSH SAWYERS LEAD LINE FOREMAN 51.00 X 157979 0 48293 2021791 0 685333 52 0 1 0 AMERICAN UTILITY CORPORATION INC PO BOX 371 SPRINGFIELD KY 40069 UNDERGROUND FIBER CONTRACTOR 4785215 DELTA SERVICES LLC 4676 JENNINGS LANE LOUISVILLE KY 40218 OVERHEAD/UNDERGROUND CONTRACTOR SERVICES 2426018 POWER SOURCE 1 LLC 82 CHESS ROAD CORBIN KY 40701 ELECTRIC CONTRACTOR SERVICES 2208903 PRINCE EXCAVATING 5412 E GUTHRIE RD HELTONVILLE IN 47436 UNDERGROUND CONTRACTOR SERVICES 2204301 PRECISION FIBER SOLUTIONS LLC 4121 HUNT CLUB PARKWAY BARGERSVILLE IN 46106 FIBER/TELECOM SERVICES 2099026 21 X SALES OF ELECTRICITY 221000 87365089 87365089 FIBER REVENUE 517000 16844996 16292054 552942 PATRONAGE DIVIDENDS 221000 2442449 2442449 SERVICE FEES 221000 878145 878145 107530679 81195 81195 16768 0 16768 16768 16768 31076 36379 -5303 -5303 -5303 211893 169112 42781 42781 POLE ATTACHEMENT INCOME 221000 505472 505472 BROADBAND P'SHIP LOSS 221000 -9995 -9995 495477 108161597 107015215 542947 603435 X 4645 6038209 1638353 7962989 1496600 2358325 804189 6604500 11714988 PURCHASED POWER/COST OF 61007783 ADMIN & GENERAL EXPENSE 4603983 DISTRIBUTION EXPENSE 4156167 CONSUMER EXPENSE 762161 514902 109667794 857306 1445514 949795 271574 12532703 14274046 2240 2240 3969128 3473654 547318 1392934 374091638 113734471 242355113 260357167 114989 114989 37655076 37906033 27526 24862 299011194 319263013 21313568 17394519 172367504 191074144 10341349 11457087 204022421 219925750 X 204885 198170 0 0 94783888 99139093 94988773 99337263 299011194 319263013 X -1506197 5854687 X X 0 1 X 1 0 2000 0 2000 2000 1 INDIANA FORE 8888 KEYSTONE CROSSING 1600 INDIANAPOLIS IN 46240 351998087 2000 PART I-A, LINE 1: THE COOPERATIVE'S SOLE DIRECT POLITICAL ACTIVITY WAS A $2,000 DONATION OF ITS OWN FUNDS TO INDIANA FRIENDS OF RURAL ELECTRIFICATION (INDIANA FORE). THE COOPERATIVE WAS INDIRECTLY INVOLVED IN POLITICAL CAMPAIGN ACTIVITIES OF INDIANA FORE. RESOURCES TO INDIANA FORE ARE USED EXCLUSIVELY TO SUPPORT STATE AND FEDERAL CANDIDATES WHO UNDERSTAND AND CONSISTENTLY SUPPORT THE ISSUES AND POLICIES IMPACTING INDIANA'S ELECTRIC COOPERATIVES. 1134264 1134264 16625143 4129542 12495601 325332298 109600968 215731330 30999933 3961 30995972 260357167 CAPITAL TERM CERTIFICATES-CFC 1337097 C HOOSIER ENERGY RURAL ELECTRIC COOP 30533207 C PATRONAGE CAPITAL-CFC 921134 C PATRONAGE CAPITAL-COBANK 3496012 C PATRONAGE CAPITAL-UNITED UTILITY SUPPLY CORP 273091 C PATRONAGE CAPITAL-IBC 173446 C PATRONAGE CAPITAL-FEDERATED 476049 C PATRONAGE CAPITAL-OTHER 401061 C OTHER INVESTMENTS IN ASSOCIATED ORGS 294936 C 37906033 CONSUMER ADVANCES FOR CONSTRUCTION 3154002 CONSUMER DEPOSITS 986099 EMPLOYEE POST RETIREMENT BENEFIT OBLIGATION 4167405 ACCRUED OPERATING TAXES 1127022 FIBER UNEARNED REVENUES 2022559 11457087 X 108165702 0 108165702 -4105 -4105 108161597 103624248 0 103624248 6043546 6043546 109667794 PART X, LINE 2: THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLE RELATED TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS PROVIDES DETAILED GUIDANCE FOR THE FINANCIAL STATEMENT RECOGNITION, MEASUREMENT AND DISCLOSURE OF UNCERTAIN TAX POSITIONS RECOGNIZED IN AN ENTERPRISE'S FINANCIAL STATEMENTS. THE ACCOUNTING PRINCIPLE REQUIRES AN ENTITY TO RECOGNIZE THE FINANCIAL STATEMENT IMPACT OF A TAX POSITION WHEN IT IS MORE LIKELY THAN NOT THAT THE POSITION WILL BE SUSTAINED UPON EXAMINATION. THE ADOPTION OF THIS ACCOUNTING PRINCIPLE DOES NOT HAVE A MATERIAL EFFECT ON ITS FINANCIAL POSITION, RESULTS OF OPERATIONS OR CASH FLOWS AS THE REMC DOES NOT BELIEVE THEY ARE TAKING UNCERTAIN TAX POSITIONS. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFICATION OF NON-OPERATING EXPENSES 5,337. UBI TAX ADJUSTMENT - SCHEDULE K-1 LOSS FROM BROADBAND PARTNERSHIP -9,442. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 6,038,209. RECLASSIFICATION OF NON-OPERATING EXPENSES 5,337. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF 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". X X X X 0 0 0 JAMES TANNEBERGER PRESIDENT & CEO 320491 0 0 0 810 0 101289 0 31163 0 453753 0 0 0 RANDY ELLIOTT CHIEF OPERATING OFFICER 186606 0 0 0 3564 0 112445 0 34648 0 337263 0 0 0 TAMMY HAENLEIN VP OF MEMBER SERVICES 151838 0 0 0 2554 0 47846 0 31901 0 234139 0 0 0 BRET HOPKINS LINE FOREMAN 162456 0 0 0 280 0 40456 0 29246 0 232438 0 0 0 MARILOU IDLAND VP OF HUMAN RESOURCES 173286 0 0 0 3564 0 33241 0 18329 0 228420 0 0 0 GREGG HOPSICKER VP OF DISTRIBUTION SERVICES 186591 0 27197 0 2322 0 8476 0 2753 0 227339 0 0 0 CHAD GRIFFIN LEAD LINE FOREMAN 161428 0 0 0 745 0 22133 0 32882 0 217188 0 0 0 AARON HANSEN LINE FOREMAN 163005 0 0 0 265 0 14944 0 29369 0 207583 0 0 0 JOSH SAWYERS LEAD LINE FOREMAN 157470 0 0 0 509 0 17471 0 30822 0 206272 0 0 0 ANDREW POLLEY LINE FOREMAN 159087 0 0 0 284 0 14837 0 31082 0 205290 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. 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. JAMES TANNEBERGER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 87,149 EMPLOYER CONTRIBUTION TO 401(K) PLAN 14,140 TOTAL REPORTED IN COLUMN C $ 101,289 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (87,149) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 50,952 EXPENSE TO THE COOPERATIVE $ 65,092 RANDY ELLIOT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 103,144 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,301 TOTAL REPORTED IN COLUMN C $ 112,445 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (103,144) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,178 EXPENSE TO THE COOPERATIVE $ 40,479 TAMMY HAENLEIN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,950 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,896 TOTAL REPORTED IN COLUMN C $ 47,846 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,950) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,567 EXPENSE TO THE COOPERATIVE $ 34,463 BRET HOPKINS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,119 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,337 TOTAL REPORTED IN COLUMN C $ 40,456 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,119) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,953 EXPENSE TO THE COOPERATIVE $ 22,290 MARILOU IDLAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,404 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,837 TOTAL REPORTED IN COLUMN C $ 33,241 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,404) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,691 EXPENSE TO THE COOPERATIVE $ 38,528 GREG HOPSICKER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ (0) EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,476 TOTAL REPORTED IN COLUMN C $ 8,476 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN (0) EXPENSE TO THE COOPERATIVE $ 8,476 CHAD GRIFFIN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 16,726 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,407 TOTAL REPORTED IN COLUMN C $ 22,133 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (16,726) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,007 EXPENSE TO THE COOPERATIVE $ 23,414 AARON HANSEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,832 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,112 TOTAL REPORTED IN COLUMN C $ 14,944 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,832) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,953 EXPENSE TO THE COOPERATIVE $ 20,065 JOSH SAWYERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,927 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,544 TOTAL REPORTED IN COLUMN C $ 17,471 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,927) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,007 EXPENSE TO THE COOPERATIVE $ 23,551 ANDREW POLLEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 10,183 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,654 TOTAL REPORTED IN COLUMN C $ 14,837 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (10,183) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,007 EXPENSE TO THE COOPERATIVE $ 22,661 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 MEMBERS HAVE THE OPPORTUNITY TO VOTE AND ELECT THEIR OWN MEMBER REPRESENTATIVE ON THE BOARD OF DIRECTORS. EACH ELIGIBLE MEMBER IS ENTITLED TO ONE VOTE. 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. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, A SURVEY IS DISTRIBUTED TO ALL THE RELEVENT PARTIES WHICH ASKS ABOUT ANY RELATIONSHIPS AND CONFLICTS OF INTEREST. IT IS THE DUTY OF THE BOARD MEMBER TO DISCLOSE ANY CONFLICTS OF INTEREST. A BOARD MEMBER WITH A CONFLICT OF INTEREST MUST RECUSE HIMSELF FROM ANY DISCUSSION OR VOTING ON ISSUES THAT ARISE AS A RESULT OF THAT CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE CEO AND OTHER EMPLOYEE OFFICER'S COMPENSATION PACKAGES ARE DETERMINED BY USING COMPARABILITY DATA FOR SIMILAR POSITIONS. THIS DATA IS THEN REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS, WITH CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION OF THE DECISION. FORM 990, PART VI, SECTION C, LINE 19 A CURRENT COPY OF THE BYLAWS AND MONTHLY BOARD MINUTES ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE AT WWW.SCIREMC.COM/BOARD-DIRECTORS. ADDITIONALLY, CURRENT MEMBERS MAY SUBMIT A REQUEST TO REVIEW THE COOPERATIVE'S ARTICLES OF INCORPORATION, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS. 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 AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH 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 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 COOPERATIVE TO ITS MEMBERS. FORM 990, PART IX: THE COOPERATIVE MAINTAINS ITS BOOKS AND RECORDS IN ACCORDANCE WITH POLICIES PRESCRIBED OR PERMITTED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICES (RUS) AND THE INDIANA UTILITY REGULATORY COMMISSION (IURC), ALTHOUGH THE COOPERATIVE IS NO LONGER REGULATED BY THESE AGENCIES. THE APPLICABLE UNIFORM SYSTEM OF ACCOUNTS (USOA) FOLLOWED BY THE COOPERATIVE 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 1: ALL GRANTS, DONATIONS, AND/OR SPONSORSHIPS 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, DONATION, AND/OR SPONSORSHIP MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. 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 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, 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 $ 9,601,342 LESS: DIRECTORS FEES AND DEFERRED COMPENSATION (157,439) LESS: OFFICER AND KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (422,091) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,085,657 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 419,407 TOTAL WAGES ACCRUED AND/OR PAID $12,526,876 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,735,710 EMPLOYEE DUES & MEMBERSHIP 3,287 TRAINING & SEMINARS 85,011 BUSINESS MEALS 9,520 SUBSCRIPTIONS 903 MAINTENANCE OF OFFICE EQUIPMENT 90,803 MILEAGE 505 MOBILE PHONES 51,735 OFFICE SUPPLIES 765,386 UTILITIES & MONTHLY CHARGES 923,140 OUTSIDE SERVICES 209,896 INSURANCE & REGULATORY FEES 272,769 PUBLIC RELATIONS 24,625 ANNUAL MEETING 75,902 DIRECTORS 192,926 MAINTENANCE OF GENERAL PLANT 417,695 MISCELLANEOUS GENERAL EXPENSE 598,979 SUBSIDIARY EXPENSE 2,169,289 TOTAL ADMIN & GENERAL EXPENSE PER FINANCIAL STATEMENTS $ 7,628,081 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,833,825) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,032,834) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (157,439) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 4,603,983 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: TAXES $ 501,654 OTHER DEDUCTIONS 7,911 MERCHANDISING EXPENSES 5,337 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 514,902 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 6,038,209. PATRONAGE CAPITAL RETIRED - TOTAL -128,764. PATRONAGE CAPITAL RETIRED - DISCOUNT 86,842. OTHER COMPREHENSIVE INCOME - POST RETIREMENT BENEFITS OTHER THAN PENSIONS -144,327. NET DECREASE IN MEMBERSHIPS -6,715. UBI TAX ADJUSTMENT - SCHEDULE K-1 LOSS FROM BROADBAND PARTNERSHIP 9,442. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. SCI SERVICES LLC 300 MORTON AVENUE MARTINSVILLE IN 46151 352091210 RIGHT OF WAY MAINTENANCE IN SOUTH CENTRAL INDIANA REMC SCI MEMBERSHIP COMMUNITY FUND INC 300 MORTON AVE MARTINSVILLE IN 46151 351937189 DISBURSEMENT OF FUNDS FOR CHARITABLE PURPOSES IN THE COOP'S SERVICE AREA IN 501(C)(3) LINE 7 SOUTH CENTRAL INDIANA REMC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 SCI MEMBERSHIP COMMUNITY FUND INC N N/A - LESS THAN $50,000 SCI MEMBERSHIP COMMUNITY FUND INC O N/A - LESS THAN $50,000