2025-11-14T12:03:37-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 750204684 CONCHO VALLEY ELECTRIC COOPERATIVE INC CONC 3256556957 PO BOX 3388 SAN ANGELO TX 769023388 KELLY LANKFORD EXECUTIVE VP/CEO 3256556957 2025-11-08 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-08 X 2024 2025-03-06 01:10:19Z KELLY LANKFORD PO BOX 3388 SAN ANGELO TX 769023388 51711457 0 X WWW.CVEC.COOP X 1940 TX TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 85 0 11338 10338 0 0 50743794 51365698 47934 94183 243886 128495 51035614 51588376 26556 28308 3056818 5627098 6155805 6406347 0 0 0 41796435 39526623 51035614 51588376 0 0 150690134 162168376 88767367 96458085 61922767 65710291 X CONCHO VALLEY ELECTRIC COOPERATIVE, INC. DEDICATES ITSELF TO THE IMPROVEMENT OF ITS MEMBERS' LIFESTYLE AND THE ECONOMIC ENVRIONMENT OF ITS SERVICE AREA. THE COOPERATIVE IS COMMITTED TO PROVIDING SAFE, RELIABLE ELECTRIC SERVICE AT THE LOWEST PRACTICAL COST AND TO MEETING THE CHANGING NEEDS OF ITS MEMBERSHIP WITH A WELL-TRAINED, QUALITY WORKFORCE AND WITH THE USE OF SOUND BUSINESS PRACTICES. 0 0 ELECTRIC DIVISION:SALES OF ELECTRIC POWER TO MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 16,114 ACTIVE SERVICES AT YEAR END. BROADBAND DIVISION:SALES OF FIBER BASED BROADBAND INTERNET SERVICES TO MEMBERS ON A COOPERATIVE BASIS. WHEN CUMULATIVE NET MARGINS DERIVED FROM MEMBER SALES OF BROADBAND INTERNET SERVICES EXCEED CUMULATIVE NET LOSSES FROM SUCH SALES, THE COOPERATIVE WILL ALLOCATE PATRONAGE CAPITAL TO THE MEMBER SUBSCRIBERS OF THIS DIVISION. THERE WERE 310 BROADBAND SUBSCRIBERS AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 240 0 85 1 1 1 0 0 0 0 50786764 1513878 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 KELLY LANKFORD EXECUTIVE VPCEO 3256556957 2530 PULLIAM ST SAN ANGELO TX 769054401 X DARYL SCHNIERS DIRECTOR 4.50 X 3300 0 0 DAVID KEMPEN DIRECTOR 6.10 X 4450 0 0 JEFF COPELAND PRESIDENT 27.00 X X 3500 0 0 RALPH WILLBERG DIRECTOR 4.20 X 2400 0 0 THOMAS CARTER SECRETARY/TREASURER 12.60 X X 2000 0 0 LARRY W KLATTENHOFF VICE-PRESIDENT 5.60 X X 2200 0 0 WILLIAM WIGGINS DIRECTOR 3.80 X 2400 0 0 KELLY LANKFORD EXECUTIVE VP/CEO 50.70 X 373841 0 127583 DUSTIN BROWN DIR OF ENGINEERING & OPERATIONS 42.50 X 166287 0 54250 TERRY WARD ENGINEERING FOREMAN 47.30 X 148578 0 52677 JONATHAN CUTRER DIR OF INFORMATION TECHNOLOGY 40.10 X 147568 0 65593 DAVID WATSON DIR OF FINANCE & OFFICE SERVICES 41.40 X 146885 0 92921 BUSTER MATHENY LINE SUPERINTENDENT 42.60 X 131293 0 47415 DOUGLAS CLARK ENGINEERING SYSTEMS ADMINISTRATOR 43.60 X 122596 0 47435 1257298 0 487874 23 0 1 0 TECHLINE CONSTRUCTION LLC PO BOX 674086 DALLAS TX 75267 LINE CONSTRUCTION 2884472 RE CON COMPANY 12 NE 52ND STREET OKLAHOMA CITY OK 73105 ELECTRIC SUBSTATION CONSTRUCTION 1705858 POWER ENGINEERS INC PO BOX 855321 MINNEAPOLIS MN 55485 CONSULTING/ENGINEERING 1115946 RETURN MOUNTAIN LLC 2050 FM 89 BUFFALO GAP TX 79508 ENERGY CONSULTING 726350 CHAIN ELECTRIC COMPANY 1308 W PINE ST HATTIESBURG MS 39401 LINE CONSTRUCTION 527042 16 X SALES OF ELECTRICITY 221000 44902663 44902663 PATRONAGE DIVIDENDS 221000 5857609 5857609 SALES OF BROADBAND INTERNET 517000 391461 391461 SERVICE FEES 221000 213965 213965 51365698 94183 94183 21658 10320 11338 11338 11338 182538 112761 69777 69777 POLE ATTACHMENT INCOME 221000 47380 47380 47380 51588376 51435475 11338 141563 X 28308 5627098 742211 3716029 813753 829713 304641 4028465 4383847 PURCHASED POWER 26762430 DISTRIBUTION EXPENSE 2306382 CONSUMER EXPENSE 1086597 UNRELATED BUS. INC. TAX 6280 952622 51588376 X 1388071 2009023 50000 2775540 3431340 5819709 5836123 454014 681707 165894607 50360041 110271899 115534566 27832911 32822458 2147990 1803159 150690134 162168376 5733683 6237813 356756 500069 80048637 86465933 2628291 3254270 88767367 96458085 X 187130 189920 0 0 61735637 65520371 61922767 65710291 150690134 162168376 X 0 3787524 X X 0 0 0 0 1 X 896101 896101 8367139 2579003 5788136 152562717 47781038 104781679 4068650 4068650 115534566 CFC CAPITAL TERM CERTIFICATES 678454 C PATRONAGE CAPITAL - TEC, NRTC, CFC, FEDERATED 3773748 C PATRONAGE CAPITAL - GSEC 27553927 C MEMBERSHIPS IN ASSOCIATED ORGS. 2060 C DEFERRED COMPENSATION - HOMESTEAD FUNDS 313792 F ECONOMIC DEVELOPMENT & SCHOLARSHIP FUNDS 500069 C OTHER INVESTMENTS 408 C 32822458 CONSUMER DEPOSITS 911973 ACCUMULATED PROVISION FOR PENSION & BENEFITS 309470 ACCRUED OPERATING TAXES 567382 DEFERRED CREDIT - UNCLAIMED PATRONAGE CAPITAL 1177984 OVER RECOVERED PCRF 241626 OTHER LIABILITIES 45835 3254270 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DETERMINED UNCLAIMED UNDER STATE LAW. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE 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 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 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. 0 TEXAS ELECTRIC COOPERATIVES 1122 COLORADO STREET 24TH FLOOR AUSTIN TX 78701 741007829 CORPORATION 12050 0 WASHINGTON YOUTH TOUR SPONSORSHIPS 1 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 1 1 X X X X 0 0 0 KELLY LANKFORD EXECUTIVE VP/CEO 348659 0 0 0 25182 0 111450 0 16133 0 501424 0 0 0 DAVID WATSON DIR OF FINANCE & OFFICE SERVICES 143227 0 0 0 3658 0 61717 0 31204 0 239806 0 0 0 DUSTIN BROWN DIR OF ENGINEERING & OPERATIONS 162900 0 0 0 3387 0 23989 0 30261 0 220537 0 0 0 JONATHAN CUTRER DIR OF INFORMATION TECHNOLOGY 145785 0 0 0 1783 0 36564 0 29029 0 213161 0 0 0 TERRY WARD ENGINEERING FOREMAN 146667 0 0 0 1911 0 39217 0 13460 0 201255 0 0 0 BUSTER MATHENY LINE SUPERINTENDENT 130038 0 0 0 1255 0 20061 0 27354 0 178708 0 0 0 DOUGLAS CLARK ENGINEERING SYSTEMS ADMINISTRATOR 121125 0 0 0 1471 0 26676 0 20759 0 170031 0 0 0 PART I, LINE 1A GYM MEMBERSHIP REIMBURSEMENT - TWO INDIVIDUALS REPORTED ON FORM 990 PART VII, MATTHEW MATHENY AND TERRY WARD, RECEIVED THIS BENEFIT DURING THE YEAR. PART II, COLUMN C: INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE. 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. KELLY LANKFORD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $101,100 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,350 TOTAL REPORTED IN COLUMN C $111,450 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (101,100) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 78,143 EXPENSE TO THE COOPERATIVE $ 88,493 DAVID WATSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 57,120 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,597 TOTAL REPORTED IN COLUMN C $ 61,717 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (57,120) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,412 EXPENSE TO THE COOPERATIVE $ 39,009 DUSTIN BROWN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 18,851 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,138 TOTAL REPORTED IN COLUMN C $ 23,989 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,851) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,460 EXPENSE TO THE COOPERATIVE $ 43,598 JONATHAN CUTRER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,969 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,595 TOTAL REPORTED IN COLUMN C $ 36,564 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,969) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,392 EXPENSE TO THE COOPERATIVE $ 38,987 TERRY WARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,740 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,477 TOTAL REPORTED IN COLUMN C $ 39,217 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,740) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,038 EXPENSE TO THE COOPERATIVE $ 29,515 BUSTER MATHENY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 16,398 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,663 TOTAL REPORTED IN COLUMN C $ 20,061 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (16,398) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,739 EXPENSE TO THE COOPERATIVE $ 31,402 DOUGLAS CLARK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,396 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,280 TOTAL REPORTED IN COLUMN C $ 26,676 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,396) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,565 EXPENSE TO THE COOPERATIVE $ 27,845 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. DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS 2. DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 3. MERGER OR CONSOLIDATION WITH ANOTHER COOPERATIVE ORGANIZATION 4. AMENDMENTS 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 OCCURRED AT A BOARD MEETING BEFORE FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C ALL DIRECTORS AND EMPLOYEES ARE REQUIRED TO DISCLOSE ANY CONFLICT OF INTEREST TO THE EXECUTIVE VP/CEO AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY, INDEPENDENT COMPENSATION CONSULTANT AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVES IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE EXECUTIVE VP/CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS & CEOS FROM COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE BOARD AND THE EXECUTIVE VP/CEO USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT, A COMPENSATION SURVEY AND COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVES IRS FORMS 990 WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A COPY OF ITS BYLAWS TO ALL NEW MEMBERS WHO SIGN UP FOR SERVICE. THE BYLAWS CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE. 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. ADDITIONALLY, A SUMMARIZED COPY OF THE COOPERATIVE'S FINANCIAL STATEMENTS ARE PROVIDED TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. 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, 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 VII, SECTION A: THE BOARD OF DIRECTORS CONSIDER THE EXECUTIVE VP/CEO TO BE BOTH THE TOP MANAGEMENT OFFICIAL AND THE TOP FINANCIAL OFFICIAL. THEREFORE, ONLY THE EXECUTIVE VP/CEO IS LISTED AS AN EMPLOYEE OFFICER. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES. 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 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, 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 $ 4,458,240 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (20,250) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (181,833) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,449,967 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 534,718 TOTAL WAGES ACCRUED AND/OR PAID $ 6,240,842 FORM 990, PART IX, LINE 4: PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS (HEREINAFTER REFERRED TO AS "PATRONS") SHOULD BE REPORTED ON PART IX, LINE 4. THE PHRASE "PATRONAGE DIVIDENDS PAID" REFERS TO THE PROCESS, SUBSEQUENT TO YEAR-END, BY WHICH THE COOPERATIVE ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO ITS PATRONS AND TO DO SO ON A COOPERATIVE BASIS. TAX LAW DEFINES "OPERATING ON A COOPERATIVE BASIS" AS SUBORDINATION OF CAPITAL, DEMOCRATIC CONTROL, AND OPERATION AT COST. THE COOPERATIVE OPERATES AT COST THROUGH THE ALLOCATION OF TRUE PATRONAGE DIVIDENDS (ALSO REFERRED TO AS ALLOCATIONS OF PATRONAGE CAPITAL) TO ITS PATRONS. PATRONAGE DIVIDENDS ARE CONSIDERED PAID IF THE ALLOCATION IS MADE (1) PURSUANT TO A PRE-EXISTING OBLIGATION, (2) FROM THE MARGINS PRODUCED FROM THE TRANSACTIONS DONE WITH OR FOR PATRONS, AND (3) IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). ADDITIONALLY, THE ALLOCATION OF PATRONAGE DIVIDENDS SHOULD BE MADE WITHIN A REASONABLE TIME PERIOD AFTER THE CLOSE OF THE COOPERATIVE'S CALENDAR TAX YEAR-END OF DECEMBER 31. EACH ONE OF THESE REQUIREMENTS FOR A TRUE PATRONAGE DIVIDEND IS PROVIDED FOR IN THE NON-PROFIT OPERATION ARTICLE OF THE COOPERATIVE'S BYLAWS. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2024 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS ARE THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS PATRONS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED SUCH AMOUNTS AS AN EXPENSE FOR FORM 990 REPORTING. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF ADMINISTRATIVE & GENERAL AND OTHER EXPENSES AS FOLLOWS: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,134,747 OFFICE SUPPLIES 234,096 OUTSIDE SERVICES 284,668 REGULATORY COMMISSION 75,135 ASSOCIATION DUES 61,009 DIRECTORS 43,965 ANNUAL MEETING 114,607 CAPITAL CREDITS 27,118 MAINTENANCE OF GENERAL PLANT 50,738 MISCELLANEOUS GENERAL 1,839 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,027,922 LESS: RECLASS OF TOWER EXPENSE TO PART VIII, LINE 6B (2,790) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (20,250) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,378,050) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (689,629) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 937,203 OPERATING TAXES 4,800 OTHER DEDUCTIONS 10,619 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 952,622 FORM 990, PART X, LINES 4 & 17: THE COOPERATIVE PREVIOUSLY INCLUDED INTERDIVISONAL ACCOUNTS AS COMPONENTS OF ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE ON LINES 4 AND 17 OF PART X. HOWEVER, FOR THE 2024 CALENDAR YEAR, THE COOPERATIVE IS NOW REPORTING THESE INTERDIVISIONAL ACCOUNTS ON A CONSOLIDATED SINGLE ENTITY BASIS AND NO LONGER AS SEPARATE COMPONENTS OF ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE; THEREFORE, TO INCREASE CONSISTENCY, THE INTERDIVISIONAL ACCOUNTS HAVE ALSO BEEN CONSOLIDATED AND REPORTED ON A SINGLE ENTITY BASIS FOR THE 2023 CALENDAR YEAR. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,627,098. PATRONAGE CAPITAL RETIRED - TOTAL -1,817,542. PATRONAGE CAPITAL RETIRED - DISCOUNT 66,228. NET CHANGE IN MEMBERSHIPS 2,790. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS 26,659. SPECIAL RETIREMENTS -117,709. FORM 990, PART XII, LINE 2: AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR-END OF SEPTEMBER 30TH. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31. THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR.