2023-11-15T19:20:30-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 741095072 CENTRAL TEXAS ELECTRIC COOPERATIVE INC CENT 8309922380 PO BOX 553 FREDERICKSBURG TX 78624 ATANACIO HINOJOSA CEO 8309922380 2023-11-15 1 ATANACIO HINOJOSA 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-15 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z ATANACIO HINOJOSA PO BOX 553 FREDERICKSBURG TX 78624 70831925 0 X WWW.CTEC.COOP X 1947 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 11 11 149 0 0 0 0 0 60831978 69995692 58795 289692 361254 543255 61252027 70828639 21105 40626 15307119 4291546 8276887 8495870 0 0 0 37646916 58000597 61252027 70828639 0 0 241108677 241941832 144487727 138549742 96620950 103392090 PROVIDING OUR MEMBER-OWNERS SAFE, RELIABLE, HIGH QUALITY SERVICE AT A REASONABLE COST. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 45,518 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 44 0 1 149 1 0 0 0 0 0 75929181 1794022 0 0 0 X 11 11 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 1 0 X SHAWN STANLEY CFO 8309972126 386 FRIENDSHIP LANE FREDERICKSBURG TX 78624 X MARK HAHN PRESIDENT 12.90 X X 18240 0 0 JOSEPH WIESER VICE PRESIDENT 5.50 X X 16140 0 0 CONNIE STOCKBRIDGE TREASURER 4.30 X X 17640 0 0 DOYLENE BODE SECRETARY 5.10 X X 16890 0 0 MARK REEVE DIRECOTR 7.60 X 14390 0 0 TIM LEHMBERG DIRECTOR 3.60 X 15090 0 0 SCOTT OLGUIN DIRECTOR 4.10 X 15590 0 0 WYNNE WHITWORTH DIRECTOR 4.00 X 15390 0 0 FERMIN ORTIZ DIRECTOR 4.00 X 17090 0 0 WAYNE SEIPP DIRECTOR 4.80 X 14790 0 0 JAMES A LOW DIRECTOR 5.50 X 17040 0 0 ROBERT LOTH III CEO 40.50 1.00 X 295511 0 252106 ATANACIO HINOJOSA CEO 50.00 X 37483 0 47973 JANET HERBER CFO 43.50 3.00 X 166217 0 24339 SHAWN STANLEY CFO 47.00 2.00 X 50816 0 81664 MITCH ELMORE DIRECTOR OF ENGINEERING/OP 40.80 X 175117 0 70825 GLEN DAVIS FOREMAN 46.70 X 109737 0 78932 STEVE MURROW DISTRICT OPERATIONS SUPERV 40.80 X 129496 0 61634 ARTHUR WUNDERLICH FOREMAN 41.40 X 111641 0 76357 PAT STAHL SYSTEM SERVICES SUPERVISOR 40.00 X 110406 0 138358 DENNIS CRENWELGE DISTRIC OPERATION SUPERVISOR 40.50 X 108808 0 93666 1473522 0 925854 9 0 1 0 JAMES POWER LINE CONSTRUCTION 43 SHOOTING CLUB ROAD BOERNE TX 78006 LINE CONSTRUCTION 4078714 TOWNSEND TREE SERVICE PO BOX 7015 MUNCIE IN 47304 ROW CLEARING 2634139 LAMBDA CONSTRUCTION I LTD 211 JESSE CIRCLE NEW BRAUNFELS TX 78132 CONTRACT LABOR SUBSTATION 2055547 DAS UNDERGROUND UTILITIES LLC PO BOX 2391 BOERNE TX 78006 LINE CONSTRUCTION 1235177 SCHNEIDER ENGINEERING LTD 191 MENGER SPRINGS PARKWAY BOERNE TX 78006 ENGINEERING SERVICES 648334 9 X SALES OF ELECTRICITY 221000 68727992 68727992 SERVICE FEES 221000 728124 728124 PATRONAGE DIVIDENDS 221000 539576 539576 69995692 285771 285771 5935 2014 3921 3921 3921 139644 1272 138372 138372 POLE ATTACHMENT INCOME 221000 404883 404883 404883 70828639 70137985 0 690654 X 40626 4291546 1380341 4829885 688172 1232834 364638 4038032 8451797 PURCHASED POWER 34571173 DISTRIBUTION EXPENSE 6147796 ADMIN & GENERAL EXPENSE 1677450 CONSUMER EXPENSE 820722 2293627 70828639 1145873 1507206 20585960 10133863 6281177 13678036 3065357 5114992 5481495 6103033 286558693 88088395 198262222 198470298 5560327 5897155 726266 1037249 241108677 241941832 8479396 8797840 8625000 4350000 220087 204040 103370187 99176053 23793057 26021809 144487727 138549742 X 660565 680620 0 0 95960385 102711470 96620950 103392090 241108677 241941832 X 0 6771140 X X 0 1 X 1 0 0 1 X 2386032 2386032 15981789 3523291 12458498 256808139 84565104 172243035 11382733 11382733 198470298 ACCRUED OPERATING TAXES 1063948 ACCUMULATED PROVISIONS FOR POST RETIREMENT BENEFITS 644621 CONSUMER DEPOSITS 990564 CUSTOMER ADVANCES FOR CONSTRUCTION 620983 PATRONAGE CAPITAL PAYABLE 1696566 DEFERRED CREDITS - REDLG ECONOMIC DEVELOPMENT GRANT 400000 DEFERRED CREDITS - OTHER 297658 OVERBILLED POWER COST ADJUSTMENT 20307469 26021809 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 TEXAS STATE LAW. 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 TEXAS STATE LAW. 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ENERGY EFFICIENCY ASSISTANCE FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER TEXAS STATE LAW. AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED TO ASSIST MEMBERS OF AN ELECTRIC COOPERATIVE IN REDUCING THEIR ENERGY CONSUMPTION AND ELECTRICITY BILLS. ANY AMOUNTS SO DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. PART VIII: THE AMOUNT OF INVESTMENTS-PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 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 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 COOPERATIVE FINANCE CORPORATION 20701 COOPERATIVE WAY DULLES VA 20166 520891669 501(C)(4) 8087 0 INTEGRITY FUND CONTRIBUTION LLANO COUNTY VOLUNTEER FIRE DEPARTMENT 301 W MAIN STREET LLANO TX 78643 273185915 501(C)(3) 0 27120 COST POLE DONATION POLE DONATION 2 0 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 0 0 0 ROBERT LOTH III CEO 252471 0 10000 0 33040 0 212078 0 40028 0 547617 0 0 0 PAT STAHL SYSTEM SERVICES SUPERVISOR 105526 0 2000 0 2880 0 104256 0 34102 0 248764 0 0 0 MITCH ELMORE DIRECTOR OF ENGINEERING/OP 167850 0 0 0 7267 0 51985 0 18840 0 245942 0 0 0 DENNIS CRENWELGE DISTRIC OPERATION SUPERVISOR 105675 0 0 0 3133 0 75386 0 18280 0 202474 0 0 0 STEVE MURROW DISTRICT OPERATIONS SUPERV 125259 0 0 0 4237 0 43032 0 18602 0 191130 0 0 0 JANET HERBER CFO 159249 0 0 0 6968 0 6416 0 17923 0 190556 0 0 0 GLEN DAVIS FOREMAN 104608 0 1500 0 3629 0 60508 0 18424 0 188669 0 0 0 ARTHUR WUNDERLICH FOREMAN 108060 0 0 0 3581 0 58221 0 18136 0 187998 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. ROBERT LOTH III: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $201,102 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,976 TOTAL REPORTED IN COLUMN C $212,078 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (201,102) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 57,455 EXPENSE TO THE COOPERATIVE $ 68,431 PAT STAHL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 99,303 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,953 TOTAL REPORTED IN COLUMN C $104,256 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (99,303) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,088 EXPENSE TO THE COOPERATIVE $ 32,041 MITCH ELMORE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 45,187 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,798 TOTAL REPORTED IN COLUMN C $ 51,985 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (45,187) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,809 EXPENSE TO THE COOPERATIVE $ 41,607 DENNIS CRENWELGE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 71,161 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,225 TOTAL REPORTED IN COLUMN C $ 75,386 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (71,161) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,119 EXPENSE TO THE COOPERATIVE $ 26,344 STEVE MURROW: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,423 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,609 TOTAL REPORTED IN COLUMN C $ 43,032 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,423) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,580 EXPENSE TO THE COOPERATIVE $ 32,189 JANET HERBER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,416 TOTAL REPORTED IN COLUMN C $ 6,416 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,990 EXPENSE TO THE COOPERATIVE $ 40,406 GLEN DAVIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 56,936 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,572 TOTAL REPORTED IN COLUMN C $ 60,508 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (56,936) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,501 EXPENSE TO THE COOPERATIVE $ 23,073 ARTHUR WUNDERLICH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 54,705 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,516 TOTAL REPORTED IN COLUMN C $ 58,221 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (54,705) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,782 EXPENSE TO THE COOPERATIVE $ 22,298 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. 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 REQUIRES THE BOARD OF DIRECTORS, PRINCIPAL OFFICERS, AND COMMITTEE MEMBERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. THE BOARD OF DIRECTORS ALSO COMPLETE AND SIGN THE FORM 990 DISCLOSURE QUESTIONNAIRE. ALL INDIVIDUALS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD AS SOON AS POSSIBLE. PERIODIC REVIEWS ARE DONE TO ENSURE COMPLIANCE WITH THE COOPERATIVE CONFLICT OF INTEREST POLICIES. FORM 990, PART VI, SECTION B, LINE 15 AT THE BEGINNING OF THE YEAR, THE CEO MEETS WITH THE COOPERATIVE'S GOVERNING BOARD AND SETS SPECIFIC WRITTEN GOALS FOR THE UPCOMING YEAR. THESE GOALS ARE INCORPORTED INTO A MATRIX THAT IS USED FOR REVIEW AND EVALUATION OF THE CEO'S PERFORMANCE. IF THE BOARD DETERMINES THAT THE WRITTEN GOALS HAVE BEEN MET, THE CEO'S COMPENSATION IS SET IN AN AMOUNT COMPARABLE TO THE AVERAGE OF THE MEDIAN OF CEO COMPENSATION FOR REGIONAL ELECTRIC COOPERATIVES OF SIMILAR SIZE ACCORDING TO THE MOST CURRENT COMPENSATION SURVEY CONDUCTED BY THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION. THE CEO USES THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE, 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 BYLAWS ARE ALSO AVAILABLE ON COOPERATIVE'S WEBSITE. 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. 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, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS 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 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) 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 $ 6,210,226 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (178,290) LESS: OFFICER EMPLOYEE BENEFITS REPORTED ON LINE 5 (406,082) LESS: KEY EMPLOYEE BENEFITS INCLUDED ON LINE 5 (70,825) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 12,021 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,940,237 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 701,733 TOTAL WAGES ACCRUED AND/OR PAID $ 9,209,110 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,621,566 OFFICE SUPPLIES 160,881 OUTSIDE SERVICES EMPLOYED 128,517 INSURANCE 508,050 REGULATORY COMMISSION 121,204 DUES 108,293 DIRECTORS 306,986 MAINTENANCE OF GENERAL PLANT 65,066 MISCELLANEOUS GENERAL 379,727 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,400,290 LESS: RECLASS OF NON-OPERATING ADMIN EXPENSE (78,000) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (178,290) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (979,465) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (487,085) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,677,450 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: OTHER DEDUCTIONS $ 2,121,283 TAXES - OTHER 174,138 TRANSMISSION 1,794 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 2,293,627 FORM 99O, 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 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 2022 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 8,566,546. PATRONAGE CAPITAL RETIRED - TOTAL -2,319,651. PATRONAGE CAPITAL RETIRED - DISCOUNT 189,737. NET CHANGE IN MEMBERSHIPS 20,055. OTHER COMPREHENSIVE INCOME - POST RETIREMENT BENEFITS 221,932. EQUITY METHOD INCOME FROM SUBSIDIARY 92,521. FORM 990, PART XII, LINE 2C: THE EXECUTIVE COMMITTEE OVERSEES THE FINANCIAL STATEMENT AUDIT AND RECOMMENDS THE INDEPENDENT AUDITOR TO THE FULL BOARD. CENTRAL TEXAS ELECTRIC OPERATION ROUNDUP INC PO BOX 553 FREDERICKSBURG TX 78624 743072134 DISBURSMENT OF FUNDS FOR CHARITABLE PURPOSES IN COOPERATIVE'S SERVICE AREA TX 501(C)(3) 7 CENTRAL TEXAS ELECTRIC COOPERATIVE INC 1 CENTRAL TEXAS EXTRA-SERVICES COORPORATION PO BOX 553 FREDERICKSBURG TX 78624 742863542 INTERNET ACCESS PROVIDER TX CENTRAL TEXAS ELECTRIC COOPERATIVE INC C 947227 241108677 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 CENTRAL TEXAS ELECTRIC OPERATION ROUNDUP INC O N/A - LESS THAN $50,000 CENTRAL TEXAS EXTRA-SERVICES CORPORATION Q 627872 INVOICES AND OTHER RECORDS CENTRAL TEXAS EXTRA-SERVICES CORPORATION R 984656 BILLING & COLLECTING CENTRAL TEXAS EXTRA-SERVICES CORPORATION O 279143 LABOR HOURS AND RATES