2023-11-09T09:26:54-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 750665517 WISE ELECTRIC COOPERATIVE INC WISE 9406263029 PO BOX 269 DECATUR TX 76234 RAYCE CANTWELL GENERAL MANAGER 9406263029 2023-11-07 1 RAYCE CANTWELL 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-07 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z RAYCE CANTWELL PO BOX 269 DECATUR TX 76234 90909539 0 X WWW.WISEEC.COM X 1938 TX TO PROVIDE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 73 0 0 0 0 0 65552071 90473391 -32265 44170 122312 184888 65642118 90702449 26022 17621 1752907 578536 5652323 5777512 0 0 0 58216319 84220243 65647571 90593912 -5453 108537 163246388 177121572 82127396 95356065 81118992 81765507 AT WISE ELECTRIC, OUR MISSION IS TO PROVIDE SAFE, RELIABLE, COMPETITIVELY PRICED ELECTRIC AND RELATED SERVICES TO YOU, OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 25,454 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 0 0 0 0 0 0 0 1 1 0 0 1 22 0 73 0 0 0 0 0 0 91156557 1191119 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 RAYCE CANTWELL GENERAL MANAGER 9406272167 1900 N TRINITY ST DECATUR TX 76234 X COY CLEVELAND JAN-FEB DIRECTOR 2.30 X 3335 0 0 BRYSON GENTRY MAY-DEC DIRECTOR 2.30 X 31380 0 0 ALLEN HEUGATTER FEB-DEC SECRETARY 3.00 X X 36341 0 0 GLENN HUGHES DIRECTOR 3.20 X 47130 0 0 RUSSELL MORGAN DIRECTOR 3.20 X 33905 0 0 AUDIE MORRIS PRESIDENT 5.60 X X 41138 0 0 BRUCE NIVENS DIRECTOR 3.50 X 43411 0 0 TOM ROBINSON VICE PRESIDENT 3.00 X X 41598 0 0 RAYCE CANTWELL GENERAL MANAGER 40.00 X 243012 0 130889 KELLY MYERS ASSISTANT GENERAL MANAGER 45.00 X 206802 0 108706 BILL HOOD MEMBER SERVICE MANAGER 40.00 X 158565 0 52280 RUSSELL KING LINE SUPERINTENDENT 40.00 X 162886 0 75248 ANNA WALLACE COMPUTER OP MANAGER 40.00 X 163322 0 63608 CHRIS WALSH OPERATIONS ENG/WHS MANAGER 40.00 X 157035 0 116104 BRYAN SHRIVER HUMAN RESOURCES/PROPERTY M 40.00 X 128349 0 72771 CHRISTOPHER MARTINEZ LOSS CONTROL MANAGER 40.00 X 110579 0 59939 CHUCK PEACE LINE FOREMAN 40.00 X 110526 0 60626 1719314 0 740171 11 0 1 0 FX5 PO BOX 1297 DECATUR TX 76234 CONSTRUCTION 3369777 NORTHEAST SERVICES DBA HORTON TREE SERVI PO BOX 1185 KENNEDALE TX 76060 TREE TRIMMING 1905728 HIGGS ELECTRIC LTD PO BOX 999 DECATUR TX 76234 CONSTRUCTION 890559 VINSON & ELKINS LLP 1001 FANNIN ST STE 2500 HOUSTON TX 77002 ATTORNEY 168870 MILSOFT UTILITY SOLUTIONS 4400 BUFFALO GAP RD STE 5150 ABILINE TX 79606 SOFTWARE 124495 5 X SALES OF ELECTRICITY 221000 88863888 88863888 PATRONAGE DIVIDENDS 221000 873558 873558 SERVICE FEES 221000 735945 735945 90473391 92151 92151 187000 122633 64367 64367 64367 36476 84457 -47981 -47981 -47981 POLE ATTACHMENT INCOME 221000 120521 120521 120521 90702449 90537758 0 164691 X 17621 578536 1416626 2737652 667509 653140 302585 2967357 5034139 PURCHASED POWER 69750305 DISTRIBUTION EXPENSE 3303761 ADMIN & GENERAL EXPENSE 2070468 CUSTOMER ACCOUNTS 1000923 93290 90593912 334441 550541 1536595 2018071 4545575 109788 104412 1188157 735267 154863471 32307085 116457809 122556386 38435128 39299341 4702994 7793455 163246388 177121572 7225938 13220462 184646 1452829 65174316 70681773 9542496 10001001 82127396 95356065 X 360023 375733 0 0 80758969 81389774 81118992 81765507 163246388 177121572 X 108537 537978 X X 0 1 X 1 0 0 1 X 271088 271088 1277400 4443815 1193595 4527620 147181168 31113490 116067678 1690000 1690000 122556386 CAPITAL TERM CERTIFICATES - CFC 478905 C MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 3065 C PATRONAGE CAPITAL - CFC 177902 C PATRONAGE CAPITAL - TEC 1188252 C PATRONAGE CAPITAL - BEC 33048462 C PATRONAGE CAPITAL - COBANK 3713310 C PATRONAGE CAPITAL - FEDERATED 77370 C PATRONAGE CAPITAL - NRTC 128020 C INVESTMENT - OTHER 2440 C BRAZOS SECURITIZATION HOLDCO 481615 C 39299341 RETIRED CAPITAL CREDITS 1585199 DEFERRED CREDITS 499234 CONSUMER DEPOSITS 1605475 ACCRUED OPERATING TAXES 171983 ACCUMULATED PROVISION FOR PENSIONS AND BENEFITS 3828913 OTHER CURRENT AND ACCRUED LIABILITES 67122 POWER COST ADJUSTMENT - OVERCOLLECTED 2243075 10001001 X 90702449 0 90702449 0 90702449 90015376 0 90015376 578536 578536 90593912 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. 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 STATE LAW. THE 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 X, LINE 2: THE COOPERATIVE FOLLOWS 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 THEIR TAX POSITIONS 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 XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 578,536. 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 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". 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 X X 0 0 0 RAYCE CANTWELL GENERAL MANAGER 188374 0 20471 0 34167 0 110368 0 20521 0 373901 0 0 0 KELLY MYERS ASSISTANT GENERAL MANAGER 153710 0 18880 0 34212 0 89011 0 19695 0 315508 0 0 0 CHRIS WALSH OPERATIONS ENG/WHS MANAGER 121923 0 16722 0 18390 0 92608 0 23496 0 273139 0 0 0 RUSSELL KING LINE SUPERINTENDENT 124559 0 16533 0 21794 0 62235 0 13013 0 238134 0 0 0 ANNA WALLACE COMPUTER OP MANAGER 120083 0 15011 0 28228 0 59648 0 3960 0 226930 0 0 0 BILL HOOD MEMBER SERVICE MANAGER 112869 0 11346 0 34350 0 34561 0 17719 0 210845 0 0 0 BRYAN SHRIVER HUMAN RESOURCES/PROPERTY M 109053 0 12964 0 6332 0 54625 0 18146 0 201120 0 0 0 CHUCK PEACE LINE FOREMAN 93370 0 11515 0 5641 0 39616 0 21010 0 171152 0 0 0 CHRISTOPHER MARTINEZ LOSS CONTROL MANAGER 88587 0 9028 0 12964 0 37109 0 22830 0 170518 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, 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. RAYCE CANTWELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $103,941 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,427 TOTAL REPORTED IN COLUMN C $110,368 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (103,941) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 54,140 EXPENSE TO THE COOPERATIVE $ 60,567 KELLY MYERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 83,683 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,328 TOTAL REPORTED IN COLUMN C $ 89,011 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (83,683) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 45,261 EXPENSE TO THE COOPERATIVE $ 50,589 CHRIS WALSH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 88,527 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,081 TOTAL REPORTED IN COLUMN C $ 92,608 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (88,527) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,195 EXPENSE TO THE COOPERATIVE $ 38,276 RUSSELL KING: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 58,254 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,981 TOTAL REPORTED IN COLUMN C $ 62,235 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (58,254) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,939 EXPENSE TO THE COOPERATIVE $ 37,920 ANNA WALLACE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 55,557 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,091 TOTAL REPORTED IN COLUMN C $ 59,648 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (55,557) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,223 EXPENSE TO THE COOPERATIVE $ 38,314 BILL HOOD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,600 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,961 TOTAL REPORTED IN COLUMN C $ 34,561 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,600) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,999 EXPENSE TO THE COOPERATIVE $ 37,960 BRYAN SHRIVER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 51,265 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,360 TOTAL REPORTED IN COLUMN C $ 54,625 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (51,265) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,401 EXPENSE TO THE COOPERATIVE $ 31,761 CHUCK PEACE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,786 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,830 TOTAL REPORTED IN COLUMN C $ 39,616 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,786) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,395 EXPENSE TO THE COOPERATIVE $ 27,225 CHRISTOPHER MARTINEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,916 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,193 TOTAL REPORTED IN COLUMN C $ 37,109 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (33,916) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,001 EXPENSE TO THE COOPERATIVE $ 30,194 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 REVIEWED THE FORM 990 PRIOR TO FILING. SUBSEQUENT TO FILING, MANAGEMENT WILL PRESENT AND DISCUSS THE FORM 990 WITH THE BOARD AT A REGULARLY SCHEDULED BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, THE COOPERATIVE WILL REQUIRE THE BOARD OF DIRECTORS AND OFFICERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE MANAGEMENT COMPENSATION PLAN IS APPROVED BY THE BOARD OF DIRECTORS. THE BOARD AND GENERAL MANAGER UTILIZE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AS WELL AS A COMPENSATION SURVEY 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 LOCATED IN 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 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, PARTS VI & VII THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS AND OFFICERS, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. DIRECTOR, COY CLEVELAND, RETIRED IN FEBRUARY OF 2022; THEREFORE, THE PRIOR YEAR QUESTIONNAIRE WAS RELIED UPON DURING THE PRPEPARATION OF THE 2022 FORM 990. THERE WERE NO KNOWN CHANGES FROM 2021 TO 2022. 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. 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. 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 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: 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 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 $ 4,154,278 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (278,238) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (367,123) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 186,190 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,150,465 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 112,550 TOTAL WAGES ACCRUED AND/OR PAID $ 4,958,122 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,419,399 OFFICE SUPPLIES 542,242 OUTSIDE SERVICES 283,193 INSURANCES 83,730 SAFETY AND TRAINING 15,297 REGULATORY COMMISSION 120,511 ADVERTISING 115,413 DIRECTORS 333,427 DUES & SUBSCRIPTIONS 69,805 CAPITAL CREDITS 88,056 MISCELLANEOUS GENERAL 310,669 MAINTENANCE OF GENERAL PLANT 260,462 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,642,204 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (17,621) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (278,238) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (814,099) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (461,778) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,070,468 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 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 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 578,536. PATRONAGE CAPITAL RETIRED - TOTAL -712,485. PATRONAGE CAPITAL RETIRED - DISCOUNT 51,244. NET CHANGE IN MEMBERSHIPS 15,710. POST-RETIREMENT BENEFIT VALUATION 604,973. EQUITY METHOD INCOME FROM SUBSIDIARY 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. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. 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