2023-11-14T16:19:36-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 752791424 BIG COUNTRY ELECTRIC COOPERATIVE INC BIGC 3257762244 PO BOX 518 ROBY TX 795432020 N LATRICE BAUCOM VP OF FINANCE & ACCOUNTING 3257762244 2023-11-13 1 N LATRICE BAUCOM 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-06 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z MARK MCCLAIN PO BOX 518 ROBY TX 795432020 49967491 0 X WWW.BIGCOUNTRY.COOP X 1999 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 7 6 68 0 44767 43017 0 0 37913152 49526484 108951 119229 1498822 41346 39520925 49687059 78874 67084 4665654 6259459 6291691 6776692 0 0 0 28484706 36654526 39520925 49757761 0 -70702 104289695 114417646 46970219 51571341 57319476 62846305 TO BE THE FIRST-CHOICE ELECTRIC PROVIDER. THROUGH SAFE, RELIABLE, COMPETITIVE SERVICE, WE DELIVER QUALITY OF LIFE FOR OUR MEMBERS, COMMUNITIES, AND EMPLOYEES THAT BRING US ALL TOGETHER. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 13,377 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 1 1 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 1 154 0 68 1 1 1 0 0 0 0 51685194 402317 0 0 0 X 7 6 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X LATRICE BAUCOM VP FINANCE & ACCOUNTING 3257762244 1010 WEST SOUTH 1ST STREET ROBY TX 79543 X CHRIS ESTES DIRECTOR 3.80 0.10 X 13600 0 0 MATT MUELLER DIRECTOR 2.30 0.10 X 13385 0 0 DANNY HELMS VICE PRESIDENT 1.60 0.10 X X 13330 0 0 DAVID BEAVER SECRETARY/TREASURER 2.90 0.10 X X 13135 0 0 STEVE MOORE PRESIDENT 2.50 0.10 X X 13000 0 0 TODD COKER DIRECTOR 1.50 0.10 X 12000 0 0 CARL MARUGG DIRECTOR (JAN-SEPT) 1.50 0.10 X 10000 0 0 ZACHARY LOGAN DIRECTOR (OCT-DEC) 0.40 0.10 X 2000 0 0 DAVID M MCCLAIN CEO/GENERAL MANAGER 41.00 X 248497 0 193672 LINDA KEY VP OFFICE SERVICES 46.00 X 178008 0 156721 PAUL JONES VP OPERATIONS 45.00 X 168024 0 81878 NAOMI L BAUCOM VP FINANCE & ACCOUNTING 46.00 X 152984 0 70903 JOHN VANMATER VP ENGINEERING 45.00 X 122602 0 44605 ROY HINKLE DIST OPERATIONS SUPERVISOR 51.00 X 171223 0 78575 CARY MCCLINTOCK DISTRICT MANAGER 40.00 X 134227 0 82720 GABRIEL VASQUEZ FOREMAN 49.00 X 125167 0 57228 MIKE MARTINEZ FOREMAN 52.00 X 124844 0 39484 SAM SMITH FOREMAN 48.00 X 116951 0 45418 1632977 0 851204 23 0 1 0 PRIMARY UTILITIES PO BOX 1393 SNYDER TX 79550 DISTRIBUTION WORK 2916250 C&C SERVICES LLC 6736 CR 3116 SNYDER TX 79549 DISTRIBUTION WORK 416294 RECON-COMPANY OF TEXAS 12 NE 52ND OKLAHOMA CITY OK 73105 DISTRIBUTION WORK 406748 SGS ENGINEERING INC 401 50TH STREET LUBBOCK TX 79404 SYSTEM ENGINEERING 308179 J FERG FOAM INC 11513 HWY 62 WOLFFORTH TX 79382 SERVICE 240528 7 X SALES OF ELECTRICITY 221000 48003003 48003003 PATRONAGE DIVIDENDS 221000 1247287 1247287 SERVICE FEES 221000 275798 275798 OTHER PROGRAM REVENUE 221000 396 396 49526484 73352 73352 1969 0 1969 1969 1969 64410 18533 45877 45877 45877 181078 261899 -80821 -80821 POLE ATTACHMENT INCOME 221000 77400 77400 INTERNET COMMISSIONS 517000 42798 42798 120198 49687059 49491540 44767 150752 X 39084 28000 6259459 1508344 3435200 776123 734493 322532 1653325 3676671 PURCHASED POWER 28837713 DISTRIBUTION EXPENSE 1250678 ADMIN & GENERAL EXPENSE 817422 UNRELATED BUS. INC. TAX 10787 407930 49757761 1137443 1001864 647168 1578624 4406471 6487741 96958 33000 1061590 1387102 373764 239510 125800355 45434114 73760614 80366241 22595227 23183804 210460 139760 104289695 114417646 4194864 6096026 27470 39120 46147 40437617 43201098 2271148 2228070 46970219 51571341 X 129200 132255 0 0 57190276 62714050 57319476 62846305 104289695 114417646 X -70702 5597531 X X 0 1 X 1 0 0 1 X 145923 145923 4912889 2186857 2726032 118930208 43247257 75682951 1811335 1811335 80366241 PATRONAGE CAPITAL - CFC 1369919 C PATRONAGE CAPITAL - TEC 702715 C PATRONAGE CAPITAL - GSEC 18527163 C PATRONAGE CAPITAL - NISC 119739 C PATRONAGE CAPITAL - FEDERATED INSURANCE 162289 C PATRONAGE CAPITAL - NRTC 6014 C CAPITAL TERM CERTIFICATES - CFC 1204234 C MEMBERSHIPS IN OTHER COOPERATIVES 2335 C CONTRIBUTED CAPITAL - GSEC 1019606 C GOLDEN SPREAD CTC RECEIVALBE 69790 C 23183804 CONSUMER DEPOSITS 449094 ACCRUED OPERATING TAXES 161492 DEFERRED CREDIT - UNCLAIMED PROPERTY 24047 DEFERRED CREDIT - DEFERRED INSTALLATION COSTS 580170 DEFERRED CREDIT - REDLG GRANTS ECONOMIC DEVELOPMENT GRANTS 360000 DEFERRED CREDIT - OTHER 3605 ACCUMULATED PROVISION - BENEFITS & PENSION 649662 2228070 X 49687059 0 49687059 0 49687059 43498302 0 43498302 6259459 6259459 49757761 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 TEXAS 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 ITS TAX POSITION 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 6,259,459. 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. 0 POST-SECONDARY SCHOLARSHIPS PAID DIRECTLY TO THE INSTITUTION IN WHICH THE AWARDED INDIVIDUAL IS ENROLLED AND APPLIED TO THE STUDENT'S ACCOUNT. 23 28000 23 SCHOLARSHIPS RANGING FROM $500 TO $2,000 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 0 X 0 0 0 DAVID M MCCLAIN CEO/GENERAL MANAGER 227604 0 900 0 19993 0 166089 0 27583 0 442169 0 0 0 LINDA KEY VP OFFICE SERVICES 160971 0 975 0 16062 0 133266 0 23455 0 334729 0 0 0 PAUL JONES VP OPERATIONS 158210 0 1075 0 8739 0 54066 0 27812 0 249902 0 0 0 ROY HINKLE DIST OPERATIONS SUPERVISOR 161788 0 800 0 8635 0 55610 0 22965 0 249798 0 0 0 NAOMI L BAUCOM VP FINANCE & ACCOUNTING 148291 0 1225 0 3468 0 47488 0 23415 0 223887 0 0 0 CARY MCCLINTOCK DISTRICT MANAGER 125361 0 900 0 7966 0 61117 0 21603 0 216947 0 0 0 GABRIEL VASQUEZ FOREMAN 120297 0 700 0 4170 0 33791 0 23437 0 182395 0 0 0 JOHN VANMATER VP ENGINEERING 115088 0 2149 0 5365 0 23373 0 21232 0 167207 0 0 0 MIKE MARTINEZ FOREMAN 121473 0 700 0 2671 0 26628 0 12856 0 164328 0 0 0 SAM SMITH FOREMAN 112989 0 675 0 3287 0 22721 0 22697 0 162369 0 0 0 PART I, LINE 1A NO ONE RECEIVED PAID TRAVEL FOR COMPANIONS DURING THE 2022 TAX 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, YEARS OF SERVICE AND THE CURRENT INTEREST RATE ENVIORNMENT. 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. DAVID M. MCCLAIN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 154,625 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,464 TOTAL REPORTED IN COLUMN C $ 166,089 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (154,625) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 59,122 EXPENSE TO THE COOPERATIVE $ 70,586 LINDA KEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 125,144 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,122 TOTAL REPORTED IN COLUMN C $ 133,266 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (125,144) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,252 EXPENSE TO THE COOPERATIVE $ 51,374 PAUL JONES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 46,058 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,008 TOTAL REPORTED IN COLUMN C $ 54,066 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (46,058) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 41,415 EXPENSE TO THE COOPERATIVE $ 49,423 ROY HINKLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 47,521 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,089 TOTAL REPORTED IN COLUMN C $ 55,610 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (47,521) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,370 EXPENSE TO THE COOPERATIVE $ 38,459 NAOMI BAUCOM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,999 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,489 TOTAL REPORTED IN COLUMN C $ 47,488 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,999) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,870 EXPENSE TO THE COOPERATIVE $ 46,359 CARY MCCLINTOCK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 54,827 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,290 TOTAL REPORTED IN COLUMN C $ 61,117 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (54,827) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,624 EXPENSE TO THE COOPERATIVE $ 38,914 GABRIEL VASQUEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 27,686 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,105 TOTAL REPORTED IN COLUMN C $ 33,791 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (27,686) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,253 EXPENSE TO THE COOPERATIVE $ 30,358 JOHN VANMATER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,483 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,890 TOTAL REPORTED IN COLUMN C $ 23,373 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,483) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,394 EXPENSE TO THE COOPERATIVE $ 27,284 MIKE MARTINEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,494 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,134 TOTAL REPORTED IN COLUMN C $ 26,628 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,494) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,771 EXPENSE TO THE COOPERATIVE $ 27,905 SAM SMITH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,622 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,099 TOTAL REPORTED IN COLUMN C $ 22,721 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (19,622) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,674 EXPENSE TO THE COOPERATIVE $ 26,773 JOSH HELMS FAMILY RELATIONSHIP (DIRECTOR DANNY HELMS) 11890 CATERING SERVICES 0 PART VI, SECTION A, LINE 1B: PER 990 INSTRUCTIONS, DIRECTOR HELMS IS NOT INDEPENDENT DUE TO A FAMILY MEMBER ENGAGING IN A TRANSACTION WITH THE COOPERATIVE. THE TRANSACTION IS KNOWN TO ALL MEMBERS OF THE BOARD. FORM 990, PART I, LINE 19: IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET BOOK INCOME/(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL BE $0. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19 REPORTS NET LOSS OF $70,702, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE. THE GAAP BASIS FINANCIAL STATEMENTS INCLUDE AN ACCRUAL FOR UNBILLED REVENUE BECAUSE THE COOPERATIVE'S BILLING CYCLE DOES NOT END ON THE LAST DAY OF THE MONTH. THEREFORE, IT HAS REVENUE IN DECEMBER OF EACH YEAR THAT IT HAS EARNED BUT WILL NOT BILL UNTIL THE FIRST BILLING CYCLE OF THE FOLLOWING YEAR. THE COOPERATIVE ESTIMATES THIS REVENUE AND RECORDS IT AS ACCRUED UNBILLED REVENUE IN ORDER TO MATCH THE REVENUE WITH THE YEAR EARNED. HOWEVER, THE COOPERATIVE ALLOCATES THE REVENUE TO MEMBERS IN THE YEAR IT IS BILLED RATHER THAN WHEN ACCRUED. THIS TIMING DIFFERENCE IS FAIR AND EQUITABLE BECAUSE IT MATCHES THE PATRONAGE DIVIDEND ALLOCATED WITH THE BILLING RECORDS USED TO ALLOCATE THE MARGINS. DUE TO THE TIMING OF WHEN THE COOPERATIVE ALLOCATES ACCRUED UNBILLED REVENUE, PAGE 1, PART I, LINE 19 ANNUALLY REPORTS NET INCOME EQUAL TO THE NET INCREASE IN ACCRUED UNBILLED REVENUE OR A NET LOSS EQUAL TO THE NET DECREASE IN UNBILLED REVENUE. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/22 $ 127,952 LESS: UNBILLED REVENUE 12/31/21 (198,658) NET DECREASE IN UNBILLED REVENUE EQUAL TO NET INCOME ON PAGE 1, PART I, LINE 19 $ (70,702) (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 6,259,459 TOTAL 2022 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 6,188,757 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 ASSET 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 REVEIW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE COOPERATIVE'S ATTORNEY REVIEWS THE COOPERATIVE'S POLICIES, SPECIFICALLY THE COOPERATIVE'S CONFLICT OF INTEREST POLICY, WITH THE BOARD ANNUALLY. DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. AT THE BOARD'S DISCRETION, A DIRECTOR WITH A POSSIBLE CONFLICT OF INTEREST WILL ABSTAIN FROM VOTING ON RELATED TRANSACTIONS. BOARD MINUTES NOTE ANY POSSIBLE CONFICT OF INTEREST INQUIRIES. FORM 990, PART VI, SECTION B, LINE 15 ANNUALLY, THE BOARD OF DIRECTORS PERFORM A REVIEW AND UTILIZE INTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE CEO. THE CEO UTILIZES AN INDPENDENT CONSULTANT AND COMPENSATION SURVEY TO DETERMINE THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEE, IF ANY. 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. A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS IS PROVIDED TO ANY MEMBER WHO REQUESTS A COPY. THE COOPERATIVE'S BYLAWS ARE ALSO AVAILABLE ON ITS 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 AND HIGLY 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 ARE THE TOTAL CONTRIBUTIONS MADE BY THE COOPERATIVE TO THE PENSION PLANS 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 UTILITY SERVICES (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 ITS 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 $ 4,943,544 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (90,450) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (547,779) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 4,295 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,208,830 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 230,672 TOTAL WAGES ACCRUED AND/OR PAID $ 5,749,112 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,954,945 OFFICE SUPPLIES 55,753 OUTSIDE SERVICES 88,893 DIRECTORS 100,481 ASSOCIATION DUES 61,772 ADVERTISING 125,134 PUBLIC RELATIONS 159,014 MISCELLANEOUS GENERAL 158,932 ANNUAL MEETING 58,289 REGULATORY COMMISSION 79,480 PROPERTY INSURANCE 36,105 INJURIES AND DAMAGES 36,779 MAINTENANCE OF GENERAL PLANT 424,275 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,339,852 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (67,084) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (90,450) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,522,772) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (842,124) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 817,422 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 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 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: CONSUMER EXPENSES $ 387,889 TAXES 20,041 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 407,930 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 6,259,459. PATRONAGE CAPITAL RETIRED - TOTAL -759,221. PATRONAGE CAPITAL RETIRED - DISCOUNT 39,712. NET CHANGE IN MEMBERSHIPS 3,055. OTHER COMPREHENSIVE INCOME (LOSS) 54,526. FORM 990, PART XII, LINE 2C: THE BOARD HAS AN AUDIT SUBCOMMITTEE RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. BIG COUNTRY ELECTRIC COOPERATIVE TRUST PO BOX 518 ROBY TX 79543 472677471 DISBURSEMENT OF FUNDS FOR CHARITABLE PURPOSES IN THE CO-OP'S SERVICE AREA. TX 501(C)(3) LINE 7 BIG COUNTRY ELECTRIC COOPERATIVE 1 BIG COUNTRY DEVELOPMENT CORPORATION PO BOX 518 ROBY TX 795430518 752381083 ATTRACTING NEW INDUSTRY OR RETAINING INDUSTRY IN THE AREA TX BIG COUNTRY ELECTRIC COOPERATIVE INC C 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 BIG COUNTRY ELECTRIC COOPERATIVE TRUST N N/A - LESS THAN $50,000 BIG COUNTRY ELECTRIC COOPERATIVE TRUST O N/A - LESS THAN $50,000