2023-11-15T19:22:43-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 480499309 THE VICTORY ELECTRIC COOPERATIVE ASSOCIATION INC VICT 6202272139 PO BOX 1335 DODGE CITY KS 678011335 SHANE LAWS CEO 6202272139 2023-11-06 1 SHANE LAWS 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-06 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z SHANE LAWS PO BOX 1335 DODGE CITY KS 678011335 87760907 0 X WWW.VICTORYELECTRIC.NET X 1945 KS TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 11 11 80 0 0 0 0 0 83739453 87476090 148947 194831 1914568 58510 85802968 87729431 49084 59458 8449530 7386691 6732022 8400523 0 0 0 68569072 71698848 83799708 87545520 2003260 183911 181839680 184950618 111712793 108224506 70126887 76726112 TO PROVIDE A SAFE, RELIABLE SERVICE AT A COMPETITIVE RATE, PROVIDE ECONOMIC DEVELOPMENT OPPORTUNITIES AND SERVICES FOR OUR CONSUMERS, AND TO ENSURE THE FINANCIAL STABILITY OF THE COOPERATIVE THROUGH THE USE OF PRUDENT BUSINESS PRACTICES AND THE LATEST TECHNOLOGY. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 20,155 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 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 40 0 80 1 0 0 0 0 0 85529009 841937 0 0 0 X 11 11 1 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X ANGELA UNRUH CFO 6202272139 3230 N 14TH AVE DODGE CITY KS 67801 X KENNY WEHKAMP TRUSTEE 6.00 X 24839 0 0 JOHN LEIS TRUSTEE 5.00 X 32618 0 0 JIM IMEL TRUSTEE 5.00 X 23818 0 0 PATRICK MORSE PRESIDENT 5.30 X X 28439 0 0 KENNETH SCHULTE TRUSTEE 4.00 X 4417 0 0 JAMES DARYL TIEBEN VICE PRESIDENT 6.50 X X 26039 0 0 CEDRIC DREWES SECRETARY/TREASURER 7.00 X X 36518 0 0 RANDY QUINT TRUSTEE 8.00 X 28139 0 0 GARY GILLESPIE TRUSTEE 5.00 X 24239 0 0 TERRI LARSON TRUSTEE 4.00 X 24539 0 0 JAMES L OCHS TRUSTEE 8.00 X 34718 0 0 ANTHONY S LAWS CEO 55.00 X 378139 0 161819 ANGELA K UNRUH CFO 48.00 X 185135 0 94303 DENZIL MCGILL CIO 45.00 X 165024 0 101883 RYAN MILLER VP OF OPERATIONS 48.00 X 144687 0 153049 ROB HENRY VP OF ENGINEERING 50.00 X 133905 0 92444 AMY GRASSER VP OF CORPORATE SERVICES 45.00 X 131377 0 73913 ERIC SPEER MANAGER OF OPERATIONS 50.00 X 120859 0 131639 DUSTIN FORSYTH CREW CHIEF/JOURNEYMAN 45.00 X 118144 0 48426 1665593 0 857476 29 0 1 0 NISC PO BOX 1147 MANDAN ND 58554 BILLING & SOFTWARE SERVICES 331443 KANSAS ELECTRIC COOPERATIVES PO BOX 4267 TOPEKA KS 66604 ASSESSMENTS, SUBSCRIPTION DUES, SAFETY M 260241 PENNICK SERVICES INC 23903 12 RD MONTEZUMA KS 67867 DIRECTIONAL DRILLING SERVICES 156615 ELECTRICOMM INC PO BOX 8324 TOPEKA KS 66608 OIL SITE SAMPLES, SITE SURVEYS, ENGINEER 122338 MARKS NELSON 1310 E 104 STREET STE 300 KANSAS CITY MO 64131 ACCOUNTING AND TAX SERVICES 100758 5 X SALES OF ELECTRICITY 221000 78484311 78484311 SERVICE FEES 221000 5320353 5320353 PATRONAGE DIVIDENDS 221000 3414634 3414634 TRANSMISSION/WHEELING 221000 256792 256792 87476090 125002 125002 1147 0 1147 1147 1147 86208 16379 69829 69829 69829 4177 15097 -10920 -10920 POLE ATTACHMENT INCOME 221000 68283 68283 68283 87729431 87536146 0 193285 X 59458 7386691 1374626 3649787 995107 2092332 288671 3603176 5121525 PURCHASED POWER 58349663 DISTRIBUTION EXPENSE 2535975 ADMIN & GENERAL EXPENSE 1012810 TRANSMISSION EXPENSE 565450 510249 87545520 1444213 4168099 6376236 5012210 8001941 7346173 13466 8193 2924686 4745901 2192388 1664187 186753494 64714749 118380665 122038745 36641247 39104853 5864838 862257 181839680 184950618 5400457 6123396 103175096 98884036 3137240 3217074 111712793 108224506 X 0 0 0 0 70126887 76726112 70126887 76726112 181839680 184950618 X 183911 6415314 X X 0 1 X 0 0 790555 790555 8173416 2204099 5969317 163434601 56531485 106903116 14354922 5979165 8375757 122038745 CFC MEMBER CAPITAL SECURITIES 100000 C CFC CAPITAL TERM CERTIFICATES 305839 C PATRONAGE CAPITAL - COBANK 337484 C PATRONAGE CAPITAL - NRUCFC 280875 C PATRONAGE CAPITAL - NISC 151376 C PATRONAGE CAPITAL - KEPCO 5446418 C PATRONAGE CAPITAL - SEPCO 30838976 C PATRONAGE CAPITAL - OTHER 512042 C CONTRIBUTED CAPITAL - SEPCO 1131843 C 39104853 CONSUMER DEPOSITS 1520117 ACCRUED OPERATING TAXES & FEES 1569290 DEFERRED CREDITS 127667 3217074 X 87729431 0 87729431 0 87729431 80158829 0 80158829 7386691 7386691 87545520 PART X, LINE 2: THE COOPERATIVE UTILIZES 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, 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 7,386,691. 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 ALLOCATED OR TO BE 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 FORD COUNTY FAIR ASSOCIATION 100 GUNSMOKE DODGE CITY KS 67801 480967227 501(C)(3) 5500 0 SHARING SUCCESS GRANT DODGE CITY AREA CHAMBER OF COMMERCE PO BOX 939 DODGE CITY KS 67801 480198165 501(C)(6) 5359 0 ANNUAL MEMBERSHIP, STATE OF THE CITY ADDRESS, ANNUAL GOLF TOURNAMENT, DODGE CITY DAYS SALUTE THE TROOPS MAIN STREET DODGE CITY PO BOX 818 DODGE CITY KS 67801 480990726 501(C)(6) 5200 0 ANNUAL MEMBERSHIP, DOWNTOWN TRICK-OR-TREAT 1 2 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 X 0 0 0 ANTHONY S LAWS CEO 364928 0 10000 0 3211 0 131167 0 30652 0 539958 0 0 0 RYAN MILLER VP OF OPERATIONS 142015 0 0 0 2672 0 121672 0 31377 0 297736 0 0 0 ANGELA K UNRUH CFO 184128 0 0 0 1007 0 65651 0 28652 0 279438 0 0 0 DENZIL MCGILL CIO 163711 0 0 0 1313 0 73231 0 28652 0 266907 0 0 0 ERIC SPEER MANAGER OF OPERATIONS 119092 0 0 0 1767 0 102384 0 29255 0 252498 0 0 0 ROB HENRY VP OF ENGINEERING 132072 0 0 0 1833 0 63792 0 28652 0 226349 0 0 0 AMY GRASSER VP OF CORPORATE SERVICES 128300 0 0 0 3077 0 44261 0 29652 0 205290 0 0 0 DUSTIN FORSYTH CREW CHIEF/JOURNEYMAN 117776 0 0 0 368 0 19774 0 28652 0 166570 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. ANTHONY S. LAWS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 109,817 EMPLOYER CONTRIBUTION TO 401(K) PLAN 21,350 TOTAL REPORTED IN COLUMN C $ 131,167 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (109,817) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 109,344 EXPENSE TO THE COOPERATIVE $ 130,694 RYAN MILLER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 111,578 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,094 TOTAL REPORTED IN COLUMN C $ 121,672 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (111,578) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 51,225 EXPENSE TO THE COOPERATIVE $ 61,319 ANGELA UNRUH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 53,170 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,481 TOTAL REPORTED IN COLUMN C $ 65,651 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (53,170) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 65,880 EXPENSE TO THE COOPERATIVE $ 78,361 DENZIL MCGILL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 62,318 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,913 TOTAL REPORTED IN COLUMN C $ 73,231 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (62,318) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 56,320 EXPENSE TO THE COOPERATIVE $ 67,233 ERIC SPEER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 94,022 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,362 TOTAL REPORTED IN COLUMN C $ 102,384 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (94,022) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,484 EXPENSE TO THE COOPERATIVE $ 50,846 ROB HENRY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 54,483 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,309 TOTAL REPORTED IN COLUMN C $ 63,792 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (54,483) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,239 EXPENSE TO THE COOPERATIVE $ 56,548 AMY GRASSER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,114 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,147 TOTAL REPORTED IN COLUMN C $ 44,261 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,114) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,391 EXPENSE TO THE COOPERATIVE $ 55,538 DUSTIN FORSYTH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,990 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,784 TOTAL REPORTED IN COLUMN C $ 19,774 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,990) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,163 EXPENSE TO THE COOPERATIVE $ 33,947 FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAS 11 BOARD MEMBERS; ALL 11 ARE ALLOWED TO VOTE, HOWEVER, THE BOARD PRESIDENT VOTES ONLY IN THE CASE OF A TIE SHOULD ALL MEMBERS OF THE BOARD NOT BE PRESENT AT ANY GIVEN MEETING. FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN KENNY WEHKAMP (TRUSTEE) AND SHANE LAWS (CEO). ALL SERVE ON THE BOARD OF SUNFLOWER ELECTRIC POWER CORPORATION AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. 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 TRUSTEES. 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 5. AMENDMENT TO THE BYLAWS 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 THE BOARD OF TRUSTEES AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF TRUSTEES AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF TRUSTEES AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE BOARD AND THE CEO USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT AND A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICERS AND KEY EMPLOYEES, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 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. ANNUALLY, THE COOPERATIVE PROVIDES A COPY OF THE BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. THE ANNUAL REPORT AND BYLAWS CAN BE FOUND ON THE COOPERATIVE'S 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 LIMIATION 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 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 TO 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 ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RURAL UTILITIES SERVICE (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, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,804,578 TRAINING 46,565 OFFICE SUPPLIES 320,240 OUTSIDE SERVICES 188,526 INSURANCE 92,073 EMPLOYEE BENEFITS 26,869 TRUSTEES 336,159 MISCELLANEOUS GENERAL 381,248 MAINTENANCE OF GENERAL PLANT 211,903 REGULATORY COMMISSION 2,770 MEMBER MEETING 74,801 ADVERTISING 16,889 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,502,621 LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (288,323) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,727,738) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,473,750) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,012,810 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 $ 5,024,413 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (288,323) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (358,005) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,330,627 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 296,972 TOTAL WAGES ACCRUED AND/OR PAID $ 7,005,684 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. 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 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 328,182 CUSTOMER SERVICE AND INFORMATION 160,061 SALES EXPENSE 21,839 OTHER DEDUCTIONS 167 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 510,249 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 7,386,692. PATRONAGE CAPITAL RETIRED - TOTAL -1,309,018. PATRONAGE CAPITAL RETIRED - DISCOUNT 337,601. DONATED CAPITAL 39. FORM 990, PART XII, LINE 2C: HE BOARD AS A WHOLE IS RESPONSIBLE FOR REVIEWING, OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID OCCUR DURING THE YEAR.