2023-11-15T19:21:26-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 750712525 RITA BLANCA ELECTRIC COOPERATIVE INC RITA 8062494506 PO BOX 1947 DALHART TX 790225947 BRENT WHEELER CEO/GENERAL MANAGER 8062494506 2023-11-15 1 BRENT WHEELER 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-09 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z BRENT WHEELER PO BOX 1947 DALHART TX 790225947 90530543 0 X WWW.RITABLANCAELECTRIC.COM X 1945 TX TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 9 9 39 0 0 0 0 0 68649600 90140936 215789 384142 5114 4113 68870503 90529191 25000 23490 7561100 10512635 3132290 3331823 0 0 0 58161605 76671152 68879995 90539100 -9492 -9909 119494326 130821379 23589170 26546096 95905156 104275283 NONE 0 0 SALE OF ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 8,501 ACTIVE SERVICES 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 1 0 0 0 0 0 0 0 0 0 1 45 0 39 1 0 0 0 0 0 96176902 422275 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X BRENT WHEELER CEOGENERAL MANAGER 8062494506 12198 US HWY 87 DALHART TX 790225947 X CARL D FINCH CHAIRMAN 2.90 X X 27271 0 0 BRAD GREEN DIRECTOR 1.60 X 27421 0 0 CARL J KUPER JAN-MAR DIRECTOR 0.60 X 4725 0 0 BRADLEY MCBRYDE VICE CHAIRMAN 3.10 X X 29491 0 0 DAVID HIGGINS DIRECTOR 2.30 X 30280 0 0 DARREN STALLWITZ DIRECTOR 2.00 X 21045 0 0 SHAD MCDANIEL DIRECTOR 2.80 X 20501 0 0 BRENT SPURLOCK SECRETARY/TREASURER 3.20 X X 29491 0 0 CHRIS SHELDON DIRECTOR 3.00 X 25310 0 0 WADE LENZ APRIL-DEC DIRECTOR 3.10 X 25248 0 0 BRENT WHEELER GENERAL MANAGER 45.00 X 262263 0 109892 TRACY HOWELL OUTSIDE OPERATIONS MANAGER 45.00 X 180044 0 68074 GRACIELA SUBEALDEA INSIDE OPERATIONS MANAGER 45.00 X 166983 0 89848 LARRY ARAGON LINEMAN 40.00 X 123065 0 69094 DALE CLEAVINGER SERVICE CREW 40.00 X 111474 0 67087 SHAUN SCOFIELD LINEMAN 40.00 X 122971 0 62988 JOHN POPE LINEMAN 40.00 X 127718 0 57067 REYNOLD MARTINEZ LINEMAN 40.00 X 119384 0 73914 1454685 0 597964 8 0 1 0 MCNABB ENTERPRISES LLC PO BOX 309 HARTLEY TX 79044 CONSTRUCTION CONTRACTOR 1318788 VIZ ENGINEERING LLC 4920 S LOOP 289 STE 206 LUBBOCK TX 79414 ENGINEERING 232145 BURNS & MCDONNELL ENGINEERING CO 9400 WARD PARKWAY KANSAS CITY MO 64114 ENGINEERING 121000 3 X SALES OF ELECTRICITY 221000 88048674 88048674 PATRONAGE DIVIDENDS 221000 1954194 1954194 SERVICE FEES 221000 138068 138068 90140936 146445 146445 237697 0 237697 237697 237697 1790 1352 438 438 POLE ATTACHMENT INCOME 221000 3675 3675 3675 90529191 90379071 0 150120 X 23490 10512635 1117887 1367377 207095 493170 146294 525607 3405304 PURCHASED POWER 71677846 ADMIN & GENERAL EXPENSE 841872 CONSUMER EXPENSE 140989 DISTRIBUTION EXPENSE 61355 18179 90539100 1270390 3179984 116628 3439971 6171357 5804823 996877 1542402 494257 336296 107740822 27407532 75268449 80333290 5660 5660 32858909 33976049 2311799 2202904 119494326 130821379 4377166 6412798 4223 10135 14309511 12973975 4898270 7149188 23589170 26546096 X 8555 8665 0 0 95896601 104266618 95905156 104275283 119494326 130821379 X -9909 8380036 X X 0 0 0 0 1 X 602638 602638 4523215 1187588 3335627 101414953 26219944 75195009 1200016 1200016 80333290 CAPITAL TERM CERTIFICATES 380029 C INVESTMENTS IN ASSOCIATED ORGANIZATIONS - PATRONAGE CAPITAL 33594975 C INVESTMENTS IN ASSOCIATED ORGANIZATIONS - OTHER 1045 C 33976049 ACCUMULATED PROVISION FOR PENSIONS & BENEFITS 171389 CONSUMER DEPOSITS 95620 ACCRUED OPERATING TAXES 133034 DEFERRED CREDITS - GSEC REFUNDS 3609641 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 763367 DEFERRED CREDITS - OTHER 2376137 7149188 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. 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 VII: THE AMOUNT OF INVESTMENTS - OTHER SECURITIES ON FORM 990, PAGE 11, PART X, LINE 12 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 VII 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. CONSEQENTLY, IN ACCORDANCE WITH IRS INSTRUCTIONS, SCHEDULE D, PART IX HAS BEEN LEFT BLANK. 0 THE OPPORTUNITY PLAN INC PO BOX 1035 CANYON TX 79015 756020405 501(C)(3) 16450 0 FUND SCHOLARSHIPS 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 0 0 0 BRENT WHEELER GENERAL MANAGER 227199 0 16123 0 18941 0 74359 0 35533 0 372155 0 0 0 GRACIELA SUBEALDEA INSIDE OPERATIONS MANAGER 147855 0 11091 0 8037 0 53111 0 36737 0 256831 0 0 0 TRACY HOWELL OUTSIDE OPERATIONS MANAGER 162230 0 11659 0 6155 0 59015 0 9059 0 248118 0 0 0 REYNOLD MARTINEZ LINEMAN 110850 0 7559 0 975 0 41356 0 32558 0 193298 0 0 0 LARRY ARAGON LINEMAN 113583 0 7483 0 1999 0 35736 0 33358 0 192159 0 0 0 SHAUN SCOFIELD LINEMAN 114565 0 7330 0 1076 0 31859 0 31129 0 185959 0 0 0 JOHN POPE LINEMAN 116149 0 8091 0 3478 0 39717 0 17350 0 184785 0 0 0 DALE CLEAVINGER SERVICE CREW 103031 0 6874 0 1569 0 32830 0 34257 0 178561 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. BRENT WHEELER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 53,109 EMPLOYER CONTRIBUTION TO 401(K) PLAN 21,250 TOTAL REPORTED IN COLUMN C $ 74,359 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (53,109) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,224 EXPENSE TO THE COOPERATIVE $ 49,474 GRACIELA SUBEALDEA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 38,549 EMPLOYER CONTRIBUTION TO 401(K) PLAN 14,562 TOTAL REPORTED IN COLUMN C $ 53,111 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (38,549) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,319 EXPENSE TO THE COOPERATIVE $ 33,881 TRACY HOWELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 43,490 EMPLOYER CONTRIBUTION TO 401(K) PLAN 15,525 TOTAL REPORTED IN COLUMN C $ 59,015 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (43,490) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,698 EXPENSE TO THE COOPERATIVE $ 36,223 REYNOLD MARTINEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,450 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,906 TOTAL REPORTED IN COLUMN C $ 41,356 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,450) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,139 EXPENSE TO THE COOPERATIVE $ 23,045 LARRY ARAGON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 25,856 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,880 TOTAL REPORTED IN COLUMN C $ 35,736 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (25,856) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,139 EXPENSE TO THE COOPERATIVE $ 23,019 SHAUN SCOFIELD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,187 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,672 TOTAL REPORTED IN COLUMN C $ 31,859 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (22,187) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 12,859 EXPENSE TO THE COOPERATIVE $ 22,531 JOHN POPE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 28,849 EMPLOYER CONTRIBUTION TO 401(K) PLAN 10,868 TOTAL REPORTED IN COLUMN C $ 39,717 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (28,849) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 14,537 EXPENSE TO THE COOPERATIVE $ 25,405 DALE CLEAVINGER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,626 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,204 TOTAL REPORTED IN COLUMN C $ 32,830 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,626) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 12,300 EXPENSE TO THE COOPERATIVE $ 21,504 KAREN HOWELL FAMILY - OFFICER (T. HOWELL) EMPLOYMENT 0 FORM 990, PART I: 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 $9,909 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 $ 2,567 LESS: UNBILLED REVENUE 12/31/21 (12,746) (A) - DECREASE EQUALS NET LOSS ON PAGE 1 $ (9,909) (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 10,512,635 TOTAL 2022 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 10,502,726 FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAS 9 BOARD MEMBERS; ALL 9 ARE ALLOWED TO VOTE, HOWEVER, THE BOARD CHAIRMAN VOTES ONLY IN THE CASE OF A TIE. 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. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, THE COOPERATIVE WILL REQUIRE THE BOARD OF DIRECTORS TO DISCLOSE ALL POTENTIAL CONFLICTS OF INTERESTS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE INTERNAL RESOURCES AND A PERFORMANCE REVIEW WHEN DETERMINING AND SETTING THE COMPENSATION OF THE GENERAL MANAGER. THE GENERAL MANAGER UTILIZIES INTERNAL RESOURCES AND PERFORMANCE REVIEWS WHEN DETERMINING AND SETTING THE COMPENSATION OF EMPLOYEES MEETING THE DEFINITION OF OFFICER OR KEY EMPLOYEE, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, FINANCIAL STATEMENTS AND CONFLICT OF INTEREST POLICY TO ANY MEMBER WHO MAKES A WRITTEN REQUEST OF ANY SUCH DOCUMENT. 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 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 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: 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 MODIFIED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICES (RUS). 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 2,485,264 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (240,783) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (267,814) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 884,965 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 583,882 TOTAL WAGES ACCRUED AND/OR PAID $ 3,445,514 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 601,364 OFFICE SUPPLIES 97,899 OUTSIDE SERVICES 56,756 SAFETY, INJURY & DAMAGE PREVENTION 116,441 EMPLOYEE BENEFITS 61,095 DIRECTOR FEES 376,075 ANNUAL MEETING 48,469 INSTITUTIONAL & GOODWILL ADVERTISING 45,540 DUES TO ASSOCIATED ORGANIZATIONS 132,010 MAINTENANCE OF GENERAL PLANT 126,954 MISCELLANEOUS GENERAL EXPENSE (10,199) PUBLIC UTILITY COMMISSION 145,976 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 1,798,380 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (23,490) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (240,783) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (442,673) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (249,562) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 841,872 FORM 990, PART IX, LINE 4: PURSUANT TO FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO 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 MARGINS PRODUCED BY 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 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 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: TRANSMISSION $ 18,179 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 18,179 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 10,512,635. PATRONAGE CAPITAL RETIRED - TOTAL -2,109,984. PATRONAGE CAPITAL RETIRED - DISCOUNT 1,885. NET CHANGE IN MEMBERSHIPS 110. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSION & BENEFITS -24,610. FORM 990, PART XII, LINE 2C: AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR-END OF JUNE 30TH. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31ST. 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.