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 740498072 BANDERA ELECTRIC COOPERATIVE INC BAND 8662263372 PO BOX 667 BANDERA TX 78003 BECKY BRADBURN CFO 8662263372 2023-11-03 1 BECKY BRADBURN 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-03 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z WILLIAM HETHERINGTON PO BOX 667 BANDERA TX 78003 101603962 0 X WWW.BANDERAELECTRIC.COM X 1938 TX TO PROVIDE ELECTRIC, BROADBAND INTERNET AND OTHER RELATED GOODS AND SERVICES TO OUR MEMBERS. 9 9 164 0 587652 0 0 0 87204273 100946016 -967095 30391 2951079 388147 89188257 101364554 97275 113924 6025429 4763318 10192517 12960473 0 0 0 73428207 85598357 89743428 103436072 -555171 -2071518 290540608 313922320 193205697 215118446 97334911 98803874 LIGHTING THE GRID TO EMPOWER OUR MEMBERS. 0 0 ELECTRIC DIVISION:PROVIDING ELECTRIC ENERGY TO OUR MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 40,419 ACTIVE SERVICES AT YEAR END. FIBER DIVISION:PROVIDING FIBER OPTIC BROADBAND INTERNET SERVICES TO MEMBERS ON A PATRONAGE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 10,954 BROADBAND SUBSCRIBERS AT YEAR END. ENERGY SERVICES DIVISION:PROVIDING SOLAR ENERGY AND ENERGY MANAGEMENT SOLUTIONS TO MEMBERS ON A PATRONAGE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL WHEN CUMULATIVE NET MARGINS FROM THESE SERVICES EXCEEDS CUMULATIVE LOSSES. THERE WERE 435 SUBSCRIBERS AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 1 55 0 164 1 1 1 0 0 0 0 104162083 8043155 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 BECKY BRADBURN CFO 8662263372 PO BOX 667 BANDERA TX 78003 X ANNEGRETH NIEMANN DIRECTOR 10.10 X 33250 0 0 CHRIS BLAKEMORE DIRECTOR 6.20 X 35000 0 0 JEFFREY SLOCUM DIRECTOR 5.30 X 29000 0 0 JEREMY DILLER VICE CHAIRMAN 7.20 X X 36000 0 0 KURT SOLIS SECRETARY/TREASURER 8.20 X X 35500 0 0 FRANCES LAUE DIRECTOR 6.20 X 29000 0 0 MICHAEL EDWARDS CHAIRMAN 6.30 X X 36200 0 0 RICHARD EARNEST DIRECTOR 5.40 X 31500 0 0 ROBERT AGUIRRE DIRECTOR 7.00 X 37000 0 0 WILLIAM HETHERINGTON CEO/GENERAL MANAGER 60.00 X 466946 0 170867 BECKY BRADBURN CFO 51.00 X 251728 0 104563 JOHN PADALINO GENERAL COUNSEL/CHIEF ADMIN OFFICER 60.00 X 307648 0 85510 SHANE SCHMIDT VP OF BEC FIBER 54.00 X 295230 0 87547 JUSTIN MCKENZIE VP OF APOLLOWARE & ENERGY SERVICES 55.00 X 186535 0 28139 JOHN RUSH DIRECTOR OF ELECTRIC OPERATIONS 50.00 X 183051 0 82897 THILO JANSSEN DIRECTOR OF ENGINEERING 46.00 X 170867 0 63030 ALLEN MARSHALL MANAGER OF OUTSIDE PLANT OPERATIONS 50.00 X 153685 0 62046 MICHAEL SHULTS NETWORK OPERATIONS MANAGER 50.00 X 153311 0 50380 JOHN HERNANDEZ LINE FOREMAN 52.00 X 152112 0 64781 BILLY SIMPSON MANAGER OF PRODUCTS & SERVICES 55.00 X 143909 0 57703 JOHNNY OLIBAS DIRECTOR OF INFORMATION TECHNOLOGY 45.00 X 141871 0 31673 GARRETT CLARK LINE FOREMAN 47.00 X 128257 0 47564 3037600 0 936700 31 0 1 0 HUSER CONSTRUCTION CO 410 COTTON GIN LN KERRVILLE TX 78028 CONSTRUCTION CONTRACTOR - BUILDER 4449706 DAS UNDERGROUND UTILITIES LLC PO BOX 2391 BOERNE TX 78006 UNDERGROUND CONSTRUCTION CONTRACTOR 3311634 DAS FIBER LLC PO BOX 2391 BOERNE TX 78006 FIBER CONTRACTOR 2735052 PANNELL CONTRACTING LLC PO BOX 2107 LEAKEY TX 78873 RIGHT OF WAY CLEARING CONTRACTOR 2250179 K&S ELECTRIC CO INC 1901 N GRIMES HOBBS NM 88240 FIBER CONTRACTOR 1783185 18 X SALES OF ELECTRICITY 221000 77818353 77818353 SALES OF FIBER INTERNET 221000 10577922 9990270 587652 TRANSMISSION LEASE 221000 5760458 5760458 ENERGY SERVICES 221000 4698131 4698131 SERVICE FEES 221000 1133917 1133917 957235 957235 100946016 3991 3991 1000 0 1000 1000 1000 26400 0 26400 26400 26400 321750 239408 82342 82342 POLE ATTACHMENT INCOME 221000 304805 304805 304805 101364554 100468106 587652 308796 X 113924 4763318 3002739 7258090 890739 1238355 570550 6328618 10069770 PURCHASED POWER 50800028 ADMIN & GENERAL EXPENSE 6061536 DISTRIBUTION EXPENSE 5223590 ENERGY SERVICES 4684480 2430335 103436072 1233140 206100 2180681 3394565 2567773 5803592 3142327 5498470 498182 994281 382052466 95317560 272288493 286734906 6156450 6717954 2473562 4572452 290540608 313922320 8525633 9417101 139356 180848 55483 50680 180248051 201399745 4237174 4070072 193205697 215118446 X 686760 706365 0 0 96648151 98097509 97334911 98803874 290540608 313922320 X -2071518 3540481 X X 0 1 X 1 0 0 1 X 3270207 3270207 11554032 4355911 7198121 347220401 86848256 260372145 20007826 4113393 15894433 286734906 ACCUMULATED PROVISION FOR POST RETIREMENT BENEFITS 2107169 REFUNDABLE AID TO CONSTRUCTION 853760 CONSUMER DEPOSITS - ELECTRIC AND SOLAR 870972 DEFERRED CREDITS - UNCLAIMED PATRONAGE CAPITAL 216337 OTHER ACCRUED LIABILITIES 21834 4070072 X 101364554 0 101364554 0 101364554 98672754 0 98672754 4763318 4763318 103436072 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 HAS ADOPTED 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 POSITIONS 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 4,763,318. 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 VIII 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. 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". 0 DAS GREENHAUS INC 1221 S MAIN ST 101 BOERNE TX 78006 880735998 501(C)(3) 25000 0 FOUNDING PARTNER CONTRIBUTION 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 X 1 1 X X X 0 0 0 WILLIAM HETHERINGTON CEO/GENERAL MANAGER 380643 0 68483 0 17820 0 146649 0 24218 0 637813 0 0 0 JOHN PADALINO GENERAL COUNSEL/CHIEF ADMIN OFFICER 254157 0 44025 0 9466 0 57434 0 28076 0 393158 0 0 0 SHANE SCHMIDT VP OF BEC FIBER 243210 0 42495 0 9525 0 58215 0 29332 0 382777 0 0 0 BECKY BRADBURN CFO 213189 0 36983 0 1556 0 75231 0 29332 0 356291 0 0 0 JOHN RUSH DIRECTOR OF ELECTRIC OPERATIONS 150589 0 26932 0 5530 0 52565 0 30332 0 265948 0 0 0 THILO JANSSEN DIRECTOR OF ENGINEERING 144941 0 24788 0 1138 0 39813 0 23217 0 233897 0 0 0 JOHN HERNANDEZ LINE FOREMAN 142598 0 8010 0 1504 0 40563 0 24218 0 216893 0 0 0 ALLEN MARSHALL MANAGER OF OUTSIDE PLANT OPERATIONS 138983 0 14164 0 538 0 33514 0 28532 0 215731 0 0 0 JUSTIN MCKENZIE VP OF APOLLOWARE & ENERGY SERVICES 171000 0 15085 0 450 0 28139 0 0 0 214674 0 0 0 MICHAEL SHULTS NETWORK OPERATIONS MANAGER 140725 0 11996 0 590 0 28791 0 21589 0 203691 0 0 0 BILLY SIMPSON MANAGER OF PRODUCTS & SERVICES 131490 0 11908 0 511 0 29171 0 28532 0 201612 0 0 0 GARRETT CLARK LINE FOREMAN 120907 0 6847 0 503 0 19032 0 28532 0 175821 0 0 0 JOHNNY OLIBAS DIRECTOR OF INFORMATION TECHNOLOGY 91157 0 40132 0 10582 0 19243 0 12430 0 173544 0 0 0 PART I, LINE 1A HOUSING ALLOWANCE - TWO INDIVIDUALS REPORTED ON FORM 990 PART VII, JOHN PADALINO AND JOHNNY OLIBAS, RECEIVED THIS BENEFIT DURING THE YEAR. ADDITIONALLY, THE VALUE OF THE BENEFIT WAS INCLUDED IN THE RESPECTIVE REPORTABLE COMPENSATION. THE CEO PROVIDED AN OFFER LETTER OF EMPLOYMENT AND APPROVED THE HOUSING ALLOWANCE AS A PART OF THE COMPENSATION PACKAGE. GYM/FITNESS REIMBURSEMENT - THREE INDIVIDUALS REPORTED ON FORM 990 PART VII, JOHN HERNANDEZ, JOHNNY OLIBAS, AND THILO JANSSEN, RECEIVED THIS BENEFIT DURING THE 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 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. WILLIAM HETHERINGTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 128,349 EMPLOYER CONTRIBUTION TO 401(K) PLAN 18,300 TOTAL REPORTED IN COLUMN C $ 146,649 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (128,349) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 50,569 EXPENSE TO THE COOPERATIVE $ 68,869 JOHN PADALINO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 41,838 EMPLOYER CONTRIBUTION TO 401(K) PLAN 15,596 TOTAL REPORTED IN COLUMN C $ 57,434 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (41,838) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,832 EXPENSE TO THE COOPERATIVE $ 55,428 SHANE SCHMIDT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 49,904 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,311 TOTAL REPORTED IN COLUMN C $ 58,215 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (49,904) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,383 EXPENSE TO THE COOPERATIVE $ 46,694 BECKY BRADBURN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 62,031 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,200 TOTAL REPORTED IN COLUMN C $ 75,231 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (62,031) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 33,160 EXPENSE TO THE COOPERATIVE $ 46,360 JOHN RUSH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 43,061 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,504 TOTAL REPORTED IN COLUMN C $ 52,565 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (43,061) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,660 EXPENSE TO THE COOPERATIVE $ 33,164 THILO JANSSEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,812 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,001 TOTAL REPORTED IN COLUMN C $ 39,813 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,812) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,629 EXPENSE TO THE COOPERATIVE $ 30,630 JOHN HERNANDEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 31,643 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,920 TOTAL REPORTED IN COLUMN C $ 40,563 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (31,643) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,767 EXPENSE TO THE COOPERATIVE $ 22,687 ALLEN MARSHALL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,814 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,700 TOTAL REPORTED IN COLUMN C $ 33,514 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,814) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,798 EXPENSE TO THE COOPERATIVE $ 31,498 JUSTIN MCKENZIE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 18,559 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,580 TOTAL REPORTED IN COLUMN C $ 28,139 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,559) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,870 EXPENSE TO THE COOPERATIVE $ 34,450 MICHAEL SHULTS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,091 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,700 TOTAL REPORTED IN COLUMN C $ 28,791 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,091) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,041 EXPENSE TO THE COOPERATIVE $ 32,741 BILLY SIMPSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 25,046 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,125 TOTAL REPORTED IN COLUMN C $ 29,171 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (25,046) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,798 EXPENSE TO THE COOPERATIVE $ 26,923 GARRETT CLARK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,417 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,615 TOTAL REPORTED IN COLUMN C $ 19,032 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,417) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 12,056 EXPENSE TO THE COOPERATIVE $ 19,671 JOHNNY OLIBAS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,976 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,267 TOTAL REPORTED IN COLUMN C $ 19,243 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,976) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 10,501 EXPENSE TO THE COOPERATIVE $ 11,768 ANDREW EDWARDS FAMILY RELATIONSHIP - OFFICER (M. EDWARDS) 98207 EMPLOYMENT 0 FORM 990, PAGE 1, LINE 19: THE LOSS OF $2,071,518 REPRESENTS THE LOSSES IN THE SOLAR DIVISION AND THE ENERGY MANAGEMENT DIVISION. SUCH LOSSES ARE BEING ROLLED FORWARD ON A STAND ALONE BASIS TO OFFSET ANY FUTURE NET MARGINS OF THOSE DIVISIONS. 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 ANNUALLY, THE COOPERATIVE REQUIRES ALL DIRECTORS, OFFICERS, AND MANAGEMENT TO CERTIFY, VIA A SIGNED CERTIFICATE OF COMPLIANCE, THAT THEY HAVE COMPLIED WITH THE CODE OF ETHICS AND ARE NOT AWARE OF ANY UNREPORTED VIOLATIONS OF THE POLICY THAT MAY HAVE OCCURRED. THESE ACTIONS ARE IN COMPLIANCE WITH THE COOPERATIVE'S CODE OF ETHICS POLICY, C05-4, PART II, #6. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE A COMPENSATION COMMITTEE AND COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS/ GENERAL MANAGERS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE CEO UTILIZES 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 OF ANY SUCH DOCUMENT. THE BYLAWS AND ARTICLES OF INCORPORATION CAN ALSO 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 LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS, KEY EMPLOYEES, 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 2: PATRONAGE DIVIDENDS 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 AN 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 $10,260,829 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (302,450) LESS: EMPLOYEE OFFICER AND KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (684,599) PLUS: SALARIES AND BENEFITS ALLOCATED TO PURCHASED POWER 248,440 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 8,349 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,791,482 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 669,282 TOTAL WAGES ACCRUED AND/OR PAID $12,991,333 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, AND OTHER $ 4,931,430 OFFICE SUPPLIES 897,616 OUTSIDE SERVICES 1,913,154 INSURANCE 207,797 DIRECTORS 487,660 ADVERTISING 183,072 DUES TO ASSOCIATED ORGANIZATIONS 217,343 ANNUAL MEETING 73,916 MISCELLANEOUS GENERAL 1,559,317 REGULATORY COMMISSION 130,434 MAINTENANCE OF GENERAL PLANT 1,560,253 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $12,161,992 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (302,450) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (4,261,726) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,536,280) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 6,061,536 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 456,742 CUSTOMER SERVICE & INFORMATION 850,268 FIBER 504,073 TRANSMISSION 518,640 OTHER DEDUCTIONS 100,612 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 2,430,335 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, BROADBAND INTERNET AND OTHER RELATED GOODS AND SERVICES 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 CALENDAR 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 THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY AND BROADBAND INTERNET GOODS AND SERVICES 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 4,763,318. PATRONAGE CAPITAL RETIRED - TOTAL -1,141,984. PATRONAGE CAPITAL RETIRED - DISCOUNT 366,890. PATRONAGE CAPITAL RETIRED - RETAINED 2,064. NET CHANGE IN MEMBERSHIPS 19,605. OCI- PENSIONS AND BENEFITS -469,412. 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. BANDERA ELECTRIC CHARITABLE FOUNDATION 3172 STATE HIGHWAY 16 N BANDERA TX 78003 473758376 OPERATION ROUND-UP TX 501(C)(3) LINE 10 BANDERA ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 BANDERA ELECTRIC CHARITABLE FOUNDATION N N/A - LESS THAN $50,000 BANDERA ELECTRIC CHARITABLE FOUNDATION O N/A - LESS THAN $50,000