2024-11-15T15:13:49-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 860079733 GRAHAM COUNTY ELECTRIC COOPERATIVE INC GRAH 9784852451 PO DRAWER B PIMA AZ 85543 THAN ASHBY CFO 9784852451 2024-11-13 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-13 X 2023 2024-10-15 13:58:12Z PHILLIP COOK PO DRAWER B PIMA AZ 85543 26522158 0 X WWW.GCE.COOP X 1945 AZ TO PROVIDE QUALITY AND RELIABLE ELECTRIC AND WATER SERVICES TO MEMBERS OF THE COOPERATIVE. 9 8 45 0 0 0 0 0 20682609 26118708 33595 58855 269373 291022 20985577 26468585 0 0 349926 0 4016937 4023820 0 0 0 17097972 23574333 21464835 27598153 -479258 -1129568 63207790 67662222 34239491 39606448 28968299 28055774 WE ARE COMMITTED TO PROVIDE SAFE, RELIABLE, AND EFFICIENT RESOURCES TO ENHANCE THE LIVES OF OUR MEMBERS AND THE COMMUNITIES WE SERVE. 0 0 ELECTRIC DIVISION:PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 8,410 ACTIVE SERVICES, 965 MILES OF ELECTRIC DISTRIBUTION LINES AND 85 MILES OF TRANSMISSION LINES AT YEAR END. WATER DIVISION:THE COOPERATIVE OWNS AND MAINTAINS WATER WELLS, STORAGE TANKS AND A WATER DISTRIBUTION SYSTEM TO SUPPLY ITS MEMBERS WITH POTABLE WATER. SUCH WATER DISTRIBUTION SERVICES ARE PROVIDED ON A PATRONAGE BASIS. PATRONAGE CAPITAL IS ALLOCABLE TO THE MEMBERS WHEN CUMULATIVE NET MARGINS EXCEED CUMULATIVE LOSSES. AT YEAR END, THERE WERE 1,911 WATER METERS SERVED BY 106 MILES OF MAIN LINES AND SERVICE LINES. 0 0 0 0 0 0 0 0 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 1 95 0 1 45 1 0 0 0 0 0 25037236 1873602 0 0 0 X 9 8 0 0 0 0 1 1 1 1 0 0 0 0 1 1 1 0 0 1 1 0 X THAN ASHBY CFO 9784852451 PO DRAWER B PIMA AZ 85543 X REUBEN MCBRIDE PRESIDENT 10.00 1.00 X X 7781 0 0 MARK CLARIDGE VICE PRESIDENT 2.80 X X 8754 0 0 JIM BRYCE SECRETARY 2.50 X X 10979 0 0 DENNIS JACOB DIRECTOR 1.00 1.00 X 4615 0 0 CHRISTOPHER CLARIDGE DIRECTOR 2.00 1.00 X 10786 0 0 TOMMY CLONTS DIRECTOR 4.20 X 8912 0 0 GENE ROBERT LARSON DIRECTOR 3.80 X 6954 0 0 STEPHEN HOOPER DIRECTOR 2.70 X 8615 0 0 GERALD SCHMIDT DIRECTOR 1.50 X 5781 0 0 PHILLIP COOK CEO 48.00 X 205020 0 35618 THAN ASHBY CFO 46.00 X 131294 0 61522 RUSTY SHERMAN OPERATIONS MANAGER 45.00 X 135830 0 55435 VICTOR TRUJILLO FOREMAN 46.00 X 129520 0 50377 FRANCISCO MACARIO LINEMAN JOURNEYMAN 50.00 X 126737 0 51756 MYLES RAY FOREMAN 42.00 X 123695 0 55153 JOSEPH BINGHAM ELECTRIC SUPERINTENDENT 45.00 X 115726 0 71373 1040999 0 381234 15 0 1 0 ADDISON CONSTRUCTION CO 1526 HORSE CREEK ROAD CHEYENNE WY 82009 SUBSTATION CONSTRUCTION 790535 NATIONAL POWERLINE LLC 19820 N 7TH AVE SUITE 120 PHOENIX AZ 85027 ELECTRIC LINE CONSTRUCTION 225613 ASPLUNDH TREE EXPERT LLC 1700 SOLUTIONS CENTER CHICAGO IL 60677 TREE TRIM SERVICES 120502 TRANSMISSION & DISTRIBUTION SERVICES 9550 SAN MATEO BLVD NE SUITE G ALBUQUERQUE NM 87113 ELECTRIC SYSTEM ENGINEERING 102492 4 X SALES OF ELECTRICITY 221000 22084604 22084604 SALES OF WATER 221000 1517583 1517583 TRANSMISSION & WHEELING SERVICES 221000 1378804 1378804 SERVICE FEES 221000 779440 779440 PATRONAGE DIVIDENDS 221000 358277 358277 26118708 22372 22372 1631 0 1631 1631 1631 90056 53573 36483 36483 36483 POLE ATTACHMENT INCOME 221000 280130 280130 MISC NON-OPERATING INCOME 221000 9261 9261 289391 26468585 26164452 0 304133 X 506631 2324026 632960 382220 177983 1509670 2025392 PURCHASED POWER 16487692 DISTRIBUTION EXPENSE 1785593 ADMINISTRATIVE AND GENE 1479578 CONSUMER EXPENSE 252596 33812 27598153 774164 2747773 1069298 347222 291667 1662418 2138051 625345 892501 76325044 33674275 38760677 42650769 14558766 14839750 4505589 5006022 63207790 67662222 2708400 3604766 25169437 29111336 6361654 6890346 34239491 39606448 X 29040 29460 6457 6690 28932802 28019624 28968299 28055774 63207790 67662222 X -1129568 217043 X X 0 0 0 344556 344556 4179489 2356361 1823128 67939799 31315505 36624294 3861200 2409 3858791 42650769 PATRONAGE CAPITAL - ARIZONA G&T COOPERATIVE 12720646 C PATRONAGE CAPITAL - CFC 996561 C PATRONAGE CAPITAL - WUE 108064 C PATRONAGE CAPITAL - FEDERATED COOPERATIVE 193806 C PATRONAGE CAPITAL - ERMC 7393 C CAPITAL TERM CERTIFICATES 661113 C MEMBERSHIP FEES 3605 C OTHER PROGRAM INVESTMENTS 148562 C 14839750 A/R UNBILLED REVENUE 325193 REGULATORY ASSET - SUN WATTS SOLAR PROGRAM 3087122 REGULATORY ASSET - POST RETIREMENT 1360914 REGULATORY ASSET - OTHER 232793 5006022 CONSUMER DEPOSITS 399440 ACCUMULATED PROVISION - POST RETIREMENT BENEFITS 1706147 ENERGY EFFICIENCY, RENEWABLE ENERGY TARIFF 4068655 ACCRUED OPERATING TAXES 234329 PROPERTY UNDER LEASE - RIGHT OF USE 481775 6890346 X X 0 0 0 PHILLIP COOK CEO 172864 0 20000 0 12156 0 35618 0 0 0 240638 0 0 0 THAN ASHBY CFO 118365 0 7584 0 5345 0 31508 0 30014 0 192816 0 0 0 RUSTY SHERMAN OPERATIONS MANAGER 120637 0 6266 0 8927 0 52186 0 3249 0 191265 0 0 0 JOSEPH BINGHAM ELECTRIC SUPERINTENDENT 105722 0 2609 0 7395 0 37238 0 34135 0 187099 0 0 0 VICTOR TRUJILLO FOREMAN 124656 0 769 0 4095 0 22796 0 27581 0 179897 0 0 0 MYLES RAY FOREMAN 116326 0 5556 0 1813 0 55153 0 0 0 178848 0 0 0 FRANCISCO MACARIO LINEMAN JOURNEYMAN 125082 0 689 0 966 0 20235 0 31521 0 178493 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. PHILLIP COOK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,576 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,042 TOTAL REPORTED IN COLUMN C $ 35,618 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,576) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,314 EXPENSE TO THE COOPERATIVE $ 44,356 THAN ASHBY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 27,511 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,997 TOTAL REPORTED IN COLUMN C $ 31,508 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (27,511) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 45,121 EXPENSE TO THE COOPERATIVE $ 49,118 RUSTY SHERMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 48,255 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,931 TOTAL REPORTED IN COLUMN C $ 52,186 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,255) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 44,300 EXPENSE TO THE COOPERATIVE $ 48,231 JOSEPH BINGHAM: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,456 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,782 TOTAL REPORTED IN COLUMN C $ 37,238 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (33,456) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,129 EXPENSE TO THE COOPERATIVE $ 45,911 VICTOR TRUJILLO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,600 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,196 TOTAL REPORTED IN COLUMN C $ 22,796 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (19,600) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,887 EXPENSE TO THE COOPERATIVE $ 41,083 MYLES RAY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 52,060 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,093 TOTAL REPORTED IN COLUMN C $ 55,153 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (52,060) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,887 EXPENSE TO THE COOPERATIVE $ 40,980 FRANCISCO MACARIO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,434 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,801 TOTAL REPORTED IN COLUMN C $ 20,235 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,434) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,435 EXPENSE TO THE COOPERATIVE $ 37,236 JOSHUA BRYCE FAMILY RELATIONSHIP (DIRECTOR J. BRYCE) 98785 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 $1,129,568, WHICH IS THE EFFECT OF UNALLOCATED ELECTRIC AND WATER DIVISIONS' LOSSES. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THESE TRANSACTIONS: ADD: WATER DIVISION LOSS $ (383,678) ADD: ELECTRIC LOSS (745,890) (A) - NET INCOME (LOSS) ON PAGE 1, PART I, LINE 19 $(1,129,568) (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ (0) TOTAL 2023 NET LOSS PER FINANCIAL STATEMENTS (A + B) $(1,129,568) 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 AND PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. FORM 990, PART VI, SECTION B, LINE 12C GCEC HAS A CONFLICT OF INTEREST POLICY THAT IS APPLICABLE TO ALL BOARD MEMBERS. DIRECTORS ARE TO MAKE WRITTEN DISCLOSURES OF ANY SUBSTANTIAL OUTSIDE INTEREST IN ANY ENTITY DOING BUSINESS WITH GCEC, INCLUDING BUT NOT LIMITED TO ANY OWNERSHIP INTEREST OR VOTING PRIVILEGE AS A DIRECTOR, IN ORDER TO PERMIT CONSIDERATION BY THE BOARD OF DIRECTORS OF SUCH CONTINUING RELATIONSHIP. SUCH DISCLOSURE SHALL BE MADE AT THE TIME A DIRECTOR ACQUIRES SUCH AN INTEREST. ADDITIONALLY, ALL DIRECTORS SHALL ANNUALLY MAKE A WRITTEN DISCLOSURE OF ANY TO GCEC. GCEC'S GENERAL COUNSEL SHALL ANNUALLY REVIEW WITH THE BOARD OF DIRECTORS THIS POLICY AND MATTERS RELATING TO THEIR COLLECTIVE AND INDIVIDUAL DUTIES AND OBLIGATIONS AS DIRECTORS. SUCH REVIEW SHALL TAKE PLACE DURING THE QUARTER AFTER GCEC'S ANNUAL MEETING. IMPLEMENTATION OF THE POLICY SHALL BE THE RESPONSIBILITY OF THE BOARD OF DIRECTORS, EXCEPT AS OTHERWISE PROVIDED HEREIN BY THE GENERAL MANAGER OR THE GCEC GENERAL COUNSEL. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS EVALUATES THE PERFORMANCE OF THE CEO/GENERAL MANAGER AND THEN VOTES ON THE ANNUAL SALARY. THE DECISION IS PARTIALLY BASED ON A COMPENSATION SURVEY, WHICH INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT ARIZONA AND THE NATION. CEO/GENERAL MANAGER EVALUATES THE PERFORMANCE OF THE ORGANIZATION'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. A COMPENSATION SURVEY, WHICH INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT ARIZONA AND THE NATION, IS THEN USED TO SET COMPENSATION. 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 AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. THE ANNUAL REPORT, AUDITED FINANCIAL STATEMENTS AND BYLAWS 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 AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION, AND GROUP TERM LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND EMPLOYER PAID INSURANCE PREMIUMS. 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, 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 $ 2,830,657 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (73,177) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (97,140) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 767,990 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 603,488 TOTAL WAGES ACCRUED AND/OR PAID $ 4,031,818 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 877,767 OFFICE SUPPLIES 738,179 OUTSIDE SERVICES EMPLOYED 161,087 PROPERTY INSURANCE 16,028 INJURIES & DAMAGES 96,323 EDUCATION & TRAINING 469,531 DIRECTORS 111,496 REGULATORY COMMISSION EXPENSE 47,241 MISCELLANEOUS GENERAL 146,913 RENTS 53,971 MAINTENANCE OF GENERAL PLANT 195,010 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,913,546 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (73,177) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (916,350) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (444,441) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,479,578 FORM 990, PART IX, LINE 4: THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY AND WATER DISTRIBUTION SERVICES ON A DIVISIONAL BASIS TO ITS PATRONS AND TO DO SO ON A COOPERATIVE BASIS FOR EACH DIVISION. 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 ELECTRIC AND WATER DIVISIONS INCURRED LOSSES FOR 2023. PURSUANT TO COOPERATIVE TAX LAW AND THE OPERATION AT COST PRINCIPLE, THESE LOSSES HAVE BEEN CARRIED FORWARD FOR OFFSETTING FUTURE PATRONAGE SOURCED MARGINS FROM THE DIVISIONS BEFORE PATRONAGE CAPITAL IS ALLOCATED TO THE PATRONS. FORM 990, PART IX: ALTHOUGH NO LONGER A BORROWER OF THE RURAL UTILITIES SERVICE (RUS), THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR RUS 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 XI, LINE 9: PATRONAGE CAPITAL RETIRED - TOTAL -730. PATRONAGE CAPITAL RETIRED - DISCOUNT 233. NET CHANGE IN MEMBERSHIPS 420. DONATED CAPITAL & OTHER 148. OTHER COMPREHENSIVE INCOME 215,087. UNCLAIMED CAPITAL CREDITS 1,885. 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 SEPTEMBER 30TH. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31. THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. GRAHAM COUNTY ELECTRIC COOPERATIVE FOUNDATION INC PO DRAWER B PIMA AZ 85543 821452723 COMMUNITY ASSISTANCE & SCHOLARSHIPS AZ 501(C)(3) LINE 10 GRAHAM COUNTY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 GRAHAM COUNTY ELECTRIC COOPERATIVE FOUNDATION INC P N/A - LESS THAN $50,000 GRAHAM COUNTY ELECTRIC COOPERATIVE FOUNDATION INC Q 0 N/A - LESS THAN $50,000