2025-11-13T16:19:09-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 840275175 MOUNTAIN VIEW ELECTRIC ASSOCIATION MOUN 7197752861 PO BOX 1600 LIMON CO 80828 KEVIN PADDOCK PRESIDENT 7197752861 2025-11-11 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-11 X 2024 2025-03-06 01:10:19Z RUTH MARKS PO BOX 1600 LIMON CO 80828 144748893 0 X WWW.MVEA.COOP X 1941 CO TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 7 7 180 0 2306933 0 0 0 129419736 141896546 1325002 448829 638824 2386561 131383562 144731936 6193 44268 6071887 10972302 15536883 16453616 0 0 0 109768599 117261750 131383562 144731936 0 0 455344894 514034456 304604619 351419956 150740275 162614500 TO PROVIDE OUR MEMBERS SAFE, RELIABLE, AFFORDABLE, AND RESPONSIBLE ELECTRIC SERVICE AND ACCESS TO BROADBAND SERVICES. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 65,098 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 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 0 0 0 0 0 0 0 0 0 0 1 41 0 180 1 1 1 0 0 0 0 135307491 12490130 0 0 0 X 7 7 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X MICHAEL ANTHOS VP FINANCE 7197752861 PO BOX 1600 LIMON CO 80828 X RICKY GORDON DIRECTOR 2.90 X 9000 0 0 EDWARD HERTNEKY DIRECTOR 4.10 X 10800 0 0 JOSEPH MARTIN ASSISTANT SECRETARY 5.00 X X 15900 0 0 MILTON MATHIS DIRECTOR 5.20 X 10800 0 0 KEVIN PADDOCK PRESIDENT 9.90 X X 26250 0 0 JAMES RIGGINS SECRETARY/TREASURER 8.60 X X 18600 0 0 BARRY SPRINGER VICE PRESIDENT 9.30 X X 32600 0 0 RUTH MARKS CEO 48.40 X 324830 0 185347 MICHAEL ANTHOS VP FINANCE 41.20 X 205755 0 40673 DAVID WALDNER VP ENGINEERING 46.80 X 226319 0 168262 TERRYL JENSEN VP OPERATIONS (JAN-AUG) 44.90 X 233191 0 115350 TODD SHAFFER VP OPERATIONS (SEPT-DEC) 40.20 X 162519 0 41858 DENNIS SIMMONS VP TECHNICAL SERVICES 40.00 X 213341 0 48262 LESLIE ULFERS SYSTEM ENGINEER I 44.90 X 175660 0 128693 SARAH PINKERTON VP MEMBER ENGAGEMENT 42.50 X 209831 0 126488 KRISTI HOBBS HR MANAGER 43.00 X 176753 0 71000 NATHANIAL OURSLER INFORMATION SERVICES MANAG 40.00 X 214414 0 54930 DAVID WILLIAMS OPERATIONS SUPERINTENDENT 48.10 X 174159 0 107910 2440722 0 1088773 82 0 1 0 BENTON TECHNICAL SERVICES INC 520 8TH AVENUE SOUTH WILMINGTON IL 60474 FIBER CONSTRUCTION CONTRACTOR 10523692 INTEGRITY INFRASTRUCTURE LLC 5560 S QUEBEC ST SUITE 350A GREENWOOD VILLAGE CO 80111 FIBER CONSTRUCTION CONTRACTOR 9284418 FOOTHILLS ENERGY SERVICES INC PO BOX 603 FRANKTOWN CO 80116 DISTRIBUTION PLANT CONSTRUCTION 7514373 CONEXON LLC 2001 GRAND BLVD STE 700 KANSAS CITY MO 64108 FIBER INSTALLATION COORDINATOR 3951163 MDR CONSTRUCTION INC 621 E BAYLIS CHAPEL RD COLUMBIA MS 39429 FIBER CONSTRUCTION CONTRACTOR 2209723 19 X SALES OF ELECTRICITY 221000 134499525 134499525 PATRONAGE DIVDENDS 221000 6545491 6545491 SERVICE FEES 221000 795556 795556 SALES FOR RESALE 221000 55974 55974 141896546 199295 199295 253534 4000 249534 249534 249534 12410 12957 -547 -547 FIBER LEASE REVENUE 517000 2306933 2306933 POLE ATTACHMENT INCOME 221000 78172 78172 MISCELLANEOUS NON-OPERATING REVEN 221000 2003 2003 2387108 144731936 142145533 2306933 279470 X 44268 10972302 2089657 10384071 1355756 1787472 836660 8085908 12213311 PURCHASED POWER 83453265 DISTRIBUTION EXPENSE 7966868 CONSUMER EXPENSE 2271779 ADMIN & GENERAL EXPENSE 2146470 1124149 144731936 5194975 3482613 2013000 7078898 7083392 23170557 23498963 1319476 1035632 509592960 118489744 334231381 391103216 73443925 78529075 8892682 9301565 455344894 514034456 18845074 22237366 4000000 272622767 313142711 13136778 12039879 304604619 351419956 X 0 0 5579569 8609522 145160706 154004978 150740275 162614500 455344894 514034456 X 0 11874225 X X 0 0 0 1798962 1798962 20576517 6740667 13835850 394198289 111749077 282449212 93019192 93019192 391103216 INVESTMENTS IN ASSOCIATED ORGANIZATIONS 602768 C CAPITAL TERM CERTIFICATES 1098622 C PATRONAGE CAPITAL - CRC 32410 C PATRONAGE CAPITAL - TSG&T 67168140 C PATRONAGE CAPITAL - NRUCFC 1457891 C PATRONAGE CAPITAL - WUESC 7759149 C PATRONAGE CAPITAL - NISC 342146 C PATRONAGE CAPITAL - COBANK 14539 C PATRONAGE CAPITAL - OTHER 2352 C OTHER PROGRAM RELATED INVESTMENTS 51058 C 78529075 ACCRUED INTEREST 938814 ACCRUED OPERATING TAXES 2730348 ACCUMULATED PROVISION FOR PENSION & BENEFITS 724820 ADVANCES FOR CONSTRUCTION 3683986 CONSUMER DEPOSITS 2535114 ENERGY PREPAYMENTS 1150747 AMORTIZATION OF INDET REFUNDS 276050 12039879 PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5 PERCENT 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. 0 NAVAJO TRIBAL UTILITY AUTHORITY PO BOX 170 FORT DEFIANCE AZ 86504 860204662 170 0 28499 CASH AMOUNT EMPLOYEE LABOR, OVERHEAD, AND MEALS. 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 0 0 RUTH MARKS CEO 321558 0 150 0 3122 0 152162 0 33185 0 510177 0 0 0 DAVID WALDNER VP ENGINEERING 215638 0 150 0 10531 0 130428 0 37834 0 394581 0 0 0 TERRYL JENSEN VP OPERATIONS (JAN-AUG) 155151 0 0 0 78040 0 86805 0 28545 0 348541 0 0 0 SARAH PINKERTON VP MEMBER ENGAGEMENT 207714 0 150 0 1967 0 91843 0 34645 0 336319 0 0 0 LESLIE ULFERS SYSTEM ENGINEER I 166674 0 150 0 8836 0 93753 0 34940 0 304353 0 0 0 DAVID WILLIAMS OPERATIONS SUPERINTENDENT 169139 0 150 0 4870 0 73083 0 34827 0 282069 0 0 0 NATHANIAL OURSLER INFORMATION SERVICES MANAG 213807 0 150 0 457 0 26378 0 28552 0 269344 0 0 0 DENNIS SIMMONS VP TECHNICAL SERVICES 211298 0 150 0 1893 0 32498 0 15764 0 261603 0 0 0 KRISTI HOBBS HR MANAGER 175715 0 150 0 888 0 34317 0 36683 0 247753 0 0 0 MICHAEL ANTHOS VP FINANCE 205157 0 150 0 448 0 7500 0 33173 0 246428 0 0 0 TODD SHAFFER VP OPERATIONS (SEPT-DEC) 161591 0 150 0 778 0 13371 0 28487 0 204377 0 0 0 PART I, LINE 4A DURING THE YEAR, TERRYL JENSEN RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $54,048. 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. RUTH MARKS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $145,612 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,550 TOTAL REPORTED IN COLUMN C $152,162 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (145,612) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 49,800 EXPENSE TO THE COOPERATIVE $ 56,350 DAVID WALDNER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $125,895 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,533 TOTAL REPORTED IN COLUMN C $130,428 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (125,895) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 54,196 EXPENSE TO THE COOPERATIVE $ 58,729 TERRYL JENSEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 83,533 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,272 TOTAL REPORTED IN COLUMN C $ 86,805 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (83,533) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,006 EXPENSE TO THE COOPERATIVE $ 29,278 SARAH PINKERTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 87,531 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,312 TOTAL REPORTED IN COLUMN C $ 91,843 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (87,531) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 51,553 EXPENSE TO THE COOPERATIVE $ 55,865 LESLIE ULFERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 90,252 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,501 TOTAL REPORTED IN COLUMN C $ 93,753 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (90,252) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 41,857 EXPENSE TO THE COOPERATIVE $ 45,358 DAVID WILLIAMS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 70,011 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,072 TOTAL REPORTED IN COLUMN C $ 73,083 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (70,011) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,337 EXPENSE TO THE COOPERATIVE $ 39,409 NATHANIAL OUSLER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,066 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,312 TOTAL REPORTED IN COLUMN C $ 26,378 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (22,066) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,675 EXPENSE TO THE COOPERATIVE $ 38,987 DENNIS SIMMONS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 28,186 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,312 TOTAL REPORTED IN COLUMN C $ 32,498 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (28,186) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 34,675 EXPENSE TO THE COOPERATIVE $ 38,987 KRISTI HOBBS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,601 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,716 TOTAL REPORTED IN COLUMN C $ 34,317 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,601) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,880 EXPENSE TO THE COOPERATIVE $ 33,596 MICHAEL ANTHOS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 6,439 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,061 TOTAL REPORTED IN COLUMN C $ 7,500 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (6,439) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,015 EXPENSE TO THE COOPERATIVE $ 18,076 TODD SHAFFER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,061 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,310 TOTAL REPORTED IN COLUMN C $ 13,371 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (11,061) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,715 EXPENSE TO THE COOPERATIVE $ 18,025 FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAS 7 BOARD MEMBERS; ALL 7 ARE ALLOWED TO VOTE, HOWEVER THE BOARD PRESIDENT VOTES ONLY IN THE CASE OF A TIE. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE XIII: FAILURE TO CLAIM PROPERTY AMENDED THE TIME PERIOD THAT THE MEMBER OR PATRON HAS TO CLAIM PROPERTY OR FUNDS FROM SIX (6) YEARS TO THREE (3) YEARS. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: WWW.MVEA.COOP/ABOUT-US/BY-LAWS/. 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. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS REGULARLY MONITORS COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. SUCH COMPLIANCE INVOLVES A "CERTIFICATE TO DISCLOSE ANY CONFLICTS OF INTEREST", WHICH IS COMPLETED ANNUALLY BY EACH DIRECTOR, THE CEO, EACH EXECUTIVE TEAM MEMBER AND THE COOPERATIVE'S ATTORNEY. IN ADDITION, ANY NEWLY APPOINTED OR ELECTED BOARD MEMBERS OR INDIVIDUALS RECENTLY HIRED IN THE CAPACITY OF CEO, EXECUTIVE TEAM MEMBER OR THE COOPERATIVE ATTORNEY WILL COMPLETE A CERTIFICATE. THESE CETIFICATES WILL BE SUBMITTED TO THE BOARD PRESIDENT FOR REVIEW AND APPROPRIATE ACTION. THE ATTORNEY IS RESPONSIBLE FOR MAINTAINING A CURRENT FILE OF THESE CERTIFICATES. IT IS THE GOAL OF THE POLICY FOR THE DIRECTORS, CEO, EXECUTIVE TEAM AND THE COOPERATIVE'S ATTORNEY TO AVOID THE APPEARANCE OR EXISTENCE OF CONFLICTS OF INTEREST. WHEN A POTENTIAL CONFLICT OF INTEREST OR A SITUATION ARISES THAT VIOLATES, MAY VIOLATE OR COULD APPEAR TO VIOLATE THE INTENT OF THE POLICY, A FULL AND OPEN DISCLOSURE OF THE FACTS SHALL BE MADE TO THE BOARD. THE BOARD THEN MAKES THE PROPER INQUIRY, REQUESTS THE OPINION OF THE COOPERATIVE'S ATTORNEY AND MAKES A DETERMINATION IF A VIOLATION OF THE POLICY OR A CONFLICT OF INTEREST EXISTS. IF THIS DETERMINATION IS MADE, THE DIRECTOR WILL BE EXCUSED FROM THE MEETING AND NOT ALLOWED TO PARTICIPATE IN THE DISCUSSION AND DECISIONS ON SUCH MATTERS. IF A DIRECTOR WITH A CONFLICT OF INTEREST THAT IS KNOWN TO OTHER DIRECTORS DOES NOT DECLARE THE CONFLICT OF INTERET OR LEAVE THE MEETING FOLLOWING SUCH DECLARATION, THE BOARD MAY, UPON MOTION, VOTE TO DIRECT THE DIRECTOR LEAVE THE MEETING FOR DISCUSSION AND VOTE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS ANNUALLY APPROVES THE COMPENSATION FOR THE CHIEF EXECUTIVE OFFICER. THIS PROCESS INVOLVES THE USE OF A THIRD PARTY COMPENSATION SURVEY AND AN INTERNAL PERFORMANCE REVIEW. THE CHIEF EXECUTIVE OFFICER USES A COMPENSATION SURVEY AND INDEPENDENT CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT THE STATE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE MEMBERS AND PUBLIC UPON REQUEST. THE BYLAWS AND THE ANNUAL REPORT, WHICH INCLUDES A SUMMARIZED SET OF FINANCIAL STATEMENTS, CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE (WWW.MVEA.COOP). 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 TO SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS, KEY EMPLOYEES AND HIGHEST 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, KEY EMPLOYEES AND HIGHEST COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN BENEFITS FOR THE DEFINED BENEFIT PLAN, TOTAL AMOUNT CONTRIBUTED BY THE ASSOCIATION 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 FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE. THE USOA GENERALLY 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. ALL OTHER EXPENSES OF THE COOPERATIVE ARE REPORTED ON THE APPLICABLE LINE BASED ON THE FUNCTIONAL 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 $12,468,781 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (123,950) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (226,020) LESS: KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (368,785) PLUS: SALARIES & WAGES ALLOCATED TO NONOPERATING MARGINS 83,783 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 6,504,106 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 623,606 TOTAL WAGES ACCRUED AND/OR PAID $18,961,521 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 3,579,200 OFFICE SUPPLIES 261,921 OUTSIDE SERVICES 490,868 EMPLOYEE BENEFITS & TRAINING 150,875 INSURANCES AND DAMAGES 40,171 DIRECTORS 211,022 ANNUAL MEETING EXPENSE 202,171 CAPITAL CREDITS EXPENSE 63,055 DUES TO ASSOCIATED ORGANIZATIONS 174,200 MISCELLANEOUS GENERAL EXPENSE 41,258 REGULATORY COMMISSION 13,899 RENT EXPENSE 42,914 PROPERTY TAXES 33,989 MAINTENANCE OF GENERAL PLANT 1,343,119 OTHER - CHARGES FOR INTERNAL USE OF ELECTRICITY (203,629) TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 6,445,033 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (123,950) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (3,003,847) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,170,766) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,146,470 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: SALES EXPENSE $ 832,470 TRANSMISSION EXPENSE 135,776 OTHER DEDUCTIONS 821,930 TOTAL OTHER EXPENSES BEFORE RECLASSIFICATION $ 1,790,176 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (479,240) LESS: RELCASS OF BENEFITS TO PART IX, LINES 5 & 7 (186,787) TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 1,124,149 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 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 FROM THE COOPERATIVE FOR THE 2024 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 ASSIGNED OR ASSIGNABLE 10,972,302. PATRONAGE CAPITAL RETIRED - TOTAL -2,015,530. PATRONAGE CAPITAL RETIRED - DISCOUNT 138,205. OTHER COMPREHENSIVE INCOME -112,499. UNCLAIMED PATRONAGE CAPITAL RECLAIMED 2,891,747. FORM 990, PART XII, LINE 2B: AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FINANCIAL STATEMENT AUDIT YEAR-END OF JULY 31ST. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR TAX YEAR-END OF DECEMBER 31.