2025-11-17T20:22:36-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 474815587 CKENERGY ELECTRIC COOPERATIVE INC CKEN 4056562322 PO BOX 70 BINGER OK 73009 CLINT PACK CEO 4056562322 2025-11-17 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-17 X 2024 2025-03-06 01:10:19Z CLINT PACK PO BOX 70 BINGER OK 73009 88878400 0 X WWW.CKENERGY.COOP X 2016 OK TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 12 12 108 0 0 0 0 0 86206547 87936858 960286 583512 39509 102808 87206342 88623178 42985 100420 6534347 5878675 12090409 12869778 0 0 0 68538601 69774305 87206342 88623178 0 0 210357347 210865889 131836195 127298744 78521152 83567145 POWERING TODAY FOR A SAFE AND BRIGHTER TOMORROW. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 27,398 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 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 1 1 0 0 1 33 0 108 1 0 0 0 0 0 87516711 1103425 0 0 0 X 12 12 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 0 1 1 1 0 OK X TRAVIS SMITH CFO 4056562322 14039 STATE HIGHWAY 152 BINGER OK 73009 X GARY BREWSTER TRUSTEE 2.80 X 13623 0 0 WALTER HRBACEK TRUSTEE 4.50 X 18594 0 0 SCOTT KLINGMAN TRUSTEE 6.60 X 22550 0 0 GREG LITTLE VICE PRESIDENT 5.50 X X 16070 0 0 DON PAYNE TRUSTEE 6.50 X 39310 0 0 FRED REUTER SECRETARY 4.60 X X 15124 0 0 JACK SAWATZKY PRESIDENT 5.10 X X 21778 0 0 JOHN SCHAUFELE TRUSTEE 8.50 X 25648 0 0 TONY SETZER TRUSTEE 4.90 X 17540 0 0 MARK SLEMP TRUSTEE 2.50 X 29339 0 0 STEVE SWEENEY TRUSTEE 7.80 X 22102 0 0 ROBERT TRAVIS TRUSTEE 6.40 X 22090 0 0 CLINT PACK CEO 60.00 X 338598 0 193312 DEBRA TOHO CFO 45.00 X 174643 0 146375 WISPER HOWELL DIR OF CONSUMER ACCT/BOARD SECRETARY 45.00 X 171487 0 73595 WILLIAM B LEE VP STRATEGIC PLANNING 45.00 X 182838 0 100117 GAYLA COATS HR/BENEFIT ADMINISTRATION 40.00 X 157391 0 111979 LANCE GOUCHER CONSTRUCTION FOREMAN 45.00 X 161398 0 61786 GARY WILLIAMS POWER MANAGER 45.00 X 150476 0 50103 STEVEN SCOTT DIRECTOR OF OPERATION 50.00 X 149546 0 37524 THOMAS BAKER DISTRIBUTION LINEMAN 50.00 X 147866 0 48602 BRIAN COKER MARKETING 40.00 X 141605 0 46259 2039616 0 869652 41 0 1 0 R&R POWERLINE CONSTRUCTION INC PO BOX 246 SAYRE OK 73662 LINE CONSTRUCTION 1618874 PALEOWEST LLC 319 E PALM LANE PHOENIX AZ 85004 ARCHEOLOGY STUDY 1080592 HUDSON TRENCHING SERVICES INC PO BOX 250 NEWCASTLE OK 73065 BORING 712199 RIGGS TREE SERVICE OPERATING COMPANY LLC PO BOX 453225 GROVE OK 74345 TREE REMOVAL 667817 MUSICK CONCRETE WORKS LLC 1536 NEPTUNE DR CLINTON OK 73601 CONCRETE WORK 241058 9 X SALES OF ELECTRICITY 221000 84898483 84898483 PATRONAGE DIVIDENDS 221000 2932413 2932413 SERVICE FEES 221000 95200 95200 OTHER PROGRAM REVENUE 221000 10762 10762 87936858 481460 481460 28070 28070 285417 183365 102052 102052 102052 146595 71857 74738 74738 88623178 88113648 0 509530 X 100420 5878675 1914103 6812328 1243638 2305233 594476 3626291 6730738 PURCHASED POWER 49690197 DISTRIBUTION EXPENSE 4185951 OPERATING TAXES 1656715 ADMIN & GENERAL EXPENSE 1600865 2283548 88623178 3800418 3196438 9901671 1842468 4773664 5436465 159791 135365 2037569 2341582 400793 420337 228596723 70444858 153137028 158151865 33058426 35790632 3087987 3550737 210357347 210865889 7693190 8927029 114439402 108112958 9703603 10258757 131836195 127298744 X 79305 80300 0 0 78441847 83486845 78521152 83567145 210357347 210865889 X 0 5045993 X X 0 1 X 1 1 1 526016 526016 4408986 2313365 2095621 219240123 68131493 151108630 4421598 4421598 158151865 PATRONAGE CAPITAL - WFEC 32232514 C PATRONAGE CAPITAL - CFC 396882 C PATRONAGE CAPITAL - COBANK 894645 C PATRONAGE CAPITAL - AECI 545166 C PATRONAGE CAPITAL - SEDC 187382 C PATRONAGE CAPITAL - NISC 66396 C PATRONAGE CAPITAL - NRTC 31125 C PATRONAGE CAPITAL - FEDERATED 67974 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 6688 C CFC CAPITAL TERM CERTIFICATES 1361860 C 35790632 CONSUMER DEPOSITS 3670560 ACCUMULATED PROVISION FOR PENSIONS AND BENEFITS 5738893 DEFERRED CREDITS 846368 OTHER LIABILITIES 2936 10258757 X 88619524 0 88619524 3654 3654 88623178 82740849 0 82740849 5882329 5882329 88623178 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 POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSED FROM NON-OPERATING MARGINS 3,654. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSED FROM NON-OPERATING MARGINS 3,654. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,878,675. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF 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 CKENERGY ELECTRIC FOUNDATION INC PO BOX 70 BINGER OK 73009 271018673 501(C)(3) 100000 0 $80,000 SUPPORT OPERATIONS$20,000 FIRE DEPARTMENT FOR JAWS OF LIFE 1 X 0 0 0 CLINT PACK CEO 330209 0 1000 0 7389 0 169492 0 23820 0 531910 0 0 0 DEBRA TOHO CFO 169990 0 1000 0 3653 0 122555 0 23820 0 321018 0 0 0 WILLIAM B LEE VP STRATEGIC PLANNING 177985 0 1000 0 3853 0 76297 0 23820 0 282955 0 0 0 GAYLA COATS HR/BENEFIT ADMINISTRATION 154230 0 1000 0 2161 0 88159 0 23820 0 269370 0 0 0 WISPER HOWELL DIR OF CONSUMER ACCT/BOARD SECRETARY 169989 0 1000 0 498 0 42068 0 31527 0 245082 0 0 0 LANCE GOUCHER CONSTRUCTION FOREMAN 160097 0 1000 0 301 0 30259 0 31527 0 223184 0 0 0 GARY WILLIAMS POWER MANAGER 146429 0 1000 0 3047 0 39434 0 10669 0 200579 0 0 0 THOMAS BAKER DISTRIBUTION LINEMAN 146567 0 1000 0 299 0 17075 0 31527 0 196468 0 0 0 BRIAN COKER MARKETING 139935 0 1000 0 670 0 14732 0 31527 0 187864 0 0 0 STEVEN SCOTT DIRECTOR OF OPERATION 148177 0 1000 0 369 0 18687 0 18837 0 187070 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. CLINT PACK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 169,492 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (169,492) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 89,960 EXPENSE TO THE COOPERATIVE $ 89,960 DEBRA TOHO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 122,555 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (122,555) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,437 EXPENSE TO THE COOPERATIVE $ 46,437 WILLIAM B. LEE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 76,297 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (76,297) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 48,758 EXPENSE TO THE COOPERATIVE $ 48,758 GAYLA COATS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 88,159 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (88,159) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,119 EXPENSE TO THE COOPERATIVE $ 42,119 WISPER HOWELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 42,068 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (42,068) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 46,437 EXPENSE TO THE COOPERATIVE $ 46,437 LANCE GOUCHER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 30,259 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,259) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,991 EXPENSE TO THE COOPERATIVE $ 26,991 GARY WILLIAMS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 39,434 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,434) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,114 EXPENSE TO THE COOPERATIVE $ 40,114 THOMAS BAKER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 17,075 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,075) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,974 EXPENSE TO THE COOPERATIVE $ 26,974 BRIAN COKER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 14,732 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,732) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,203 EXPENSE TO THE COOPERATIVE $ 38,203 STEVEN SCOTT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN - COLUMN C $ 18,687 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,687) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,114 EXPENSE TO THE COOPERATIVE $ 40,114 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 BY DISTRICT. 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 EACH TRUSTEE AND EMPLOYEE MUST DISCLOSE ANY SITUATION, WHICH IN HIS OR HER OPINION VIOLATES, MAY VIOLATE, OR COULD APPEAR TO VIOLATE THE INTENT OF THIS POLICY. A REVIEW OF THE POLICY WILL TAKE PLACE AS NEEDED, AND AMENDMENTS TO THE POLICY WILL BE MADE AS NECESSARY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES PERIODICALLY USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN OKLAHOMA AND THE NATION. FOR OFFICERS AND HIGHLY COMPENSATED EMPLOYEES THE BOARD APPROVES ANNUAL COST OF LIVING ADJUSTMENTS AND BUDGET FOR TOTAL LABOR. THE CEO ULTIMATELY APPROVES THE SALARIES BASED ON THESE ACTIONS OF THE BOARD. 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. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH TRUSTEE WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG TRUSTEES, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. WILLIAM LEE RETIRED AND A COMPLETED QUESTIONNAIRE WAS NOT RECEIVED FROM HIM; THEREFORE, HIS PRIOR YEAR QUESTIONNAIRE HAS BEEN RELIED ON FOR THE PREPARATION OF THE RETURN. THERE ARE NO KNOWN CHANGES FROM 2023 TO 2024. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, 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 TO THE PLAN ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING EMPLOYEE OFFICERS, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF THE PLAN. 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 EMPLOYEE OFFICERS, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. IN ADDITION TO THE ABOVE 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 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 RURAL UTILTIES SERVICES (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 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 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 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 THE AMOUNTS REPORTED ON LINES 5-7 TO TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 8,726,431 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (263,768) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED ON LINE 5 (513,399) LESS: KEY EMPLOYEE BENEFITS INCLUDED ON LINE 5 (111,979) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 1,574 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,478,601 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 431,474 TOTAL WAGES ACCRUED AND/OR PAID $ 9,748,934 FORM 990, PART IX, LINE 24D: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,479,196 OFFICE SUPPLIES 223,242 OUTSIDE SERVICES (55,414) INSURANCES 827,494 EMPLOYEE BENEFITS 169,862 TRUSTEES 415,653 MISCELLANEOUS GENERAL 148,355 MAINTENANCE OF GENERAL PLANT 1,124,713 DUPLICATE CHARGES (CREDIT) (48,118) REGULATORY COMMISSION 6,203 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,291,186 LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (263,768) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,508,612) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (917,941) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,600,865 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 698,684 CUSTOMER SERVICE & INFORMATION 630,331 ELECTRICIAN SERVICE 3,654 SALES 950,879 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 2,283,548 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,878,675. PATRONAGE CAPITAL RETIRED -2,054,121. UNCLAIMED PATRONAGE RETIREMENTS RETAINED UNDER STATE LAW 1,224,556. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSION AND BENEFITS -4,112. NET CHANGE IN MEMBERSHIPS 995. FORM 990, PART XII, LINE 2C: THE BOARD OF TRUSTEES 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. CKENERGY ELECTRIC FOUNDATION INC PO BOX 70 BINGER OK 73009 271018673 DISBURSE FUNDS FOR CHARITABLE PURPOSES OK 501(C)(3) LINE 7 CKENERGY ELECTRIC COOPERATIVE INC 1 CADDO ELEC COOP ENTERPRISES INC PO BOX 70 BINGER OK 73009 731563867 INACTIVE OK CKENERGY ELECTRIC COOPERATIVE INC C 1.00000 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 CKENERGY ELECTRIC FOUNDATION INC B 100000 BOARD APPROVAL OF FDN. REQUEST CKENERGY ELECTRIC FOUNDATION INC N N/A - LESS THAN $50,000 CKENERGY ELECTRIC FOUNDATION INC O N/A - LESS THAN $50,000