2025-11-17T09:58:27-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 740620793 FAYETTE ELECTRIC COOPERATIVE INC FAYE 9799683181 PO BOX 490 LA GRANGE TX 78945 JAMES KIELTY CFO 9799683181 2025-11-17 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-17 X 2024 2025-03-06 01:10:19Z DOUGLAS LAMBERT PO BOX 490 LA GRANGE TX 78945 39731341 0 X WWW.FAYETTE.COOP X 1939 TX TO PROVIDE RELIABLE, COST EFFECTIVE ELECTRIC SERVICE TO OUR MEMBER-OWNERS. 7 7 49 0 0 0 0 0 39150123 39594317 54197 99691 8388 25559 39212708 39719567 16856 17752 803052 0 3631662 4064370 0 0 0 34413342 37180217 38864912 41262339 347796 -1542772 108158589 118225661 70962747 83043967 37195842 35181694 IT IS THE MISSION OF FAYETTE ELECTRIC COOPERATIVE, INC. TO PROVIDE RELIABLE, COST-EFFECTIVE SERVICE TO OUR MEMBERS WHILE SUPPORTING THE COMMUNITIES IN WHICH WE OPERATE. 0 0 SALE OF ELECTRIC ENERGY TO MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 16,346 ACTIVE SERVICES 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 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 32 0 49 1 0 0 0 0 0 40838972 728982 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X JAMES KIELTY CFO 9799683181 357 N WASHINGTON ST LA GRANGE TX 78945 X DAVID G LEHMANN PRESIDENT 4.50 X X 20013 0 0 JOSEPH KRUPPA VICE PRESIDENT 7.80 X X 22458 0 0 BILL BRISCOE SECRETARY/TREASURER 3.50 X X 20835 0 0 DAVID A STANCIK DIRECTOR 6.50 X 2011 0 0 LEO C HENKE JR DIRECTOR 4.00 X 19475 0 0 DAVID ANDERLE DIRECTOR 6.00 X 21762 0 0 GALE LINCKE DIRECTOR 4.80 X 19915 0 0 GARY DON NIETSCHE GENERAL MANAGER (JAN-JUNE) 80.00 X 112854 0 53602 DOUGLAS W LAMBERT GENERAL MANAGER (JUNE-DEC) 50.00 X 107267 0 28045 LINDA GADDES ACCOUNTING SUPERVISOR 50.00 X 120522 0 54456 GREGORY W NOAK LINE FOREMAN 43.00 X 108556 0 20641 BRANDON L PIEPER MEMBER RELATIONS/ENGINEERING SUPV. 42.00 X 107208 0 44564 LEO W WICK MEMBER RELATIONS/ENG. SUPV. ASST. 51.00 X 121291 0 49071 LARRY J SULAK SAFERTY COORDINATOR 40.00 X 113442 0 83050 ROBERT J THOMAS LINE SUPERINTENDENT 42.00 X 119131 0 41458 1036740 0 374887 9 0 1 0 SMITH POWER LINE CONSTRUCTION LLC 264 S REYNOLDS STREET LA GRANGE TX 78945 CONSTRUCTION & ROW CONTRACTOR 5496034 LAMAR TECHINCAL SERVICES INC 2002 WINDY TERRACE CEDAR PARK TX 78613 TECHNICAL & ENGINEERING SERVICES 363707 EXO GROUP LLC 1735 HUGHES LANDING BLVD STE 3B THE WOODLANDS TX 77380 INSPECT POLES & COATING REPAIRS 342336 SCHNEIDER ENGINEERING INC 191 MENGER SPRINGS PARKWAY BOERNE TX 78006 ENGINEERING SERVICES 313787 COLUMBUS TREE & LAWN 1220 LAKE LANE LA GRANGE TX 78945 TREE TRIMMING CONTRACTOR 312663 7 X SALES OF ELECTRICITY 221000 38811949 38811949 PATRONAGE DIVIDENDS 221000 482837 482837 SERVICE FEES 221000 230729 230729 OTHER PROGRAM REVENUE 221000 68802 68802 39594317 99691 99691 318 0 318 318 318 32369 11774 20595 20595 POLE ATTACHMENT INCOME 221000 4646 4646 4646 39719567 39615230 0 104337 X 17752 603215 2314649 274769 670601 201136 3595328 3646177 PURCHASED POWER 23643683 DISTRIBUTION EXPENSE 4646927 ADMIN & GENERAL EXPENSE 1270424 CONSUMER EXPENSE 367049 10629 41262339 309167 1213448 2891788 3065941 3201327 2688319 2957613 1699914 134764667 30049627 93973343 104715040 3825822 3984939 999529 858060 108158589 118225661 6116532 4222993 169790 388448 58181136 72506083 6495289 5926443 70962747 83043967 X 247090 255855 0 0 36948752 34925839 37195842 35181694 108158589 118225661 X -1542772 -471376 X X 0 1 X 1 0 0 1 X 607369 607369 12483755 788679 11695076 120469040 29260948 91208092 1204503 1204503 104715040 CONSUMER DEPOSITS 543975 DEFERRED CREDITS - REFUNDABLE AID TO CONSTRUCTION 3407961 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 457627 DEFERRED CREDITS - SPECIAL EQUIPMENT INSTALLATION 642371 DEFERRED CREDITS - ENERGY SERVICES PROGRAM 334377 DEFERRED CREDITS - CONSUMER PREPAYMENTS 12928 LEASE LIABILITY - OPERATING LEASES 100849 POWER COST ADJUSTMENT - OVERCOLLECTED 426355 5926443 X 39719567 0 39719567 0 39719567 41262339 0 41262339 0 41262339 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. 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 THEIR TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. 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. X X 0 0 0 LARRY J SULAK SAFERTY COORDINATOR 109845 0 271 0 3326 0 51276 0 31774 0 196492 0 0 0 LINDA GADDES ACCOUNTING SUPERVISOR 114099 0 271 0 6152 0 26298 0 28158 0 174978 0 0 0 LEO W WICK MEMBER RELATIONS/ENG. SUPV. ASST. 119354 0 271 0 1666 0 20925 0 28146 0 170362 0 0 0 GARY DON NIETSCHE GENERAL MANAGER (JAN-JUNE) 108102 0 466 0 4286 0 34279 0 19323 0 166456 0 0 0 ROBERT J THOMAS LINE SUPERINTENDENT 115346 0 839 0 2946 0 36658 0 4800 0 160589 0 0 0 BRANDON L PIEPER MEMBER RELATIONS/ENGINEERING SUPV. 105857 0 271 0 1080 0 16655 0 27909 0 151772 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. LARRY J. SULAK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 51,276 TOTAL REPORTED IN COLUMN C 51,276 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (51,276) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,644 EXPENSE TO THE COOPERATIVE $ 18,644 LINDA GADDES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 26,298 TOTAL REPORTED IN COLUMN C 26,298 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (26,298) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,284 EXPENSE TO THE COOPERATIVE $ 19,284 LEO W. WICK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,925 TOTAL REPORTED IN COLUMN C 20,925 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,925) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,399 EXPENSE TO THE COOPERATIVE $ 15,399 GARY DON NIETSCHE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,279 TOTAL REPORTED IN COLUMN C 34,279 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,279) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,739 EXPENSE TO THE COOPERATIVE $ 16,739 ROBERT J. THOMAS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,658 TOTAL REPORTED IN COLUMN C 36,658 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,658) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,646 EXPENSE TO THE COOPERATIVE $ 16,646 BRANDON L. PIEPER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 16,655 TOTAL REPORTED IN COLUMN C 16,655 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (16,655) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 14,095 EXPENSE TO THE COOPERATIVE $ 14,095 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 $1,542,772, 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 12/31/24 $ 852,614 LESS: UNBILLED REVENUE 12/31/23 (994,157) (A) - NET DECREASE IN UNBILLED REVENUE $ (141,543) (B) - UNALLOCATED LOSS $(1,401,229) TOTAL 2024 NET LOSS PER FINANCIAL STATEMENTS (A + B) $(1,542,772) 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. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT AND PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. BOARD REVIEWS ANNUAL FILINGS AT MONTHLY MEETINGS. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD MUST ANNUALLY DISCLOSE, SIGN AND ATTEST TO ANY CONFLICT OF INTERESTS BETWEEN SUCH BOARD MEMBER AND THE COOPERATIVE. THE COOPERATIVE'S BYLAWS ADDRESS HOW A BOARD MEMBER WOULD BE IN CONFLICT IF SUCH BOARD MEMBER HOLDS A PUBLIC OFFICE FOR WHICH A SALARY IS PAID OR IS EMPLOYED BY OR FINANCIALLY INTERESTED IN A COMPETING BUSINESS OR ENTERPRISE FROM WHICH THE COOPERATIVE BUYS FROM OR SELLS TO. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES OF SUCH POSITIONS FROM TEXAS AND THE NATION. THE BOARD OF DIRECTORS AND GENERAL MANAGER USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER. THE SURVEY SHOWS COMPARATIVE SALARIES OF SUCH POSITIONS FROM TEXAS AND THE NATION. 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. THE COOPERATIVE PROVIDES ANNUALLY A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE IN THE NOTICE OF ANNUAL MEETING MAILED TO ALL MEMBERS AND AT THE ANNUAL MEETING. FINALLY, THE BYLAWS ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE. FORM 990, PART VII, COLUMN F: 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 THE PLAN IS AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER AND HIGHLY COMPENSATED EMPLOYEE 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. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. FORM 990, PART VIII, LINE 2B: 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 ELECTRIC SERVICE PROVIDED BY THE ORGANIZATION 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 UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (CFC). 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 $ 2,917,864 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (126,469) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (136,103) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 4,707 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 762,055 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 214,611 TOTAL WAGES ACCRUED AND/OR PAID $ 3,636,665 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 882,435 OFFICE SUPPLIES 480,772 OUTSIDE SERVICES EMPLOYED 248,097 WORKER'S COMP, GENERAL LIAB. & OTHER INSURANCE 29,501 REGULATORY COMMISSION 65,661 DIRECTOR FEES 187,187 CAPITAL CREDITS 105,998 MISCELLANEOUS GENERAL 359,149 DUES TO ASSOCIATED ORGANIZATIONS 68,668 MAINTENANCE OF GENERAL PLANT 206,917 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,634,385 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 1 (565) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (126,469) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (834,049) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (402,878) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,270,424 FORM 990, PART IX, LINE 1: 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. EACH GRANT, SPONSORSHIP, AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL RETIRED -480,141. NET CHANGE IN MEMBERSHIP EQUITIES 8,765. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE ANNUAL FINANCIAL STATEMENT AUDIT AND TO HELP SELECT THE INDEPENDENT AUDITOR WHO WILL PERFORM THE AUDIT. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR.