2025-11-17T10:00:11-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 720362325 JEFFERSON DAVIS ELECTRIC COOPERATIVE INC JEFF 3378244330 906 N LAKE ARTHUR AVE JENNINGS LA 70546 TARA GUINN CFO 3378244330 2025-11-17 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-16 X 2024 2025-03-06 01:10:19Z MICHAEL HEINEN 906 N LAKE ARTHUR AVE JENNINGS LA 70546 31243936 0 X WWW.JDEC.ORG X 1941 LA TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 8 8 58 0 0 0 0 0 32417362 31080016 -328022 46352 81262 106696 32170602 31233064 24904 1500 0 0 4441121 5530374 0 0 0 27812303 26448121 32278328 31979995 -107726 -746931 269547010 244366013 247573441 223200967 21973569 21165046 X THE AIM OF JEFFERSON DAVIS ELECTRIC COOPERATIVE, INC., IS TO MAKE ELECTRIC ENERGY AVAILABLE TO ITS MEMBERS AT THE LOWEST COST, CONSISTENT WITH SOUND ECONOMY AND GOOD MANAGEMENT. 1 0 SALES OF ELECTRIC ENERGY TO MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 10,746 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 0 1 1 0 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 55 0 58 1 0 0 0 0 0 0 0 31696966 335051 0 0 0 X 8 8 0 0 0 0 1 1 0 1 1 0 0 0 0 0 1 1 1 0 X TARA GUINN CFO 3378244330 906 N LAKE ARTHUR AVE JENNINGS LA 70546 X JOHN BERKEN SECRETARY/TREASURER 2.00 X X 32641 0 0 JOSEPH TUPPER JR PRESIDENT 3.10 X X 33541 0 0 REGGIE MURPHY DIRECTOR 2.30 X 32541 0 0 KEVIN SONNIER DIRECTOR 1.70 X 32441 0 0 HERMAN PRECHT III VICE PRESIDENT 1.30 X X 31274 0 0 JAMES DOXEY DIRECTOR 1.70 X 3100 0 0 MARTIN ZAUNBRECHER DIRECTOR 2.30 X 4000 0 0 BYRON HARDEE DIRECTOR 3.60 X 18362 0 0 WILSON DEAN LANDRY DIRECTOR 3.80 X 34741 0 0 MICHAEL HEINEN CHIEF EXECUTIVE OFFICER 50.00 X 212576 0 192616 TARA GUINN CHIEF FINANCIAL OFFICER 40.00 X 77879 0 34324 ERIC GAUTREAUX CHIEF OPERATING OFFICER 44.00 X 114719 0 45820 JUSTIN NORTHCUTT WORKING FOREMAN 44.00 X 153841 0 37135 JUSTIN RINGUET WORKING FOREMAN 44.00 X 139495 0 39567 BRANDYN CARTER JOURNEY LINEMAN 44.00 X 130353 0 30458 JORDAN RICHARD JOURNEY LINEMAN 44.00 X 136161 0 32583 NICHOLAS BEARD JOURNEY LINEMAN 44.00 X 131456 0 22874 CLAUDE BREAUX FORMER DIRECTOR 0.00 X 13346 0 0 KIRK WELDON FORMER DIRECTOR 0.00 X 19401 0 0 1351868 0 435377 14 1 1 0 QUANTA INFRASTRUCTION 7101 COLLEGE BLVD STE 1500 OVERLAND PARK KS 66210 LINE CONSTRUCTION 115348781 EP BREAUX UTILITY SERVICES 1142 CONVENTION ST BATON ROUGE LA 70802 SUBSTATION CONSTRUCTION 7464833 ROYAL ENGINEERING 1501 RELIGIOUS ST STE C NEW ORLEANS LA 70130 ENGINEERING CONSULTING 5666534 CONTRACT LAND STAFF PO BOX 4458 HOUSTON TX 77210 LAND RIGHTS 2807450 BOOTH & ASSOCIATES LLC 2300 REWOODS RD STE 300 RALEIGH NC 27607 ENGINEERING 2052233 10 X SALES OF ELECTRICITY 221000 30355439 30355439 PATRONAGE DIVIDENDS 221000 724577 724577 31080016 32524 32524 20400 9015 11385 11385 11385 15000 1172 13828 13828 13828 685 -685 -685 POLE ATTACHMENT INCOME 221000 92213 92213 MISCELLANEOUS NON-OPERATING INCOM 221000 3783 3783 95996 31233064 31096942 0 136122 X 1500 900575 3004260 314078 1081487 229974 2783680 1832421 PURCHASED POWER 17267546 DISTRIBUTION EXPENSE 1808139 ADMIN & GENERAL EXPENSE 1802445 CONSUMER EXPENSE 498967 454923 31979995 21445258 11033341 54621 57108 104598808 81505094 2815332 2538013 840663 565949 103698050 17776067 83420841 85921983 3410418 3794869 52961069 58949656 269547010 244366013 36331677 32683625 211058508 188524066 183256 1993276 247573441 223200967 X 39405 39180 0 0 21934164 21125866 21973569 21165046 269547010 244366013 X -746931 -61592 X X 0 1 X 0 1 1 3861744 3861744 1136028 984984 151044 68849818 16323760 52526058 29850460 467323 29383137 85921983 REGULATORY ASSET 33073405 INTEREST REGULATORY ASSET 13215361 UNBILLED REVENUE 2717056 INTEREST & DIVIDEND RECEIVABLE 7394 ENTERGY INTERCONNECT FEE 9907586 TRANSPORTATION OVERHEAD 26802 OTHER ASSET 2052 58949656 OVERBILLED WHOLESALE POWER COST ADJUSTMENT 548813 CONSUMER DEPOSITS 144814 POST-RETIREMENT BENEFIT OBLIGATION - ACTUARIAL GAIN 1206910 OTHER DEFERRED CREDITS 92739 1993276 31233064 0 31233064 0 31233064 31979995 0 31979995 0 31979995 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. X 0 0 0 MICHAEL HEINEN CHIEF EXECUTIVE OFFICER 207407 0 813 0 4356 0 162956 0 29660 0 405192 0 0 0 JUSTIN NORTHCUTT WORKING FOREMAN 152746 0 866 0 229 0 10139 0 26996 0 190976 0 0 0 JUSTIN RINGUET WORKING FOREMAN 138391 0 866 0 238 0 12562 0 27005 0 179062 0 0 0 JORDAN RICHARD JOURNEY LINEMAN 135055 0 866 0 240 0 10356 0 22227 0 168744 0 0 0 BRANDYN CARTER JOURNEY LINEMAN 129298 0 866 0 189 0 8283 0 22175 0 160811 0 0 0 ERIC GAUTREAUX CHIEF OPERATING OFFICER 113511 0 866 0 342 0 17759 0 28061 0 160539 0 0 0 NICHOLAS BEARD JOURNEY LINEMAN 130449 0 866 0 141 0 7567 0 15307 0 154330 0 0 0 KIRK WELDON FORMER DIRECTOR 19401 0 0 0 0 0 0 0 0 0 19401 0 0 0 CLAUDE BREAUX FORMER DIRECTOR 13346 0 0 0 0 0 0 0 0 0 13346 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. MICHAEL HEINEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 154,956 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,000 TOTAL REPORTED IN COLUMN C $ 162,956 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (154,956) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,840 EXPENSE TO THE COOPERATIVE $ 45,840 JUSTIN NORTHCUTT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 6,110 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,029 TOTAL REPORTED IN COLUMN C $ 10,139 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (6,110) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,709 EXPENSE TO THE COOPERATIVE $ 21,738 JUSTIN RINGUET: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,370 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,192 TOTAL REPORTED IN COLUMN C $ 12,562 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,370) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,709 EXPENSE TO THE COOPERATIVE $ 21,901 JORDAN RICHARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 6,374 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,982 TOTAL REPORTED IN COLUMN C $ 10,356 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (6,374) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,442 EXPENSE TO THE COOPERATIVE $ 19,424 BRANDYN CARTER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 4,301 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,982 TOTAL REPORTED IN COLUMN C $ 8,283 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (4,301) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,266 EXPENSE TO THE COOPERATIVE $ 17,248 ERIC GAUTREAUX: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,227 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,532 TOTAL REPORTED IN COLUMN C $ 17,759 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,227) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,810 EXPENSE TO THE COOPERATIVE $ 25,342 NICHOLAS BEARD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 3,578 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,989 TOTAL REPORTED IN COLUMN C $ 7,567 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (3,578) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,442 EXPENSE TO THE COOPERATIVE $ 19,431 FORM 990, PART III, LINE 2 DURING 2024, THE COOPERATIVE BEGAN THE RENTAL OF NON-UTILITY PROPERTY. 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 B, LINE 11B MANAGEMENT REVIEWED THE FORM 990 PRIOR TO E-FILING. THE FORM 990 WAS DISCUSSED AND REVIEWED BY THE BOARD AT THE FIRST BOARD MEETING OCCURRING SUBSEQUENT TO THE DATE THE FORM 990 WAS FILED. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS DETERMINE THE COMPENSATION FOR THE GENERAL MANAGER ON A YEARLY BASIS. THE BOARD OF DIRECTORS AND THE GENERAL MANAGER DETERMINE THE COMPENSATION FOR THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY, ON A YEARLY BASIS. 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 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 AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES 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 BY THE COOPERATIVE 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: ALTHOUGH THE COOPERATIVE IS NO LONGER AN RUS BORROWER, THE ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RURAL UTILITIES SERVICE (RUS) UNIFORM SYSTEM OF ACCOUNTS (USOA). THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARETLY STATES 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 $ 3,904,834 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (222,641) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (272,760) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 929,332 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 178,172 TOTAL WAGES ACCRUED AND/OR PAID $ 4,516,937 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: SELLING EXPENSES $ 8,540 TAXES 339,333 TRANSMISSION 828 OTHER DEDUCTIONS 106,222 TOTAL OTHER EXPENSES PER PART IX $ 454,923 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 990REPORTING. PATRONAGE DIVIDENDS ARE NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, HOWEVER. 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 IX, LINE 24B: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,446,048 OFFICE SUPPLIES 575,504 OUTSIDE SERVICES 452,302 INSURANCES 97,516 MISCELLANEOUS GENERAL 520,348 MAINTENANCE OF GENERAL PLANT 99,510 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,191,228 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (222,641) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (749,074) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (417,068) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,802,445 FORM 990, PART XI, LINE 9: NET CHANGE IN MEMBERSHIPS -225. ESTATE RETIREMENTS -60,959. OTHER ADJUSTMENTS -408. 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.