2026-08-19T14:15:36-05:00 2025-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2025-01-01 480526038 LANE-SCOTT ELECTRIC COOPERATIVE INC LANE 6203975327 PO BOX 758 DIGHTON KS 67839 RICHARD MCLEON GENERAL MANAGER/CEO 6203975327 2026-08-17 1 PATRICK COOPER P00856177 8067473806 2026-08-17 X 2025 2025-03-06 01:10:19Z RICHARD MCLEON PO BOX 758 DIGHTON KS 67839 21247428 0 X WWW.LANESCOTT.COOP X 1941 KS TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 9 9 29 0 511703 0 0 0 19099128 20435978 387543 292543 605411 518907 20092082 21247428 27006 25253 1002633 2234965 2636571 2623831 0 0 0 15824719 16048679 19490929 20932728 601153 314700 64442096 64906026 37437756 35942193 27004340 28963833 X AT THE LANE-SCOTT ELECTRIC COOPERATIVE, OUR MISSION IS TO ENRICH THE LIVES OF OUR MEMBERS, COMMUNITIES, AND EMPLOYEES WITH ELECTRICAL SERVICE GUIDED BY A SOLID FOUNDATION IN SAFETY, ETHICS, MORALS, AND DEDICATION. WE STRIVE TO FOCUS ON THE FUTURE WHILE PROVIDING SERVICE AT A REASONABLE COST, CONTINUALLY SEEKING AND PURSUING SUSTAINABLE OPPORTUNITIES. WE ARE GUIDED BY OUR FOUNDING COOPERATIVE PRINCIPLES, SERVING THE BEST INTERESTS OF OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 5,696 ACTIVE SERVICES AT YEAR. 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 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 97 0 29 1 1 1 0 0 0 0 19165621 1732243 0 0 0 X 9 9 1 0 0 0 1 1 1 1 0 0 0 1 1 1 0 1 0 1 1 0 X JOCELYN SHULL CFO 6203975327 PO BOX 758 DIGHTON KS 67839 X RICHARD L JENNISON PRESIDENT 1.20 X X 4450 0 0 RANDALL G EVANS SECRETARY 1.70 X X 7621 0 0 CHAD GRIFFITH TRUSTEE (JAN-JUN) 1.10 X 1750 0 0 JAMES JORDAN TRUSTEE 3.50 X 7100 0 0 ERIC DOLL TREASURER (JAN-JUN) 0.00 X X 1400 0 0 CRAIG RAMSEY VICE PRESIDENT 5.30 X X 11520 0 0 RAD ROEHL SECRETARY (JAN-JUN) 2.00 X X 2100 0 0 SUSAN NUSS TREASURER 1.70 X X 3400 0 0 GEROME COPELAND TRUSTEE 0.70 X 4100 0 0 RANDY J EVANS TRUSTEE (JUL-DEC) 1.80 X 6177 0 0 GARY SHAPLAND TRUSTEE (JUL-DEC) 0.60 X 2350 0 0 SHELLY TURNER TRUSTEE (JUL-DEC) 0.20 X 2000 0 0 RICHARD MCLEON GM/CEO 45.60 X 262705 0 25747 DAL HAWKINSON COO 45.00 X 143238 0 116806 CARRIE BORELL CIO 40.00 X 94019 0 67251 JOCELYN SHULL CFO 40.00 X 122016 0 10170 KATHERINE E LEWIS CFO (JAN-APR) 57.20 X 52984 0 5684 KASEY JENKINSON LINE SUPERINTINDENT 44.50 X 138314 0 106679 BENJAMIN MANN CREW CHIEF 44.60 X 126575 0 67120 CHRIS TERHUNE JOURNEYMAN LINEMAN 46.00 X 127876 0 46027 MYRON SEIB JOURNEYMAN LINEMAN 45.80 X 126216 0 64700 BLAKE MCVICKER JOURNEYMAN LINEMAN 48.10 X 124520 0 40596 1372431 0 550780 8 0 1 0 NISC ONE INNOVATION CIRCLE LAKE SAINT LOUIS MO 63367 ACCOUNTING SOFTWARE 188612 1 X SALES OF ELECTRICITY 221000 19600727 19600727 PATRONAGE DIVIDENDS 221000 795479 795479 SERVICE FEES 221000 39772 39772 20435978 247151 247151 2331 0 2331 2331 2331 45392 0 45392 45392 45392 ELECTRICIAN/HVAC SERVICE 221000 509372 509372 POLE ATTACHMENT INCOME 221000 4536 4536 MISC NON-OPERATING INCOME 221000 2668 2668 516576 21247428 20484038 511703 251687 X 16253 9000 2234965 954588 1062966 340300 149233 116744 1123156 2068859 PURCHASED POWER 10091873 DISTRIBUTION EXP. 1077120 ADMIN & GENERAL EXP. 1003539 ELECTRICIAN/HVAC EXP. 490243 193889 20932728 341186 157507 5822069 5965880 1394999 1642421 725822 822443 299578 306163 68599590 26754245 41977189 41845345 13804587 14119267 76666 47000 64442096 64906026 1125177 1343217 35405108 33997817 907471 601159 37437756 35942193 X 0 0 0 0 27004340 28963833 27004340 28963833 64442096 64906026 X 314700 1644793 X X 0 1 X 0 0 112549 112549 2782714 1496112 1286602 64610114 25258133 39351981 1094213 1094213 41845345 PATRONAGE CAPITAL-SUNFLOWER 12458665 C PATRONAGE CAPITAL-KEC 33388 C PATRONAGE CAPITAL-NISC 74873 C PATRONAGE CAPITAL-S&T TEL 103289 C PATRONAGE CAPITAL-GB TEL 35834 C PATRONAGE CAPITAL-FEDERATED 195714 C PATRONAGE CAPITAL-MKEC 300031 C PATRONAGE CAPITAL-CFC 245952 C CAPITAL TERM CERTIFICATES-CFC 221958 C MEMBERSHIPS IN ASSOC ORGS 4200 C OTHER INVESTMENTS 16822 C CAPITAL CONTRIBUTIONS TO MKEC 423040 C INVESTMENTS IN LOCAL ORGS 5501 C 14119267 CONSUMER DEPOSITS 174738 ACCRUED OPERATING TAXES 364547 POWER COST ADJUSTMENT - OVERCOLLECTED 42612 DEFERRED CREDITS 19262 601159 X 20757185 0 20757185 490243 490243 21247428 18207520 0 18207520 2725208 2725208 20932728 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 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 XI, LINE 4B - OTHER ADJUSTMENTS: NON-OPERATING EXPENSES RECLASSIFIED TO PART IX, LINE 24 490,243. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,234,965. NON-OPERATING EXPENSES RECLASSIFIED TO PART IX, LINE 24 490,243. PART VIII: 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. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS ALLOCATED OR TO BE 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". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. 1 SECONDARY EDUCATION SCHOLARSHIPS 6 9000 CASH RECEIVED 6 SCHOLARSHIPS AWARDED AT $1,500 EACH. PART I, LINE 2: SCHOLARSHIPS FOR SECONDARY EDUCATION ARE AWARDED ANNUALLY TO ASSIST QUALIFIED INDIVIDUALS IN FURTHERING THEIR EDUCATION. APPLICANT MUST ENROLL OR BE ENROLLED AT AN ACCREDITED EDUCATIONAL OR TRAINING INSTITUTION. SCHOLARSHIP MERIT IS BASED ON GPA, ACHIEVEMENTS, EXTRA-CURRICULAR ACTIVITIES, COMMUNITY, SCHOOL INVOLVEMENT, AND YOUR GOALS FOR THE FUTURE. ANYONE MAY APPLY, BUT PRIORITY WILL BE GIVEN TO THOSE IN THE LANE-SCOTT ELECTRIC COOPERATIVE, INC. SERVICES TERRITORY AND STUDENTS ENTERING INTO AN ELECTRICAL OR HVAC FIELD/TRADE. X 1 1 X 0 0 0 RICHARD MCLEON GM/CEO 258692 0 250 0 3763 0 7869 0 17878 0 288452 0 0 0 DAL HAWKINSON COO 142726 0 250 0 262 0 87015 0 29791 0 260044 0 0 0 KASEY JENKINSON LINE SUPERINTINDENT 137237 0 250 0 827 0 93588 0 13091 0 244993 0 0 0 BENJAMIN MANN CREW CHIEF 125591 0 250 0 734 0 55763 0 11357 0 193695 0 0 0 MYRON SEIB JOURNEYMAN LINEMAN 124699 0 250 0 1267 0 43776 0 20924 0 190916 0 0 0 CHRIS TERHUNE JOURNEYMAN LINEMAN 127139 0 250 0 487 0 37035 0 8992 0 173903 0 0 0 BLAKE MCVICKER JOURNEYMAN LINEMAN 124126 0 250 0 144 0 11318 0 29278 0 165116 0 0 0 CARRIE BORELL CIO 93073 0 250 0 696 0 38196 0 29055 0 161270 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL REIMBURSE TRUSTEES THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL BUSINESS OF THE COOPERATIVE. REIMBURSABLE COSTS INCLUDE TRAVEL AND MEAL ALLOWANCES. THE COOPERATIVE WILL ALSO REIMBURSE AN EMPLOYEE FOR TRANSPORTATION AND LODGING COSTS OF HIS/HER SPOUSE FOR APPROVED TRAVEL. DURING THE YEAR, THREE INDIVIDUALS REPORTED ON FORM 990, PART VII - RANDALL G. EVANS, RANDY J. EVANS, AND CRAIG RAMSEY - RECEIVED THIS BENEFIT. SINCE THE COOPERATIVE CONSIDERS THE REIMBURSEMENT TO BE CONSISTENT TO A BONA FIDE BUSINESS PURPOSE, SUCH REIMBURSEMENTS WERE TREATED AS EXPENSES EXCLUDED FROM THE REPORTABLE COMPENSATION OF EACH. 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. 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. RICHARD MCLEON ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) 7,869 TOTAL REPORTED IN COLUMN C 7,869 LESS: ACTUARIAL INCREASE IN DBP (0) ADD: CASH CONTRIBUTION TO DBP 87,465 EXPENSE TO THE COOPERATIVE $ 95,334 DAL HAWKINSON ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 79,739 EMPLOYER CONTRIBUTION TO 401(K) 7,276 TOTAL REPORTED IN COLUMN C 87,015 LESS: ACTUARIAL INCREASE IN DBP (79,739) ADD: CASH CONTRIBUTION TO DBP 46,305 EXPENSE TO THE COOPERATIVE $ 53,581 KASEY JENKINSON ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 87,560 EMPLOYER CONTRIBUTION TO 401(K) 6,028 TOTAL REPORTED IN COLUMN C 93,588 LESS: ACTUARIAL INCREASE IN DBP (87,560) ADD: CASH CONTRIBUTION TO DBP 39,432 EXPENSE TO THE COOPERATIVE $ 45,460 BENJAMIN MANN ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 50,335 EMPLOYER CONTRIBUTION TO 401(K) 5,428 TOTAL REPORTED IN COLUMN C 55,763 LESS: ACTUARIAL INCREASE IN DBP (50,335) ADD: CASH CONTRIBUTION TO DBP 35,508 EXPENSE TO THE COOPERATIVE $ 40,936 MYRON SEIB ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 38,556 EMPLOYER CONTRIBUTION TO 401(K) 5,220 TOTAL REPORTED IN COLUMN C 43,776 LESS: ACTUARIAL INCREASE IN DBP (38,556) ADD: CASH CONTRIBUTION TO DBP 34,153 EXPENSE TO THE COOPERATIVE $ 39,373 CHRIS TERHUNE ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 31,607 EMPLOYER CONTRIBUTION TO 401(K) 5,428 TOTAL REPORTED IN COLUMN C 37,035 LESS: ACTUARIAL INCREASE IN DBP (31,607) ADD: CASH CONTRIBUTION TO DBP 35,508 EXPENSE TO THE COOPERATIVE $ 40,936 BLAKE MCVICKER ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 6,306 EMPLOYER CONTRIBUTION TO 401(K) 5,012 TOTAL REPORTED IN COLUMN C 11,318 LESS: ACTUARIAL INCREASE IN DBP (6,306) ADD: CASH CONTRIBUTION TO DBP 32,783 EXPENSE TO THE COOPERATIVE $ 37,795 CARRIE BORELL ACTUARIAL INCREASE IN DEFERRED BENEFIT PLAN $ 33,474 EMPLOYER CONTRIBUTION TO 401(K) 4,722 TOTAL REPORTED IN COLUMN C 38,196 LESS: ACTUARIAL INCREASE IN DBP (33,474) ADD: CASH CONTRIBUTION TO DBP 26,897 EXPENSE TO THE COOPERATIVE $ 31,619 FORM 990, PART VI, SECTION A, LINE 2 RICHARD MCLEON (GM/CEO) AND RICHARD JENNISON (BOARD PRESIDENT) SERVED ON THE BOARD OF SUNFLOWER ELECTRIC POWER CORPORATION AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. DAL HAWKINSON (COO) IS AN ALTERNATE ON THE BOARD. CRAIG RAMSEY (BOARD VP) SERVED ON THE BOARD OF KANSAS ELECTRIC COOPERATIVES AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. RICHARD MCLEON (GM/CEO) IS AN ALTERNATE ON THE BOARD. 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. 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 15 THE BOARD OF TRUSTEES UTILIZE AN ANNUAL PERFORMANCE APPRAISAL WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE BOARD AND THE GENERAL MANAGER UTILIZE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT KANSAS 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. ADDITIONALLY, THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF ITS BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. FINALLY, A CURRENT COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH TRUSTEE WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE AND TIME LOG. THE COMPLETED QUESTIONNAIRES AND TIME LOGS ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, 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 AND/OR TIME LOG, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. THE COOPERATIVE DID NOT RECEIVE A QUESTIONNAIRE FROM TRUSTEES ERIC DOLL, RAD ROEHL, AND CHAD GRIFFITH, ALL WHO ARE NO LONGER WITH THE COOPERATIVE; THEREFORE, THE PRIOR YEAR QUESTIONNAIRES HAS BEEN RELIED UPON WHILE PREPARING THE RETURN. THERE WERE NO KNOWN CHANGES FROM 2024 TO 2025. 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 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 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 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 UTILITIES SERVICE (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, 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 $ 2,017,554 LESS: DIRECTORS FEES REPORTED ON FORM 1099-NEC (53,968) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (225,658) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 100,751 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 554,522 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 133,231 TOTAL WAGES ACCRUED AND/OR PAID $ 2,526,432 FORM 990. PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 687,101 OFFICE SUPPLIES 81,063 OUTSIDE SERVICES 282,081 EMPLOYEE EDUCATION AND TRAINING 447,020 DIRECTORS 84,139 ANNUAL MEETING 174,648 CAPITAL CREDITS 17,432 DUES TO ASSOCIATED ORGANIZATIONS 95,879 MISCELLANEOUS GENERAL 37,490 REGULATORY COMMISSION 820 MAINTENANCE OF GENERAL PLANT 201,507 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,109,180 LESS: RECLASS OF SCHOLARSHIPS TO PART IX, LINE 2 (9,000) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (53,968) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (705,131) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (337,542) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,003,539 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER ACCOUNTS $ 133,542 CUSTOMER SERVICE AND INFORMATION 37,769 SALES 22,310 OTHER DEDUCTIONS 268 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 193,889 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 2025 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, 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 ALLOCATED OR TO BE ALLOCATED 2,234,965. PATRONAGE CAPITAL RETIRED - TOTAL -494,473. PATRONAGE CAPITAL RETIRED - DISCOUNT -95,699. DONATED CAPITAL 0. FORM 990. PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR.