2024-11-15T23:10:19-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 750202592 COMANCHE COUNTY ELECTRIC COOPERATIVE ASSOCIATION COMA 8009152533 PO BOX 729 COMANCHE TX 76442 ALAN LESLEY GENERAL MANAGER/CEO 8009152533 2024-11-15 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-15 X 2023 2024-10-15 13:58:12Z ALAN LESLEY PO BOX 729 COMANCHE TX 76442 48837876 0 X WWW.CECA.COOP X 1938 TX TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 59 0 356118 80262 0 0 47816383 48066471 253068 112566 514288 455364 48583739 48634401 0 0 203662 2556904 3097889 3497744 0 0 0 44701817 41349010 48003368 47403658 580371 1230743 125413479 127840910 78405478 77124783 47008001 50716127 NONE 0 0 SALES OF ELECTRIC POWER TO MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 17,960 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 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 1 0 0 0 1 48 0 59 1 1 1 0 0 0 0 48621526 1006376 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 0 1 1 1 1 1 1 1 0 X KELLIE DETERS DIRECTOR OF FINANCEOFFICE SERVICES 8009152533 349 INDUSTRIAL BLVD COMANCHE TX 76442 X MONTY CARLISLE PRESIDENT 2.00 X X 13600 0 0 PHIL TAYLOR VICE PRESIDENT 2.50 X X 17247 0 0 RANDY DENNING DIRECTOR 1.90 X 16859 0 0 TROY STEWART DIRECTOR 8.70 X 13600 0 0 RUBY SOLOMON SECRETARY/TREASURER 8.30 X X 13600 0 0 LOREN STROEBEL DIRECTOR 2.00 X 14600 0 0 JAMES MCDOUGAL DIRECTOR 1.40 X 15100 0 0 ALAN LESLEY GENERAL MANAGER/CEO 55.00 X 222227 0 56230 KELLIE DETERS DIRECTOR OF FINANCE 55.00 X 123851 0 66704 EDDIE STRUBE DIRECTOR OF OPERATIONS 50.00 X 150274 0 84473 CHAD FOREMAN DIRECTOR OF IT 50.00 X 125731 0 35157 JUSTIN RILEY LINE FOREMAN 50.00 X 122606 0 27631 TIM PALLETTE 1ST CLASS LINEMAN 47.00 X 115364 0 28985 KETIH STEWARD ENGINEERING TECH 47.00 X 105412 0 22721 1070071 0 321901 13 0 1 0 NORTHEAST TREE SERVICE INC PO BOX 1185 KENNEDALE TX 76060 TREE TRIMMING 1581871 S & H POWERLINE CONSTRUCTION 725 BELLVIEW RD CRAWFORD TX 76638 CONSTRUCTION CONTRACTOR 767831 MORRIS TREE SERVICE LLC PO BOX 93 RISING STAR TX 76471 TREE TRIMMING 413930 MERIDIAN COOPERATIVE INC 100 ASHFORD CENTER NORTH STE 500 ATLANTA GA 30338 BILLING, PRINTING, MAILING SERVICES 330899 LUMENSERVE INC 4818 E BEN WHITE BLVD 107 AUSTIN TX 78741 TOWER MONITORING 221482 9 X SALES OF ELEC & SERVICE FEES 221000 47156220 47156220 PATRONAGE DIVIDENDS 221000 910251 910251 48066471 86946 86946 154120 101381 52739 52739 52739 127714 102094 25620 25620 25620 4857 0 4857 4857 MISC SALES & INSTALLATION 230000 214675 214675 POLE ATTACHMENT INCOME 221000 94389 94389 AIR EVAC REVENUE 524298 88704 88704 397768 48634401 48096948 356118 181335 X 2556904 573618 2197142 294261 246471 186252 2104090 3014861 PURCHASED POWER 31332723 DISTRIBUTION EXPENSE 3155201 ADMIN & GENERAL EXPENSE 983469 UNRELATED BUS. INC. TAX 14925 743741 47403658 X 2720035 4621607 2479554 12 852993 588660 889379 1082774 25092447 24200856 105433309 28376357 73191946 77056952 17009707 17795465 3177418 2494584 125413479 127840910 5681230 6336912 869465 844722 63573972 63500703 8280811 6442446 78405478 77124783 X 191715 191370 0 0 46816286 50524757 47008001 50716127 125413479 127840910 X 1230743 2477383 X X 0 1 X 0 0 0 1 X 367593 367593 5477582 1125390 4352192 98909198 27250967 71658231 678936 678936 77056952 PAT CAP - BEC 15869391 C PAT CAP - TEC 865862 C PAT CAP - CFC 160202 C PAT CAP - NRTC 126475 C PAT CAP - COBANK 105926 C PAT CAP - SEDC 105055 C PAT CAP - OTHER 10413 C CAPITAL TERM CERT. - CFC 483044 C MEMBERSHIPS IN ASSOC. ORGS. 15665 C PAT CAP - FED. 53432 C 17795465 CONSUMER DEPOSITS 597186 ACCRUED OPERATING TAXES 297857 DEFERRED CREDITS - CONTRIBUTIONS IN AID OF CONSTRUCTION 731335 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 743622 DEFERRED CREDITS - CONTRIBUTIONS IN AID OF CONSTRUCTION - SUBSTATION 3720532 DEFERRED CREDITS - SPEC EQUIPMENT 351914 6442446 X 48462102 101381 101381 48360721 273680 273680 48634401 44674455 101381 101381 44573074 2830584 2830584 47403658 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DETERMINED 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH AMOUNTS DETERMINED UNCLAIMED UNDER STATE LAW THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR THE STIMULATION AND IMPROVEMENT OF BUSINESS AND COMMERCIAL ACTIVITY FOR ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES. ANY AMOUNTS SO DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. FINALLY, THE COOPERATIVE HAS PUT INTO PLACE AN "OPERATION ROUNDUP" PLAN. MEMBERS WHO WISH TO PARTICIPATE IN THE PLAN VOLUNTARILY ROUND THEIR ELECTRIC BILLS UP TO THE NEAREST WHOLE DOLLAR. THE DIFFERENCE IS USED TO FUND THE PLAN. THE "OPERATION ROUNDUP" FUNDS ARE MAINTAINED IN A SEPARATE ACCOUNT AND USED TO SUPPORT EDUCATION PROJECTS, YOUTH PROJECTS, COMMUNITY PROJECTS AND EMERGENCY ASSISTANCE WITHIN THE COMMUNITIES AND AREAS SERVED BY THE COOPERATIVE. PART X, LINE 2: THE COOPERATIVE FOLLOWS PROVISIONS OF UNCERTAIN TAX POSITIONS AS ADDRESSED IN FASB ACCOUNTING STANDARDS CODIFICATION 740-10-65-1. 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 POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, OR OTHER STATE TAXING AUTHORITY, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: DIRECT COSTS OF TOWER RENTAL RECLASSIFIED FROM EXPENSES 101,381. PART XI, LINE 4B - OTHER ADJUSTMENTS: NON-OPERATING EXPENSE RECLASSIFIED TO EXPENSES 273,680. PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT COSTS OF TOWER RENTAL RECLASSIFIED FROM EXPENSES 101,381. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,556,904. NON-OPERATING EXPENSE RECLASSIFIED TO EXPENSES 273,680. 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. 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. X 1 1 X 0 0 0 ALAN LESLEY GENERAL MANAGER/CEO 212057 0 254 0 9916 0 44937 0 11293 0 278457 0 0 0 EDDIE STRUBE DIRECTOR OF OPERATIONS 144429 0 271 0 5574 0 74280 0 10193 0 234747 0 0 0 KELLIE DETERS DIRECTOR OF FINANCE 117202 0 271 0 6378 0 54055 0 12649 0 190555 0 0 0 CHAD FOREMAN DIRECTOR OF IT 120036 0 271 0 5424 0 22562 0 12595 0 160888 0 0 0 JUSTIN RILEY LINE FOREMAN 118286 0 271 0 4049 0 18206 0 9425 0 150237 0 0 0 PART I, LINE 1A PURSUANT TO THE COOPERATIVE'S WELLNESS PROGRAM, EMPLOYEES ARE ELIGIBLE TO RECEIVE A REIMBURSEMENT UP TO $30 PER MONTH FOR THE COST OF A GYM MEMBERSHIP. 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. ALAN LESLEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,930 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,007 TOTAL REPORTED IN COLUMN C $ 44,937 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,930) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,455 EXPENSE TO THE COOPERATIVE $ 40,462 EDDIE STRUBE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 66,873 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,407 TOTAL REPORTED IN COLUMN C $ 74,280 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (66,873) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,782 EXPENSE TO THE COOPERATIVE $ 29,189 KELLIE DETERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 50,744 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,311 TOTAL REPORTED IN COLUMN C $ 54,055 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (50,744) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,573 EXPENSE TO THE COOPERATIVE $ 22,884 CHAD FOREMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 16,069 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,493 TOTAL REPORTED IN COLUMN C $ 22,562 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (16,069) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,094 EXPENSE TO THE COOPERATIVE $ 25,587 JUSTIN RILEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,139 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,067 TOTAL REPORTED IN COLUMN C $ 18,206 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,139) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,012 EXPENSE TO THE COOPERATIVE $ 21,079 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 REVIEWED THE FORM 990 PRIOR TO FILING AND PRESENTED A COPY TO THE BOARD FOR DISCUSSION AND REVIEW AFTER FILING. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, THE BOARD OF DIRECTORS AND THE GENERAL MANAGER ARE REQUIRED TO REVIEW THE COOPERATIVE'S CONFLICT OF INTEREST POLICY AND COMPLETE AND SIGN THE COOPERATIVE'S "CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM". FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS PERFORM AN ANNUAL REVIEW AND UTILIZE INTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE GENERAL MANAGER UTILIZES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES ALL NEW MEMBERS WITH A MEMBERSHIP PACKET, WHICH INCLUDES THE COOPERATIVE'S GOVERNING DOCUMENTS. 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 SUMMARIZED COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. FINALLY, A SUMMARIZED COPY OF THE COOPERATIVES FINANCIAL STATEMENTS ARE PUBLISHED IN COOP POWER MAGAZINE AND THE COOPERATIVE'S BYLAWS CAN BE FOUND ON ITS 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, 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 EMPLOYEE OFFICERS ARE COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT, 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 RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) 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 $ 2,770,760 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (104,606) LESS: OFFICER BENEFITS REPORTED ON LINE 5 (122,934) PLUS: SALARIES AND WAGES ALLOCATED TO PURCHASED POWER 170,095 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 616 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,306,257 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 177,890 TOTAL WAGES ACCRUED AND/OR PAID $ 4,198,078 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 850,474 OFFICE SUPPLIES 416,425 OUTSIDE SERVICES 340,306 DIRECTORS 125,835 MISCELLANEOUS GENERAL 243,078 ADVERTISING AND PUBLIC RELATIONS 97,652 DUES TO ASSOCIATED ORGANIZATIONS 45,714 ANNUAL MEETING 93,022 REGULATORY COMMISSION 77,078 MAINTENANCE OF GENERAL PLANT 108,185 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,397,769 LESS: RECLASS OF TOWER RENT EXPENSE TO PART VII, LINE 6 (33,336) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (104,606) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (956,655) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (319,704) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 983,469 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 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 2023 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 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 355,559 CUSTOMER SERVICE AND INFORMATION 114,502 AIR EVAC EXPENSE 87,385 ENGINEERING SERVICE EXPENSE 186,295 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 743,741 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,556,904. PATRONAGE CAPITAL RETIRED - TOTAL -122,666. PATRONAGE CAPITAL RETIRED - DISCOUNT 43,490. NET CHANGE IN MEMBERSHIPS -345. 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. CECA HOLDINGS LLC PO BOX 729 COMANCHE TX 76442 SOLAR SALES & INSTALLATIONS TX 214675 364240 COMANCHE COUNTY ELECTRIC COOPERATIVE ASSOCIATION