2024-11-15T08:05:03-06:00 2023-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2023-01-01 611345109 KENERGY CORP KENE 8008444832 PO BOX 18 HENDERSON KY 42419 TRAVIS SIEWERT VP - FINANCE & ACCOUNTING 8008444832 2024-11-13 1 0 WILLIAM M MILLER P00439459 8067473806 2024-11-13 X 2023 2024-10-15 13:58:12Z TIMOTHY LINDAHL PO BOX 18 HENDERSON KY 42419 347367910 0 X WWW.KENERGYCORP.COM X 1999 KY TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 11 11 135 0 1693971 0 0 0 622472876 344126401 395342 541305 1179533 2619140 624047751 347286846 49422 38317 1568806 0 12816051 12846770 0 0 0 609585527 334721554 624019806 347606641 27945 -319795 278992513 321555799 193237199 236288653 85755314 85267146 SAFELY PROVIDING RELIABLE ELECTRIC AND TECHNOLOGY SERVICES FOR OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 59,510 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 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 1 0 1 45 0 135 1 1 1 0 0 0 0 0 0 344401384 2618203 0 0 0 X 11 11 1 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X TRAVIS SIEWERT VP FINANCE 8008444832 PO BOX 18 HENDERSON KY 42419 X JONATHAN AYER VICE CHAIRMAN 6.00 X X 12100 0 0 RICHARD BASHAM DIRECTOR 8.00 X 13800 0 0 SUSAN BLANFORD DIRECTOR 4.00 X 15300 0 0 LARRY ELDER DIRECTOR 8.00 X 14100 0 0 RYAN HAMMACK DIRECTOR 8.00 X 12900 0 0 MICHAEL HAZELWOOD DIRECTOR 4.00 X 13500 0 0 EDDIE LEACH DIRECTOR 12.00 X 14400 0 0 WILLIAM REID CHAIRMAN 3.50 X X 15300 0 0 CRAIG ROBERTS SECRETARY/TREASURER 8.00 X X 12150 0 0 ROBERT WHITE DIRECTOR 6.00 X 12600 0 0 BRENT WIGGINTON DIRECTOR 8.00 X 12900 0 0 JEFF HOHN PRESIDENT & CEO (JAN-MAR) 50.00 X 244815 0 134125 TIMOTHY LINDAHL PRESIDENT & CEO (MAR-DEC) 60.00 X 238017 0 60857 DEBRA HAYDEN EXECUTIVE ASST. SECRETARY 40.00 X 104392 0 35588 TRAVIS SIEWERT VP - FINANCE & ACCOUNTING 45.00 X 177744 0 51814 ROB STUMPH VP - ENGINEERING 45.00 X 235029 0 218114 KEITH ELLIS VP - ADMINISTRATIVE SERVICES 50.00 X 201013 0 89805 STEVE THOMPSON VP - REGULATORY/EXTERNAL AFFAIRS 40.00 X 197058 0 69351 MICHAEL CHURCH OPERATIONS MANAGER 55.00 X 145986 0 88524 CASEY BAKER OPERATIONS MANAGER 50.00 X 140532 0 59395 ANDREW WEBSTER CREW LEADER 55.00 X 139741 0 35010 LOGAN HARPOLE SERVICE TECHNICIAN 58.00 X 138988 0 33221 THANE LACAZE CREW LEADER 54.00 X 137727 0 32768 2250092 0 908572 57 0 1 0 DYCOM INDUSTRIES INC PO BOX 932157 ATLANTA GA 31193 FIBER INSTALL 12640013 HALTER TREE SERVICE INC 325 MAIN ST VINCENNES IN 47591 TREE TRIMMING 5684116 CONEXON LLC 2001 GRAND BLVD SUITE 700 KANSAS CITY MO 64108 FIBER MANAGEMENT/DESIGN 5313884 MDR CONSTRUCTION INC 621 E BAYLIS CHAPEL ROAD COLUMBIA MS 39429 FIBER MAKE READY 4130003 VONALAS INC 1906 SAPPHIRE PINES LN RICHMOND TX 77469 FIBER INSTALL 1754109 19 X SALES OF ELECTRICITY 221000 342928824 342928824 SERVICE FEES 221000 656924 656924 PATRONAGE DIVIDENDS 221000 540653 540653 344126401 310227 310227 1692750 0 1692750 1692750 1692750 312142 81064 231078 231078 231078 POLE ATTACHMENT INCOME 221000 924487 924487 TELECOM REVENUE 517000 1221 1221 MISCELLANEOUS NON-OPERATING INCOM 221000 682 682 926390 347286846 344358161 1693971 1234714 X 38317 2206772 7637496 1083631 1370904 547967 4208342 14812004 PURCHASED POWER 300514192 DISTRIBUTION EXPENSE 10897001 BROADBAND EXPENSE 1522632 ADMIN & GENERAL 1395095 1372288 347606641 9477202 1413796 32625169 21843209 9428758 25609043 684209 684767 427596000 175560976 204790872 252035024 6160185 6189841 15826118 13780119 278992513 321555799 45860031 45642402 140754335 183258572 6622833 7387679 193237199 236288653 X 231750 233190 0 0 85523564 85033956 85755314 85267146 278992513 321555799 X -319795 -168373 X X 0 1 X 1 1 1 1392871 1392871 10596294 5726067 4870227 393414989 169834909 223580080 22191846 22191846 252035024 CONSUMER ADVANCES FOR CONSTRUCTION 2185513 OTHER DEFERRED CREDITS 817273 OTHER LIABILTIES 206189 CONSUMER DEPOSITS 4178704 7387679 X PART X, LINE 2: KENERGY IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE AND, ACCORDINGLY, THE ACCOMPANYING FINANCIAL STATEMENTS INCLUDE NO PROVISION FOR SUCH TAXES. WHEN APPLYING THE 85 PERCENT TEST OF IRC 501(C)(12), KENERGY EXCLUDES THE BIG RIVERS NON-CASH ALLOCATIONS FROM GROSS INCOME. ASC 740-10, INCOME TAXES, PROVIDES GUIDANCE FOR REPORTING UNCERTAINTY IN INCOME TAXES. KENERGY HAS PERFORMED AN EVALUATION OF UNCERTAIN TAX POSITIONS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022, AND DETERMINED THAT NO MATERIAL UNCERTAIN TAX POSITIONS QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. PART VII: THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 12 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 VII HAS BEEN LEFT BLANK. 0 OHIO COUNTY FOOD PANTRY 1220 S MAIN STREET HARTFORD KY 42347 610549873 501(C)(3) 6625 0 COMPANY MATCH KENERGY OPERATION ROUNDUP INC PO BOX 18 HENDERSON KY 42419 475198197 501(C)(3) 5520 0 CONTRIBUTION & COMPANY MATCH 2 PART II: 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. X X 0 0 0 ROB STUMPH VP - ENGINEERING 210327 0 500 0 24202 0 194660 0 23454 0 453143 0 0 0 JEFF HOHN PRESIDENT & CEO (JAN-MAR) 210200 0 25000 0 9615 0 121815 0 12310 0 378940 0 0 0 TIMOTHY LINDAHL PRESIDENT & CEO (MAR-DEC) 206275 0 150 0 31592 0 37228 0 23629 0 298874 0 0 0 KEITH ELLIS VP - ADMINISTRATIVE SERVICES 174548 0 500 0 25965 0 57990 0 31815 0 290818 0 0 0 STEVE THOMPSON VP - REGULATORY/EXTERNAL AFFAIRS 177446 0 500 0 19112 0 44791 0 24560 0 266409 0 0 0 MICHAEL CHURCH OPERATIONS MANAGER 137206 0 500 0 8280 0 64254 0 24270 0 234510 0 0 0 TRAVIS SIEWERT VP - FINANCE & ACCOUNTING 165708 0 500 0 11536 0 21977 0 29837 0 229558 0 0 0 CASEY BAKER OPERATIONS MANAGER 136333 0 500 0 3699 0 39542 0 19853 0 199927 0 0 0 ANDREW WEBSTER CREW LEADER 138815 0 500 0 426 0 7879 0 27131 0 174751 0 0 0 LOGAN HARPOLE SERVICE TECHNICIAN 138261 0 500 0 227 0 6886 0 26335 0 172209 0 0 0 THANE LACAZE CREW LEADER 136842 0 500 0 385 0 6365 0 26403 0 170495 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. ROB STUMPH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 194,660 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (194,660) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 55,749 EXPENSE TO THE COOPERATIVE $ 55,749 JEFF HOHN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 121,815 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (121,815) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,239 EXPENSE TO THE COOPERATIVE $ 19,239 TIMOTHY LINDAHL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,228 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,228) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 48,098 EXPENSE TO THE COOPERATIVE $ 48,098 KEITH ELLIS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 57,990 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (57,990) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,832 EXPENSE TO THE COOPERATIVE $ 40,832 STEVE THOMPSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,791 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,791) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,769 EXPENSE TO THE COOPERATIVE $ 47,769 MICHAEL CHURCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 64,254 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (64,254) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,128 EXPENSE TO THE COOPERATIVE $ 37,128 TRAVIS SIEWERT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,977 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,977) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,478 EXPENSE TO THE COOPERATIVE $ 38,478 CASEY BAKER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,542 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,542) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,439 EXPENSE TO THE COOPERATIVE $ 36,439 ANDREW WEBSTER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 7,879 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (7,879) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,887 EXPENSE TO THE COOPERATIVE $ 19,887 LOGAN HARPOLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 6,886 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (6,886) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,009 EXPENSE TO THE COOPERATIVE $ 19,009 THANE LACAZE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 6,365 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (6,365) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 19,887 EXPENSE TO THE COOPERATIVE $ 19,887 FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN DIRECTOR BRENT WIGGINTON AND DIRECTOR ROBERT WHITE. BOTH SERVE ON THE BOARD OF BIG RIVERS ELECTRIC COOPERATIVE AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. A BUSINESS RELATIONSHIP EXISTS BETWEEN DIRECTOR RICHARD BASHAM AND EMPLOYEE OFFICERS TIMOTHY LINDAHL AND JEFF HOHN. THEY SERVE ON THE BOARD OF KENTUCKY ELECTRIC COOPERATIVES AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE III - DIRECTORS SECTION 2. QUALIFICATIONS; ELECTION AND TERM OF OFFICE, WAS AMENDED TO STATE "WHEN A MEMBERSHIP IS HELD JOINTLY BY SPOUSES, EITHER ONE, BUT NOT BOTH, MAY BE ELECTED DIRECTOR. A FORMER EMPLOYEE OF THE CORPORATION OR BIG RIVERS ELECTRIC CORPORATION ("BIG RIVERS") SHALL NOT BE ELIGIBLE TO BECOME A DIRECTOR UNTIL EMPLOYMENT HAS BEEN TERMINATED FOR FIVE (5) CONSECUTIVE YEARS. A DIRECTOR MUST HAVE LEGAL CAPACITY TO ENTER INTO A BINDING CONTRACT. NO EMPLOYEE OF THE CORPORATION OR OF BIG RIVERS SHALL BE A DIRECTOR DURING THE TERM OF SUCH EMPLOYMENT. NO MEMBER OF THE IMMEDIATE FAMILY OF AN EMPLOYEE OF THE CORPORATION OR BIG RIVERS SHALL SERVE AS A DIRECTOR OF THE CORPORATION DURING THE TERM OF SUCH EMPLOYMENT. FOR PURPOSES OF THIS REQUIREMENT, THE "IMMEDIATE FAMILY" OF AN EMPLOYEE INCLUDES BLOOD AND MARITAL RELATIVES AS FOLLOWS: (I) PARENT, CHILD, SPOUSE, SIBLING, STEP-PARENT, STEP-CHILD, MOTHER-IN-LAW, FATHER-IN-LAW, SON OR DAUGHTER-IN-LAW, AUNT, UNCLE, GRANDPARENT, OR GRANDCHILD, NIECE, NEPHEW, AND (II)ANY PERSON WHO IS LIVING IN THE SAME HOUSEHOLD AS THE EMPLOYEE." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.KENERGYCORP.COM/BYLAWS/ 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 5. REMOVAL OF A DIRECTOR FROM THE BOARD 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 ANNUALLY, THE CHAIRMAN OF THE BOARD OF DIRECTORS REQUIRES EACH BOARD MEMEBER AND THE CEO TO COMPLETE AND SIGN A FORM LISTING THE NAMES OF THEIR BUSINESS INTEREST, POSITIONS HELD, AND THE OWNERSHIP PERCENTAGE. ANNUALLY, THE CEO REQUIRES ALL VICE-PRESIDENTS AND MANAGERS TO COMPLETE A SURVEY PROVIDING THE SAME INFORMATION. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS APPROVES CEO COMPENSATION BASED ON A REVIEW OF PERFORMANCE AND OF EXTERNAL MARKET PRICING. TO ASSIST WITH EXTERNAL MARKET PRICING, AN INDEPENDENT COMPENSATION CONSULTANT IS PERIODICALLY USED. FOR ALL OTHER EMPLOYEE OFFICERS AND KEY EMPLOYEES, COMPENSATION IS DETERMINED USING EXTERNAL MARKET SOURCES, INCLUDING A COMPENSATION SURVEY. INTERNAL MARKET PRICING IS ESTABLISHED BY UTILIZING A POINT FACTOR METHOD OF ASSIGNING WEIGHTED FACTORS BASED ON A VARIETY OF COMPETENCIES. THE BOARD OF DIRECTORS APPROVES THE BUDGET, INCLUDING COMPENSATION OF EMPLOYEE OFFICERS AND KEY EMPLOYEES, BASED ON THIS PROCESS. FORM 990, PART VI, SECTION C, LINE 19 KENERGY PROVIDES EACH MEMBER, THROUGH A BILLING INSERT, A CONDENSED BALANCE SHEET AND INCOME STATEMENT COMPARING THE MOST RECENT CALENDAR YEAR TO THE PREVIOUS CALENDAR YEAR. THE COMPARATIVE STATEMENT OF OPERATIONS, AS WELL AS THE BYLAWS, CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE AT WWW.KENERGYCORP.COM/ABOUT. ADDITIONALLY, POLICIES ARE MADE AVAILABLE TO MEMBERS UPON A WRITTEN REQUEST. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE ACTIVELY 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. A DEFINED CONTRIBUTION PLAN IS ALSO OFFERED TO EMPLOYEES. SINCE JANUARY 1, 2019, THE DEFINED CONTRIBUTION PLAN IS FOR ELECTIVE SALARY DEFERRALS ONLY AND NOT MATCHED BY THE COOPERATIVE. 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 OFFICER 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. 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 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 UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE THE RURAL UTILITIES SERVICE (RUS). THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY 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 $ 9,844,268 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (149,050) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (659,654) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 157,890 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,328,931 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 639,488 TOTAL WAGES ACCRUED AND/OR PAID $13,161,873 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER EXPENSE $ 713,183 TAXES 645,157 OTHER DEDUCTIONS 13,948 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 1,372,288 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 ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2023 CALENDAR YEAR. WHEN ALLOCATED, THE COOPERATIVE NOTIFIES THE PATRONS OF THE STATED DOLLAR AMOUNT OF THE PATRONAGE DIVIDEND IN WRITING. ADDITIONALLY, 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 24: AMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 2,366,698 OFFICE SUPPLIES 8,954 OUTSIDE SERVICES 233,574 REG. COMMISSION EXPENSE 37,277 MISCELLANEOUS GENERAL 547,110 DIRECTORS EXPENSE 176,967 MAINTENANCE OF GENERAL PLANT 998,373 ADVERTISING EXPENSE 4,192 MANAGEMENT EXPENSE 6,146 FRANCHISES EXPENSE 40,000 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,419,291 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (149,050) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,018,364) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (856,782) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,395,095 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL RETIRED - TOTAL -246,105. PATRONAGE CAPITAL RETIRED - DISCOUNT 76,292. NET CHANGE IN MEMBERSHIPS 1,440. 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. KENERGY OPERATION ROUND-UP INC PO BOX 18 HENDERSON KY 42419 475198197 UTILITY BILL ASSISTANCE KY 501(C)(3) LINE 7 KENERGY CORP 1 KENECT INC PO BOX 18 HENDERSON KY 42419 851820461 FIBER AND BROADBAND ACCESS SUBLEASE KY KENERGY CORP C 32791 57 1.00000 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 KENECT INC A 1386787 CASH RECEIVED KENECT INC N N/A - LESS THAN $50,000 KENECT INC O N/A - LESS THAN $50,000 KENERGY OPERATION ROUND-UP INC B N/A - LESS THAN $50,000