2023-09-22T08:26:32-05:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 730375825 NORTHWESTERN ELECTRIC COOPERATIVE INC NORT 5802567425 PO BOX 2707 WOODWARD OK 73802 TYSON LITTAU CEO 5802567425 2023-09-19 1 TYSON LITTAU 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-09-18 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z TYSON LITTAU PO BOX 2707 WOODWARD OK 73802 44595237 0 X WWW.NWECOK.COOP X 1940 OK TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 9 9 61 0 74070 0 0 0 37125097 44387975 72372 44909 1297512 108286 38494981 44541170 24722 36517 1091010 2027608 5766260 5727713 0 0 0 30412989 36749332 37294981 44541170 1200000 0 124554121 126970760 90045011 90545823 34509110 36424937 THE COOPERATIVE'S RESPONSIBILITY AND AIM IS TO PROVIDE EXCELLENT AND INNOVATIVE CUSTOMER SERVICE AS REFLECTED IN TOP QUALITY ELECTRIC SERVICE RELIABILITY, AFFORDABLE RATES, EMPLOYEE TEAMWORK AND THE HIGHEST DEGREE OF INTEGRITY IN ALL COOPERATIVE ENDEAVORS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 11,926 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 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 34 0 61 1 1 1 0 0 0 0 44609622 763780 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 OK X TYSON LITTAU CEO 5802567425 2925 WILLIAMS AVENUE WOODWARD OK 73801 X KENNETH KNOWLES PRESIDENT 6.00 X X 24983 0 0 RAY SMITH JAN TRUSTEE 0.00 X 0 0 0 JOHN BRUCE JR SECRETARY/TREASURER 5.40 X X 24097 0 0 JEFF MCINTOSH TRUSTEE 5.20 X 26283 0 0 CLAIR CRAIGHEAD TRUSTEE 4.50 X 21833 0 0 MARVIN WILKINSON TRUSTEE 3.50 X 26061 0 0 DUANE HENDERSON TRUSTEE 2.40 X 19147 0 0 GILBERT PERKINS VICE PRESIDENT 6.90 X X 17373 0 0 DARLA YOUNG TRUSTEE 4.30 X 15671 0 0 BRYCEN SHOAF JULY-DEC TRUSTEE 5.20 X 6118 0 0 TYSON LITTAU CEO 50.00 X 244069 0 162452 JAMIE RUBLE DIRECTOR OF FINANCE & ADMIN/CFO 43.00 X 134018 0 96489 JARET DOWLER DIRECTOR OF ENGINEERING/OP 45.00 X 146853 0 119969 ROBERT BOHLING JAN - SEPT JOURNEYMAN LINEMAN 46.00 X 119946 0 12155 BRENT MCDOWELL LINE SUPERVISOR/SAFETY MANAGER 44.00 X 119215 0 120436 BRIAN SNIDER OPERATIONS MANAGER 44.00 X 113191 0 98810 CURT CLOYD DIRECTOR OF IT 46.00 X 107143 0 75015 1166001 0 685326 7 0 1 0 RES SYSTEM 3 LLC 1610 ARDEN WAY STE 280 SACRAMENTO CA 95815 ELECTRIC SYSTEM STORM MITIGATION 12137990 POWER CONSULTING ASSOCIATES 880 GREEN LEA BLVD STE B GALLATIN TN 37066 INSPECTIONS 1301985 RIGGS TREE SERVICE INC PO BOX 453225 GROVE OK 74345 TREE TRIMMING AND RIGHT OF WAY MAINT. 632249 R&R POWERLINE CONSTRUCTION INC PO BOX 246 SAYRE OK 73662 ELECTRIC DIST. CONSTRUCTION 490447 PANHANDLE LINE SERVICES PO BOX 708 BORGER TX 79008 ELECTRIC DIST. CONSTRUCTION 183125 6 X SALES OF ELECTRICITY 221000 43422899 43422899 PATRONAGE DIVIDENDS 221000 858326 858326 DISTRIBUTION LINE LEASE 221000 56980 56980 SERVICE FEES 221000 49770 49770 44387975 49512 49512 339 339 24000 28603 -4603 -4603 -4603 48873 25464 23409 23409 BILLING REVENUE 561499 74070 74070 POLE ATTACHMENT INCOME 221000 10468 10468 84538 44541170 44406781 74070 60319 X 20517 16000 2027608 818594 3055496 708546 899937 245140 2489523 3398855 PURCHASED POWER 26875241 DISTRIBUTION EXPENSE 1420949 OPERATING TAXES 980841 ADMIN & GENERAL EXPENSE 963957 619966 44541170 3485648 1091276 2521863 4285069 555046 450423 1219693 2216798 533521 294120 123288408 21280294 100145421 102008114 15083423 15500067 1009506 1124893 124554121 126970760 4381536 2934843 83468540 85003944 2194935 2607036 90045011 90545823 X 0 0 5261448 5331020 29247662 31093917 34509110 36424937 124554121 126970760 X 0 1915827 X X 0 1 X 0 1 1 249615 249615 7305680 2730810 4574870 107336108 18549484 88786624 8397005 8397005 102008114 PATRONAGE CAPITAL - WFEC 13486878 C PATRONAGE CAPITAL - CFC 232656 C PATRONAGE CAPITAL - AEC 332060 C PATRONAGE CAPITAL - SEDC 122977 C PATRONAGE CAPITAL - COBANK 443708 C PATRONAGE CAPITAL - OTHER 208579 C MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 11700 C CAPITAL TERM CERTIFICATES - CFC 661509 C 15500067 CONSUMER DEPOSITS 103015 ACCUMULATED PROVISION FOR PENSIONS & BENEFITS 1606178 DEFERRED CREDITS - LINE EXTENSIONS 284021 EPC OVERCOLLECTION 613822 2607036 X 44474435 0 44474435 66735 66735 44541170 42446827 0 42446827 2094343 2094343 44541170 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), OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 66,735. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 66,735. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,027,608. 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 PAID OR 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". 1 SCHOLARSHIPS TO AREA STUDENTS 16 16000 PART I, LINE 2: THE COOPERATIVE AWARDS SCHOLARSHIPS TO APPLICANTS WHO SATISFY THE ELIGIBILITY REQUIREMENTS AND ARE SELECTED BY THE SCHOLARSHIP COMMITTEE OF THE COOPERATIVE'S BOARD OF TRUSTEES. TO BE ELIGIBLE, STUDENTS MUST BE A SENIOR AND RESIDE IN A HOUSEHOLD SERVED BY THE COOPERATIVE. X X 1 1 X X 0 0 0 TYSON LITTAU CEO 235356 0 1909 0 6804 0 127369 0 35083 0 406521 0 0 0 JARET DOWLER DIRECTOR OF ENGINEERING/OP 143274 0 2034 0 1545 0 85751 0 34218 0 266822 0 0 0 BRENT MCDOWELL LINE SUPERVISOR/SAFETY MANAGER 113230 0 2034 0 3951 0 103611 0 16825 0 239651 0 0 0 JAMIE RUBLE DIRECTOR OF FINANCE & ADMIN/CFO 129263 0 1909 0 2846 0 68355 0 28134 0 230507 0 0 0 BRIAN SNIDER OPERATIONS MANAGER 107824 0 2234 0 3133 0 74236 0 24574 0 212001 0 0 0 CURT CLOYD DIRECTOR OF IT 98098 0 2059 0 6986 0 42507 0 32508 0 182158 0 0 0 PART I, LINE 1A PURSUANT TO APPLICABLE TRAVEL POLICIES, THE COOPERATIVE WILL ONLY PAY FOR REGISTRATION FEES INCURRED BY A TRUSTEES' SPOUSE. TRUSTEES MAY ONLY ATTEND ONE NATIONAL MEETING PER YEAR. ALSO PURSUANT TO THE CURRENT POLICY, THE COOPERATIVE WILL PAY FOR REGISTRATION FEES, TRAVEL AND MEALS INCURRED BY AN EMPLOYEE'S SPOUSE IF INVITED TO ATTEND AN NRECA REGIONAL OR NATIONAL MEETING. DURING THE YEAR, TYSON LITTAU REPORTED ON FORM 990, PART VII RECEIVED THIS BENEFIT. SINCE THE COOPERATIVE CONSIDERS THE REIMBURSEMENT TO BE CONSISTENT TO A BONA FIDE BUSINESS PURPOSE, SUCH REIMBURSEMENTS ARE TREATED AS EXPENSES EXCLUDED FROM THE REPORTABLE COMPENSATION OF EACH. PURSUANT TO THE EMPLOYEE WELLNESS PROGRAM, EMPLOYEES PARTICIPATING IN THE COOPERATIVE SPONSORED HEALTH INSURANCE PLAN RECEIVE UP TO $50 PER MONTH, LIMITED TO $600 PER YEAR, FOR THE COST OF HEALTH CLUB DUES. 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. TYSON LITTAU: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 122,476 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,893 TOTAL REPORTED IN COLUMN C $ 127,369 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (122,476) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 76,158 EXPENSE TO THE COOPERATIVE $ 81,051 JARET DOWLER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 82,690 EMPLOYER CONTRIBUTION TO 401(K)PLAN 3,061 TOTAL REPORTED IN COLUMN C $ 85,751 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (82,690) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 47,289 EXPENSE TO THE COOPERATIVE $ 50,350 BRENT MCDOWELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 101,246 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,365 TOTAL REPORTED IN COLUMN C $ 103,611 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (101,246) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 36,531 EXPENSE TO THE COOPERATIVE $ 38,896 JAMIE RUBLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 65,594 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,761 TOTAL REPORTED IN COLUMN C $ 68,355 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (65,594) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 42,517 EXPENSE TO THE COOPERATIVE $ 45,278 BRIAN SNIDER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 71,968 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,268 TOTAL REPORTED IN COLUMN C $ 74,236 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (71,968) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 35,013 EXPENSE TO THE COOPERATIVE $ 37,281 CURT CLOYD: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 40,371 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,136 TOTAL REPORTED IN COLUMN C $ 42,507 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (40,371) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 32,930 EXPENSE TO THE COOPERATIVE $ 35,066 FORM 990, PART III, LINES 1 & 4: THE COOPERATIVE FULFILLS ITS MISSION AND EXEMPT PURPOSE BY OPERATING ACCORDING TO ITS MEMBER APPROVED BYLAWS AND BOARD APPROVED OPERATING POLICIES. THE BOARD AND MANAGEMENT STRIVE TO ADHERE TO THESE DOCUMENTS IN A FAIR AND EQUITABLE MANNER FOR MEMBERS, EMPLOYEES, AND TRUSTEES. 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. AMENDMENTS TO THE ARTICLES OF INCORPORATION 5. AMENDMENTS 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. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF TRUSTEES AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF TRUSTEES AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS REVIEWED AND REDISTRIBUTED TO EACH EMPLOYEE, OFFICER, AND DIRECTOR AT LEAST ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR CEOS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN OKLAHOMA AND THE NATION. THE CEO UTILIZES 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 SHOWS COMPARATIVE SALARIES FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN OKLAHOMA AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, EXTERNAL POLICIES, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ANNUALLY, THE COOPERATIVE PROVIDES THE YEAR END BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL MEETING NOTICE AND ANNUAL REPORT. ADDITIONALLY, AN OPERATING REPORT WHICH SUMMARIZES VARIOUS FINANCIAL STATISTICS IS PUBLISHED IN AND DISTRIBUTED TO THE MEMBERS VIA MONTHLY NEWSLETTER. THE COOPERATIVE'S BYLAWS ARE ALSO MADE AVAILABLE ON THE COOPERATIVE'S WEBSITE. FORM 990, PARTS VI & VII: THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES 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, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. DURING THE YEAR, TRUSTEE RAY SMITH PASSED AWAY, THEREFORE THE COOPERATIVE USED HIS PRIOR YEAR QUESTIONNAIRE WHILE PREPARING THIS RETURN. THERE WERE NO KNOWN CHANGES BETWEEN 2021 AND 2022. 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 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. IN ADDITION TO THE ABOVE BENEFIT PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. 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 ORGANIZATION 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 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 1 & 2: ALL GRANTS, DONATIONS, AND/OR SCHOLARSHIPS ARE MADE TO NON-PROFIT, CIVIC ORGANIZATIONS, AND INDIVIDUALS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. ALL DONATIONS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. EACH DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. 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 2022 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, 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 $ 3,874,090 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (181,566) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (258,941) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS - PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 860,391 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 227,139 TOTAL WAGES ACCRUED AND/OR PAID $ 4,521,113 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,248,492 OFFICE SUPPLIES 391,320 OUTSIDE SERVICES 62,736 EMPLOYEE EXPENSES 164,539 TRUSTEES 231,744 INSURANCES 100,236 DUES 109,213 DONATIONS 20,517 ANNUAL & DISTRICT MEETINGS 72,991 MISCELLANEOUS GENERAL 57,229 MAINTENANCE OF GENERAL PLANT 31,718 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,490,735 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (20,517) LESS: RECLASS OF TRUSTEES FEES TO PART IX, LINE 5 (181,566) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (819,463) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (504,186) LESS: RECLASS OF LABOR TO BILLING EXPENSE (1,046) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 963,957 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: BILLING EXPENSE $ 75,362 CONSUMER EXPENSES 544,604 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 619,966 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,027,608. PATRONAGE CAPITAL RETIRED - TOTAL -274,262. PATRONAGE CAPITAL RETIRED - DISCOUNT 26,626. PATRONAGE CAPITAL RETIRED - UNCLAIMED 42,946. NET CHANGE IN POST-RETIREMENT BENEFIT 92,909. 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.