2023-11-15T19:38:55-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 750405473 LYNTEGAR ELECTRIC COOPERATIVE INC LYNT 8065614588 PO BOX 970 TAHOKA TX 79373 BRENDA WHITTEN CFO 8065614588 2023-11-10 1 BRENDA WHITTEN 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-10 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z GREG HENLEY PO BOX 970 TAHOKA TX 79373 99643696 0 X WWW.LYNTEGAR.COOP X 1938 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 7 7 125 0 26355 0 0 0 87133526 98377561 2103075 1205489 18222 16240 89254823 99599290 12906 13058 3278079 5227307 8420602 11803361 0 0 0 75424824 81501701 87136411 98545427 2118412 1053863 280091329 281923196 136883091 138031234 143208238 143891962 OWNED AND OPERATED BY THOSE WE SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 23,577 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 1 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 45 0 125 1 1 1 0 0 0 0 98712736 2633079 0 0 0 X 7 7 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X BRENDA WHITTEN CFO 8065614588 1701 US HIGHWAY 87 TAHOKA TX 79373 X BENJAMIN FRANKLIN PRESIDENT 8.90 X X 29943 0 0 KEVIN MITCHELL VICE PRESIDENT 8.90 X X 24241 0 0 BILLY WEAVER SECRETARY/TREASURER 7.00 X X 23147 0 0 HR BARRON DIRECTOR 7.20 X 23288 0 0 RICKY DAY DIRECTOR 7.10 X 21791 0 0 THERON TIDWELL DIRECTOR 7.10 X 28823 0 0 ANDREW FURLOW DIRECTOR 8.60 X 8566 0 0 GREGORY HENLEY CEO 50.00 X 262504 0 58054 RAY BOX CFO 40.00 X 177505 0 46313 ROSS ATEN MANAGER OF ENGINEERING 60.00 X 158387 0 52203 BARRY PITTMAN MANAGER OF MEMBER SERVICES 48.00 X 161432 0 34024 JERRY RENO MANAGER OF INFORMATION TECHNOLOGY 40.00 X 156735 0 2502 JANA BISHOP MANAGER OF HUMAN RESOURCES 40.00 X 133472 0 17730 BRENDA WHITTEN MANAGER OF ACCOUNTING 50.00 X 123152 0 25815 DAVID ENGLE BRANCH MANAGER 44.00 X 113646 0 24094 AARON SMITH JOURNEYMAN 44.00 X 116905 0 23811 BRENT FOWLER JOURNEYMAN 42.00 X 117661 0 13792 MENFORD GANDY FORMER MANAGER OF OPERATIONS 0.00 X 163799 0 0 1844997 0 298338 24 1 1 0 ARROWHEAD LINE LLC PO BOX 755 CANYON TX 79015 CONSTRUCTION OF LINE 3140204 NIX ELECTRIC INC 720 LOOP 289 SE LUBBOCK TX 79404 TRANSFORMER REPAIR SERVICES 256680 BURNS & MCDONNELL ENGINEERING INC PO BOX 411883 KANSAS CITY MO 64141 ENGINEERING SERVICES 147817 COMPUTER TRANSITION SERVICES INC 3223 S LOOP 289 LUBBOCK TX 79423 COMPUTER/IT SERVICES 147294 MCCORD ENGINEERING INC 916 SW PARKWAY EAST COLLEGE STATION TX 77840 ENGINEERING SERVICES 106500 5 X SALES OF ELECTRICITY 221000 96119778 96119778 PATRONAGE DIVIDENDS 221000 2257783 2257783 98377561 1131659 1131659 18190 9202 37507 0 -19317 9202 -10115 9202 -19317 80729 6899 73830 73830 80729 -6899 INTERNET MARKETING 517000 42603 42603 PASS-THRU INVESTMENT INCOME(LOSS) 523000 -16248 -16248 26355 99599290 98467492 26355 1105443 X 13058 5227307 1269458 8686488 383836 1055635 407944 4827080 8554829 PURCHASED POWER 65228882 DISTRIBUTION EXPENSE 1741256 ADMIN & GENERAL EXPENSE 874135 TRANSMISSION EXPENSE 209188 66331 98545427 472582 857917 322183 113058 6632497 4769351 2828022 4529509 640720 754552 245893472 66303055 176110857 179590417 21404052 19155500 70054405 70504251 1626011 1648641 280091329 281923196 8367278 9611477 116471 122805 123574149 122617321 4825193 5679631 136883091 138031234 X 29155 29440 0 0 143179083 143862522 143208238 143891962 280091329 281923196 X 1053863 -2200373 1830234 X X 0 1 X 1 0 0 1 X 377960 377960 8991119 2469967 6521152 235092764 63833088 171259676 1431629 1431629 179590417 ALTERNATIVE INVESTMENTS 4757394 F MUTUAL FUNDS 6294903 F EXCHANGE-TRADED FUNDS & CLOSED-END FUNDS 2330097 F CORP FIXED INCOME 4426346 F GOVERNMENT SECURITIES 1346760 F 19155500 PATRONAGE CAPITAL - CFC 3155544 C PATRONAGE CAPITAL - NISC 83342 C PATRONAGE CAPITAL - NRTC 600161 C PATRONAGE CAPITAL - TEC 906463 C PATRONAGE CAPITAL - GSEC 54567076 C PATRONAGE CAPITAL - OTHER 7870 C CONTRIBUTED CAPITAL - GSEC 3787861 C CAPITAL TERM CERTIFICATES - CFC 2391224 C MEMBER CAPITAL SECURITIES - CFC 5000000 C OTHER INVESTMENTS - MEMBERSHIPS 4710 C 70504251 POWER COST OVER RECOVERY 1205918 ACCUMULATED POST RETIREMENT BENEFIT OBLIGATION 632838 UNCLAIMED PATRONAGE CAPITAL 1395582 DEFERRED CREDITS - CONSUMER DEPOSITS 162576 ACCRUED TAXES 381505 AID TO CONSTRUCTION 1901212 5679631 X 97288972 -2200373 -2200373 99489345 109775 170 109945 99599290 93191927 0 93191927 109775 5243725 5353500 98545427 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER TEXAS 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 DESIGNATED UNCLAIMED UNDER TEXAS 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. 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 ITS TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE OR OTHER STATE TAX AUTHORITY, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: BOOK TO TAX ADJUSTMENTS FOR INCOME REPORTED ON PARTNERSHIP SCHEDULES K-1 -16,248. RECLASSIFIED EXPENSES 16,418. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,227,307. RECLASSIFIED EXPENSES 16,418. 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. 0 NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP 20701 COOPERATIVE WAY DULLES VA 20166 520891669 501(C)(4) 10558 0 INTEGRITY FUND DONATION FOR COOPERATIVE SUPPORT 1 X X 0 0 0 GREGORY HENLEY CEO 246688 0 4500 0 11316 0 26245 0 31809 0 320558 0 0 0 RAY BOX CFO 158698 0 3300 0 15507 0 16825 0 29488 0 223818 0 0 0 ROSS ATEN MANAGER OF ENGINEERING 155749 0 1200 0 1438 0 16514 0 35689 0 210590 0 0 0 BARRY PITTMAN MANAGER OF MEMBER SERVICES 145835 0 2400 0 13197 0 15160 0 18864 0 195456 0 0 0 MENFORD GANDY FORMER MANAGER OF OPERATIONS 0 0 0 0 163799 0 0 0 0 0 163799 0 0 0 JERRY RENO MANAGER OF INFORMATION TECHNOLOGY 2390 0 7158 0 147187 0 290 0 2212 0 159237 0 0 0 JANA BISHOP MANAGER OF HUMAN RESOURCES 128354 0 1800 0 3318 0 12937 0 4793 0 151202 0 0 0 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 IV, SECTION 3. QUALIFICATIONS, WAS AMENDED TO TO STATE "ANY MEMBER WHO IS A NATURAL PERSON SHALL BE ELIGIBLE TO BECOME OR REMAIN A DIRECTOR PROVIDED THAT HE/SHE: (A) IS A MEMBER IN GOOD STANDING AND PRESENTLY RESIDES IN THE DISTRICT FOR WHICH SAID PERSON IS SEEKING TO BE NOMINATED OR ELECTED. (B) IS NOT AN EMPLOYEE OF THE COOPERATIVE OR AN OWNER OR PRINCIPAL OF AN ENTITY WHO ADVANCES THE PECUNIARY INTEREST OF THE BUSINESS BY PROVIDING ELECTRIC ENERGY, OR A GOOD OR SERVICE OR PRODUCT RELATED TO PROVIDING ELECTRIC ENERGY IN COMPETITION WITH THE COOPERATIVE." THE SECTION GOES ON TO AMEND PART (D) STATING: (D) HAS NOT, WHILE A DIRECTOR AND DURING THE TEN (10) YEARS IMMEDIATELY BEFORE BECOMING A DIRECTOR, BEEN CONVICTED OF, OR PLED GUILTY TO, A FELONY, TWO (2) MISDEMEANORS (EXCLUDING MINOR TRAFFIC VIOLATIONS), OR ANY OFFENSE INVOLVING MORAL TURPITUDE, OR HAS BEEN INDICTED BY A STATE OR FEDERAL GRAND JURY WHICH REMAINS PENDING AT THE TIME OF APPLICATION." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://LYNTEGAR.COOP/LEGAL-NOTICES/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 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 ON AN ANNUAL BASIS, LEGAL COUNSEL IS REQUIRED TO REVIEW THE CONFLICT OF INTEREST POLICY WITH THE DIRECTORS AND OFFICERS AT THE FIRST MEETING OF THE BOARD OF DIRECTORS FOLLOWING ELECTIONS. EACH DIRECTOR AND OFFICER MUST ALSO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. THEREAFTER, DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE INTERNAL RESOURCES AND PERFORM AN ANNUAL REVIEW WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER/CEO. THE BOARD AND THE GENERAL MANAGER/CEO USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING AND THE COOPERATIVE BYLAWS ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. 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. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A BASE AND A MATCHING CONTRIBUTION. EMPLOYER CONTRIBUTIONS TO THIS PLAN ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE PER PERSON 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 COOPERATIVE TO ITS MEMBERS. FORM 990, PART IX: ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE 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 $ 9,955,946 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (159,799) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (193,096) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,651,432 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,652,880 TOTAL WAGES ACCRUED AND/OR PAID $14,907,363 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,652,822 SAFETY, WELLNESS AND CONTINUING EDUCATION 88,078 OFFICE SUPPLIES 631,810 OUTSIDE SERVICES EMPLOYED 120,603 INSURANCES AND DAMAGES 93,685 REGULATORY COMMISSION 160,247 DIRECTORS 185,062 DUES PAID TO ASSOCIATED ORGANIZATIONS 86,414 ANNUAL MEETING 101,970 MISCELLANEOUS GENERAL (17,570) GENERAL ADVERTISING 121,377 MAINTENANCE OF GENERAL PLANT 339,649 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,564,147 LESS: RECLASS OF MISCELLANEOUS EXPENSES (143) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (159,799) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,086,682) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (443,388) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 874,135 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: SALES $ 366,129 CUSTOMER ACCOUNTS 800,325 CUSTOMER SERVICE AND INFORMATION 367,898 TOTAL OTHER EXPENSES PER FINANCIAL STATEMENTS $ 1,534,352 LESS: RECLASS OF LABOR TO PART IX, LINE 5 (1,304,179) LESS: RECLASS OF BENEFITS TO PART IX, LINE 8-10 (277,120) ADD: RECLASS OF SATELLITE & INTERNET EXPENSES 3,503 ADD: RECLASS OF INVESTMENT EXPENSES 109,775 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 66,331 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,227,307. PATRONAGE CAPITAL RETIRED - TOTAL -3,508,544. PATRONAGE CAPITAL RETIRED - DISCOUNT 3,224. NET CHANGE IN MEMBERSHIPS 285. OTHER COMPREHENSIVE INCOME - POST RETIREMENT HEALTH BENEFITS 91,714. OTHER - BOOK/TAX DIFFERENCE ON OTHER INVESTMENT INCOME 16,248. FORM 990, PART XII, LINE 2: 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. LEC DEVELOPMENT LLC PO BOX 970 TAHOKA TX 79373 752452483 INTERNET AND INVESTMENTS TX 136497 19676518 LYNTEGAR ELECTRIC COOPERATIVE INC