2023-11-15T14:45:24-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 850058679 OTERO COUNTY ELECTRIC COOPERATIVE INC OTER 5756822521 404 BURRO AVE CLOUDCROFT NM 88317 JULIE WALKER-GRINDER CFO 5756822521 2023-11-01 1 JULIE WALKER-GRINDER 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-01 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z MARIO ROMERO CEO 404 BURRO AVE CLOUDCROFT NM 88317 35255960 0 X WWW.OCEC-INC.COM X 1943 NM TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 10 10 69 0 560 0 0 0 33851517 34768802 59823 110689 1466931 374970 35378271 35254461 17315 20025 2879073 2437413 4688952 4485081 0 0 0 27786151 28312485 35371491 35255004 6780 -543 129151752 128178058 88864274 87285424 40287478 40892634 X PROVIDING MEMBERS WITH THE LOWEST COST, HIGHEST QUALITY, AND MOST RELIABLE ELECTRIC POWER, CONSISTENT WITH SOUND AND COST-EFFECTIVE BUSINESS PRACTICES, AND COLLABORATE WITH MEMBERS TO PROVIDE RESOURCES AND SERVICES THAT MAY BE BENEFICIAL TO OUR MEMBERS AND CITIZENS OF THE COMMUNITIES WE SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 20,388 ACTIVE SERVICES AT YEAR END. 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 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 57 0 69 1 1 1 0 0 0 0 35401872 687447 0 0 0 X 10 10 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 0 1 1 1 0 X JULIE WALKER-GRINDER CFO 5756822521 404 BURRO AVE CLOUDCROFT NM 88317 X CHARLES MULCOCK PRESIDENT 2.30 1.00 X X 17446 0 0 CHERI HASS TRUSTEE 1.80 1.00 X 1532 0 0 DAVID POWERS TRUSTEE 2.80 1.00 X 6333 0 0 DENNY BURNETT VICE PRESIDENT 3.00 1.00 X X 25022 0 0 KENNETH BLAZER TRUSTEE 3.00 1.00 X 1532 0 0 MARTHA MILLS SECRETARY 3.00 1.00 X X 15946 0 0 PRESTON STONE TRUSTEE 2.10 1.00 X 18935 0 0 SCOTT SHAFER TREASURER 3.00 1.00 X X 16864 0 0 WILLIAM BIRD TRUSTEE 3.00 1.00 X 16396 0 0 TIMOTHY ALAN RABON TRUSTEE 10.00 1.00 X 17874 0 0 MARIO ROMERO GENERAL MANAGER/CEO 50.00 X 220895 0 113079 JULIA WALKER-GRINDER CFO 50.00 X 132883 0 61979 DAMON MAREZ IT MANAGER 50.00 X 153842 0 135517 WILBURN RUSH OPERATIONS MANAGER 40.00 X 130574 0 115204 MARK MARTIN AREA SUPERVISOR 51.00 X 117508 0 89696 MATTHEW CHAVEZ CREW CHIEF 42.00 X 126661 0 35081 CHRISTOFER HUGHES CREW CHIEF 50.00 X 113318 0 44014 1133561 0 594570 13 0 1 0 SOLAR ELECTRIC CO INC PO BOX 2741 LAS CRUCES NM 88004 CONSTRUCTION SERVICES 1379705 ROGERS TREE SERVICE PO BOX 707 HIGH ROLLS NM 88325 POWER LINE CLEARING 839984 ARC POWER LINE CONSTRUCTION LLC 6551-4 SEVEN RIVERS HWY ARTESIA NM 88210 CONSTRUCTION SERVICES 561165 GRAE INC 340 S LEMON AVE 7474 WALNUT CA 91789 INFORMATION TECHNOLOGY SERVICES 341952 OSMOSE UTILITIES SERVICES INC PO BOX 736729 DALLAS TX 75373 INFRASTRUCTURE SAFETY 321371 6 X SALES OF ELECTRICITY 221000 34139013 34139013 PATRONAGE DIVIDENDS 221000 452122 452122 SERVICE & OTHER FEES 221000 177667 177667 34768802 82949 82949 63984 1560 0 1000 63984 560 64544 63984 560 27985 245 27740 27740 27740 150 254 -104 -104 POLE ATTACHMENT INCOME 221000 214960 214960 PPP LOAN FORGIVENESS 221000 95570 95570 310530 35254461 34860422 560 393479 X 20025 2437413 666716 2618357 401557 612256 186195 2704270 4305816 PURCHASED POWER 16137944 DISTRIBUTION EXPENSE 2817853 ADMIN & GENERAL EXPENSE 1507911 CONSUMER EXPENSES 727659 111032 35255004 1898828 626384 11458258 8121336 998944 1225335 628911 1847705 1817201 1724842 144595626 48217800 94551438 96377826 14782416 14745058 3015756 3509572 129151752 128178058 3658581 3576451 79956395 78778515 5249298 4930458 88864274 87285424 X 0 0 0 0 40287478 40892634 40287478 40892634 129151752 128178058 X -543 605699 X X 0 1 X 0 0 866145 866145 9503287 2046566 7456721 132738836 46171234 86567602 1487358 1487358 96377826 MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 1220 C CAPITAL TERM CERTIFICATES - CFC 70124 C PATRONAGE CAPITAL - TSGT 11580949 C PATRONAGE CAPITAL - CFC 133577 C PATRONAGE CAPITAL - FEDERATED 470342 C PATRONAGE CAPITAL - COBANK 1472101 C PATRONAGE CAPITAL - NISC 109788 C PATRONAGE CAPITAL - PVTC 2070 C PATRONAGE CAPITAL - CRC 9519 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 8094 C DEFERRED COMPENSATION FUNDS 887274 C 14745058 CONSUMER DEPOSITS AND PREPAYMENTS 580667 ACCRUED OPERATING TAXES 536239 ACCUMULATED PROVISIONS FOR POST RETIREMENT BENEFITS 1949317 DEFERRED CREDITS - ADVANCES FOR CONSTRUCTION 267977 DEFERRED CREDITS - ENERGY EFFICIENCY PROGRAM 1274801 DEFERRED CREDITS - SOLAR FARM 172076 DEFERRED CREDITS - TESLAS 46849 DEFERRED CREDITS - OTHER 102532 4930458 X 35255461 1000 1000 35254461 0 35254461 32818591 0 32818591 2436413 2436413 35255004 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 ITS TAX POSITION 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 2D - OTHER ADJUSTMENTS: RECLASSIFICATION OF RENTAL EXPENSES TO PART VIII, LINE 6B 1,000. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,437,413. RECLASSIFICATION OF RENTAL EXPENSES TO PART VIII, LINE 6B -1,000. 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 CAPITAL 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 THRIVE IN SOUTHERN NEW MEXICO PO BOX 14 ALAMOGORDO NM 88310 850197559 501(C)(3) 10142 0 THE COOPERATIVE MATCHES CONTRIBUTIONS MADE BY THE EMPLOYEES. 1 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 1 1 X X 0 0 0 MARIO ROMERO GENERAL MANAGER/CEO 183821 0 15404 0 21670 0 83204 0 29875 0 333974 0 0 0 DAMON MAREZ IT MANAGER 119419 0 2526 0 31897 0 122023 0 13494 0 289359 0 0 0 WILBURN RUSH OPERATIONS MANAGER 90953 0 0 0 39621 0 96938 0 18266 0 245778 0 0 0 MARK MARTIN AREA SUPERVISOR 103183 0 2249 0 12076 0 62240 0 27456 0 207204 0 0 0 JULIA WALKER-GRINDER CFO 118451 0 2592 0 11840 0 33567 0 28412 0 194862 0 0 0 MATTHEW CHAVEZ CREW CHIEF 124310 0 1800 0 551 0 22940 0 12141 0 161742 0 0 0 CHRISTOFER HUGHES CREW CHIEF 111034 0 1800 0 484 0 18416 0 25598 0 157332 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - THE COOPERATIVE MAY, LIMITED TO ONCE ANNUALLY, REIMBURSE TRUSTEES AND THE GENERAL MANAGER THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL, APPROVED, BUSINESS OF THE COOPERATIVE. REIMBURSABLE COSTS INCLUDE TRAVEL AND MEAL ALLOWANCES. SINCE THE COOPERATIVE CONSIDERS THE REIMBURSEMENT TO BE CONSISTENT TO A BONA FIDE BUSINESS PURPOSE, SUCH REIMBURSEMENTS ARE TREATED AS EXPENSES EXCLUDED FROM REPORTABLE COMPENSATION. DURING THE YEAR, NO INDIVIDUALS REPORTED ON FORM 990, PART VII RECEIVED THIS BENEFIT. HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES - THE COOPERATIVE PAYS A PORTION OF GYM MEMBERSHIPS FOR EMPLOYEES AND THEIR SPOUSES. 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. MARIO ROMERO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 74,765 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,439 TOTAL REPORTED IN COLUMN C $ 83,204 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (74,765) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 44,959 EXPENSE TO THE COOPERATIVE $ 53,398 DAMON MAREZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $116,297 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,726 TOTAL REPORTED IN COLUMN C $122,023 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (116,297) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,685 EXPENSE TO THE COOPERATIVE $ 36,411 WILBURN RUSH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 92,542 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,396 TOTAL REPORTED IN COLUMN C $ 96,938 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (92,542) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 22,127 EXPENSE TO THE COOPERATIVE $ 26,523 MARK MARTIN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 57,822 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,418 TOTAL REPORTED IN COLUMN C $ 62,240 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (57,822) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,509 EXPENSE TO THE COOPERATIVE $ 27,927 JULIA WALKER-GRINDER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 28,282 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,285 TOTAL REPORTED IN COLUMN C $ 33,567 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (28,282) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,137 EXPENSE TO THE COOPERATIVE $ 33,422 MATTHEW CHAVEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,453 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,487 TOTAL REPORTED IN COLUMN C $ 22,940 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (19,453) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,626 EXPENSE TO THE COOPERATIVE $ 22,113 CHRISTOFER HUGHES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 15,152 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,264 TOTAL REPORTED IN COLUMN C $ 18,416 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (15,152) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,868 EXPENSE TO THE COOPERATIVE $ 20,132 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. 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. THE DISCUSSION AND REVIEW TOOK PLACE AT THE SCHEDULED BOARD MEETING BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES ARE GOVERNED BY THE BYLAWS. A TRUSTEE IS DISQUALIFIED AND SHALL BE REMOVED IF HE/SHE IS EMPLOYED BY OR INVESTS IN A BUSINESS, WHICH COMPETES WITH THE COOPERATIVE. THE EMPLOYEES ARE GOVERNED BY A CONFLICT OF INTEREST POLICY. THE COOPERATIVE ENFORCES THE POLICY BY EXPLAINING IT TO NEW EMPLOYEES AND BY REMINDING ITS EMPLOYEES OF THEIR DUTIES TO ANNUALLY DISCLOSE CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 ANNUALY, THE BOARD VOTES TO APPROVE THE CEO'S SALARY BASED ON A REVIEW OF A NATIONAL COMPENSATION SURVEY AS WELL AS THE CONSUMER PRICE INDEX. THE CEO DETERMINES THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND/OR KEY EMPLOYEE, IF ANY, BASED ON A REVIEW OF A NATIONAL COMPENSATION SURVEY AS WELL AS THE CONSUMER PRICE INDEX. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTERST POLICY AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. THE COOPERATIVE ANNUALLY MAILS A SUMMARIZED COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THEIR ANNUAL MEETING NOTICE. ADDITIONALLY, THE BYLAWS AND ARTICLES OF INCORPORATION ARE INCLUDED IN THE MEMBER HANDBOOK THAT IS ALSO AVAILABLE ON THE COOPERATIVE'S 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 THE OFFICERS IS COMPRISED OF THE 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 PENSION 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 2B: 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, PAGE 9, PART VIII, LINE 11A: THE CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (CARES ACT) ESTABLISHED THE PAYCHECK PROTECTION PROGRAM (PPP) TO PROVIDE LOANS TO SMALL BUSINESSES AS A DIRECT INCENTIVE TO KEEP THEIR WORKERS ON THE PAYROLL. THE LOANS ARE FORGIVEN IF ALL EMPLOYEE RETENTION CRITERIA ARE MET AND THE FUNDS ARE USED FOR ELIGIBLE EXPENSES. IN 2021 $1,177,587 WAS FORGIVEN BY THE SBA, WITH THE REMAINING $95,570 FORGIVEN IN 2022. AFTER FULFILLING THE REQUIREMENTS OF THE PROGRAM, THE COOPERATIVE RECORDED THE ANTICIPATED LOAN FORGIVENESS AS INCOME, BECAUSE THE NATURE OF THE PROGRAM IS COMPRISED OF A BONA FIDE LOAN FOLLOWED BY LOAN FORGIVENESS. ALTHOUGH THE INSTRUCTIONS TO FORM 990 STATE THAT THE AMOUNT OF PPP LOANS THAT ARE FORGIVEN MAY BE REPORTED ON LINE 1E AS CONTRIBUTIONS FROM A GOVERNMENTAL UNIT, THE COOPERATIVE HAS CHOSEN TO REPORT THE PPP LOAN FORGIVENESS AS OTHER INCOME ON LINE 11A. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RURAL UTILITY SERVICES (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 $ 3,285,073 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (137,880) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (175,058) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,333,510 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSES INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 348,275 TOTAL WAGES ACCRUED AND/OR PAID $ 4,653,920 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,410,619 OFFICE SUPPLIES 291,364 OUTSIDE SERVICES 125,517 INJURIES AND DAMAGES 486,921 REGULATORY COMMISSION 170,525 MISCELLANEOUS GENERAL 191,967 TRUSTEES 196,853 MAINTENANCE OF GENERAL PLANT 265,347 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,139,113 LESS: RECLASS OF RENTAL EXPENSES TO PART VIII, LINE 6B (1,000) LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (137,880) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,020,285) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (472,037) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,507,911 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 2,437,413. PATRONAGE CAPITAL RETIRED - TOTAL -2,124,127. PATRONAGE CAPITAL RETIRED - DISCOUNT 35,727. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS 256,686. 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. OTERO COUNTY ELECTRIC EDUCATION FOUNDATION PO BOX 227 CLOUDCROFT NM 88317 850374112 TO PROVIDE COLLEGE SCHOLARSHIPS TO ACTIVE MEMBERS OF THE CO-OP NM 501(C)(3) PF OTERO COUNTY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 OTERO COUNTY ELECTRIC EDUCATION FOUNDATION N N/A - LESS THAN $50,000 OTERO COUNTY ELECTRIC EDUCATION FOUNDATION O N/A - LESS THAN $50,000