2023-11-15T19:20:30-06:00 2022-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2022-01-01 730177775 CENTRAL RURAL ELECTRIC COOPERATIVE INC CENT 8003752884 PO BOX 1809 STILLWATER OK 74076 JAMES WELLS PRESIDENT 8003752884 2023-11-03 1 JAMES WELLS 999009999 0 WILLIAM M MILLER P00439459 8067473806 2023-11-03 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z HUNTER ROBINSON PO BOX 1809 STILLWATER OK 74076 69622830 0 X WWW.MYCENTRAL.COOP X 1938 OK TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 0 0 3631605 1740 0 0 60777648 65539757 257331 290587 649606 3784192 61684585 69614536 18746 17717 3953994 5016199 8498152 10397524 0 0 0 50787022 57136787 63257914 72568227 -1573329 -2953691 193484177 254793736 109807085 170411661 83677092 84382075 EMPOWERING OUR MEMBERS AND COMMUNITIES. 0 0 SALE OF ELECTRIC POWER TO MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 23,526 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 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 0 0 0 1 1 1 0 0 0 0 63995653 4887259 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 OK X X SONDRA WHITE VP OF FINANCE 4053722884 3305 S BOOMER ROAD STILLWATER OK 74076 X CAROL DVORAK SECRETARY/TREASURER 9.40 X X 25000 0 0 GARY MCCUNE VICE PRESIDENT 9.00 X X 24500 0 0 JAMES WELLS PRESIDENT 8.60 X X 23750 0 0 MARK PITTMAN TRUSTEE 9.80 X 22750 0 0 SID SPERRY TRUSTEE 9.10 X 22000 0 0 JOHN GREG TYTENCIZ TRUSTEE 6.80 X 17000 0 0 BILL DAVIS TRUSTEE 5.50 X 11000 0 0 HUNTER ROBINSON CEO 50.00 X 256169 0 277565 SONDRA WHITE VP OF FINANCE 45.00 X 145082 0 44641 MARK PRATHER PRESIDENT OF FIBER 40.00 X 146444 0 73170 CLINT ROBINSON LINE FOREMAN 40.00 X 134099 0 62396 YUVARAJ KONDASWAMY SYSTEM ENGINEER 40.00 X 128696 0 56804 LEE LINSENMEYER LINEMAN 40.00 X 131238 0 44643 MICHAEL MUSIL LINEMAN 40.00 X 117719 0 47136 1205447 0 606355 21 0 1 0 ERVIN CABLE CONSTRUCTION PO BOX 10 STURGIS KY 42459 FIBER CONSTRUCTION 11378664 MDR CONSTRUCTION 621 E BAYLIS CHAPEL RD COLUMBIA MS 39429 ELECTRIC CONSTRUCTION 7565893 DAVIS H ELLIOT CONSTRUCTION CO INC 673 BLUE SKY PARKWAY LEXINGTON KY 40509 ELECTRIC CONSTRUCTION 6759283 RIGGS TREE SERVICE INC PO BOX 453225 GROVE OK 74345 TREE CLEARING 4774767 CONEXON LLC 2001 GRAND BLVD STE 700 KANSAS CITY OK 64108 FIBER CONSTRUCTION, PROJECT MGT 3814835 14 X SALES OF ELECTRICITY 221000 63106021 63106021 PATRONAGE DIVIDENDS 221000 2219250 2219250 SERVICE FEES & OTHER CHARGES 221000 162559 162559 SOLAR & OTHER PROGRAM REVENUE 221000 51927 51927 65539757 242084 242084 70640 3240 0 0 70640 3240 73880 70640 3240 56750 8247 48503 48503 48503 47 -47 -47 BROADBAND REVENUE 517000 3628365 3628365 POLE ATTACHMENT INCOME 221000 70550 70550 MISC NON-OPERATING REVENUE 221000 11444 11444 3710359 69614536 65670297 3631605 312634 X 17717 5016199 869457 6184969 1210241 1636409 496448 3444017 6960799 PURCHASED POWER 36798584 DISTRIBUTION EXPENSE 5037598 COST OF INTERNET SALES 2111348 ADMIN & GENERAL EXPENSE 594659 2189782 72568227 2737140 6099129 8564941 7301966 3475647 6272470 4260404 6046281 900635 777517 260321462 73786196 133077774 186535266 37294763 38777286 3172873 2983821 193484177 254793736 7438413 10915178 86550171 143925257 15818501 15571226 109807085 170411661 X 847265 874265 0 0 82829827 83507810 83677092 84382075 193484177 254793736 X -2953691 3658674 X X 0 1 X 1 0 1179946 1179946 20686009 8063647 12622362 196340330 65716072 130624258 42115177 6477 42108700 186535266 CAPITAL TERM CERTIFICATES - CFC 933754 C PATRONAGE CAPITAL - CFC 165648 C PATRONAGE CAPITAL - KAMO POWER 34477311 C PATRONAGE CAPITAL - NISC 160021 C PATRONAGE CAPITAL - COBANK 524757 C PATRONAGE CAPITAL - AECI 1838082 C PATRONAGE CAPITAL - OTHER 456796 C NOTES RECEIVABLE-CIA INSTALL 64700 C INVESTMENTS IN OTHERS 156217 C 38777286 CONSUMER DEPOSITS 2812499 CUSTOMER ADVANCES FOR CONSTRUCTION 1276853 OIL LOAD REVENUE DEFERRAL PLAN 6481259 DEFERRED CREDITS 626735 PROVISION FOR POST-RETIREMENT BENEFIT 3489724 ACCOUNTS PAY - GROSS RECEIPTS TAX 116083 OVER/UNDER COLLECTION OF POWER COSTS 762961 OTHER LIABILITIES FROM CONSOLIDATION 5112 15571226 X 69558403 0 69558403 56133 56133 69614536 67495895 0 67495895 5072332 5072332 72568227 PART X, LINE 2: THE COOPERATIVE AND SUBSIDIARIES FOLLOWS 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 AND SUBSIDIARIES DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS 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: RECLASS OF NONOPERATING EXPENSES 56,133. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,016,199. RECLASS OF NONOPERATING EXPENSES 56,133. 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". X X 0 0 0 HUNTER ROBINSON CEO 242863 0 1408 0 11898 0 250661 0 26904 0 533734 0 0 0 MARK PRATHER PRESIDENT OF FIBER 142972 0 1408 0 2064 0 49698 0 23472 0 219614 0 0 0 CLINT ROBINSON LINE FOREMAN 132322 0 1408 0 369 0 39396 0 23000 0 196495 0 0 0 SONDRA WHITE VP OF FINANCE 143003 0 1408 0 671 0 31639 0 13002 0 189723 0 0 0 YUVARAJ KONDASWAMY SYSTEM ENGINEER 126927 0 1408 0 361 0 33487 0 23317 0 185500 0 0 0 LEE LINSENMEYER LINEMAN 129499 0 1274 0 465 0 21707 0 22936 0 175881 0 0 0 MICHAEL MUSIL LINEMAN 116070 0 1240 0 409 0 24214 0 22922 0 164855 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. 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. HUNTER ROBINSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 242,855 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,806 TOTAL REPORTED IN COLUMN C $ 250,661 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (242,855) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 62,342 EXPENSE TO THE COOPERATIVE $ 70,148 MARK PRATHER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 45,157 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,541 TOTAL REPORTED IN COLUMN C $ 49,698 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (45,157) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 42,322 EXPENSE TO THE COOPERATIVE $ 46,863 CLINT ROBINSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,454 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,942 TOTAL REPORTED IN COLUMN C $ 39,396 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (36,454) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,305 EXPENSE TO THE COOPERATIVE $ 26,247 SONDRA WHITE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 27,332 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,307 TOTAL REPORTED IN COLUMN C $ 31,639 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (27,332) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 39,403 EXPENSE TO THE COOPERATIVE $ 43,710 YUVARAJ KONDASWAMY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 29,501 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,986 TOTAL REPORTED IN COLUMN C $ 33,487 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (29,501) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,064 EXPENSE TO THE COOPERATIVE $ 40,050 LEE LINSENMEYER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 18,926 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,781 TOTAL REPORTED IN COLUMN C $ 21,707 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,926) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,924 EXPENSE TO THE COOPERATIVE $ 23,705 MICHAEL MUSIL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,591 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,623 TOTAL REPORTED IN COLUMN C $ 24,214 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,591) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,193 EXPENSE TO THE COOPERATIVE $ 22,816 FORM 990, PART I, LINE 19: THE COOPERATIVE PROVIDES BROADBAND INTERNET SERVICES WITHIN ITS SERVICE AREA ON A NON-PATRONAGE BASIS. SUCH SERVICES ARE PROVIDED THROUGH A WHOLLY-OWNED SUBSIDIARY THAT IS TREATED AS A DISREGARDED ENTITY UNDER FEDERAL TAX LAW. BECAUSE THE LOSSES FROM THESE OPERATIONS ARE USED TO OFFSET FUTURE NET MARGINS DERIVED FROM THE SUBSIDIARY AND ARE NOT ALLOCATED TO THE MEMBERS, PART I, LINE 19 IS REFLECTIVE OF NET INCOME (LOSS) FROM THE BROADBAND OPERATIONS. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE BYLAWS OF THE COOPERATIVE WERE AMENDED. MEMBERS OF THE COOPERATIVE WHO ATTENDED THE ANNUAL MEETING OF MEMBERS APPROVED PROPOSED BYLAW AMENDMENTS BY A MAJORITY VOTE. A SUMMARY OF THE AMENDMENTS IS AS FOLLOWS: ARTICLE IV - TRUSTEES SECTION 4 - DISTRICTS. CHANGED NUMBER OF DISTRICTS FROM EIGHT TO SEVEN. STRUCK OUT SENTENCE ABOUT VACANCIES OF TRUSTEES. SECTION 5 - DISTRICT MEETINGS. CHANGED TIME OF DISTRICT MEETING PRIOR TO ANNUAL MEETING FROM NOT LESS THAN 10 DAYS NOR MORE THAN 60 DAYS TO 30 TO 60 DAYS PRIOR. ONLY MEMBER OF SUCH DISTRICTS WILL BE ABLE TO VOTE FOR THE TRUSTEE. SECTION 6 - NOTICE OF DISTRICT MEETINGS. CHANGED THAT NOTICE WILL BE PUBLISHED TO MEMBERSHIP A MINIMUM OF 30 DAYS PRIOR AND CAN BE MAILED OR EMAILED. SECTION 7 - CANIDACY. CHANGED FILING PERIOD FOR DISTRICT ELECTION TO FIVE-BUSINESS DAY FILING PERIOD SHALL BE HELD A MINIMUM OF 60 DAYS PRIOR TO FIRST DISTRICT ELECTION. SECTION 8 - ELECTION. ADDED SENTENCE THAT IF ONLY ONE CANDIDATE FILES FOR ELECTION, THE BOARD SHALL APPOINT THE TRUSTEE FOR THE THREE-YEAR TERM. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://MYCENTRAL.COOP/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 TRUSTEES. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS BY DISTRICT. 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 PROVIDED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. 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, AND ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS PERIODICALLY REVIEWED WITH EMPLOYEES AND TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE CEO. THE BOARD AND THE CEO UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES 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 18 ONCE THE FORM 990 FOR THE YEAR IS ELECTRONICALLY FILED, THE COOPERATIVE WILL UPLOAD A PDF COPY TO GUIDESTAR AT WWW.GUIDESTAR.ORG. THIS WILL ENSURE THAT THE PUBLIC HAS TIMELY ACCESS TO THE FORM 990. THE COOPERATIVE ALSO PROVIDES A LINK TO GUIDESTAR FROM ITS OWN WEBSITE. ENSURING A COPY OF THE FORM 990 IS UPLOADED STARTED WITH THE 2020 FORM 990. HOWEVER, UPON IMPLEMENTATION, THE COOPERATIVE ALSO UPLOADED THE 2019 FORM 990 TO GUIDESTAR SO THAT ALL YEARS SUBJECT TO PUBLIC INSPECTION ARE AVAILABLE. 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. THE COOPERATIVE'S BYLAWS AND ANNUAL REPORT ARE AVAILABLE ON ITS WEBSITE AS WELL AS A SUMMARY OF THE CURRENT YEAR REGULAR BOARD MEETINGS AT WWW.MYCENTRAL.COOP. 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 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 ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND THE INSURANCE PREMIUMS PAID 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 2: 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, 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 $ 7,054,426 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (146,000) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (322,206) PLUS: SALARIES & WAGES ALLOCATED TO NONOPERATING MARGINS 8,320 PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 890,238 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 256,994 TOTAL WAGES ACCRUED AND/OR PAID $ 7,741,772 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 2,466,796 OFFICE SUPPLIES 327,562 OUTSIDE SERVICES EMPLOYED 337,437 PENSIONS & BENEFITS 8,330 DUPLICATE CHARGES - CREDIT (45,273) ADVERTISING 110,574 MISCELLANEOUS GENERAL 178,238 DISTRICT & ANNUAL MEETINGS 187,797 DUES TO ASSOCIATED ORGANIZATIONS 155,712 TRUSTEES 278,517 MAINTENANCE OF GENERAL PLANT 765,796 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,771,486 LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (146,000) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,589,654) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,441,173) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 594,659 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, LINE 1: ALL GRANTS, DONATIONS, AND/OR SPONSORSHIPS 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. EACH GRANT, DONATION, AND/OR SPONSORSHIP MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART IX: THE ACCOUNTING RECORDS OF THE COOPERATIVE 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 ITS 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, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: BROADBAND EXPENSES $ -60,440 SALES 959,269 TAXES 47,601 CONSUMER 855,270 OTHER DEDUCTIONS 388,082 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $2,189,782 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,016,199. PATRONAGE CAPITAL RETIRED - TOTAL -1,993,145. UNCLAIMED PATRONAGE CAPITAL RETAINED PER STATE LAW 714,396. DONATED CAPITAL 12,454. NET CHANGE IN MEMBERSHIPS 27,000. OCI - PENSIONS & BENEFITS -118,230. FORM 990, PART XII, LINE 2C: THE BOARD OF TRUSTEES 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. INNOVATION POINTE LLC PO BOX 1809 STILLWATER OK 74076 454383291 SOFTWARE OK 51927 1352957 CENTRAL RURAL ELECTRIC COOPERATIVE INC CENTRANET LLC PO BOX 1809 STILLWATER OK 74076 BROADBAND OK 3627665 1865538 CENTRAL RURAL ELECTRIC COOPERATIVE INC CENTRAL COMMUNITY FOUNDATION PO BOX 1809 STILLWATER OK 74076 204700369 DONATIONS OK 501(C)(3) 10 CENTRAL RURAL ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 CENTRAL COMMUNITY FOUNDATION N N/A - LESS THAN $50,000 CENTRAL COMMUNITY FOUNDATION O N/A - LESS THAN $50,000 CENTRAL COMMUNITY FOUNDATION Q N/A - LESS THAN $50,000