2023-12-08T17:02:44-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 850098061 JEMEZ MOUNTAINS ELECTRIC COOPERATIVE INC JEME 5057532105 PO BOX 128 ESPANOLA NM 87532 MICHAEL HASTINGS GENERAL MANAGER 5057532105 2023-12-07 1 MICHAEL HASTINGS 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-15 X 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z X MICHAEL HASTINGS PO BOX 128 ESPANOLA NM 87532 49861242 0 X WWW.JEMEZCOOP.ORG X 1943 NM TO PROVIDE RELIABLE AND AFFORDABLE POWER THROUGHOUT SERVICE AREAS ON A COOPERATIVE BASIS. 11 11 126 0 0 0 0 0 48579444 48157926 89683 59040 193483 1631039 48862610 49848005 0 3456 0 0 7407875 7463101 0 0 0 42795412 41525932 50203287 48992489 -1340677 855516 131345600 130164432 68183597 66549253 63162003 63615179 JEMEZ MOUNTAINS ELECTRIC COOPERATIVE'S VISION IS TO BE THE BEST ELECTRIC COOPERATIVE IN NEW MEXICO, BASED ON PRICE SUSTOMER SERVICE, AND RELIABILITY THROUGH WHICH WE ENHANCE THE QUALITY OF LIFE FOR THE COMMUNITIES WE SERVE. 0 0 SALE OF ELECTRIC ENERGY TO MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 31,459 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 1 1 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 0 1 1 0 0 1 171 0 126 1 0 0 0 0 0 42146475 5331458 0 0 0 X 11 11 0 0 0 0 1 1 1 1 0 0 0 0 1 1 1 1 0 1 1 0 X MICHAEL HASTINGS GENERAL MANAGER 5057532105 19365 SR 84/285 HERNANDEZ NM 87537 X DENNIS TRUJILLO PRESIDENT 7.00 1.00 X X 9600 0 0 MANUEL BUSTOS VICE PRESIDENT (AUG-DEC) 9.10 1.00 X X 4117 0 0 DOLORES MCCOY TREASURER 6.10 1.00 X X 8336 0 0 JOHN RAMON VIGIL SECRETARY 8.00 1.00 X X 12292 0 0 STANLEY CRAWFORD TRUSTEE 4.60 1.00 X 7855 0 0 LUCAS CORDOVA JR TRUSTEE 4.60 1.00 X 8657 0 0 BRUCE DURAN TRUSTEE 3.50 1.00 X 6092 0 0 ELIAS CORIZ TRUSTEE (AUG-DEC) 1.30 1.00 X 1924 0 0 MARISSA MAESTAS-MULLER TRUSTEE 4.20 1.00 X 8496 0 0 DENNIS GALLEGOS TRUSTEE (AUG-DEC) 6.40 1.00 X 3046 0 0 MARCELINA MARTINEZ TRUSTEE (AUG-DEC) 3.10 1.00 X 1924 0 0 LEO MARQUEZ TRUSTEE (JAN-JULY) 2.20 1.00 X 4489 0 0 NICK R NARANJO TRUSTEE (JAN-JULY) 2.00 1.00 X 3367 0 0 HAROLD TRUJILLO TRUSTEE (JAN-JULY) 1.50 1.00 X 3046 0 0 JOHNNY JARAMILLO TRUSTEE (JAN-JULY) 1.90 1.00 X 3527 0 0 MICHAEL HASTINGS GENERAL MANAGER 80.00 X 141286 0 21534 ERNESTO GONZALES GENERAL MANAGER (JAN-APR) 40.00 X 83548 0 331 TERESA CHAVEZ CFO (JAN-FEB) 47.00 X 8401 0 0 DENNIS G ASTLEY DIRECTOR OF ENGINEERING/OPERATIONS 75.00 X 105988 0 26535 RANDY VIGIL LINE SUPERINTENDENT 42.00 X 124223 0 17827 LEONARD BUSTOS JOURNEYMAN LINEMAN 47.00 X 125078 0 9068 675292 0 75295 4 0 1 0 4G ELECTRIC INC 1112 CR 17 CLOVIS NM 88101 CONSTRUCTION CONTRACTOR 1532926 FAMILY TREE SERVICE 1720 EDISON AVENUE ALAMOSA CO 81101 TREE TRIMMING 472159 BRADBURY STAMM CONTRUCTION 7110 2ND ST NW ALBUQUERQUE NM 87107 CONSTRUCTION CONTRACTOR 444154 MERIDIAN COOPERATIVE INC 100 ASHFORD CENTER NORTH ATLANTA GA 30338 SOFTWARE & BILLING SERVICES 343996 ASPLUNDH TREE EXPERT PO BOX 827464 PHILADELPHIA PA 19182 TREE TRIMMING 156833 6 X SALES OF ELECTRICITY 221000 46907041 46907041 PATRONAGE DIVIDENDS 221000 881270 881270 SERVICE FEES 221000 197892 197892 WHEELING 221000 171723 171723 48157926 59040 59040 4800 13237 -8437 -8437 -8437 PPP LOAN FORGIVENESS 221000 1418344 1418344 POLE ATTACHMENT INCOME 221000 221132 221132 1639476 49848005 49576270 0 271735 X 3456 341868 5570853 360923 722922 466535 2079652 3507479 PURCHASED POWER 28672560 ADMIN & GENERAL EXPENSE 3289398 DISTRIBUTION EXPENSE 1799021 CONSUMER EXPENSE 1419036 758786 48992489 5460979 4207501 10133038 8034660 4488607 3523374 29146 182385 2337294 2770989 551387 384358 144336396 65958816 77374400 78377580 22508553 23293353 8462196 9390232 131345600 130164432 5201336 5643684 60931383 58476335 1418344 632534 2429234 68183597 66549253 X 113970 133687 0 0 63048033 63481492 63162003 63615179 131345600 130164432 X 855516 -402340 X X 0 1 X 1 0 0 0 29076 325778 354854 390729 16589751 3608449 13372031 123910503 62350367 61560136 3090559 3090559 78377580 PATRONAGE CAPITAL-TSG&T 22260121 C PATRONAGE CAPITAL-COBANK 215191 C PATRONAGE CAPITAL-CFC 286282 C PATRONAGE CAPITAL-NMRECA 23900 C PATRONAGE CAPITAL-SEDC 271257 C PATRONAGE CAPITAL-WUESC 200228 C MEMBER CAPITAL SECURITIES-CFC 36374 C 23293353 REGULATORY ASSETS - PREPAID EASEMENTS 3067237 REGULATORY ASSETS - POWER SUPPLIER 3411644 ACCRUED UNBILLED REVENUE 2911351 9390232 CONSUMER DEPOSITS 134545 ACCRUED OPERATING TAXES 576791 OTHER ACCRUED LIABILITIES 17898 DEFERRED CREDITS - EASEMENTS 1700000 2429234 X 49848005 0 49848005 0 49848005 48992489 0 48992489 0 48992489 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE AND IS ANNUALLY REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) WITH THE IRS. THE COOPERATIVE IS SUBJECT TO INCOME TAX ON ANY UNRELATED BUINESS INCOME. THIS CODE SECTION PROVIDES THAT THE EXEMPT STATUS EXISTS ONLY IF 85% OF THE REVENUE CONSISTS OF AMOUNTS COLLECTED FROM MEMBERS FOR THE SOLE PURPOSE OF MEETING LOSSES AND EXPENSES. THE COOPERATIVE ACCOUNTS FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH ACCOUNTING STANDARDS CODIFICATION (ASC) 740-10. WHILE THE COOPERATIVE BELIEVES IT HAS ADEQUATELY PROVIDED FOR ALL TAX POSITIONS, AMOUNTS ASSERTED BY TAXING AUTHORITIES COULD BE DIFFERENT THAN THE POSITIONS TAKEN BY THE COOPERATIVE. THE COOPERATIVE RECOGNIZES ANY INTEREST AND PENALTIES ASSESSED BY TAXING AUTHORITIES IN INCOME TAX EXPENSE AND, WITH FEW EXCEPTIONS, IS NO LONGER SUBJECT TO FEDERAL,STATE AND LOCAL INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2018. 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 ALLOCATED TO THE PATRONS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". X X 0 0 0 MICHAEL HASTINGS GENERAL MANAGER 131077 0 0 0 10209 0 10404 0 11130 0 162820 0 0 0 FORM 990, PART I: IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET BOOK INCOME/(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL BE $0. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19 REPORTS NET INCOME OF $855,516, WHICH IS THE EFFECT OF NET MARGINS OFFSETTING PRIOR YEAR LOSSES. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 855,516 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ -0- TOTAL 2021 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 855,516 FORM 990, PART I: AN AMENDED RETURN HAS BEEN FILED IN ORDER TO CORRECT A DISCLOSURE ON BYLAW REQUIREMENTS FOR ELECTION OF THE AT LARGE TRUSTEE. THE DISCLOSURE FOR PART VI, SECTION A, LINE 7A HAS CHANGED TO STATE THE TRUSTEES ELECT THE AT LARGE TRUSTEE. 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 ON A DISTRICT BASIS AT THE RESPECTIVE DISTRICT MEETINGS. THE TRUSTEES ALSO VOTE ON THE ONE "AT LARGE" TRUSTEE AS PART OF THE ANNUAL MEETING. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS, EXCEPT THE TRUSTEE AT LARGE PER ABOVE. 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 REVIEWS THE FORM 990, THEN PROVIDES A COPY TO THE BOARD OF TRUSTEES FOR DISCUSSION AND REVIEW. FORM 990, PART VI, SECTION B, LINE 12C OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF TRUSTEES AS SOON AS POSSIBLE. ADDITIONALLY, THE BYLAWS DISQUALIFY A TRUSTEE FROM SERVING ON THE BOARD IF HE/SHE IS, IN ANY WAY, FINANCIALLY INTERESED IN A COMPETING ENTERPRISE OR A BUSINESS SELLING ELECTRIC ENERGY OR MAJOR SUPPLIES TO THE COOPERATIVE. FORM 990, PART VI, SECTION B, LINE 15 WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER, THE BOARD OF TRUSTEES UTILIZE A COMPENSATION SURVEY TO OBTAIN COMPENSATION DATA FOR GENERAL MANAGERS OF OTHER ELECTRIC COOPERATIVES LOCATED IN THE COOPERATIVE'S GEOGRAPHIC REGION. ADJUSTMENTS TO COMPENSATION ARE DELIBERATED AND APPROVED BY THE BOARD OF TRUSTEES. THE BOARD AND THE GENERAL MANAGER USE THE EXPERTISE 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 INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN THE COOPERATIVE'S GEOGRAPHIC REGION. ADJUSTMENTS TO COMPENSATION ARE DELIBERATED AND APPROVED BY THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. ADDDITIONALLY, THE ARTICLES OF INCORPORATION, BYLAWS, BOARD POLICIES (INCLUDING THE CONFLICT OF INTEREST POLICY), AND THE MOST RECENT COMPLETED SET OF AUDITED FINANCIAL STATEMENTS ARE LOCATED ON THE COOPERATIVE'S WEBSITE AT WWW.JEMEZCOOP.ORG. FORM 990, PART VI AND VII: THE COOPERATIVE ANNUALLY PROVIDES EACH TRUSTEE WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE AND TIME LOG. THE COMPLETED QUESTIONNAIRES AND TIME LOGS ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG TRUSTEES, OFFICER 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 AND/OR TIME LOG, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. TRUSTEES MARQUEZ, NARANJO, H TRUJILLO, AND JARMILLO RETIRED FROM THE BOARD AND DID NOT COMPLETE A QUESTIONNAIRE. THEREFORE, THEIR PRIOR YEAR QUESTIONNAIRE WAS RELIED UPON WHILE PREPARING THE RETURN. THERE WERE NO KNOWN CHANGES FROM 2020 TO 2021. 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. THE COOPERATIVE CONTRIBUTES BASED ON A PERCENTAGE OF THE PARTICIPATING EMPLOYEE'S SALARY AS DETERMINED UNDER THE PLAN DOCUMENT. EMPLOYER CONTRIBUTIONS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, AND LIFE INSURANCE TO ELIGIGLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE CONTRIBUTIONS TO THE 401(K) DEFERRED CONTRIBUTION PLAN AND THE INSURANCE PREMIUMS PAID FOR THEIR BENEFIT. 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 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. DURING 2020, THE COOPERATIVE APPLIED FOR AND RECEIVED A LOAN OF $1,418,344. AFTER FULFILLING THE REQUIREMENTS OF THE PROGRAM, THE COOPERATIVE APPLIED FOR AND WAS GRANTED LOAN FORGIVENESS. BECAUSE THE NATURE OF THE PROGRAM IS COMPRISED OF A BONA FIDE LOAN FOLLOWED BY LOAN FORGIVENESS, THE AMOUNT FORGIVEN WAS RECORDED AS INCOME. 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 ON THE ACCRUAL BASIS USING THE RURAL UTILITIES SERVICE'S (RUS) PRESCRIBED UNIFORM SYSTEM OF ACCOUNTS (USOA). 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, 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 5,912,390 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (86,768) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (21,534) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 986,654 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 507,079 TOTAL WAGES ACCRUED AND/OR PAID $ 7,297,820 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,732,826 OFFICE SUPPLIES 40,383 OUTSIDE SERVICES 154,611 INJURIES & DAMAGES 210,949 INFORMATION TECHNOLOGY 328,114 DUPLICATE CHARGES (CREDIT) (120,595) MISCELLANEOUS GENERAL 1,119,664 TRUSTEES 135,023 TRAININGS & MEETINGS 216,058 RATE RIDER 964,647 MAINTENANCE OF GENERAL PLANT 239,847 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 5,021,527 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (3,456) LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (86,768) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,291,938) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (349,967) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 3,289,398 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 TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2021 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 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: OTHER DEDUCTIONS $ 15,796 TAXES 742,975 TRANSMISSION 15 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 758,786 FORM 990, PART XI, LINE 9: NET CHANGE IN MEMBERSHIPS 710. CAPITAL CREDIT RECLASSIFICATION -289,194. PATRONAGE CAPITAL RETIRED -113,856. FORM 990, PART XII, LINE 2C: APPOINTED MEMBERS OF THE BOARD OF TRUSTEES SERVE ON THE AUDIT COMMITTEE. THIS COMMITTEE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND FOR RECOMMENDING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR TO THE FULL BOARD OF TRUSTEES. PROCEDURES REMAINED UNCHANGED DURING THE YEAR. JEMEZ MOUNTAINS ELECTRIC FOUNDATION PO BOX 128 ESPANOLA NM 87532 237022094 PROVIDE SCHOLARSHIPS TO STUDENTS NM 501(C)(3) PF JEMEZ MOUNTAINS ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 JEMEZ MOUNTAINS ELECTRIC FOUNDATION N N/A - LESS THAN $50,000 JEMEZ MOUNTAINS ELECTRIC FOUNDATION O N/A - LESS THAN $50,000 JEMEZ MOUNTAINS ELECTRIC FOUNDATION Q N/A - LESS THAN $50,000