2022-05-11T10:28:55-05:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 730375825 NORTHWESTERN ELECTRIC COOPERATIVE INC NORT 5802567425 PO BOX 2707 WOODWARD OK 73802 TYSON LITTAU CEO 5802567425 2022-05-09 1 TYSON LITTAU 999009999 WILLIAM M MILLER P00439459 8067473806 2022-05-09 X 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z TYSON LITTAU PO BOX 2707 WOODWARD OK 73802 38538771 0 X WWW.NWECOK.COOP X 1940 OK TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 9 9 60 0 74160 0 0 0 33154949 37125097 95000 72372 90665 1297512 33340614 38494981 23364 24722 1764441 2291010 5592379 5766260 0 0 0 25960430 30412989 33340614 38494981 0 0 112170840 124554121 79133812 90045011 33037028 34509110 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 - 11,864 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 44 0 60 1 1 1 0 0 0 0 37361069 503473 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 OK X TYSON LITTAU CEO 5802567425 2925 WILLIAMS AVENUE WOODWARD OK 73801 X MARVIN WILKINSON TRUSTEE 4.30 X 25076 0 0 JEFF MCINTOSH TRUSTEE 3.40 X 21396 0 0 JOHN BRUCE JR SECRETARY/TREASURER 4.50 X X 21060 0 0 KENNETH KNOWLES PRESIDENT 4.70 X X 20671 0 0 DARLA YOUNG TRUSTEE 3.50 X 20646 0 0 CLAIR CRAIGHEAD TRUSTEE 3.90 X 18796 0 0 RAY SMITH VICE PRESIDENT 2.40 X X 18646 0 0 DUANE HENDERSON TRUSTEE 2.60 X 18210 0 0 GILBERT PERKINS TRUSTEE 5.00 X 13300 0 0 TYSON LITTAU CEO 50.00 X 236427 0 143578 JARET DOWLER DIRECTOR OF ENGINEERING/OP 50.00 X 138770 0 116386 BRENT MCDOWELL DIRECTOR OF SAFETY 45.00 X 112219 0 120423 LARRY STEBENS DISTRICT MANAGER 45.00 X 106551 0 116191 JAMIE RUBLE DIRECTOR OF FINANCE & ADMI 43.00 X 127508 0 89899 CLINTON LEFORCE LINE FOREMAN 46.00 X 105201 0 69895 1004477 0 656372 10 0 1 0 RES SYSTEM 3 LLC 1610 ARDEN WAY STE 280 SACRAMENTO CA 95815 ELECTRIC SYSTEM STORM MITIGATION 18139123 POWER CONSULTING ASSOCIATES 880 GREEN LEA BLVD STE B GALLATIN TN 37066 INSPECTIONS 1225317 RMA ENGINEERING LLC PO BOX 673 CONCORDIA KS 66901 STAKING 739033 COX MCCLAIN ENVIRONMENTAL CONSULTING 8401 SHOAL CREEK BLVD AUSTIN TX 78757 ENVIRONMENTAL 610275 RIGGS TREE SERVICE INC PO BOX 453225 GROVE OK 74345 TREE TRIMMING AND RIGHT OF WAY MAINT. 573384 6 X SALES OF ELECTRICITY 221000 36349769 36349769 PATRONAGE DIVIDENDS 221000 681204 681204 DISTRIBUTION LINE LEASE 221000 54924 54924 SERVICE FEES 221000 39200 39200 37125097 48820 48820 7 7 39640 16088 23552 23552 23552 41292 27702 13590 13590 PPP LOAN FORGIVENESS 221000 1200000 1200000 BILLING REVENUE 561499 74160 74160 POLE ATTACHMENT INCOME 221000 9755 9755 1283915 38494981 37162239 74160 1258582 X 17222 7500 2291010 557806 3246542 817527 914540 229845 2317791 3222297 PURCHASED POWER 21389248 DISTRIBUTION EXPENSE 1247714 ADMIN & GENERAL EXPENSE 910595 OPERATING TAXES 800416 524928 38494981 1279127 3485648 2506989 2521863 659526 555046 927567 1219693 786195 533521 119495275 19349854 90552948 100145421 14568992 15083423 889496 1009506 112170840 124554121 3997457 4381536 73400728 83468540 1735627 2194935 79133812 90045011 X 0 0 5056995 5261448 27980033 29247662 33037028 34509110 112170840 124554121 X 0 1472082 X X 0 1 X 0 1 1 248605 248605 7224934 2530941 4693993 103851079 16818913 87032166 8170657 8170657 100145421 PATRONAGE CAPITAL - WFEC 13187519 C PATRONAGE CAPITAL - CFC 216413 C PATRONAGE CAPITAL - AEC 290820 C PATRONAGE CAPITAL - SEDC 117750 C PATRONAGE CAPITAL - COBANK 417817 C PATRONAGE CAPITAL - OTHER 179895 C MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 11700 C CAPITAL TERM CERTIFICATES - CFC 661509 C 15083423 CONSUMER DEPOSITS 100170 ACCUMULATED PROVISION FOR PENSIONS & BENEFITS 1716184 DEFERRED CREDITS - LINE EXTENSIONS 378581 2194935 X 38428224 0 38428224 66757 66757 38494981 36137214 0 36137214 2357767 2357767 38494981 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 66,757. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 66,757. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,291,010. 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 7500 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 227763 0 1800 0 6864 0 110901 0 32677 0 380005 0 0 0 JARET DOWLER DIRECTOR OF ENGINEERING/OP 135543 0 1725 0 1502 0 84388 0 31998 0 255156 0 0 0 BRENT MCDOWELL DIRECTOR OF SAFETY 107570 0 1975 0 2674 0 97915 0 22508 0 232642 0 0 0 LARRY STEBENS DISTRICT MANAGER 102285 0 2025 0 2241 0 91364 0 24827 0 222742 0 0 0 JAMIE RUBLE DIRECTOR OF FINANCE & ADMI 123186 0 1600 0 2722 0 63429 0 26470 0 217407 0 0 0 CLINTON LEFORCE LINE FOREMAN 102185 0 1850 0 1166 0 38895 0 31000 0 175096 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, NO INDIVIDUALS 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 $ 106,167 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,734 TOTAL REPORTED IN COLUMN C $ 110,901 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (106,167) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 71,975 EXPENSE TO THE COOPERATIVE $ 76,709 JARET DOWLER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 81,489 EMPLOYER CONTRIBUTION TO 401(K)PLAN 2,899 TOTAL REPORTED IN COLUMN C $ 84,388 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (81,489) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 43,918 EXPENSE TO THE COOPERATIVE $ 46,817 BRENT MCDOWELL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 95,624 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,291 TOTAL REPORTED IN COLUMN C $ 97,915 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (95,624) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 34,901 EXPENSE TO THE COOPERATIVE $ 37,192 LARRY STEBENS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 89,175 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,189 TOTAL REPORTED IN COLUMN C $ 91,364 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (89,175) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 33,340 EXPENSE TO THE COOPERATIVE $ 35,529 JAMIE RUBLE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 60,795 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,634 TOTAL REPORTED IN COLUMN C $ 63,429 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (60,795) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 40,016 EXPENSE TO THE COOPERATIVE $ 42,650 CLINTON LEFORCE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 37,142 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,753 TOTAL REPORTED IN COLUMN C $ 38,895 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (37,142) ADD: CASH CONTRIBUTED TO DEFINED BENEFIT PLAN 26,673 EXPENSE TO THE COOPERATIVE $ 28,426 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 4 DURING THE YEAR THE MEMBERS APPROVED AMENDMENTS TO THE COOPERATIVE'S BYLAWS. THE FOLLOWING IS A SUMMARY OF THE MEMBER APPROVED CHANGES: ARTICLE I: MEMBERSHIP, SECTION 3, "JOINT MEMBERSHIPS" WAS AMENDED TO INCLUDE ALL MARRIED COUPLES. ARTICLE I: MEMBERSHIP - NEW SECTION 7. "MEMBER TO GRANT EASEMENT TO COOPERATIVE" WAS ADDED. THIS NEW SECTION STATES THAT EACH MEMBER SHALL, AT THE REQUEST OF THE COOPERATIVE, EXECUTE AND DELIVER TO THE COOPERATIVE GRANTS OF EASEMENT OR RIGHT-OF-WAY OVER, ON AND UNDER SUCH LANDS OWNED BY THE MEMBER, AND IN ACCORDANCE WITH SUCH REASONABLE TERMS AND CONDITIONS AS THE COOPERATIVE SHALL REQUIRE FOR THE FURNISHING OF ELECTRIC SERVICE TO HIM OR OTHER MEMBERS OR FOR THE CONSTRUCTION, OPERATION, MAINTENANCE OR RELOCATION OF THE COOPERATIVE'S ELECTRIC FACILITIES. ARTICLE III: MEETING OF MEMBERS, SECTION 1. "ANNUAL MEETING" WAS AMENDED TO STATE THAT IT IS THE BOARD OF TRUSTEES RESPONSIBILITY TO MAKE ADEQUATE PLANS AND PREPARATION, AS WELL AS ENCOURAGE MEMBER ATTENDANCE FOR THE ANNUAL MEETING. ARTICLE III: SECTION 6. "VOTING DISTRICTS" WAS ALSO AMENDED TO REMOVE THE THE SPECIFIC BOUNDARIES OF VOTING DISTRICTS AND PROVIDE THAT VOTING DISTRICTS SHALL BE SET BY VOTE OF A MAJORITY OF THE TRUSTEES, A MAP OF THE BOUNDARIES SHALL ALSO BE KEPT AND MAINTAINED AT THE OFFICE HEADQUARTERS AND PROVIDED TO ANY MEMBER REQUESTING A COPY. THE AMENDED SECTION ALSO STATES THAT THE BOUNDARIES ARE TO BE REVIEWED BY THE TRUSTEES ONCE EVERY FIVE YEARS OR AS OFTEN AS THE CIRCUMSTANCES DICTATE AND IF IT SHOULD BE FOUND THAT INEQUALITIES IN THE REPRESENTATION HAVE DEVELOPED THAT CAN BE CORRECTED BY A RE-DELINEATION OF DISTRICTS, THE TRUSTEES SHALL RECONSTITUTE THE DISTRICT SO THAT EACH SHALL CONTAIN AS NEARLY AS POSSIBLE THE SAME NUMBER OF MEMBERS. ANY CHANGE SHALL BE FURNISHED TO THE MEMBERSHIP IN THE NEWSLETTER. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.NWECOK.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. 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 15A 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. OTHER THAN THE CEO, THE COOPERATIVE DID NOT HAVE ANY EMPLOYEES MEETING THE DEFINITION OF OFFICER OR KEY EMPLOYEE. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, LINE 15B HAS BEEN ANSWERED "NO". 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, PART VII: THE BOARD OF TRUSTEES CONSIDERS THE CEO TO BE BOTH THE TOP MANAGEMENT OFFICIAL AND THE TOP FINANCIAL OFFICIAL. THEREFORE, ONLY THE CEO IS LISTED AS AN EMPLOYEE OFFICER. 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 OFFICER 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, 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. DURING THE YEAR, THE COOPERATIVE APPLIED FOR AND RECEIVED A LOAN OF $1,200,000. 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 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 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, 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 $ 3,804,348 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (177,801) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (143,578) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 310 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 860,012 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 112,798 TOTAL WAGES ACCRUED AND/OR PAID $ 4,456,089 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,163,448 OFFICE SUPPLIES 414,071 OUTSIDE SERVICES 82,104 EMPLOYEES 96,083 TRUSTEES 214,898 INSURANCES 96,642 DUES 103,645 DONATIONS 17,222 ANNUAL & DISTRICT MEETINGS 80,273 MISCELLANEOUS GENERAL 55,175 MAINTENANCE OF GENERAL PLANT 17,825 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,341,386 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (17,222) LESS: RECLASS OF TRUSTEES FEES TO PART IX, LINE 5 (177,801) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (770,185) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (465,583) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 910,595 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,291,010. PATRONAGE CAPITAL RETIRED - TOTAL -923,303. PATRONAGE CAPITAL RETIRED - DISCOUNT 33,552. PATRONAGE CAPITAL RETIRED - UNCLAIMED 170,901. NET CHANGE IN POST-RETIREMENT BENEFIT -100,078. 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.