2022-09-01T08:19:32-05:00 2021-12-31 582475857 NICHOLS CAULEY & ASSOCIATES LLC 1300 BELLEVUE AVENUE DUBLIN GA 310214152 990 2021-01-01 590247095 FLORIDA KEYS ELECTRIC COOPERATIVE ASSOCIATION INC FLOR 3058522431 91630 OVERSEAS HWY TAVERNIER FL 33070 CRIS BEATY CHIEF FINANCIAL OFFICER 3058522431 2022-07-20 1 CRIS BEATY 999009999 CAL BRANTLEY CPA P00636393 4782751163 2022-07-19 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z SCOTT NEWBERRY 91630 OVERSEAS HWY TAVERNIER FL 33070 95208361 0 X WWW.FKEC.COM X 1940 FL TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 9 131 0 106699 103797 0 0 85764206 94167193 97345 91371 875667 884181 86737218 95142745 28200 43422 2419699 5698117 11832200 12424369 0 0 0 72457119 76976837 86737218 95142745 0 0 185487469 200443071 116401113 127530181 69086356 72912890 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 - 33,638 ACTIVE SERVICES AT THE 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 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 49 0 1 131 1 1 1 0 0 0 0 0 0 84040394 3687848 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 0 0 0 X X X CRIS BEATY 3058523857 91630 OVERSEAS HIGHWAY TAVERNIER FL 33070 X JAMES J BOILINI DIRECTOR 6.00 X 22950 0 0 GRETCHEN HOLLAND SECRETARY 3.50 X X 25800 0 0 MICHAEL H PUTO VICE PRESIDENT 15.90 X X 24600 0 0 DORSEY C BELCHER DIRECTOR 3.60 X 28500 0 0 GEORGE D HERTEL DIRECTOR 5.10 X 25650 0 0 DAVID C RITZ DIRECTOR 3.30 X 27900 0 0 KARL M WAGNER PRESIDENT 7.80 X X 29700 0 0 CALE SMITH TREASURER 6.20 X X 26500 0 0 JOSEPH H ROTH III DIRECTOR 5.10 X 25350 0 0 SCOTT NEWBERRY CHIEF EXECUTIVE OFFICER 40.00 X 348777 0 194574 CRIS BEATY CHIEF FINANCIAL OFFICER 40.00 X 227070 0 116354 JOHN STUART CHIEF OPERATING OFFICER 40.00 X 240624 0 90201 WILLIAM LEE DIRECTOR OF DISTRIBUTION OPS 40.00 X 167003 0 150466 THOMAS ANTHONY DIRECTOR OF POWER SUPPLY A 40.00 X 183576 0 105268 WALTER R STEPHENS III DIRECTOR OF SAFETY, LOSS & PROC 40.00 X 161778 0 125218 TAMARA L PIEKARSKI DIRECTOR OF IT 40.00 X 159233 0 75524 MICHAEL ROBERGE DIRECTOR OF ENGINEERING 40.00 X 172264 0 67312 1897275 0 924917 60 0 1 0 STRUCTURAL PRESERVATION SYSTEMS INC 2001 BLOUNT ROAD POMPANO BEACH FL 33069 TRANSMISSION POLE LIFE JACKET INSTALLATI 5776578 PIKE ELECTRIC LLC PO BOX 746308 ATLANTA GA 30374 TRANSMISSION INSULATOR REPLACEMENT CONTR 4213988 HAUGLAND ENERGY GROUP LLC 316 SOUTH SERVICE ROAD MELVILLE NY 11747 DISTRIBUTION CONDUCTOR & POLE REPLACEMEN 3909129 ASPLUNDH TREE EXPERT CO PO BOX 532729 ATLANTA GA 303532729 TREE TRIMMING 1221477 OVERHOLT CONSTRUCTION CORP 18635 SW 104TH AVENUE MIAMI FL 33157 CONTRACTOR MARATHON HQ ADDITION/UPGRADE 1175748 19 X ELECTRICITY SALES 221000 91051056 91051056 ELECTRICITY WHEELING 221000 1946742 1946742 PATRONAGE DIVIDENDS 221000 840392 840392 SERVICE FEES 221000 328703 328703 OTHER 221000 300 300 94167193 91371 91371 122544 753473 15845 0 106699 753473 860172 106699 753473 73780 49771 24009 24009 95142745 94191202 106699 844844 X 43422 5698117 1454550 7646679 1383936 1310800 628404 4653926 6207143 PURCHASED POWER 54411762 ADMINISTRATIVE & GENERA 3186165 DISTRIBUTION EXPENSE 2973294 TRANSMISSION EXPENSE 2535490 3009057 95142745 1091890 1032855 7963681 10077453 3876383 4521565 3310063 2357030 226610961 53745048 155284719 172865913 7047597 7609395 6913136 1978860 185487469 200443071 6471513 7254486 99116721 109653558 10812879 10622137 116401113 127530181 X 0 0 2805517 2586278 66280839 70326612 69086356 72912890 185487469 200443071 X 0 3826534 X X 0 1 X 1 1 1 1717830 1717830 25236788 8013404 17223384 173171188 45731644 127439544 26485155 26485155 172865913 CONSUMER DEPOSITS 6360410 ACCRUED EMPLOYEE COMPENSATED ABSENCES 2036779 DEFERRED CREDIT - REASSIGNED DEPOSITS 71223 OPERATING LEASE LIABILITIES 2153725 10622137 X 95158590 15845 15845 95142745 0 95142745 89460473 15845 15845 89444628 5698117 5698117 95142745 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 POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: TOWER RENTAL EXPNESES ALLOCATED TO RENTAL INCOME 15,845. PART XII, LINE 2D - OTHER ADJUSTMENTS: TOWER RENTAL EXPENSES ALLOCATED TO RENTAL INCOME 15,845. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ASSIGNABLE 5,698,117. 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". 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. X X 0 0 0 SCOTT NEWBERRY CHIEF EXECUTIVE OFFICER 262701 0 36500 0 49576 0 179008 0 15566 0 543351 0 0 0 CRIS BEATY CHIEF FINANCIAL OFFICER 195463 0 1574 0 30033 0 101218 0 15136 0 343424 0 0 0 JOHN STUART CHIEF OPERATING OFFICER 196633 0 1574 0 42417 0 75065 0 15136 0 330825 0 0 0 WILLIAM LEE DIRECTOR OF DISTRIBUTION OPS 136073 0 2136 0 28794 0 135692 0 14774 0 317469 0 0 0 THOMAS ANTHONY DIRECTOR OF POWER SUPPLY A 153642 0 1394 0 28540 0 90398 0 14870 0 288844 0 0 0 WALTER R STEPHENS III DIRECTOR OF SAFETY, LOSS & PROC 142245 0 250 0 19283 0 110409 0 14809 0 286996 0 0 0 MICHAEL ROBERGE DIRECTOR OF ENGINEERING 157446 0 0 0 14818 0 52462 0 14850 0 239576 0 0 0 TAMARA L PIEKARSKI DIRECTOR OF IT 138683 0 500 0 20050 0 60747 0 14777 0 234757 0 0 0 FORM 990, SCHEDULE J, 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. FLORIDA ELECTRIC COOPERATIVES ASSOCIATION INC DIRECTOR 89716 FLORIDA ELECTRIC COOPERATIVES ASSOCIATION, INC. (FECA) IS A NOT FOR PROFIT, STATEWIDE TRADE ASSOCIATION REPRESENTING 15 ELECTRIC DISTRIBUTION COOPERATIVES AND TWO GENERATION AND TRANSMISSION COOPERATIVES IN FLORIDA. THE COOPERATIVE PAYS ANNUAL ASSOCIATION DUES TO FECA. CERTAIN INDIVIDUALS LISTED IN PART VII OF FORM 990 SERVE AS MEMBERS OF THE BOARD OF DIRECTORS OF FECA. 0 FLORIDA RURAL ELECTRIC SELF-INSURER'S FUND TRUSTEE 118706 THE FLORIDA RURAL ELECTRIC SELF INSURER'S FUND (THE FUND) PROVIDES WORKER'S COMPENSATION INSURANCE COVERAGE TO MEMBERS OF FECA, INCLUDING THE COOPERATIVE. AN INDIVIDUAL LISTED IN PART VII OF FORM 990 SERVES AS MEMBERS OF THE BOARD OF TRUSTEES OF THE FUND. 0 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 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 - THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS. FORM 990, PART VI, SECTION A, LINE 8B FROM TIME TO TIME THE ENTIRE BOARD WILL GO INTO EXECUTIVE SESSION FOR DISCUSSING ITEMS OF A SENSITIVE AND CONFIDENTIAL NATURE. WHEN THIS OCCURS MANAGEMENT AND OTHERS IN ATTENDANCE ARE REMOVED FROM THE MEETING ROOM. ITEMS DISCUSSED IN EXECUTIVE SESSION ARE NOT DOCUMENTED. HOWEVER, ACTIONS TAKEN BY THE BOARD AFTER EXECUTIVE SESSIONS ARE ADJOURNED ARE FULLY DOCUMENTED IN THE WRITTEN MINUTES. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION, REVIEW AND ACCEPTANCE 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 COOPERATIVE REGULARLY REVIEWS BUSINESS RELATIONSHIPS WITH BOARD MEMBERS AND EMPLOYEES TO DETERMINE IF ALL BUSINESS RELATIONSHIPS ARE IN PROPER COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. DIRECTORS AND EMPLOYEES ARE OBLIGATED TO DISCLOSE TO THE BOARD PRESIDENT, CEO AND THE BOARD ATTORNEY ANY POTENTIAL CONFLICT OF INTEREST INVOLVING THEMSELVES, A PEER, OR A FAMILY MEMBER. FORM 990, PART VI, SECTION B, LINE 15 THE CEO'S PERFORMANCE AND SALARY ARE REVIEWED BY THE HUMAN RESOURCES COMMITTEE WHICH IS COMPRISED OF THREE BOARD MEMBERS. THE HUMAN RESOURCES COMMITTEE BRINGS A RECOMMENDATION FOR THE CEO'S SALARY ADJUSTMENT AND INCENTIVES TO THE ENTIRE BOARD FOR APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT ON ITS WEBSITE AND ANNUALLY PUBLISHES THIS SUMMARY IN THE FLORIDA CURRENTS MAGAZINE, WHICH EACH MEMBER RECEIVES MONTHLY. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICTS 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 MATCHING CONTRIBUTION UP TO 4% OF A PARTICIPATING EMPLOYEE'S BASE SALARY. 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 KEY EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS AND KEY EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN F FOR THE OFFICER OR KEY EMPLOYEE IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER, THE TOTAL CONTRIBUTED TO THE 401(K) PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER OR KEY EMPLOYEE. FORM 990, PART VIII, LINE 2 PATRONAGE DIVIDENDS RESULT FROM THE PAYMENT OF INTEREST TO COOPERATIVE FINANCIAL INSTITUTIONS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSE 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, LINE 24E TAXES 1,187,426. CUSTOMER SERVICE & INFORMATION 831,586. POWER PRODUCTION 587,369. CONSUMER ACCOUNTS 377,888. FEDERAL AND STATE UBIT 24,788. FORM 990, PART IX THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE. THE UNIFORM SYSTEM OF ACCOUNTING DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY REPORTS CERTAIN EXPENSE CLASSIFICATIONS, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 WILL BE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE UNIFORM SYSTEM OF ACCOUNTS. FORM 990, PART IX THE FORM 990 INSTRUCTIONS SPECIFICALLY STATE THAT THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS 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 MEMBERS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO ITS MEMBERS 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 MEMBERS. 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 MEMBERS, AND (3) IN A FAIR AND EQUITABLE BASIS 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 AND ARE SUMMARIZED AS FOLLOWS: (A) IN ORDER TO INDUCE PATRONAGE AND TO ASSURE THAT THE COOPERATIVE WILL OPERATE ON A NONPROFIT BASIS, THE COOPERATIVE IS OBLIGATED TO ACCOUNT ON A PATRONAGE BASIS TO ALL ITS MEMBERS FOR ALL AMOUNTS RECEIVED AND RECEIVABLE FROM THE FURNISHING OF ELECTRIC ENERGY IN EXCESS OF OPERATING COSTS AND EXPENSES PROPERLY CHARGEABLE AGAINST SUCH SERVICES (I.E. MARGINS FROM THE PROVISION OF ELECTRIC ENERGY). (B) THE MARGINS FROM THE PROVISION OF ELECTRIC ENERGY ARE RECEIVED WITH THE UNDERSTANDING THEY ARE FURNISHED BY THE MEMBERS AS CAPITAL. (C) THE COOPERATIVE IS OBLIGATED TO PAY BY CREDITS TO A CAPITAL ACCOUNT FOR EACH MEMBER FOR ALL SUCH MARGINS. AND (D) ALL SUCH AMOUNTS CREDITED TO THE CAPITAL ACCOUNT OF ANY MEMBER SHALL HAVE THE SAME STATUS AS THOUGH THEY HAD BEEN PAID TO THE MEMBER IN CASH IN PURSUANCE OF A LEGAL OBLIGATION TO DO SO AND THE MEMBER HAD FURNISHED TO THE COOPERATIVE CORRESPONDING AMOUNTS OF CAPITAL. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS RESULTING FROM THEIR PURCHASES OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2021 CALENDAR YEAR. AS NOTED ABOVE, SUCH AMOUNTS ARE ALLOCATED SUBSEQUENT TO YEAR-END IN A FAIR AND EQUITABLE MANER ON THE BASIS OF PATRONAGE. THE AMOUNTS ALLOCATED ARE REPRESENTATIVE OF THE MARGINS FROM THE PROVISION OF ELECTRIC ENERGY TO THE MEMBERS AND ARE DONE PURSUANT TO THE OBLIGATION THAT EXISTED IN THE BYLAWS PRIOR TO THE COOPERATIVE PROVIDING ELECTRICITY TO ITS MEMBERS. THEREFORE, THESE AMOUNTS MEET THE DEFINITION OF THE TERM "PATRONAGE DIVIDENDS PAID". PLEASE NOTE, HOWEVER, THAT BECAUSE PATRONAGE DIVIDENDS IS THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS MEMBERS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED THE AMOUNT OF ITS 2021 MARGIN THAT HAS BEEN OR IS TO BE ALLOCATED TO THE MEMBERS SUBSEQUENT TO YEAR-END. SUCH AMOUNTS ARE AN EXPENSE FOR FORM 990 REPORTING BUT NOT FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). AS A RESULT, THE DIFFERENCE BETWEEN THE COOPERATIVE'S GAAP BASIS FINANCIAL STATEMENTS AND THE REVENUES LESS EXPENSES REPORTED ON PART I, LINE 19 IS THE AMOUNT OF PATRONAGE DIVIDENDS REPORTED AS BENEFITS PAID TO MEMBERS. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ASSIGNABLE 5,698,117. UNCLAIMED CAPITAL CREDITS 846,135. RETIREMENT OF PATRONAGE CAPITAL -2,498,479. REALLOCATIONS OF UNCLAIMED CAPITAL CREDIT RETIREMENTS -219,239. FORM 990, PART XII, LINE 2C THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR.