2022-11-11T16:05:01-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 356043583 SOUTH CENTRAL INDIANA RURAL ELECTRIC MEMBERSHIP CORPORATION SOUT 7653423344 300 MORTON AVENUE MARTINSVILLE IN 46151 JAMES TANNEBERGER PRESIDENT & CEO 8002647362 2022-11-11 1 JAMES TANNEBERGER 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-11 X 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z JAMES TANNEBERGER 300 MORTON AVENUE MARTINSVILLE IN 46151 92808174 0 X WWW.SCIREMC.COM X 1939 IN TO PROVIDE SAFE, RELIABLE, COST-EFFECTIVE ELECTRICITY AND ENERGY SOLUTIONS. 9 9 192 0 2143691 0 0 0 86817884 91913462 1144846 113196 499727 487778 88462457 92514436 8895 10345 5228034 9426524 12083695 13022648 0 0 0 71502462 72210522 88823086 94670039 -360629 -2155603 245308868 273130010 159748968 180202591 85559900 92927419 SCI REMC IS A TRUSTED ELECTRIC COOPERATIVE SERVING OUR DIVERSE COMMUNITIES WITH INNOVATIVE ENERGY SOLUTIONS AND LIFE-ENHANCING SERVICES. 0 0 ELECTRIC DIVISION:PROVIDING RELIABLE ELECTRICITY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 34,527 ACTIVE SERVICES AT YEAR END. FIBER DIVISION:A SEPERATE DIVISION OF THE COOPERATIVE WAS CREATED TO PROVIDE BROADBAND INTERNET SERVICES TO ITS MEMBERS THROUGH THE CONSTRUCTION OF A FIBER OPTIC NETWORK. THE FIRST CONNECTIONS BEGAN RECEIVING SERVICE DURING 2019. FIBER OPTIC BROADBAND SERVICES OF THIS DIVISION WILL BE PROVIDED TO MEMBERS ON A PATRONAGE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL TO THE EXTENT NET MARGINS WILL EXCEED CUMULATIVE LOSSES FOR SUCH DIVISION. 0 0 1 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 53 0 192 1 1 1 0 0 0 0 87870882 4439476 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 IN X RANDY ELLIOTT VP OF FINANCE & MEMBER SERVICES 7653423344 300 MORTON AVE MARTINSVILLE IN 46151 X JAMES COX JAN-SEP VICE CHAIRMAN 7.50 X X 10658 0 0 REX FRANKLIN DIRECTOR 7.00 X 29631 0 0 BRUCE HAMLIN CHAIRMAN 6.50 X X 14165 0 0 JAMES KOCH JAN-SEP DIRECTOR 12.40 X 10383 0 0 HEATHER MOLLO DIRECTOR 4.80 0.50 X 15380 0 0 JERRY PHEIFER SECRETARY-TREASURER 4.30 X X 9606 0 0 LISA PROSSER DIRECTOR 4.10 0.50 X 15485 0 0 MARK SMITH DIRECTOR 1.90 X 13360 0 0 BRAD SHIELDS OCT-DEC DIRECTOR 2.20 X 3327 0 0 DONALD LEE RENNER OCT-DEC DIRECTOR 14.50 X 3327 0 0 LAWRENCE ALDEN JUL-DEC DIRECTOR 4.10 X 7479 0 0 JAMES TANNEBERGER PRESIDENT & CEO 60.00 0.50 X 251296 0 152653 RANDY ELLIOT VP OF FINANCE & MEMBER SERVICES 57.00 X 161166 0 162416 TIMOTHY LEMERE VP DISTRIBUTION SERVICES 48.00 X 170766 0 112340 MARILOU IDLAND VP OF HUMAN RESOURCES 55.00 X 161492 0 78499 ANDREW POLLEY JOURNEYMAN LINEWORKER 48.00 X 160091 0 50106 JOSH SAWYERS JOURNEYMAN LINEWORKER 51.00 X 150441 0 72180 MICHAEL STUCKEY JOURNEYMAN LINEWORKER 50.00 X 149415 0 61599 CHUCK BEAVER JOURNEYMAN LINEWORKER 42.00 X 145187 0 18840 JASON DIPERT JOURNEYMAN LINEWORKER 47.00 X 144870 0 46823 1627525 0 755456 41 0 1 0 AMERICAN UTILITY CORPORATION INC PO BOX 371 SPRINGFIELD KY 40069 UNDERGROUND FIBER CONTRACTOR 3155968 JE REEDY INC PO BOX 1265 SEYMOUR IN 47274 UNDERGROUND CONTRACTOR SERVICES 2280258 PRECISION FIBER SOLUTIONS LLC 4121 HUNT CLUB PARKWAY BARGERSVILLE IN 46106 FIBER/TELECOM SERVICES 2057264 PIKE ELECTRIC INC PO BOX 746308 ATLANTA GA 30374 ELECTRIC CONTRACTOR 1864131 PULSE BROADBAND LLC 225 MORTON AVE MARTINSVILLE IN 46151 FIBER CONTRACT SERVICES 1691523 12 X SALES OF ELECTRICITY 221000 81228964 81228964 FIBER REVENUE 517000 7477581 5342864 2134717 PATRONAGE DIVIDENDS 221000 2530914 2530914 SERVICE FEES 221000 676003 676003 91913462 64610 64610 10135 0 10135 10135 10135 121640 73054 48586 48586 48586 180350 220684 -40334 -40334 POLE ATTACHEMENT INCOME 221000 509003 509003 THIRD PARTY BILLING & COLLECTING 561000 8974 8974 517977 92514436 89786997 2143691 583748 X 10345 9426524 1383429 7638846 1146095 2181572 672706 5038897 9350533 PURCHASED POWER/ COST O 47866103 ADMIN & GENERAL EXPENSE 4435426 DISTRIBUTION EXPENSE 2757636 OPERATING TAXES 1810179 951748 94670039 1023691 837005 2764169 266540 5672674 11216617 2240 2240 3229655 5186758 1182284 861826 312734060 96159402 189081182 216574658 114989 114989 37192092 37844907 5045892 224470 245308868 273130010 18744372 19584783 132145890 150872917 8858706 9744891 159748968 180202591 X 222785 212470 0 0 85337115 92714949 85559900 92927419 245308868 273130010 X -2155603 9523122 X X 0 1 X 1 0 2000 0 2000 2000 1 INDIANA FORE PO BOX 24517 INDIANAPOLIS IN 46214 351998087 2000 PART I-A, LINE 1: THE COOPERATIVE'S SOLE DIRECT POLITICAL ACTIVITY WAS A $2,000 DONATION OF ITS OWN FUNDS TO INDIANA FRIENDS OF RURAL ELECTRIFICATION (INDIANA FORE). THE COOPERATIVE WAS INDIRECTLY INVOLVED IN POLITICAL CAMPAIGN ACTIVITIES OF INDIANA FORE. RESOURCES TO INDIANA FORE ARE USED EXCLUSIVELY TO SUPPORT STATE AND FEDERAL CANDIDATES WHO UNDERSTAND AND CONSISTENTLY SUPPORT THE ISSUES AND POLICIES IMPACTING INDIANA'S ELECTRIC COOPERATIVES. 694344 694344 15336274 3322328 12013946 264132019 92837074 171294945 32571423 32571423 216574658 CAPITAL TERM CERTIFICATES 1339195 C PATRONAGE CAPITAL IN ASSOCIATED ORGANIZATIONS 35833581 C RURAL ECONOMIC DEVELOPMENT LOAN PROGRAM 208308 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 463823 C 37844907 CONSUMER ADVANCES FOR CONSTRUCTION 2748841 CONSUMER DEPOSITS 1030535 EMPLOYEE POST RETIREMENT BENEFIT OBLIGATION 3391418 ACCRUED OPERATING TAXES 1153203 FIBER UNEARNED REVENUES 1420894 9744891 X 92541687 27251 27251 92514436 0 92514436 85270766 27251 27251 85243515 9426524 9426524 94670039 PART X, LINE 2: THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLE RELATED TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS PROVIDES DETAILED GUIDANCE FOR THE FINANCIAL STATEMENT RECOGNITION, MEASUREMENT AND DISCLOSURE OF UNCERTAIN TAX POSITIONS RECOGNIZED IN AN ENTERPRISE'S FINANCIAL STATEMENTS. THE ACCOUNTING PRINCIPLE REQUIRES AN ENTITY TO RECOGNIZE THE FINANCIAL STATEMENT IMPACT OF A TAX POSITION WHEN IT IS MORE LIKELY THAN NOT THAT THE POSITION WILL BE SUSTAINED UPON EXAMINATION. THE ADOPTION OF THIS ACCOUNTING PRINCIPLE DOES NOT HAVE A MATERIAL EFFECT ON ITS FINANCIAL POSITION, RESULTS OF OPERATIONS OR CASH FLOWS AS THE REMC DOES NOT BELIEVE THEY ARE TAKING UNCERTAIN TAX POSITIONS. PART XI, LINE 2D - OTHER ADJUSTMENTS: RECLASSIFICATION OF NON-OPERATING EXPENSES 27,251. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASSIFICATION OF NON-OPERATING EXPENSES 27,251. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 9,426,524. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF 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 X X X 0 0 0 JAMES TANNEBERGER PRESIDENT & CEO 230943 0 427 0 19926 0 123195 0 29458 0 403949 0 0 0 RANDY ELLIOT VP OF FINANCE & MEMBER SERVICES 155846 0 411 0 4909 0 129895 0 32521 0 323582 0 0 0 TIMOTHY LEMERE VP DISTRIBUTION SERVICES 167609 0 566 0 2591 0 83565 0 28775 0 283106 0 0 0 MARILOU IDLAND VP OF HUMAN RESOURCES 146268 0 1982 0 13242 0 62217 0 16282 0 239991 0 0 0 JOSH SAWYERS JOURNEYMAN LINEWORKER 141743 0 465 0 8233 0 44711 0 27469 0 222621 0 0 0 MICHAEL STUCKEY JOURNEYMAN LINEWORKER 143488 0 465 0 5462 0 33630 0 27969 0 211014 0 0 0 ANDREW POLLEY JOURNEYMAN LINEWORKER 148768 0 1834 0 9489 0 21303 0 28803 0 210197 0 0 0 JASON DIPERT JOURNEYMAN LINEWORKER 136215 0 621 0 8034 0 21185 0 25638 0 191693 0 0 0 CHUCK BEAVER JOURNEYMAN LINEWORKER 131814 0 4466 0 8907 0 18164 0 676 0 164027 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. JAMES TANNEBERGER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 110,943 EMPLOYER CONTRIBUTION TO 401(K) PLAN 12,252 TOTAL REPORTED IN COLUMN C $ 123,195 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (110,943) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,461 EXPENSE TO THE COOPERATIVE $ 50,713 RANDY ELLIOT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 121,725 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,170 TOTAL REPORTED IN COLUMN C $ 129,895 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (121,725) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,521 EXPENSE TO THE COOPERATIVE $ 35,691 TIMOTHY LEMERE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 74,849 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,716 TOTAL REPORTED IN COLUMN C $ 83,565 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (74,849) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,808 EXPENSE TO THE COOPERATIVE $ 37,524 MARILOU IDLAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 58,172 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,045 TOTAL REPORTED IN COLUMN C $ 62,217 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (58,172) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,272 EXPENSE TO THE COOPERATIVE $ 30,317 JOSH SAWYERS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 41,846 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,865 TOTAL REPORTED IN COLUMN C $ 44,711 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (41,846) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,709 EXPENSE TO THE COOPERATIVE $ 18,574 MICHAEL STUCKEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,812 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,818 TOTAL REPORTED IN COLUMN C $ 33,630 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (30,812) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,709 EXPENSE TO THE COOPERATIVE $ 18,527 ANDREW POLLEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 18,327 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,976 TOTAL REPORTED IN COLUMN C $ 21,303 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,327) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 16,693 EXPENSE TO THE COOPERATIVE $ 19,669 JASON DIPERT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 18,374 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,811 TOTAL REPORTED IN COLUMN C $ 21,185 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,374) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,709 EXPENSE TO THE COOPERATIVE $ 18,520 CHUCK BEAVER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 15,344 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,820 TOTAL REPORTED IN COLUMN C $ 18,164 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (15,344) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,709 EXPENSE TO THE COOPERATIVE $ 18,529 FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES MADE: ARTICLE III - MEETINGS OF MEMBERS SECTION III. ELECTRONIC MEETINGS; NOTICE OF MEMBERS, WAS AMENDED TO ADD A PARAGRAPH STATING "WHERE AND IN THE MANNER AUTHORIZED BY THE BOARD OF DIRECTORS, ANY PERSON PARTICIPATING IN A MEETING OF THE MEMBERS MAY PARTICIPATE BY ANY MEANS OF COMMUNICATION, ELECTRONIC OR OTHERWISE, BY WHICH ALL PERSONS PARTICIPATING IN THE MEETING ARE ABLE TO READ OR HEAR PROCEEDINGS SUBSTANTIALLY CONCURRENTLY WITH THEIR OCCURENCE, VOTE ON MATTERS SUBMITTED TO THE MEMBERS, AND OTHERWISE FULLY PARTICIPATE IN THE MEETING. SUCH PARTICIPATION SHALL CONSTITUTE PRESENCE IN PERSON AT THE MEETING FOR ALL PURPOSES." SECTION IV. QUORUM, WAS AMENDED TO STATE "AT LEAST TWO PERCENT (2%) OF THE TOTAL NUMBER OF MEMBERS OF THE COOPERATIVE WHO: 1) ARE PRESENT IN PERSON AT A MEETING OF THE MEMBERS; OR 2) CAST VOTES PRIOR TO A MEETING OF THE MEMBERS IN ACCORDANCE WITH THESE BYLAWS; SHALL CONSTITUTE A QUORUM FOR THE TRANSACTION OF BUSINESS AT ALL MEETINGS OF THE MEMBERS." SECTION V. VOTING, WAS AMENDED TO ADD ELECTRONIC BALLOTS AS AN OPTION FOR VOTING. 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 MEMBERS HAVE THE OPPORTUNITY TO VOTE AND ELECT THEIR OWN MEMBER REPRESENTATIVE ON THE BOARD OF DIRECTORS. EACH ELIGIBLE MEMBER IS ENTITLED TO ONE VOTE. 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 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 ANNUALLY, A SURVEY IS DISTRIBUTED TO ALL THE RELEVENT PARTIES WHICH ASKS ABOUT ANY RELATIONSHIPS AND CONFLICTS OF INTEREST. IT IS THE DUTY OF THE BOARD MEMBER TO DISCLOSE ANY CONFLICTS OF INTEREST. A BOARD MEMBER WITH A CONFLICT OF INTEREST MUST RECUSE HIMSELF FROM ANY DISCUSSION OR VOTING ON ISSUES THAT ARISE AS A RESULT OF THAT CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE CEO AND OTHER EMPLOYEE OFFICER'S COMPENSATION PACKAGES ARE DETERMINED BY USING COMPARABILITY DATA FOR SIMILAR POSITIONS. THIS DATA IS THEN REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS, WITH CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION OF THE DECISION. FORM 990, PART VI, SECTION C, LINE 19 A CURRENT COPY OF THE BYLAWS AND MONTHLY BOARD MINUTES ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE AT WWW.SCIREMC.COM/BOARD-DIRECTORS. ADDITIONALLY, CURRENT MEMBERS MAY SUBMIT A REQUEST TO REVIEW THE COOPERATIVE'S ARTICLES OF INCORPORATION, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS. 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 INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS 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. 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, PART IX: THE COOPERATIVE MAINTAINS ITS BOOKS AND RECORDS IN ACCORDANCE WITH POLICIES PRESCRIBED OR PERMITTED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICES (RUS) AND THE INDIANA UTILITY REGULATORY COMMISSION (IURC), ALTHOUGH THE COOPERATIVE IS NO LONGER REGULATED BY THESE AGENCIES. THE APPLICABLE UNIFORM SYSTEM OF ACCOUNTS (USOA) FOLLOWED BY THE COOPERATIVE 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, 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, 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 $ 9,022,275 LESS: DIRECTORS FEES AND DEFERRED COMPENSATION (132,801) LESS: OFFICER AND KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (505,908) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,946,665 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 524,937 TOTAL WAGES ACCRUED AND/OR PAID $11,855,168 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,758,227 EMPLOYEE DUES & MEMBERSHIP 4,816 TRAINING & SEMINARS 68,471 BUSINESS MEALS 4,567 SUBSCRIPTIONS 3,064 MAINTENANCE OF OFFICE EQUIPMENT 68,736 MILEAGE 201 MOBILE PHONES 57,598 OFFICE SUPPLIES 768,709 UTILITIES & MONTHLY CHARGES 968,841 OUTSIDE SERVICES 221,472 INSURANCE & REGULATORY FEES 313,316 PUBLIC RELATIONS 11,863 ANNUAL MEETING 77,005 DIRECTORS 158,060 MAINTENANCE OF GENERAL PLANT 386,090 MISCELLANEOUS GENERAL EXPENSE 491,501 SUBSIDIARY EXPENSE 1,669,573 TOTAL ADMIN & GENERAL EXPENSE PER FINANCIAL STATEMENTS $ 7,032,110 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,552,820) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (911,063) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (132,801) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 4,424,426 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER EXPENSE $ 2,207,057 OTHER DEDUCTIONS 3,886 TOTAL OTHER EXPENSES PER THE BOOKS $ 2,210,943 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (793,350) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (473,464) ADD: RECLASS OF MERCHANDISING & OTHER EXPENSES 7,619 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 951,748 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 9,426,524. PATRONAGE CAPITAL RETIRED - TOTAL -114,012. PATRONAGE CAPITAL RETIRED - DISCOUNT 67,393. OTHER COMPREHENSIVE INCOME - POST RETIREMENT BENEFITS OTHER THAN PENSIONS 153,532. NET DECREASE IN MEMBERSHIPS -10,315. 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. SCI SERVICES LLC 300 MORTON AVENUE MARTINSVILLE IN 46151 352091210 RIGHT OF WAY MAINTENANCE IN 0 0 SOUTH CENTRAL INDIANA REMC SCI MEMBERSHIP COMMUNITY FUND INC 300 MORTON AVE MARTINSVILLE IN 46151 351937189 DISBURSEMENT OF FUNDS FOR CHARITABLE PURPOSES IN THE COOP'S SERVICE AREA IN 501(C)(3) LINE 7 SOUTH CENTRAL INDIANA REMC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 SCI MEMBERSHIP COMMUNITY FUND INC N N/A - LESS THAN $50,000 SCI MEMBERSHIP COMMUNITY FUND INC O N/A - LESS THAN $50,000