KARNES ELECTRIC COOPERATIVE INC: Form 990, tax year 2021
View the entire original 990 at ProPublica ↗
- Organization
- KARNES ELECTRIC COOPERATIVE INC (EIN 74-0720615)
- Tax period
- 2021-01-01 to 2021-12-31
- Filed
- 2022-11-09
- IRS object ID
- 202243139349305604
- Schema version
- 2021v4.2
- Source
- Download XML · Original 990 at ProPublica
Every field in the e-filed return. Faint text is the IRS element name, for citing.
Return header ReturnHeader
| Field | Value | IRS element (for citing) |
|---|---|---|
| Return | 2022-11-09T16:19:22-06:00 | ReturnTs |
| Tax Period End | 2021-12-31 | TaxPeriodEndDt |
Preparer Firm PreparerFirmGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Preparer Firm EIN | 750882037 | PreparerFirmEIN |
Preparer Firm Name PreparerFirmName
| Field | Value | IRS element (for citing) |
|---|---|---|
| Business Name Line1 | BOLINGER SEGARS GILBERT AND MOSS LLP | BusinessNameLine1Txt |
Preparer US Address PreparerUSAddress
| Field | Value | IRS element (for citing) |
|---|---|---|
| Address Line1 | 8215 NASHVILLE AVENUE | AddressLine1Txt |
| City | LUBBOCK | CityNm |
| State Abbreviation | TX | StateAbbreviationCd |
| ZIP | 79423 | ZIPCd |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Return Type | 990 | ReturnTypeCd |
| Tax Period Begin | 2021-01-01 | TaxPeriodBeginDt |
Filer Filer
| Field | Value | IRS element (for citing) |
|---|---|---|
| EIN | 740720615 | EIN |
Business Name BusinessName
| Field | Value | IRS element (for citing) |
|---|---|---|
| Business Name Line1 | KARNES ELECTRIC COOPERATIVE INC | BusinessNameLine1Txt |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Business Name Control | KARN | BusinessNameControlTxt |
| Phone | 8307809292 | PhoneNum |
US Address USAddress
| Field | Value | IRS element (for citing) |
|---|---|---|
| Address Line1 | PO BOX 7 | AddressLine1Txt |
| City | KARNES CITY | CityNm |
| State Abbreviation | TX | StateAbbreviationCd |
| ZIP | 78118 | ZIPCd |
Business Officer BusinessOfficerGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Person | BRAD BIERSTEDT | PersonNm |
| Person Title | GENERAL MANAGER | PersonTitleTxt |
| Phone | 8307809292 | PhoneNum |
| Signature | 2022-11-08 | SignatureDt |
| Discuss With Paid Preparer | Yes (1) | DiscussWithPaidPreparerInd |
Signing Officer SigningOfficerGrp
Person Full Name PersonFullName
| Field | Value | IRS element (for citing) |
|---|---|---|
| Person First | BRAD | PersonFirstNm |
| Person Last | BIERSTEDT | PersonLastNm |
| Field | Value | IRS element (for citing) |
|---|---|---|
| SSN | 999009999 | SSN |
Preparer Person PreparerPersonGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Preparer Person | WILLIAM M MILLER | PreparerPersonNm |
| PTIN | P00439459 | PTIN |
| Phone | 8067473806 | PhoneNum |
| Preparation | 2022-11-08 | PreparationDt |
| Self Employed | Yes (X) | SelfEmployedInd |
Additional Filer Information AdditionalFilerInformation
Trusted Customer TrustedCustomerGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Trusted Customer | 3 | TrustedCustomerCd |
| Authentication Assurance Level | AAL1 | AuthenticationAssuranceLevelCd |
| Identity Assurance Level | IAL1 | IdentityAssuranceLevelCd |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Tax | 2021 | TaxYr |
| Build TS | 2022-09-23 18:48:47Z | BuildTS |
Form 990 IRS990
| Field | Value | IRS element (for citing) |
|---|---|---|
| Principal Officer | BRAD BIERSTEDT | PrincipalOfficerNm |
US Address USAddress
| Field | Value | IRS element (for citing) |
|---|---|---|
| Address Line1 | PO BOX 7 | AddressLine1Txt |
| City | KARNES CITY | CityNm |
| State Abbreviation | TX | StateAbbreviationCd |
| ZIP | 78118 | ZIPCd |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Gross Receipts | $101,891,775 | GrossReceiptsAmt |
| Group Return For Affiliates | 0 | GroupReturnForAffiliatesInd |
| Organization501c | Yes (X) | Organization501cInd |
| Website Address | WWW.KARNESEC.ORG | WebsiteAddressTxt |
| Type Of Organization Corp | Yes (X) | TypeOfOrganizationCorpInd |
| Formation | 1938 | FormationYr |
| Legal Domicile State | TX | LegalDomicileStateCd |
| Activity Or Mission | TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. | ActivityOrMissionDesc |
| Voting Members Governing Body | 7 | VotingMembersGoverningBodyCnt |
| Voting Members Independent | 7 | VotingMembersIndependentCnt |
| Total Employee | 91 | TotalEmployeeCnt |
| Total Volunteers | 0 | TotalVolunteersCnt |
| Total Gross UBI | $0 | TotalGrossUBIAmt |
| Net Unrelated Bus Txbl Incm | $0 | NetUnrelatedBusTxblIncmAmt |
| PY Contributions Grants | $0 | PYContributionsGrantsAmt |
| CY Contributions Grants | $0 | CYContributionsGrantsAmt |
| PY Program Service Revenue | $96,084,442 | PYProgramServiceRevenueAmt |
| CY Program Service Revenue | $101,665,758 | CYProgramServiceRevenueAmt |
| PY Investment Income | $479,627 | PYInvestmentIncomeAmt |
| CY Investment Income | $94,628 | CYInvestmentIncomeAmt |
| PY Other Revenue | $89,918 | PYOtherRevenueAmt |
| CY Other Revenue | $131,389 | CYOtherRevenueAmt |
| PY Total Revenue | $96,653,987 | PYTotalRevenueAmt |
| CY Total Revenue | $101,891,775 | CYTotalRevenueAmt |
| PY Grants And Similar Paid | $22,012 | PYGrantsAndSimilarPaidAmt |
| CY Grants And Similar Paid | $56,206 | CYGrantsAndSimilarPaidAmt |
| PY Benefits Paid To Members | $11,425,189 | PYBenefitsPaidToMembersAmt |
| CY Benefits Paid To Members | $3,748,162 | CYBenefitsPaidToMembersAmt |
| PY Salaries Comp Emp Bnft Paid | $5,720,001 | PYSalariesCompEmpBnftPaidAmt |
| CY Salaries Comp Emp Bnft Paid | $6,119,202 | CYSalariesCompEmpBnftPaidAmt |
| PY Total Prof Fndrsng Expns | $0 | PYTotalProfFndrsngExpnsAmt |
| CY Total Prof Fndrsng Expns | $0 | CYTotalProfFndrsngExpnsAmt |
| CY Total Fundraising Expense | $0 | CYTotalFundraisingExpenseAmt |
| PY Other Expenses | $79,756,785 | PYOtherExpensesAmt |
| CY Other Expenses | $91,428,205 | CYOtherExpensesAmt |
| PY Total Expenses | $96,923,987 | PYTotalExpensesAmt |
| CY Total Expenses | $101,351,775 | CYTotalExpensesAmt |
| PY Revenues Less Expenses | -$270,000 | PYRevenuesLessExpensesAmt |
| CY Revenues Less Expenses | $540,000 | CYRevenuesLessExpensesAmt |
| Total Assets BOY | $195,433,978 | TotalAssetsBOYAmt |
| Total Assets EOY | $202,970,400 | TotalAssetsEOYAmt |
| Total Liabilities BOY | $44,524,547 | TotalLiabilitiesBOYAmt |
| Total Liabilities EOY | $42,017,883 | TotalLiabilitiesEOYAmt |
| Net Assets Or Fund Balances BOY | $150,909,431 | NetAssetsOrFundBalancesBOYAmt |
| Net Assets Or Fund Balances EOY | $160,952,517 | NetAssetsOrFundBalancesEOYAmt |
| Mission | TO PROVIDE QUALITY SERVICE TO EMPOWER COMMUNITIES AND IMPROVE LIVES. | MissionDesc |
| Significant New Program Srvc | 0 | SignificantNewProgramSrvcInd |
| Significant Change | 0 | SignificantChangeInd |
| Desc | PROVIDING ELECTRIC POWER TO OUR MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 21,801 ACTIVE SERVICES AT YEAR END. | Desc |
| Described In Section501c3 | 0 | DescribedInSection501c3Ind |
| Schedule B Required | 0 | ScheduleBRequiredInd |
| Political Campaign Acty | 0 | PoliticalCampaignActyInd |
| Subject To Proxy Tax | 0 | SubjectToProxyTaxInd |
| Donor Advised Fund | 0 | DonorAdvisedFundInd |
| Conservation Easements | 0 | ConservationEasementsInd |
| Collections Of Art | 0 | CollectionsOfArtInd |
| Credit Counseling | Yes (1) | CreditCounselingInd |
| Donor Rstr Or Quasi Endowments | 0 | DonorRstrOrQuasiEndowmentsInd |
| Report Land Building Equipment | Yes (1) | ReportLandBuildingEquipmentInd |
| Report Investments Other Sec | 0 | ReportInvestmentsOtherSecInd |
| Report Program Related Invst | Yes (1) | ReportProgramRelatedInvstInd |
| Report Other Assets | 0 | ReportOtherAssetsInd |
| Report Other Liabilities | Yes (1) | ReportOtherLiabilitiesInd |
| Include FIN48 Footnote | Yes (1) | IncludeFIN48FootnoteInd |
| Independent Audit Fincl Stmt | Yes (1) | IndependentAuditFinclStmtInd |
| Consolidated Audit Fincl Stmt | 0 | ConsolidatedAuditFinclStmtInd |
| School Operating | 0 | SchoolOperatingInd |
| Foreign Office | 0 | ForeignOfficeInd |
| Foreign Activities | 0 | ForeignActivitiesInd |
| More Than5000 K To Org | 0 | MoreThan5000KToOrgInd |
| More Than5000 K To Individuals | 0 | MoreThan5000KToIndividualsInd |
| Professional Fundraising | 0 | ProfessionalFundraisingInd |
| Fundraising Activities | 0 | FundraisingActivitiesInd |
| Gaming Activities | 0 | GamingActivitiesInd |
| Operate Hospital | 0 | OperateHospitalInd |
| Grants To Organizations | 0 | GrantsToOrganizationsInd |
| Grants To Individuals | 0 | GrantsToIndividualsInd |
| Schedule J Required | Yes (1) | ScheduleJRequiredInd |
| Tax Exempt Bonds | 0 | TaxExemptBondsInd |
| Loan Outstanding | 0 | LoanOutstandingInd |
| Grant To Related Person | 0 | GrantToRelatedPersonInd |
| Business Rln With Org Mem | 0 | BusinessRlnWithOrgMemInd |
| Business Rln With Fam Mem | 0 | BusinessRlnWithFamMemInd |
| Business Rln With35 Ctrl Ent | 0 | BusinessRlnWith35CtrlEntInd |
| Deductible Non Cash Contri | 0 | DeductibleNonCashContriInd |
| Deductible Art Contribution | 0 | DeductibleArtContributionInd |
| Terminate Operations | 0 | TerminateOperationsInd |
| Partial Liquidation | 0 | PartialLiquidationInd |
| Disregarded Entity | 0 | DisregardedEntityInd |
| Related Entity | 0 | RelatedEntityInd |
| Related Organization Ctrl Ent | 0 | RelatedOrganizationCtrlEntInd |
| Activities Conducted Prtshp | 0 | ActivitiesConductedPrtshpInd |
| Schedule O Required | Yes (1) | ScheduleORequiredInd |
| IRP Document | 28 | IRPDocumentCnt |
| IRP Document W2 G | 0 | IRPDocumentW2GCnt |
| Employee | 91 | EmployeeCnt |
| Employment Tax Returns Filed | Yes (1) | EmploymentTaxReturnsFiledInd |
| Unrelated Bus Incm Over Limit | 0 | UnrelatedBusIncmOverLimitInd |
| Foreign Financial Account | 0 | ForeignFinancialAccountInd |
| Prohibited Tax Shelter Trans | 0 | ProhibitedTaxShelterTransInd |
| Taxable Party Notification | 0 | TaxablePartyNotificationInd |
| Nondeductible Contributions | 0 | NondeductibleContributionsInd |
| Members And Shr Gross Income | $103,907,944 | MembersAndShrGrossIncomeAmt |
| Other Sources Gross Income | $435,651 | OtherSourcesGrossIncomeAmt |
| Indoor Tanning Services | 0 | IndoorTanningServicesInd |
| Subj To Tax Rmnrtn Ex Prcht Pymt | 0 | SubjToTaxRmnrtnExPrchtPymtInd |
| Subject To Excs Tax Net Invst Inc | 0 | SubjectToExcsTaxNetInvstIncInd |
| Info In Schedule O Part VI | Yes (X) | InfoInScheduleOPartVIInd |
| Governing Body Voting Members | 7 | GoverningBodyVotingMembersCnt |
| Independent Voting Member | 7 | IndependentVotingMemberCnt |
| Family Or Business Rln | 0 | FamilyOrBusinessRlnInd |
| Delegation Of Mgmt Duties | 0 | DelegationOfMgmtDutiesInd |
| Change To Org Documents | Yes (1) | ChangeToOrgDocumentsInd |
| Material Diversion Or Misuse | 0 | MaterialDiversionOrMisuseInd |
| Members Or Stockholders | Yes (1) | MembersOrStockholdersInd |
| Election Of Board Members | Yes (1) | ElectionOfBoardMembersInd |
| Decisions Subject To Approva | Yes (1) | DecisionsSubjectToApprovaInd |
| Minutes Of Governing Body | Yes (1) | MinutesOfGoverningBodyInd |
| Minutes Of Committees | 0 | MinutesOfCommitteesInd |
| Officer Mailing Address | 0 | OfficerMailingAddressInd |
| Local Chapters | 0 | LocalChaptersInd |
| Form990 Provided To Gvrn Body | Yes (1) | Form990ProvidedToGvrnBodyInd |
| Conflict Of Interest Policy | Yes (1) | ConflictOfInterestPolicyInd |
| Annual Disclosure Covered Prsn | Yes (1) | AnnualDisclosureCoveredPrsnInd |
| Regular Monitoring Enfrc | Yes (1) | RegularMonitoringEnfrcInd |
| Whistleblower Policy | Yes (1) | WhistleblowerPolicyInd |
| Document Retention Policy | Yes (1) | DocumentRetentionPolicyInd |
| Compensation Process CEO | Yes (1) | CompensationProcessCEOInd |
| Compensation Process Other | 0 | CompensationProcessOtherInd |
| Investment In Joint Venture | 0 | InvestmentInJointVentureInd |
| Upon Request | Yes (X) | UponRequestInd |
Books In Care Of Detail BooksInCareOfDetail
Business Name BusinessName
| Field | Value | IRS element (for citing) |
|---|---|---|
| Business Name Line1 | BRAD BIERSTEDT GENERAL MANAGER | BusinessNameLine1Txt |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Phone | 8307803952 | PhoneNum |
US Address USAddress
| Field | Value | IRS element (for citing) |
|---|---|---|
| Address Line1 | 1800 N US HWY 181 | AddressLine1Txt |
| City | KARNES CITY | CityNm |
| State Abbreviation | TX | StateAbbreviationCd |
| ZIP | 78118 | ZIPCd |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Info In Schedule O Part VII | Yes (X) | InfoInScheduleOPartVIIInd |
Form990 Part VII Section A Form990PartVIISectionAGrp (13 entries)
| TitleTitleTxt | Average Hours Per WeekAverageHoursPerWeekRt | Individual Trustee Or DirectorIndividualTrusteeOrDirectorInd | OfficerOfficerInd | Reportable Comp From OrgReportableCompFromOrgAmt | Reportable Comp From Rltd OrgReportableCompFromRltdOrgAmt | Other CompensationOtherCompensationAmt | Highest Compensated EmployeeHighestCompensatedEmployeeInd |
|---|---|---|---|---|---|---|---|
| PAUL BRYSCH JR | |||||||
| PRESIDENT | 4.70 | Yes (X) | Yes (X) | $29,353 | $0 | $0 | |
| FRANK GEYER JR | |||||||
| ASST SECRETARY/TREASURER | 7.60 | Yes (X) | Yes (X) | $28,750 | $0 | $0 | |
| ROSS NIESCHWITZ | |||||||
| DIRECTOR | 1.80 | Yes (X) | $26,523 | $0 | $0 | ||
| CLIF ROYAL | |||||||
| VICE PRESIDENT | 2.60 | Yes (X) | Yes (X) | $25,073 | $0 | $0 | |
| LARRY SCHENDEL | |||||||
| SECRETARY/TREASURER | 3.10 | Yes (X) | Yes (X) | $17,820 | $0 | $0 | |
| SHIRLEY HOFMANN | |||||||
| DIRECTOR | 3.60 | Yes (X) | $14,095 | $0 | $0 | ||
| SCOTT MCCLAUGHERTY | |||||||
| DIRECTOR | 1.80 | Yes (X) | $8,729 | $0 | $0 | ||
| BRADLEY BIERSTEDT | |||||||
| GENERAL MANAGER | 55.00 | Yes (X) | $233,151 | $0 | $132,948 | ||
| PATRICK JANYSEK | |||||||
| OPERATIONS SUPERINTENDENT | 50.00 | $162,511 | $0 | $121,158 | Yes (X) | ||
| JOE ESCANDON | |||||||
| CONSTRUCTION FOREMAN | 50.00 | $142,144 | $0 | $69,639 | Yes (X) | ||
| WILLIAM WILSON | |||||||
| IT MANAGER | 50.00 | $136,190 | $0 | $47,070 | Yes (X) | ||
| RUDOLFO TORRES | |||||||
| CONSTRUCTION FOREMAN | 50.00 | $136,107 | $0 | $76,613 | Yes (X) | ||
| QUINT WOELFEL | |||||||
| SHOP FOREMAN | 50.00 | $129,079 | $0 | $110,947 | Yes (X) | ||
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total Reportable Comp From Org | $1,089,525 | TotalReportableCompFromOrgAmt |
| Tot Reportable Comp Rltd Org | $0 | TotReportableCompRltdOrgAmt |
| Total Other Compensation | $558,375 | TotalOtherCompensationAmt |
| Indiv Rcvd Greater Than100 K | 24 | IndivRcvdGreaterThan100KCnt |
| Former Ofcr Employees Listed | 0 | FormerOfcrEmployeesListedInd |
| Total Comp Greater Than150 K | Yes (1) | TotalCompGreaterThan150KInd |
| Compensation From Other Srcs | 0 | CompensationFromOtherSrcsInd |
Contractor Compensation ContractorCompensationGrp (5 entries)
| Address Line1ContractorAddress/USAddress/AddressLine1Txt | CityContractorAddress/USAddress/CityNm | State AbbreviationContractorAddress/USAddress/StateAbbreviationCd | ZIPContractorAddress/USAddress/ZIPCd | ServicesServicesDesc | CompensationCompensationAmt |
|---|---|---|---|---|---|
| COOPERATIVE BUILDING SOLUTIONS | |||||
| 77 WESTPORT PLAZA DR | SAINT LOUIS | MO | 63146 | NEW OFFICE CONSTRUCTION | $11,061,950 |
| SENDERO POWER LINE CONSTRUCTION INC | |||||
| PO BOX 2209 | VICTORIA | TX | 77902 | UTILITY CONSTRUCTION | $3,019,776 |
| IVM SOLUTIONS | |||||
| 2038 LEE ROAD 137 | AUBORN | AL | 36832 | ROW CLEARING | $2,327,687 |
| JAMES POWER LINE CONSTRUCTION INC | |||||
| 43 SHOOTING CLUB ROAD | BOERNE | TX | 78006 | UTILITY CONSTRUCTION | $1,704,042 |
| SCHNEIDER ENGINEERING | |||||
| 191 MENGER SPRINGS PARKWAY | BOERNE | TX | 78006 | ENGINEERING | $568,762 |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Cntrct Rcvd Greater Than100 K | 8 | CntrctRcvdGreaterThan100KCnt |
| Info In Schedule O Part VIII | Yes (X) | InfoInScheduleOPartVIIIInd |
Program Service Revenue ProgramServiceRevenueGrp (3 entries)
| DescDesc | BusinessBusinessCd | Total Revenue ColumnTotalRevenueColumnAmt | Related Or Exempt Func IncomeRelatedOrExemptFuncIncomeAmt |
|---|---|---|---|
| SALES OF ELECTRICITY | 221000 | $97,938,998 | $97,938,998 |
| PATRONAGE DIVIDENDS | 221000 | $3,297,648 | $3,297,648 |
| SERVICE FEES | 221000 | $429,112 | $429,112 |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total Program Service Revenue | $101,665,758 | TotalProgramServiceRevenueAmt |
Investment Income InvestmentIncomeGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total Revenue Column | $94,628 | TotalRevenueColumnAmt |
| Exclusion | $94,628 | ExclusionAmt |
Royalties Revenue RoyaltiesRevenueGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total Revenue Column | $94,040 | TotalRevenueColumnAmt |
| Exclusion | $94,040 | ExclusionAmt |
Other Revenue Misc OtherRevenueMiscGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Desc | POLE ATTACHMENT INCOME | Desc |
| Business | 221000 | BusinessCd |
| Total Revenue Column | $37,349 | TotalRevenueColumnAmt |
| Exclusion | $37,349 | ExclusionAmt |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Other Revenue Total | $37,349 | OtherRevenueTotalAmt |
Total Revenue TotalRevenueGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total Revenue Column | $101,891,775 | TotalRevenueColumnAmt |
| Related Or Exempt Func Income | $101,665,758 | RelatedOrExemptFuncIncomeAmt |
| Unrelated Business Revenue | $0 | UnrelatedBusinessRevenueAmt |
| Exclusion | $226,017 | ExclusionAmt |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Info In Schedule O Part IX | Yes (X) | InfoInScheduleOPartIXInd |
Grants To Domestic Orgs GrantsToDomesticOrgsGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $56,206 | TotalAmt |
Benefits To Members BenefitsToMembersGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $3,748,162 | TotalAmt |
Comp Current Ofcr Directors CompCurrentOfcrDirectorsGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $516,442 | TotalAmt |
Other Salaries And Wages OtherSalariesAndWagesGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $3,804,713 | TotalAmt |
Pension Plan Contributions PensionPlanContributionsGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $405,321 | TotalAmt |
Other Employee Benefits OtherEmployeeBenefitsGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $1,079,988 | TotalAmt |
Payroll Taxes PayrollTaxesGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $312,738 | TotalAmt |
Interest InterestGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $721,690 | TotalAmt |
Depreciation Depletion DepreciationDepletionGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $8,111,241 | TotalAmt |
Other Expenses OtherExpensesGrp (4 entries)
| DescDesc | TotalTotalAmt |
|---|---|
| PURCHASED POWER | $72,813,526 |
| DISTRIBUTION EXPENSE | $3,511,266 |
| ADMIN & GENERAL EXPENSE | $1,957,187 |
| CONSUMER EXPENSE | $528,916 |
All Other Expenses AllOtherExpensesGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $3,784,379 | TotalAmt |
Total Functional Expenses TotalFunctionalExpensesGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total | $101,351,775 | TotalAmt |
Cash Non Interest Bearing CashNonInterestBearingGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $11,346,021 | BOYAmt |
| EOY | $4,907,933 | EOYAmt |
Savings And Temp Cash Invst SavingsAndTempCashInvstGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $8,100,000 | BOYAmt |
| EOY | $5,000,000 | EOYAmt |
Accounts Receivable AccountsReceivableGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $6,496,285 | BOYAmt |
| EOY | $7,104,390 | EOYAmt |
Inventories For Sale Or Use InventoriesForSaleOrUseGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $3,900,658 | BOYAmt |
| EOY | $4,708,196 | EOYAmt |
Prepaid Expenses Defrd Charges PrepaidExpensesDefrdChargesGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $184,637 | BOYAmt |
| EOY | $210,879 | EOYAmt |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Land Bldg Equip Cost Or Other Bss | $149,668,534 | LandBldgEquipCostOrOtherBssAmt |
| Land Bldg Equip Accum Deprec | $28,126,815 | LandBldgEquipAccumDeprecAmt |
Land Bldg Equip Basis Net LandBldgEquipBasisNetGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $109,525,830 | BOYAmt |
| EOY | $121,541,719 | EOYAmt |
Investments Other Securities InvestmentsOtherSecuritiesGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $289,922 | BOYAmt |
| EOY | $291,673 | EOYAmt |
Investments Program Related InvestmentsProgramRelatedGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $47,549,732 | BOYAmt |
| EOY | $50,633,842 | EOYAmt |
Other Assets Total OtherAssetsTotalGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $8,040,893 | BOYAmt |
| EOY | $8,571,768 | EOYAmt |
Total Assets TotalAssetsGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $195,433,978 | BOYAmt |
| EOY | $202,970,400 | EOYAmt |
Accounts Payable Accr Expnss AccountsPayableAccrExpnssGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $9,619,635 | BOYAmt |
| EOY | $7,447,156 | EOYAmt |
Escrow Account Liability EscrowAccountLiabilityGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | -$2,215 | BOYAmt |
| EOY | $8,694 | EOYAmt |
Mortg Notes Pybl Scrd Invst Prop MortgNotesPyblScrdInvstPropGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $19,579,317 | BOYAmt |
| EOY | $22,014,982 | EOYAmt |
Other Liabilities OtherLiabilitiesGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $15,327,810 | BOYAmt |
| EOY | $12,547,051 | EOYAmt |
Total Liabilities TotalLiabilitiesGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $44,524,547 | BOYAmt |
| EOY | $42,017,883 | EOYAmt |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Org Does Not Follow FASB117 | Yes (X) | OrgDoesNotFollowFASB117Ind |
Cap Stk Tr Prin Current Funds CapStkTrPrinCurrentFundsGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $87,240 | BOYAmt |
| EOY | $89,080 | EOYAmt |
Pd In Cap Srpls Land Bldg Eqp Fund PdInCapSrplsLandBldgEqpFundGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $0 | BOYAmt |
| EOY | $0 | EOYAmt |
Rtn Earn Endowment Incm Oth Fnds RtnEarnEndowmentIncmOthFndsGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $150,822,191 | BOYAmt |
| EOY | $160,863,437 | EOYAmt |
Total Net Assets Fund Balance TotalNetAssetsFundBalanceGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $150,909,431 | BOYAmt |
| EOY | $160,952,517 | EOYAmt |
Tot Liab Net Assets Fund Balance TotLiabNetAssetsFundBalanceGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| BOY | $195,433,978 | BOYAmt |
| EOY | $202,970,400 | EOYAmt |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Info In Schedule O Part XI | Yes (X) | InfoInScheduleOPartXIInd |
| Reconcilation Revenue Expnss | $540,000 | ReconcilationRevenueExpnssAmt |
| Other Changes In Net Assets | $9,503,086 | OtherChangesInNetAssetsAmt |
| Info In Schedule O Part XII | Yes (X) | InfoInScheduleOPartXIIInd |
| Method Of Accounting Accrual | Yes (X) | MethodOfAccountingAccrualInd |
| Accountant Compile Or Review | 0 | AccountantCompileOrReviewInd |
| FS Audited | Yes (1) | FSAuditedInd |
FS Audited Basis FSAuditedBasisGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Separate Basis Fincl Stmt | Yes (X) | SeparateBasisFinclStmtInd |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Audit Committee | 0 | AuditCommitteeInd |
| Federal Grant Audit Required | 0 | FederalGrantAuditRequiredInd |
Schedule D IRS990ScheduleD
| Field | Value | IRS element (for citing) |
|---|---|---|
| Agent Trustee Etc | 0 | AgentTrusteeEtcInd |
| Incl Escrow Custodial Acct Liab | Yes (1) | InclEscrowCustodialAcctLiabInd |
| Explanation Provided | Yes (X) | ExplanationProvidedInd |
Land LandGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Other Cost Or Other Basis | $1,448,100 | OtherCostOrOtherBasisAmt |
| Book Value | $1,448,100 | BookValueAmt |
Buildings BuildingsGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Other Cost Or Other Basis | $14,382,389 | OtherCostOrOtherBasisAmt |
| Depreciation | $1,692,489 | DepreciationAmt |
| Book Value | $12,689,900 | BookValueAmt |
Equipment EquipmentGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Other Cost Or Other Basis | $107,953,515 | OtherCostOrOtherBasisAmt |
| Depreciation | $26,434,326 | DepreciationAmt |
| Book Value | $81,519,189 | BookValueAmt |
Other Land Buildings OtherLandBuildingsGrp
| Field | Value | IRS element (for citing) |
|---|---|---|
| Other Cost Or Other Basis | $25,884,530 | OtherCostOrOtherBasisAmt |
| Book Value | $25,884,530 | BookValueAmt |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total Book Value Land Buildings | $121,541,719 | TotalBookValueLandBuildingsAmt |
Invst Program Related Org InvstProgramRelatedOrgGrp (10 entries)
| DescDesc | Book ValueBookValueAmt | Method ValuationMethodValuationCd |
|---|---|---|
| PATRONAGE CAPITAL - STEC | $47,997,183 | C |
| PATRONAGE CAPITAL - TEC | $1,108,848 | C |
| PATRONAGE CAPITAL - CFC | $121,803 | C |
| PATRONAGE CAPITAL - COBANK | $181,992 | C |
| PATRONAGE CAPITAL - NRTC | $162,971 | C |
| PATRONAGE CAPITAL - CRC | $7,870 | C |
| PATRONAGE CAPITAL - VALLEY TELEPHONE | $5,266 | C |
| OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS | $15,810 | C |
| CAPITAL TERM CERTIFICATES - CFC | $986,227 | C |
| PATRONAGE CAPITAL - NISC | $45,872 | C |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total Book Value Program Rltd | $50,633,842 | TotalBookValueProgramRltdAmt |
Other Liabilities Org OtherLiabilitiesOrgGrp (5 entries)
| DescDesc | AmtAmt |
|---|---|
| ACCRUED OPERATING TAXES | $1,046,980 |
| CONSUMER DEPOSITS | $5,130,041 |
| DEFERRED CREDITS - ADVANCES FOR CONSTRUCTION | $4,771,373 |
| DEFERRED CREDITS - UNCLAIMED PATRONAGE CAPITAL | $1,553,776 |
| DEFERRED CREDITS - OTHER | $44,881 |
| Field | Value | IRS element (for citing) |
|---|---|---|
| Total Liability | $12,547,051 | TotalLiabilityAmt |
| Footnote Text | Yes (X) | FootnoteTextInd |
| Total Rev Etc Audited Fincl Stmt | $98,352,147 | TotalRevEtcAuditedFinclStmtAmt |
| Revenue Not Reported | $0 | RevenueNotReportedAmt |
| Revenue Subtotal | $98,352,147 | RevenueSubtotalAmt |
| Other Revenues Not Included | $3,539,628 | OtherRevenuesNotIncludedAmt |
| Revenue Not Reported Fincl Stmt | $3,539,628 | RevenueNotReportedFinclStmtAmt |
| Total Revenue Per Form990 | $101,891,775 | TotalRevenuePerForm990Amt |
| Tot Expns Etc Audited Fincl Stmt | $94,063,985 | TotExpnsEtcAuditedFinclStmtAmt |
| Expenses Not Reported | $0 | ExpensesNotReportedAmt |
| Expenses Subtotal | $94,063,985 | ExpensesSubtotalAmt |
| Other Expenses Not Included | $7,287,790 | OtherExpensesNotIncludedAmt |
| Expenses Not Rpt Fincl Stmt | $7,287,790 | ExpensesNotRptFinclStmtAmt |
| Total Expenses Per Form990 | $101,351,775 | TotalExpensesPerForm990Amt |
Supplemental Information Detail SupplementalInformationDetail (7 entries)
| Form And Line ReferenceFormAndLineReferenceDesc | ExplanationExplanationTxt |
|---|---|
| PART IV, LINE 2B: | PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER TEXAS STATE LAW. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR SCHOLARSHIPS TO ENABLE STUDENTS FROM RURAL AREAS TO ATTEND COLLEGE, TECHNICAL SCHOOL OR OTHER POST SECONDARY EDUCATION INSTITUTION. ANY AMOUNTS SO DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. |
| 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 ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. |
| PART XI, LINE 4B - OTHER ADJUSTMENTS: | OTHER DEDUCTIONS RECLASSIFIED TO EXPENSES 3,539,628. |
| PART XII, LINE 4B - OTHER ADJUSTMENTS: | PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,748,162. OTHER DEDUCTIONS RECLASSIFIED FROM NON-OPERATING MARGINS 3,539,628. |
| PART VII: | THE AMOUNT OF INVESTMENTS - OTHER SECURITIES ON FORM 990, PAGE 11, PART X, LINE 12 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 VII HAS BEEN LEFT BLANK. |
| 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". |
Schedule J IRS990ScheduleJ
| Field | Value | IRS element (for citing) |
|---|---|---|
| Discretionary Spending Acct | Yes (X) | DiscretionarySpendingAcctInd |
| Written Policy Ref T And E Expnss | Yes (1) | WrittenPolicyRefTAndEExpnssInd |
| Substantiation Required | Yes (1) | SubstantiationRequiredInd |
| Compensation Survey | Yes (X) | CompensationSurveyInd |
| Board Or Committee Approval | Yes (X) | BoardOrCommitteeApprovalInd |
| Severance Payment | 0 | SeverancePaymentInd |
| Supplemental Nonqual Rtr Plan | 0 | SupplementalNonqualRtrPlanInd |
| Equity Based Comp Arrngm | 0 | EquityBasedCompArrngmInd |
Rltd Org Officer Trst Key Empl RltdOrgOfficerTrstKeyEmplGrp (6 entries)
| TitleTitleTxt | Base Compensation Filing OrgBaseCompensationFilingOrgAmt | Compensation Based On Rltd OrgsCompensationBasedOnRltdOrgsAmt | Bonus Filing OrganizationBonusFilingOrganizationAmount | Bonus Related OrganizationsBonusRelatedOrganizationsAmt | Other Compensation Filing OrgOtherCompensationFilingOrgAmt | Other Compensation Rltd OrgsOtherCompensationRltdOrgsAmt | Deferred Compensation Flng OrgDeferredCompensationFlngOrgAmt | Deferred Comp Rltd OrgsDeferredCompRltdOrgsAmt | Nontaxable Benefits Filing OrgNontaxableBenefitsFilingOrgAmt | Nontaxable Benefits Rltd OrgsNontaxableBenefitsRltdOrgsAmt | Total Compensation Filing OrgTotalCompensationFilingOrgAmt | Total Compensation Rltd OrgsTotalCompensationRltdOrgsAmt | Comp Report Prior990 Filing OrgCompReportPrior990FilingOrgAmt | Comp Report Prior990 Rltd OrgsCompReportPrior990RltdOrgsAmt |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BRADLEY BIERSTEDT | ||||||||||||||
| GENERAL MANAGER | $166,222 | $0 | $19,600 | $0 | $47,329 | $0 | $102,015 | $0 | $30,933 | $0 | $366,099 | $0 | $0 | $0 |
| PATRICK JANYSEK | ||||||||||||||
| OPERATIONS SUPERINTENDENT | $137,733 | $0 | $14,357 | $0 | $10,421 | $0 | $94,921 | $0 | $26,237 | $0 | $283,669 | $0 | $0 | $0 |
| QUINT WOELFEL | ||||||||||||||
| SHOP FOREMAN | $107,868 | $0 | $9,759 | $0 | $11,452 | $0 | $81,797 | $0 | $29,150 | $0 | $240,026 | $0 | $0 | $0 |
| RUDOLFO TORRES | ||||||||||||||
| CONSTRUCTION FOREMAN | $115,732 | $0 | $9,296 | $0 | $11,079 | $0 | $51,250 | $0 | $25,363 | $0 | $212,720 | $0 | $0 | $0 |
| JOE ESCANDON | ||||||||||||||
| CONSTRUCTION FOREMAN | $129,198 | $0 | $9,691 | $0 | $3,255 | $0 | $41,606 | $0 | $28,033 | $0 | $211,783 | $0 | $0 | $0 |
| WILLIAM WILSON | ||||||||||||||
| IT MANAGER | $110,283 | $0 | $11,274 | $0 | $14,633 | $0 | $21,366 | $0 | $25,704 | $0 | $183,260 | $0 | $0 | $0 |
Supplemental Information Detail SupplementalInformationDetail
| Field | Value | IRS element (for citing) |
|---|---|---|
| Form And Line Reference | PART II, COLUMN C: | FormAndLineReferenceDesc |
| Explanation | 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 ENVIORNMENT. 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. BRADLEY BIERSTEDT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 88,353 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,662 TOTAL REPORTED IN COLUMN C $ 102,015 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (88,353) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,230 EXPENSE TO THE COOPERATIVE $ 40,892 PATRICK JANYSEK: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 92,055 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,866 TOTAL REPORTED IN COLUMN C $ 94,921 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (92,055) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 20,114 EXPENSE TO THE COOPERATIVE $ 22,980 QUINT WOELFEL: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 79,842 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,955 TOTAL REPORTED IN COLUMN C $ 81,797 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (79,842) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,673 EXPENSE TO THE COOPERATIVE $ 15,628 RUDOLFO TORRES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 49,387 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,863 TOTAL REPORTED IN COLUMN C $ 51,250 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (49,387) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 12,990 EXPENSE TO THE COOPERATIVE $ 14,853 JOE ESCANDON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 39,665 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,941 TOTAL REPORTED IN COLUMN C $ 41,606 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (39,665) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,545 EXPENSE TO THE COOPERATIVE $ 15,486 WILLIAM WILSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,115 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,251 TOTAL REPORTED IN COLUMN C $ 21,366 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (19,115) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,794 EXPENSE TO THE COOPERATIVE $ 18,045 | ExplanationTxt |
Schedule O IRS990ScheduleO
Supplemental Information Detail SupplementalInformationDetail (22 entries)
| Form And Line ReferenceFormAndLineReferenceDesc | ExplanationExplanationTxt |
|---|---|
| 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 GAIN OF $540,000, WHICH IS THE INCOME STATEMENT EFFECT OF ACCRUED UNBILLED REVENUE. THE GAAP BASIS FINANCIAL STATEMENTS INCLUDE AN ACCRUAL FOR UNBILLED REVENUE BECAUSE THE COOPERATIVE'S BILLING CYCLE DOES NOT END ON THE LAST DAY OF THE MONTH. THEREFORE, IT HAS REVENUE IN DECEMBER OF EACH YEAR THAT IT HAS EARNED BUT WILL NOT BILL UNTIL THE FIRST BILLING CYCLE OF THE FOLLOWING YEAR. THE COOPERATIVE ESTIMATES THIS REVENUE AND RECORDS IT AS ACCRUED UNBILLED REVENUE IN ORDER TO MATCH THE REVENUE WITH THE YEAR EARNED. HOWEVER, THE COOPERATIVE ALLOCATES THE REVENUE TO MEMBERS IN THE YEAR IT IS BILLED RATHER THAN WHEN ACCRUED. THIS TIMING DIFFERENCE IS FAIR AND EQUITABLE BECAUSE IT MATCHES THE PATRONAGE DIVIDEND ALLOCATED WITH THE BILLING RECORDS USED TO ALLOCATE THE MARGINS. DUE TO THE TIMING OF WHEN THE COOPERATIVE ALLOCATES ACCRUED UNBILLED REVENUE, PAGE 1, PART I, LINE 19 ANNUALLY REPORTS NET INCOME EQUAL TO THE NET INCREASE IN ACCRUED UNBILLED REVENUE OR A NET LOSS EQUAL TO THE NET DECREASE IN UNBILLED REVENUE. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: UNBILLED REVENUE 12/31/21 $ 8,550,000 LESS: UNBILLED REVENUE 12/31/20 (8,010,000) (A) - NET INCREASE EQUALS NET GAIN ON PAGE I, LINE 19 $ 540,000 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 3,748,162 TOTAL 2021 NET MARGIN (A + B) $ 4,288,162 |
| 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 I. MEMBERSHIP. SECTION 1. REQUIREMENTS FOR MEMBERSHIP. THE AMENDMENT DEFINES WHO WILL BECOME A MEMBER AND OUTLINES THE ACTIONS REQUIRED BY THE MEMBER TO RECEIVE ELECTRIC SERVICE INCLUDING: IF REQUIRED, "MADE AN APPLICATION FOR MEMBERSHIP IN WHATEVER FORM THEN-SPECIFIED BY THE BOARD OF DIRECTORS; AND AGREED TO COMPLY WITH ALL GOVERNING DOCUMENTS THAT MAY BE AMENDED FROM TIME TO TIME. A PARAGRAPH DEFINING "GOVERNING DOCUMENTS" WAS ADDED. THE SECTION WAS ALSO REVISED TO STATE THAT NO MEMBER MAY HOLD MORE THAN ONE MEMBERSHIP IN THE COOPERATIVE. SECTION 2. MEMBERSHIP CERTIFICATES WAS REVISED TO DELETE THE REQUIREMENT THAT A MEMBERSHIP CERTIFICATE BE SIGNED BY THE PRESIDENT AND SECRETARY OF THE BOARD AND HAVE THE CORPORATE SEAL AFFIXED THERETO. "NO MEMBERSHIP CERTIFICATE SHALL BE ISSUED FOR LESS THAN THE MEMBERSHIP FEE FIXED IN THESE BYLAWS, NOR UNTIL SUCH MEMBERSHIP FEE HAS BEEN FULLY PAID FOR. IN THE CASE A CERTIFICATE IS LOST, DESTROYED OR MUTILATED, A NEW CERTIFICIATE MAY BE ISSUED THEREOF UPON SUCH UNIFORM TERMS AND INDENMITY TO THE COOPERATIVE AS BOARD MAY PRESCRIBE" WAS DELETED. SECTION 3. JOINT MEMBERSHIP. THIS SECTION WAS AMENDED TO DEFINE JOINT MEMBERSHIP AS NATURAL PERSONS THAT ARE LEGALLY MARRIED OR OTHERWISE JOINED IN A LEGALLY-RECOGNIZED MARRIAGE RELATIONSHIP. EITHER, BUT NOT BOTH, MAY BE ELECTED AS A DIRECTOR OF THE COOPERATIVE. SECTION 4. ORGANIZATION MEMBERSHIP. SECTION WAS ADDED TO STATE THAT ANY ENTITY OR ORGANIZATION MAY APPLY OR CONTINUE MEMBERSHIP PURSUANT TO THE REQUIREMENTS OF MEMBERSHIP SPECIFIED IN THIS ARTICLE, BUT MUST DESIGNATE TO THE COOPERATIVE AN INDIVIDUAL AND AN ALTERNATE INDIVIDUAL, IF DESIRED, TO REPRESENT ITS VOTING INTERESTS OR ANY OTHER NEEDED REPRESENTATION OF THAT MEMBERSHIP INTEREST. SECTION 4 WAS RENAMED SECTION 5. CONVERSION OF MEMBERSHIP. PARAGRAPH (A) WAS REVISED TO SAY "PURSUANT TO ARTICLE I, SECTION 3", MEMBERSHIP MAY BE CONVERTED TO A JOINT MEMBERSHIP. PARAGRAPH (C) CHANGED TO SAY UPON THE LEGAL SEPARATION OR DIVORCE OF THE MEMBERS OF A JOINT MEMBERSHIP, SUCH MEMBERSHIP SHALL CONTINUE TO BE HELD SOLELY BY THE ONE WHO CONTINUES TO DIRECTLY OCCUPY THE PREMISES COVERED BY THE MEMBERSHIP. HOWEVER NEITHER SPOUSE SHALL BE RELEASED FROM ANY DEBTS OR OBILIGATIONS DUE TO THE COOPERATIVE ON THE DATE OF THE SEPARATION OR DIVORCE, AND ELECTRIC SERVICE TO THE PREMISES MAY BE TERMINATED IN ACCORDANCE WITH THE RULES AND REGULATIONS OF THE COOPERATIVE IF ANY BILLS FOR ELECTRIC SERVICE TO THE PREMISES ARE UNPAID. PREVIOUS SECTION 5 IS NOW SECTION 6. MEMBERSHIP FEES. (A) THE MEMBERSHIP FEE WAS AMENDED FROM "FIVE DOLLARS" TO "FIXED FROM TIME TO TIME BY THE BOARD." PARAGRAPH (B) WAS DELETED AND A NEW (B) WAS ADDED TO READ, "THE MEMBERSHIP FEE, TOGETHER WITH ANY ADDITIONAL FEES OR ANY COMBINATION THEREOF, IF REQUIRED BY THE COOPERATIVE, SHALL ENTITLE THE MEMBER TO ONE SERVICE CONNECTION. A SERVICE CONNECTION DEPOSIT OR FEE, IN SUCH AMOUNT AS SHALL BE PRESCRIBED BY THE COOPERATIVE, TOGETHER WITH ANY SERVICE SECURITY DEPOSIT, SERVICE CONNECTION DEPOSIT OR FEE, FACILITIES EXTENSION DEPOSIT, AND/OR CONTRIBUTION IN AID OF CONSTRUCTION THAT MAY BE REQUIRED BY THE COOPERATIVE OR ANY COMBINATION THEREOF (COLLECTIVELY, "ADDITIONAL FEES"), IF REQUIRED BY THE COOPERATIVE, SHALL BE PAID BY THE MEMBER FOR EACH ADDITIONAL SERVICE CONNECTION REQUESTED BY THE APPLICANT OR MEMBER. COOPERATIVE SHALL HAVE THE RIGHT TO APPLY SUCH DEPOSIT TO ANY MEMBER ACCOUNTS." SECTION 6 BECAME SECTION 7. PURCHASE OF ELECTRIC ENERGY. SECTION 7 BECAME SECTION 8. TERMINATION OF MEMBERSHIP. PARAGRAPH (A) WAS AMENDED TO STATE THAT ANY MEMBER MAY WITHDRAW FROM MEMBERSHIP UPON PAYMENT IN FULL OF ALL DEBTS AND LIABILITIES TO THE COOPERATIVE AND UPON COMPLIANCE WITH THE TERMS AND CONDITIONS AS THE BOARD MAY PRESCRIBE. BY THE AFFIRMATIVE VOTE OF NOT LESS THAN TWO-THIRDS OF ALL DIRECTORS, ANY MEMBER MAY BE EXPELLED IF THE MEMBER FAILS TO COMPLY WITH ANY PROVISIONS OF THE GOVERNING DOCUMENTS. MEMBER MUST BE GIVEN WRITTEN NOTICE AND SHALL BE GIVEN 10 DAYS AFTER SUCH NOTICE TO CURE SUCH FAILURE. PARAGRAPH (B) WAS REVISED TO STATE THAT THE MEMBERSHIP OF A MEMBER WHO FOR 6 CONSECUTIVE MONTHS DURING WHICH SERVICE IS AVAILABLE HAS NOT PURCHASED ELECTRIC ENERGY FROM THE COOPERATIVE, MAY BE CANCELED BY RESOLUTION OF THE BOARD. PARAGRAPH (C ) WAS EXPANDED TO STATE, "UPON THE WITHDRAWAL, DEATH, CESSATION OF EXISTENCE OR EXPULSION OF A MEMBER, THE MEMBERSHIP OF SUCH MEMBER SHALL THEREUPON TERMINATE, AND THE MEMBERSHIP CERTIFICATE OF SUCH MEMBER SHALL BE SURRENDERED FORTHWITH TO THE COOPERATIVE OR MAY BE CANCELLED BY RESOLUTION OF THE BOARD; PROVIDED HOWEVER, THAT THE FOREGOING PROVISIONS OF THIS SECTION 8(C) SHALL NOT BE CONSTRUED AS TERMINATING THE MEMBERSHIP OF THE OTHER PERSON IN A JOINT MEMBERSHIP WITH ANY DECEASED, WITHDRAWN OR EXPELLED MEMBER, UNLESS THE BOARD ALSO DETERMINES (IN THE CASE OF A WITHDRAWAL OR EXPULSION) THAT THE MEMBERSHIP OF SUCH OTHER PERSON IS ALSO TERMINATED. IF THE MEMBERSHIP OF THE OTHER PERSON IN A JOINT MEMBERSHIP WITH THE DECEASED, WITHDRAWN OR EXPELLED MEMBER IS CONTINUING AND IF THE MEMBERSHIP CERTIFICATE IS IN THE NAME OF THE OTHER PERSON, THEN NO ACTION NEED BE TAKEN REGARDING THAT CERTIFICATE; BUT IF THE MEMBERSHIP CERTIFICATE IS IN THE NAME OF THE DECEASED, WITHDRAWN OR EXPELLED MEMBER, THEN THE COOPERATIVE WILL ISSUE A NEW MEMBERSHIP CERTIFICATE IN THE NAME OF THE OTHER PERSON IN A JOINT MEMBERSHIP WITH THE DECEASED, WITHDRAWN OR EXPELLED MEMBER. TERMINATION OF MEMBERSHIP IN ANY MANNER SHALL NOT RELEASE A MEMBER OR HIS OR HER ESTATE FROM LIABILITY FOR ANY DEBTS DUE THE COOPERATIVE." PARAGRAPH (D) NOW READS THAT IN CASE OF TERMINATION OF MEMBERSHIP, THE COOPERATIVE SHALL REPAY TO THE MEMBER THE MEMBERSHIP FEE, BUT SHALL DEDUCT ANY DEBTS OR OBLIGATIONS OWED BY THE MEMBER TO THE COOPERATIVE. ARTICLE II. RIGHTS AND LIABILITIES OF MEMBERS. SECTION 1. PROPERTY INTEREST OF MEMBERS HAS BEEN AMENDED TO SAY THAT UPON DISSOLUTION OF THE COOPERATIVE, AFTER (A) ALL DEBTS AND LIABILITIES OF THE COOPERATIVE SHALL HAVE BEEN PAID, (B) ALL CAPITAL FURNISHED THROUGH PATRONAGE SHALL HAVE BEEN RETIRED AS PROVIDED IN THESE BYLAWS, AND (C) THE AMOUNT OF ALL OTHER EQUITIES MAINTAINED IN THE NAMES OF MEMBERS AND FORMER MEMBERS HAVE BEEN PAID; THE REMAINING PROPERTY AND ASSETS OF THE COOPERATIVE SHALL BE DISTRIBUTED PRO RATA AMONG THE MEMBERS OF THE COOPERATIVE AS OF THE DATE OF THE FILING OF THE CERTIFICATE OF DISSOLUTION IN THE PROPORTION WHICH THE AGGREGATE PATRONAGE OF EACH BEARS TO THE TOTAL PATRONAGE OF ALL MEMBERS AS OF THE DATE OF FILING OF THE CERTIFICATE OF DISSOLUTION, TO THE EXTENT PRACTICABLE AS DETERMINED BY THE BOARD, UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW. |
| FORM 990, PART VI, SECTION A, LINE 4 | ARTICLE III. MEETING OF MEMBERS. SECTION 1. ANNUAL MEETING WAS AMENDED TO STATE THAT EXCEPT AS OTHERWISE PROVIDED IN THESE BYLAWS, THE ANNUAL MEETING OF THE MEMBERS SHALL BE HELD ON THE DATE ESTABLISHED BY RESOLUTION ADOPTED BY THE BOARD AND "IN JUNE OF EACH YEAR" WAS DELETED. THE MEETING SHALL BE HELD AT SUCH PLACE IN A COUNTY SERVED BY THE COOPERATIVE, AS MAY BE SELECTED BY THE BOARD. THE NOTICE OF THE MEETING SHALL DESIGNATE THE PURPOSES OF THE MEETING, INCLUDING, TO THE EXTENT APPLICABLE, THE PURPOSES OF ELECTING DIRECTORS, PASSING UPON REPORTS COVERING THE PREVIOUS FISCAL YEAR AND TRANSACTING SUCH OTHER BUSINESS AS MAY COME BEFORE THE MEETING. "IF THE ELECTION OF DIRECTORS SHALL NOT BE HELD ON THE DAY DESIGNATED HEREIN FOR ANY ANNUAL MEETING, OR AT ANY ADJOURNMENT THEREOF, THE BOARD OF DIRECTORS SHALL CAUSE THE ELECTION TO BE HELD AT A SPECIAL MEETING OF THE MEMBERS AS SOON THEREAFTER AS CONVENIENTLY MAY BE." WAS DELETED. "THE NOTICE OF THE ANNUAL MEETING SHALL ALSO DESIGNATE THE DATE, TIME, AND PLACE OF THE MEETING." WAS ADDED. THE ANNUAL MEETING CAN BE POSTPOSED NOT TO EXCEED 100 DAYS, EXCEPT IN CASE OF A FORCE MAJEURE EVENT. NOTWITHSTANDING ANY PROVISION OF THESE BYLAWS TO THE CONTRARY, IN CASE OF A FORCE MAJEURE EVENT, SUCH ANNUAL MEETING MAY BE POSTPONED TO A DATE DETERMINED BY THE BOARD OF DIRECTORS TO BE AS SOON AS REASONABLY PRACTICABLE AFTER THE REMOVAL OF THE CAUSE, INCLUDING POSTPONEMENT UNTIL THE NEXT ANNUAL MEETING OF THE MEMBERS, AND THE ELECTION OF DIRECTORS SHALL BE HELD IN ACCORDANCE WITH ARTICLE III, SECTION 4(F) OF THESE BYLAWS. IF APPROVED BY THE BOARD OF DIRECTORS IN THE CASE OF A FORCE MAJEURE EVENT, (PREVIOUSLY, IN CASE OF NATIONAL EMERGENCY, BY RESOLUTION OF THE BOARD OF DIRECTORS.) THE ANNUAL MEETING MAY BE CARRIED OUT VIRTUALLY BY MEANS OF AN ONLINE ELECTRONIC NETWORK, IN WHOLE OR IN PART. ALSO ADDED "FORCE MAJEURE EVENT" MEANS ANY CAUSE THAT IS BEYOND THE REASONABLE CONTROL OF, AND WITHOUT THE FAULT OF, THE BOARD OF DIRECTORS, INCLUDING, WITHOUT LIMITATION, ANY INTERVENING ACT OF GOD OR PUBLIC ENEMY, WAR, INVASION, ACT OF TERROR, NATURAL DISASTER, DISEASE, OUTBREAK, EPIDEMIC, PANDEMIC, OR OTHER DECLARATION OF PUBLIC HEALTH EMERGENCY, QUARANTINE RESTRICTION, AND ANY ACTION OF ANY GOVERNMENTAL BODY OR AUTHORITY." SECTION 3. QUORUM HAS BEEN CHANGED TO OUTLINE THE METHODS OF ATTAINING A QUORUM THAT MAY BE AUTHORIZED BY THE BOARD OF DIRECTORS IF THE VOTING IN PERSON REQUIREMENT IS NOT POSSIBLE DUE TO A FORCE MAJEURE EVENT. THE METHODS ADDED INCLUDE: (I) VOTING BY MAIL BALLOT OR IN SUCH OTHER MANNER AS DETERMINED BY THE BOARD, (INCLUDING VOTING BY HAND DELIVERY OF A BALLOT TO A LOCATION DESIGNATED BY THE COOPERATIVE; PROVIDED THAT ANY SUCH ADDITIONAL MANNER OF VOTING SHALL BE CONDUCTED IN SUCH A WAY THAT IT CAN BE DETERMINED AND CONFIRMED THAT EACH VOTE WAS AUTHORIZED AND CAST BY THE APPLICABLE MEMBER), AND ANY MEMBER CASTING A VOTE THROUGH SUCH ADDITIONAL APPROVED MANNERS OF VOTING SHALL BE DEEMED TO HAVE CAST THE EQUIVALENT OF A MAIL BALLOT PURSUANT TO THE ELECTRIC COOPERATIVE CORPORATION ACT (THE "ACT"); (II) ELECTRONICALLY VIA THE COOPERATIVE'S WEBSITE; OR (III) BY MEANS OF A WEBSITE OR INFORMATION PROCESSING SYSTEM THAT THE COOPERATIVE HAS DESIGNATED OR USES TO SEND, RECEIVE OR TRANSMIT DOCUMENTS OR INFORMATION, OR TO ELECTRONICALLY CONDUCT AN ACTION, TRANSACTION, BUSINESS, MEETING OR ACTIVITY). ALSO ADDED "THIS SECTION 3 SHALL IN NO WAY SUPERSEDE, IMPAIR, OR AFFECT ARTICLE VIII INSOFAR AS ARTICLE VIII PERTAINS TO THE MINIMUM NUMBER OF AFFIRMATIVE VOTES NECESSARY TO AUTHORIZE THE SALE OF THE COOPERATIVE'S PROPERTY IN SUCH INSTANCES WHEN THE AFFIRMATIVE VOTE OF MEMBERS IS NECESSARY TO AUTHORIZE SUCH A SALE." SECTION 4. VOTING. PARAGRAPH (A) WAS REVISED TO REFERENCE SECTION 4, SUBSECTION (F) WHICH ADDRESSES VOTING IN THE CASE OF AN EVENT OF FORCE MAJEURE. THIS SECTION CLARIFIES THAT TWO SPOUSES THAT HOLD A JOINT MEMBERSHIP, SHALL JOINTLY BE ENTITLED TO ONE VOTE. ALSO ADDED TO (A) OF THE SECTION, NOTWITHSTANDING ANY PROVISION OF THESE BYLAWS TO THE CONTRARY, IF ONLY ONE INDIVIDUAL IS NOMINATED TO RUN FOR ELECTION FOR A DIRECTOR POSITION SCHEDULED FOR ELECTION BY MEMBERS AT THE MEETING OF MEMBERS, THEN THE INDIVIDUAL PRESIDING AT SUCH MEETING MAY ANNOUNCE THAT THE NOMINATED INDIVIDUAL IS ELECTED BY ACCLAMATION AND NO VOTE IS REQUIRED." PARAGRAPHS (F) AND (G) WERE ADDED: (F) NOTWITHSTANDING ANY PROVISION OF THESE BYLAWS TO THE CONTRARY, IF AN ANNUAL MEETING OF THE MEMBERS IS NOT HELD DUE TO A FORCE MAJEURE EVENT AS PROVIDED IN ARTICLE III, SECTION 1 OF THESE BYLAWS, (I) THE ELECTION OF DIRECTORS CAN BE POSTPONED UNTIL A DATE DETERMINED BY THE BOARD TO BE AS SOON AS REASONABLY PRACTICABLE AFTER REMOVAL OF THE CAUSE, INCLUDING POSTPONEMENT UNTIL THE NEXT ANNUAL MEETING OF THE MEMBERS OR (II) THE ELECTION OF DIRECTORS CAN BE HELD WITHOUT A MEETING OF THE MEMBERS, IN WHICH CASE VOTING SHALL BE CONDUCTED IN ACCORDANCE WITH ARTICLE III, SECTION 3 OF THESE BYLAWS AS DETERMINED BY THE BOARD. (G) NOTICE, DISSEMINATION OF DOCUMENTS AND ACTIONS MAY BE COMPLETED BY ELECTRONIC MEANS AS DETERMINED BY THE BOARD AND AS ALLOWED BY LAW. AN ELECTRONIC DOCUMENT ELECTRONICALLY SENT OR TRANSMITTED TO A MEMBER AT THE MEMBER'S LAST KNOWN ELECTRONIC ADDRESS IS CONSIDERED SENT, RECEIVED, TRANSMITTED, AND EFFECTIVE ON THE DATE SENT BY THE COOPERATIVE. IF ELECTRONICALLY DELIVERED, SUCH NOTICE SHALL BE DEEMED TO BE DELIVERED WHEN SENT TO THE LAST KNOWN ELECTRONIC ADDRESS OF THE MEMBER FOR WHICH NO NON-DELIVERY NOTICE IS RETURNED. IF A MEMBER HAS REASONABLE ACCESS TO APPROPRIATE HARDWARE AND SOFTWARE, THEN UNDER SUCH TERMS AND CONDITIONS AS THE BOARD DETERMINES AND AS ALLOWED BY LAW, THE MEMBER CONSENTS AND AGREES TO (A) USE, ACCEPT, SEND, RECEIVE, AND TRANSMIT AN ELECTRONIC SIGNATURE, CONTRACT, RECORD, NOTICE, COMMUNICATION, COMMENT, AND OTHER DOCUMENT REGARDING AN ACTION, TRANSACTION, BUSINESS , MEETING, OR ACTIVITY WITH, FOR, OR INVOLVING THE COOPERATIVE; (B) ELECTRONICALLY CONDUCT AN ACTION, TRANSACTION, BUSINESS, MEETING, OR ACTIVITY WITH, FOR, OR INVOLVING THE COOPERATIVE; AND (C) ELECTRONICALLY GIVE OR CONFIRM THIS CONSENT AND AGREEMENT. SECTION 5. ORDER OF BUSINESS. (H) ADJOUNRMENTS. THIS PARAGRAPH HAS BEEN REVISED TO SAY THAT THE BOARD OF DIRECTORS SHALL PREPARE THE AGENDA FOR THE ANNUAL MEETING EACH YEAR, AT THE BOARD MEETING HELD NOT FEWER THAN 60 DAYS PRIOR TO THE DATE OF THAT ANNUAL MEETING. ARTICLE IV. BOARD OF DIRECTORS. SECTION 2. "QUALIFICATIONS AND TENURE" WAS RENAMED TO "TERM OF OFFICE". THIS SECTION STATES THAT DIRECTORS SHALL BE ELECTED FOR THREE-YEAR TERMS AND OUTLINES WHEN DIRECTORS IN EACH DISTRICT ARE TO BE ELECTED AT THE ANNUAL MEETING. ADDED A NEW SECTION 3. QUALIFICATIONS. TO BECOME AND REMAIN A DIRECTOR, A PERSON MUST (A) BE A MEMBER IN GOOD STANDING FOR THE MOST RECENT 12 MONTHS. "GOOD STANDING" IS DEFINED TO MEAN A MEMBER WHO HAS NOT BEEN DISCONNECTED FOR NONPAYMENT WITHIN THE MOST RECENT 12 MONTHS; (F) EXCEPT AS OTHERWISE PROVIDED BY THE BOARD FOR GOOD CAUSE, MUST ATTEND AT LEAST THREE-FOURTHS OF ALL BOARD MEETING DURING EACH TWELVE MONTH PERIOD AND PERIODICALLY ATTEND CERTAIN CONTINUING EDUCATION PROGRAMS FOR DIRECTORS. (I) AND (J) PARAGRAPHS WERE CONSOLIDATED IN (I) TO STATE THAT THE INDIVIDUAL CAN NOT BE A CLOSE RELATIVE OF AN INCUMBENT DIRECTOR OR COOPERATIVE EMPLOYEE. PARAGRAPH (L) STATES THAT DIRECTORS MUST COMPLY WITH ANY REASONABLE QUALIFICATIONS DETERMINED BY THE BOARD, INCLUDING BUT NOT LIMITED TO DIRECTOR TRAINING SESSIONS, WORKSHOPS AND CONFERENCES. AN ADDITION PARAGRAPH WAS ADDED TO THIS SECTION TO DEFINE "CLOSE RELATIVE" AS A PERSON WHO IS RELATED WITHIN THE FIRST DEGREE OR SECOND DEGREE BY BLOOD, ADOPTION OR MARRIAGE (INCLUDING COMMON LAW), OR FAMILY-IN-LAW. FIRST DEGREE, SECOND DEGREE, AND FAMILY-IN-LAW RELATIVES ARE DEFINED AS A SPOUSE, MOTHER, FATHER, MOTHER-IN-LAW, FATHER-IN-LAW, GRANDFATHER, GRANDMOTHER, SON, DAUGHTER, SON-IN-LAW, DAUGHTER-IN-LAW, UNCLE, AUNT, NEPHEW, NIECE, BROTHER, SISTER, BROTHER-IN-LAW, SISTER-IN-LAW, AND STEP RELATIVES TO THE SAME DEGREE AFOREMENTIONED. SECTION 4. DIRECTOR DISQUALIFICATION. ONLY INDIVIDUALS COMPLYING WITH OR MEETING THE DIRECTOR QUALIFICATIONS "PROVIDED IN SECTION 3 ABOVE" MAY BECOME OR REMAIN A DIRECTOR. SECTION 5. NOMINATIONS. (A) NOMINATIONS BY NOMINATING COMMITTEE. THE BOARD SHALL APPOINT THE NOMINATING COMMITTEE NOT MORE THAN 90 DAYS (INSTEAD OF 60 DAYS) BEFORE THE DATE OF A MEETING OF THE MEMBERS AT WHICH DIRECTORS ARE TO BE ELECTED. ALSO ADDED THAT THE NOMINATING COMMITTEE SHALL NOMINATE ONE OR MORE NOMINEES FOR EACH DIRECTOR POSITION WHOSE TERM EXPIRES AT THE UPCOMING ANNUAL MEETING. IN THE EVENT OF AN ELECTION WITHOUT A MEETING DUE TO A FORCE MAJEURE EVENT, NOMINATIONS SHALL BE POSTED NOT LATER THAN TWENTY DAYS PRIOR TO THE DATE OF THE ELECTION. |
| FORM 990, PART VI, SECTION A, LINE 4 | (B) NOMINATIONS BY PETITION. ANY FIFTY OR MORE MEMBERS FROM THE DISTRICT FOR WHICH A DIRECTOR IS TO BE ELECTED MAY MAKE OTHER NOMINATIONS. SUCH PETITION MUST BE RECEIVED BY THE SECRETARY AT THE COOPERATIVE'S PRINCIPAL OFFICE NOT LATER THAN 60 DAYS (CHANGED FROM 45 DAYS) PRIOR TO THE ANNUAL MEETING OF MEMBERS OR ANY MEMBERSHIP MEETING AT WHICH DIRECTORS ARE TO BE ELECTED, OR IN THE EVENT OF AN ELECTION WITHOUT A MEETING DUE TO A FORCE MAJEURE EVENT, NOMINATIONS SHALL BE POSTED NOT LATER THAN SIXTY DAYS PRIOR TO THE DATE OF THE ELECTION WHERE THE LIST OF NOMINATIONS BY THE NOMINATING COMMITTEE IS POSTED. PARAGRAPH (C) WAS ADDED: NOMINATION OF INCUMBENT DIRECTOR. IF AGREED TO BY THE INCUMBENT, INCUMBENT DIRECTORS OF THE DISTRICTS IN WHICH THEIR TERMS ARE DUE TO EXPIRE AT THE UPCOMING ANNUAL MEETING SHALL BE PLACED INTO NOMINATION ALONG WITH ANY MEMBERS NOMINATED BY THE NOMINATING COMMITTEE OR BY PETITION. PARAGRAPH (D) NOTICE OF NOMINATIONS. DELETED NOTHING CONTAINED HEREIN SHALL, HOWEVER, PREVENT ADDITIONAL NOMINATIONS TO BE MADE FROM THE FLOOR." PARAGRAPH (E) NOMINATIONS AT THE MEETING - WAS ADDED TO STATE THAT MEMBERS MAY NOT MAKE NOMINATIONS FROM THE FLOOR. ARTICLE V. MEETING OF DIRECTORS. SECTION 1. REGULAR MEETINGS. THIS SECTION WAS AMENDED TO STATE THAT REGULAR MEETINGS OF THE BOARD SHALL BE HELD MONTHLY AT SUCH TIME AND PLACE WITHIN ONE OF THE COUNTIES SERVED BY THE COOPERATIVE INSTEAD OF AT "THE OFFICE IN KARNES CITY, TEXAS." SECTION 3. NOTICE. REVISED TO SAY EXCEPT IN THE EVENT OF AN EMERGENCY AS PROVIDED IN THESE BYLAWS, NOTICE OF THE TIME, PLACE AND PURPOSE OF ANY SPECIAL MEETING OF THE BOARD OF DIRECTORS, SHALL BE GIVEN AT LEAST FIVE DAYS PRIOR TO THE MEETING. SECTION 6 WAS ADDED. PARTICIPATION IN BOARD MEETINGS BY REMOTE COMMUNICATION. NOTWITHSTANDING ANY PROVISION OF THESE BYLAWS TO THE CONTRARY, WITH THE APPROVAL OF THE BOARD OF DIRECTORS, A REGULAR OR SPECIAL MEETING OF THE BOARD OF DIRECTORS MAY BE CONDUCTED WITH DIRECTORS NOT PHYSICALLY PRESENT BUT DEEMED PRESENT IN PERSON THROUGH A MEANS OF TELEPHONIC, ELECTRONIC OR OTHER REMOTE COMMUNICATION BY WHICH ALL DIRECTORS PARTICIPATING IN THE BOARD OF DIRECTORS MEETING MAY SIMULTANEOUSLY HEAR, REASONABLY AND VERIFIABLY IDENTIFY THEMSELVES, AND GENERALLY SIMULTANEOUSLY AND INSTANTANEOUSLY COMMUNICATE WITH EACH OTHER DURING THE BOARD OF DIRECTORS MEETING. DIRECTORS THAT ARE NOT PHYSICALLY PRESENT MAY DELIBERATE AND VOTE ON THE QUESTION OF APPROVING TELEPHONIC OR ELECTRONIC PARTICIPATION. A VOTE TO APPROVE TELEPHONIC, ELECTRONIC OR OTHER REMOTE COMMUNICATION PARTICIPATION IN ANY BOARD MEETING IS EXEMPT FROM THE NOTICE REQUIREMENT HEREIN SPECIFIED. ARTICLE VI. OFFICERS. SECTION 2. ELECTION AND TERM OF OFFICE. CHANGED TO ALLOW THE OFFICERS TO BE ELECTED BY AN AFFIRMATIVE VOTE OF A MAJORITY OF ALL OF THE DIRECTORS, BY VOICE, OR BY BALLOT, ANNUALLY. SECTION 3 RENAMED "REMOVAL OR RESIGNATION OF OFFICERS AND AGENTS." ADDED THE FOLLOWING, "ANY BOARD OFFICER OR COOPERATIVE OFFICER MAY RESIGN FROM OFFICE AT ANY TIME BY GIVING WRITTEN NOTICE OF RESIGNATION TO THE BOARD. THE REMOVAL OR RESIGNATION FROM OFFICE OF OR BY ANY BOARD OFFICER SHALL NOT NECESSARILY AFFECT SUCH DIRECTOR'S CONTINUED SERVICE AS A DIRECTOR, BUT A DIRECTOR WHO IS REMOVED OR RESIGNS AS DIRECTOR IN ACCORDANCE WITH THESE BYLAWS SHALL CEASE TO BE A BOARD OFFICER UPON HIS OR HER REMOVAL OR RESIGNATION." SECTION 4. PRESIDENT. THIS SECTION WAS AMENDED TO DELETE THE PRESIDENT'S DUTY TO SIGN, WITH THE SECRETARY, CERTIFICATES OF MEMBERSHIP TO AGREE WITH THE REVISIONS MADE IN ARTICLE 1, SECTION 2. SECTION 6. SECRETARY. DELETED FROM SECRETARY'S DUTIES THE SIGNING OF CERTIFICATES OF MEMBERSHIP TO AGREE WITH THE REVISIONS MADE IN ARTICLE 1, SECTION 2. SECTION 8. CHANGED TITLE FROM "MANAGER" TO "GENERAL MANAGER". |
| FORM 990, PART VI, SECTION A, LINE 4 | ARTICLE VII. NON-PROFIT OPERATION. SECTION 1. DEFINITIONS WAS ADDED TO SAY "IN THIS ARTICLE VII, THE TERM "PATRON" MEANS A MEMBER OF THE COOPERATIVE WHO IS ELIGIBLE TO RECEIVE AN ALLOCATION OF CAPITAL CREDITS AS A RESULT OF THE PURCHASE OF ELECTRIC ENERGY FROM THE COOPERATIVE AS DEFINED IN SECTION 7 OF THESE BYLAWS." SECTION 3. PATRONAGE CAPITAL IN CONNECTION WITH FURNISHING ELECTRIC ENERGY. "MEMBERS AND NON-MEMBERS" HAS BEEN REPLACED WITH "PATRONS" THROUGHOUT THIS SECTION IN PARAGRAPH (A). PARAGRAPH (B) WAS AMENDED TO STATE THAT AMOUNTS RECEIVED BY THE COOPERATIVE FROM ITS OPERATIONS IN EXCESS OF COSTS AND EXPENSES "AT THE DISCRETION OF THE BOARD AND INSOFAR AS PERMITTED BY LAW, BE (A) USED TO OFFSET ANY LOSSES INCURRED DURING THE CURRENT OR PRIOR FISCAL YEAR, (B) USED TO ESTABLISH RESERVES AND OTHER CAPITAL NOT ASSIGNABLE TO THE PATRONS PRIOR TO THE DISSOLUTION OF THE COOPERATIVE, AND (C) TO THE EXTEND NOT NEEDED FOR THESE PURPOSES" PARGRAPH (C) ADDED, "IN THE EVENT OF DISSOLUTION OR LIQUIDATION OF THE COOPERATIVE, AFTER ALL OUTSTANDING INDEBTEDNESS OF THE COOPERATIVE SHALL HAVE BEEN PAID, OUTSTANDING CAPITAL CREDITS SHALL BE RETIRED WITHOUT PRIORITY ON A PRO RATA BASIS BEFORE ANY PAYMENTS ARE MADE ON ACCOUNT OF PROPERTY RIGHTS OF MEMBERS." THIS SECTION WAS ALSO AMENDED TO SAY THE BOARD, IF AT ANY TIME PRIOR TO DISSOUTION OR LIQUIDATION, SHALL DETERMINE WHETHER THE FINANCIAL CONDITION OF THE COOPERATIVE WILL NOT BE IMPAIRED THEREBY, THE CAPITAL CREDITED TO PATRONS' ACCOUNTS MAY BE RETIRED IN FULL OR PART. THE BOARD SHALL DETERMINE THE METHOLD, BASIS, PRIORITY AND ORDER OF SUCH RETIREMENT. PARAGRAPH (D) WAS ADDED, "THE COOPERATIVE SHALL HAVE THE RIGHT TO OFFSET THE RETIREMENT APPROVED BY THE BOARD FOR A PATRON AGAINST THE DEBT OWED TO THE COOPERATIVE BY SUCH PATRON. THE COOPERATIVE, BEFORE RETIRING ANY CAPITAL CREDIT OF ANY PATRON'S ACCOUNT, SHALL DEDUCT FROM THE RETIREMENT OF CAPITAL CREDITS ANY AMOUNT OWING BY SUCH PATRON TO THE COOPERATIVE. THIS PROVISION SHALL APPLY TO ALL RETIREMENTS OF CAPITAL CREDITS." PARAGRAPH (E) DELETED, "IN THE EVENT THAT A NON-MEMBER PATRON SHALL ELECT TO BECOME A MEMBER OF THE COOPERATIVE, THE CAPITAL CREDITED TO THE ACCOUNT OF SUCH NON-MEMBER PATRON MAY BE APPLIED BY THE COOPERATIVE TOWARD THE PAYMENT OF A MEMBERSHIP FEE ON BEHALF OF SUCH NON-MEMBER PATRON." PARAGRAPH (F) THE BOARD, AT ITS DISCRETION, SHALL HAVE THE POWER AT ANY TIME UPON THE DEATH OF ANY PATRON (DELETED "WHO IS A NATURAL PERSON"), IF THE LEGAL REPRESENTATIVES OF HIS ESTATE SHALL REQUEST IN WRITING THAT THE CAPITAL CREDITED TO ANY SUCH PATRON BE RETIRED PRIOR TO THE TIME SUCH CAPITAL WOULD OTHERWISE BE RETIRED, PROVIDED THAT THE FINANCIAL CONDITION OF THE COOPERATIVE WILL NOT BE IMPAIRED, TO RETIRE CAPITAL CREDITED TO ANY SUCH PATRON IMMEDIATELY UPON SUCH TERMS AND CONDITIONS AS THE BOARD, ACTING UNDER POLICIES OF GENERAL APPLICATION, AND THE LEGAL REPRESENTATIVES OF SUCH PATRON'S ESTATE SHALL AGREE UPON. ARTICLE X. FINANCIAL TRANSACTIONS. SECTION 4. FISCAL YEAR WAS AMENDED TO GIVE THE BOARD THE FLEXIBILITY TO DETERMINE AND MODIFY THE COOPERATIVE'S FISCAL YEAR. ARTICLE XI. MISCELLANEOUS. SECTION 5. LIMITING LIABILITY OF DIRECTORS. THIS SECTION WAS AMENDED TO SAY "TO THE FULLEST PERMITTED BY LAW" INSTEAD OF "FULLEST EXTENT NOT PROHIBITED BY LAW". THIS ARTICLE DOES NOT ELIMINATE OR LIMIT THE LIABILITY OF A DIRECTOR FOR: DELETED "(5) ACT RELATED TO AN UNLAWFUL STOCK REPURCHASE OR PAYMENT OF DIVIDEND." SECTION 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS. AMENDED TO INCLUDE THE GENERAL MANAGER IN THE INDEMNIFICATION PROVIDED TO THE BOARD. SECTION 7. NOTICE. ADDED, "(A) EXCEPT AS OTHERWISE PROVIDED IN THESE BYLAWS, ANY NOTICE REQUIRED UNDER THESE BYLAWS MUST BE WRITTEN AND COMMUNICATED: (I) IN PERSON OR BY LOCAL COURIER; (II) BY FACSIMILE OR, IF AND AS PERMITTED BY LAW, ELECTRONIC COMMUNICATION OR OTHER FORM OF WIRE OR WIRELESS COMMUNICATION; (III) BY MAIL OR OVERNIGHT COURIER; (IV) BY NEWSLETTER, MAGAZINE OR OTHER PUBLICATION REGULARLY SENT TO MEMBERS; OR (V) ONLY IF THE ABOVE-LISTED FORMS OF COMMUNICATING NOTICE ARE IMPRACTICAL, THEN BY NEWSPAPER OR MAGAZINE (OR SIMILAR PUBLICATION) OF GENERAL CIRCULATION IN THE AREA WHERE PUBLISHED, OR BY RADIO, TELEVISION OR OTHER FORM OF PUBLIC BROADCAST COMMUNICATION. WRITTEN NOTICE IS CORRECTLY ADDRESSED TO A MEMBER, INCLUDING A DIRECTOR AS SUCH, IF ADDRESSED TO THE MEMBER'S OR THE DIRECTOR'S ADDRESS SHOWN IN THE COOPERATIVE'S RECORDS. IF ADDRESSED OR DELIVERED TO THE MEMBER'S ADDRESS SHOWN IN THE COOPERATIVE'S RECORDS, THEN A WRITTEN NOTICE OR REPORT DELIVERED AS PART OF A NEWSLETTER, MAGAZINE OR OTHER PUBLICATION REGULARLY SENT TO MEMBERS CONSTITUTES A WRITTEN NOTICE OR REPORT TO ALL MEMBERS: (1) RESIDING AT THE ADDRESS; OR (2) HAVING THE SAME ADDRESS SHOWN IN THE COOPERATIVE'S RECORDS." ALSO, ADDED WAS PARAGRAPH (B) "EXCEPT AS OTHERWISE PROVIDED IN THESE BYLAWS, NOTICE SHALL BE DEEMED GIVEN AND EFFECTIVE UPON THE EARLIEST OF: (I) IF DELIVERED IN PERSON OR BY LOCAL COURIER, THEN UPON RECEIPT OR REFUSAL OF RECEIPT BY THE ADDRESSEE; (II) IF SENT BY FACSIMILE OR, IF AND AS PERMITTED BY LAW, ELECTRONIC COMMUNICATION OR OTHER FORM OF WIRE OR WIRELESS COMMUNICATION, THEN UPON RECEIPT BY THE ADDRESSEE; (III) IF MAILED WITH FIRST-CLASS POSTAGE AFFIXED, THEN THREE (3) DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL; (IV) IF SENT BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, AND IF THE RETURN RECEIPT IS SIGNED BY, OR ON BEHALF OF, THE ADDRESSEE, THEN ON THE DATE INDICATED ON THE RETURN RECEIPT; (V) IF SENT BY OVERNIGHT COURIER, THEN ONE (1) BUSINESS DAY AFTER DEPOSIT WITH THE OVERNIGHT COURIER; (VI) IF SENT BY NEWSLETTER, MAGAZINE OR OTHER PUBLICATION REGULARLY SENT TO MEMBERS WITH PERIODICAL OR OTHER APPROPRIATE POSTAGE AFFIXED, THEN THREE (3) DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL; OR (VII) IF BY NEWSPAPER OR MAGAZINE (OR SIMILAR PUBLICATION) OF GENERAL CIRCULATION IN THE AREA WHERE PUBLISHED, OR BY RADIO, TELEVISION OR OTHER FORM OF PUBLIC BROADCAST COMMUNICATION, THEN ON THE DATE OF PUBLICATION OF SUCH NEWSPAPER, MAGAZINE (OR SIMILAR PUBLICATION) OR RADIO, TELEVISION OR PUBLIC BROADCAST COMMUNICATION." SECTION 8. WAIVER OF NOTICE. WAS ADDED, "ANY MEMBER OR DIRECTOR MAY WAIVE IN WRITING ANY NOTICE OF A MEETING REQUIRED TO BE GIVEN BY THESE BYLAWS, AND SUCH WAIVER MAY BE BEFORE OR AFTER THE MEETING. THE ATTENDANCE OF A MEMBER OR DIRECTOR AT ANY MEETING SHALL CONSTITUTE A WAIVER OF NOTICE OF SUCH MEETING BY SUCH MEMBER OR DIRECTOR, EXCEPT IN CASE A MEMBER OR DIRECTOR SHALL ATTEND A MEETING FOR THE EXPRESS PURPOSE OF OBJECTING TO THE TRANSACTION OF ANY BUSINESS ON THE GROUND THAT THE MEETING HAS NOT BEEN LAWFULLY CALLED OR CONVENDED." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://KARNESEC.ORG/OUR-COOPERATIVE/BYLAWS-TARIFF/ |
| 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 AT THE ANNUAL MEETING. 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. 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 PROVIDED A COPY OF THE FORM 990 TO THE BOARD OF DIRECTORS FOR DISCUSSION AND REVIEW PRIOR TO FILING. |
| FORM 990, PART VI, SECTION B, LINE 12C | EACH MEMBER OF THE BOARD MUST COMPLETE AND FILE WITH THE BOARD PRESIDENT A DISCLOSURE REPORT DETAILING ANY POSSIBLE CONFLICTS OF INTEREST. THE DISCLOSURE REPORT MUST BE COMPLETED WITHIN 30 DAYS OF BECOMING A BOARD MEMBER AND THEN ANNUALLY THEREAFTER. THE DISCLOSURE REPORT MUST BE KEPT CURRENT BY FILING A SUPPLEMENTAL REPORT SHOWING ANY CHANGE OF PERSONAL OR BUSINESS RELATIONSHIP WITHIN 30 DAYS AFTER SUCH RELATIONSHIP CHANGES. |
| FORM 990, PART VI, SECTION B, LINE 15A | THE BOARD AND THE GENERAL MANAGER USE THE EXPERTISE OF 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 THROUGHOUT TEXAS AND THE NATION. OTHER THAN THE GENERAL MANAGER, 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, CONFLICT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. THE COOPERATIVE PROVIDES ANNUALLY A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS IN THE TEXAS COOPERATIVE MAGAZINE THAT IS MAILED TO EACH MEMBER, ALONG WITH THE NOTICE OF THE ANNUAL MEETING. FINALLY, THE COOPERATIVE REVIEWS THE FINANCIAL STATEMENTS FOR THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING DURING THE TREASURER'S REPORT. |
| 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 SINGLE-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 MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE 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 VII, SECTION A: | THE BOARD OF DIRECTORS CONSIDER THE GENERAL MANAGER TO BE BOTH THE TOP MANAGEMENT OFFICIAL AND THE TOP FINANCIAL OFFICIAL. THEREFORE, ONLY THE GENERAL MANAGER IS LISTED AS AN EMPLOYEE OFFICER. |
| 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 ORGANIZATION TO ITS MEMBERS. |
| FORM 990, PART IX: | THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE (RUS). 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 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 $ 4,321,155 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (150,343) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (132,948) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,301,488 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 275,946 TOTAL WAGES ACCRUED AND/OR PAID $ 6,615,298 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,111,136 OFFICE SUPPLIES 408,530 OUTSIDE SERVICES 299,172 WORKMEN'S COMPENSATION AND OTHER INSRUANCES 290,033 EMPLOYEE BENEFITS 30,507 REGULATORY 9,400 DIRECTORS 157,944 INSTITUTIONAL AND GOODWILL ADVERTISING 56,512 DUES TO ASSOCIATED ORGANIZATIONS 72,769 ANNUAL MEETING 66,542 MANAGER 11,577 MISCELLANEOUS GENERAL 793,318 MAINTENANCE OF GENERAL PLANT 620,757 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,928,197 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (35,206) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (150,343) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,207,843) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (577,618) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,957,187 |
| 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, LINE 24E: | OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: ABANDONED WORK ORDER EXPENSE $ 3,518,628 TAXES 265,751 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 3,784,379 |
| FORM 990, PART XI, LINE 9: | PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,748,162. PATRONAGE CAPITAL RETIRED - TOTAL -2,044,185. PATRONAGE CAPITAL RETIRED - DISCOUNT 1,386. NET CHANGE IN MEMBERSHIPS 1,840. OTHER COMPREHENSIVE INCOME - PENSION LIABILITY CHANGE 7,795,883. |