2022-11-14T16:04:21-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 750405473 LYNTEGAR ELECTRIC COOPERATIVE INC LYNT 8065614588 PO BOX 970 TAHOKA TX 79373 RAY BOX CFO 8065614588 2022-11-03 1 RAY BOX 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-03 X 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z GREG HENLEY PO BOX 970 TAHOKA TX 79373 89276526 0 X WWW.LYNTEGAR.COOP X 1938 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 7 7 129 0 4361 0 0 0 77231778 87133526 1324058 2103075 31906 18222 78587742 89254823 500 12906 9328726 3278079 11753519 8420602 0 0 0 56603332 75424824 77686077 87136411 901665 2118412 270551631 280091329 130878104 136883091 139673527 143208238 OWNED AND OPERATED BY THOSE WE SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 23,289 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 1 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 0 0 0 1 43 0 129 1 1 1 0 0 0 0 86431988 5079518 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X RAY BOX CFO 8065614588 1701 US HIGHWAY 87 TAHOKA TX 79373 X THERON TIDWELL DIRECTOR 1.00 X 28415 0 0 BENJAMIN FRANKLIN PRESIDENT 1.00 X X 28335 0 0 HR BARRON DIRECTOR 1.00 X 22973 0 0 BILLY WEAVER SECRETARY/TREASURER 1.00 X X 22841 0 0 KEVIN MITCHELL VICE PRESIDENT 1.00 X X 21497 0 0 RICKY DAY DIRECTOR 1.00 X 21497 0 0 TERRY BURRIS DIRECTOR 1.00 X 15031 0 0 ANDREW FURLOW DIRECTOR 1.00 X 1797 0 0 GREGORY HENLEY CEO 50.00 X 208214 0 40260 RAY BOX CFO 45.00 X 145908 0 37929 MENFORD GANDY MANAGER OF OPERATIONS 40.00 X 187817 0 9836 BARRY PITTMAN MANAGER OF MEMBER SERVICES 40.00 X 152535 0 27957 ROSS ATEN MANAGER OF ENGINEERING 40.00 X 142838 0 44014 RODDY GANDY MAINTENANCE SUPERINTENDENT 40.00 X 128324 0 35313 DON COLLINS CREW FOREMAN 40.00 X 154166 0 9248 JANA BISHOP MANAGER OF HUMAN RESOURCES 40.00 X 119498 0 34123 BRENT FOWLER CREW FOREMAN 40.00 X 118658 0 13548 1520344 0 252228 12 0 1 0 ARROWHEAD LINE LLC PO BOX 755 CANYON TX 79015 CONSTRUCTION OF LINE 2711191 PLASKA PO BOX 7630 AMARILLO TX 79114 CONSTRUCTION OF LINE 1733272 BROWN-MCKEE INC 906 E SLATON ROAD LUBBOCK TX 79404 SUBSTATION CONTRACTORS 151807 J&S DIRT CONTRACTORS 214 GENOA AVENUE LUBBOCK TX 79416 SUBSTATION CONTRACTORS 118944 SGS ENGINEERING LLC 401 50TH STREET LUBBOCK TX 79404 ENGINEERING 113529 5 X SALES OF ELECTRICITY 221000 85428507 85428507 TRANSMISSION ACCESS & LEASE REVEN 221000 806206 806206 PATRONAGE DIVIDENDS 221000 581664 581664 SERVICE FEES 221000 317149 317149 87133526 1074216 1074216 19080 9258 18196 0 884 9258 10142 9258 884 1032366 3507 1028859 1028859 97206 931653 INTERNET MARKETING 517000 42487 42487 POLE ATTACHMENT INCOME 221000 3719 3719 PASS-THRU INVESTMENT INCOME(LOSS) 523000 -38126 -38126 8080 89254823 87239990 4361 2010472 X 12906 3278079 972842 5562725 388310 1110295 386430 4560121 8172499 PURCHASED POWER 56289161 DISTRIBUTION EXPENSE 3710072 ADMIN & GENERAL EXPENSE 1774803 CONSUMER EXPENSE 611185 306983 87136411 487447 472582 963012 322183 4999113 6632497 2403457 2828022 593677 640720 239110362 62999505 169172624 176110857 20619800 21404052 69833818 70054405 1478683 1626011 270551631 280091329 7654036 8367278 101878 116471 119983018 123574149 3139172 4825193 130878104 136883091 X 28845 29155 0 0 139644682 143179083 139673527 143208238 270551631 280091329 X 2118412 104015 1312284 X X 0 1 X 0 0 0 1 X 351258 351258 8891891 2239031 6652860 229195058 60760474 168434584 672155 672155 176110857 ALTERNATIVE INVESTMENTS 3520028 F MUTUAL FUNDS 8724569 F EXCHANGE-TRADED FUNDS & CLOSED-END FUNDS 4412130 F CORP FIXED INCOME 4747325 F 21404052 PATRONAGE CAPITAL - CFC 2985453 C PATRONAGE CAPITAL - NISC 85208 C PATRONAGE CAPITAL - NRTC 564804 C PATRONAGE CAPITAL - TEC 827735 C PATRONAGE CAPITAL - GSEC 54288250 C PATRONAGE CAPITAL - OTHER 7293 C CONTRIBUTED CAPITAL - GSEC 3888103 C CAPITAL TERM CERTIFICATES - CFC 2402849 C MEMBER CAPITAL SECURITIES - CFC 5000000 C OTHER INVESTMENTS - MEMBERSHIPS 4710 C 70054405 POWER COST OVER RECOVERY 874491 ACCUMULATED POST RETIREMENT BENEFIT OBLIGATION 751543 UNCLAIMED PATRONAGE CAPITAL 1278611 DEFERRED CREDITS - CONSUMER DEPOSITS 142576 ACCRUED TAXES 733006 AID TO CONSTRUCTION 1044966 4825193 X 89256145 104015 104015 89152130 123867 -21174 102693 89254823 83717513 0 83717513 123867 3295031 3418898 87136411 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER TEXAS STATE LAW. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR THE STIMULATION AND IMPROVEMENT OF BUSINESS AND COMMERCIAL ACTIVITY FOR ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES. ANY AMOUNTS SO DEPOSITED INTO THE ECONOMIC DEVELOPMENT 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 POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE OR OTHER STATE TAX AUTHORITY, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFIED EXPENSES 16,952. BOOK TO TAX ADJUSTMENTS FOR INCOME REPORTED ON PARTNERSHIP SCHEDULES K-1 -38,126. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,278,079. RECLASSIFIED EXPENSES 16,952. 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 ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED AS AN INCREASE IN EQUITY AND NOT AS AN EXPENSE. THEREFORE, NET INCOME PER THE AUDITED FINANCIAL STATEMENTS IS REPORTED GROSS OF THE AMOUNT OF PATRONAGE DIVIDENDS THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. X 0 0 0 GREGORY HENLEY CEO 191756 0 3814 0 12644 0 16320 0 23940 0 248474 0 0 0 MENFORD GANDY MANAGER OF OPERATIONS 179610 0 4607 0 3600 0 4481 0 5355 0 197653 0 0 0 ROSS ATEN MANAGER OF ENGINEERING 140614 0 866 0 1358 0 15833 0 28181 0 186852 0 0 0 RAY BOX CFO 135508 0 3362 0 7038 0 16176 0 21753 0 183837 0 0 0 BARRY PITTMAN MANAGER OF MEMBER SERVICES 137724 0 2029 0 12782 0 14495 0 13462 0 180492 0 0 0 RODDY GANDY MAINTENANCE SUPERINTENDENT 118636 0 5225 0 4463 0 13370 0 21943 0 163637 0 0 0 DON COLLINS CREW FOREMAN 143688 0 5926 0 4552 0 5434 0 3814 0 163414 0 0 0 JANA BISHOP MANAGER OF HUMAN RESOURCES 114077 0 1437 0 3984 0 12403 0 21720 0 153621 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE WAS FORMED BY THE MEMBERS TO PROVIDE ELECTRIC SERVICE AT COST ON A COOPERATIVE BASIS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF DIRECTORS. ELECTIONS ARE DONE ON A ONE MEMBER 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 PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, LEGAL COUNSEL IS REQUIRED TO REVIEW THE CONFLICT OF INTEREST POLICY WITH THE DIRECTORS AND OFFICERS AT THE FIRST MEETING OF THE BOARD OF DIRECTORS FOLLOWING ELECTIONS. EACH DIRECTOR AND OFFICER MUST ALSO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. THEREAFTER, DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE INTERNAL RESOURCES AND PERFORM AN ANNUAL REVIEW WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER/CEO. THE BOARD AND THE GENERAL MANAGER/CEO USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING AND THE COOPERATIVE BYLAWS ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN UNDER SECTION 401(K) OF THE INTERNAL REVENUE CODE. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A BASE AND A MATCHING CONTRIBUTION. EMPLOYER CONTRIBUTIONS TO THIS PLAN ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE PER PERSON OF THESE BENEFITS HAS NOT BEEN ESTIMATED. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS RESULT FROM THE PURCHASE OF WHOLESALE POWER FROM A GENERATION & TRANSMISSION COOPERATIVE. PATRONAGE DIVIDENDS ALSO RESULT FROM THE PAYMENT OF INTEREST FROM COOPERATIVE BANKS AND THE PURCHASE OF SUPPLIES AND SERVICES FROM OTHER COOPERATIVE ORGANIZATIONS. THE EXPENSES ASSOCIATED WITH PURCHASES FROM AND PAYMENTS TO SUCH COOPERATIVE ORGANIZATIONS ARE A DIRECT COMPONENT OF COST OF THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. FORM 990, PART IX: ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR RUS ELECTRIC BORROWERS. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY REPORTS SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES THAT ARE ALLOCATED IN ACCORDANCE WITH THEIR ACCOUNTING SYSTEM, BUT OTHER EXPENSES THAT ARE DESCRIBED IN LINES 1-23 ARE REPORTED ON LINE 24 UNDER THE EXPENSE CATEGORIES REQUIRED BY THE USOA. FORM 990, PART IX, LINES 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 $ 6,535,567 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (162,386) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (115,982) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,333,190 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,070,658 TOTAL WAGES ACCRUED AND/OR PAID $ 9,661,047 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,624,730 SAFETY, WELLNESS AND CONTINUING EDUCATION 69,165 OFFICE SUPPLIES 545,974 OUTSIDE SERVICES EMPLOYED 133,613 INSURANCES AND DAMAGES 85,887 REGULATORY COMMISSION 144,304 DIRECTORS 176,607 DUES PAID TO ASSOCIATED ORGANIZATIONS 91,087 ANNUAL MEETING 88,673 MISCELLANEOUS GENERAL 168,814 GENERAL ADVERTISING 141,100 MAINTENANCE OF GENERAL PLANT 411,384 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,681,338 LESS: RECLASS OF MISCELLANEOUS EXPENSES (15,600) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (162,386) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,309,711) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (418,838) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,774,803 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: SALES $ 308,147 TRANSMISSION 150,875 TOTAL OTHER EXPENSES PER FINANCIAL STATEMENTS $ 459,022 LESS: RECLASS OF LABOR TO PART IX, LINE 5 (211,325) LESS: RECLASS OF BENEFITS TO PART IX, LINE 8-10 (67,581) ADD: RECLASS OF SATELLITE & INTERNET EXPENSES 3,000 ADD: RECLASS OF INVESTMENT EXPENSES 123,867 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 306,983 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 1: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS 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, SPONSORSHIP, AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,278,079. PATRONAGE CAPITAL RETIRED - TOTAL -2,091,334. PATRONAGE CAPITAL RETIRED - DISCOUNT 30,702. NET CHANGE IN MEMBERSHIPS 310. OTHER COMPREHENSIVE INCOME - POST RETIREMENT HEALTH BENEFITS 41,606. OTHER - RECLASSIFICATION 14,795. OTHER - BOOK/TAX DIFFERENCE ON OTHER INVESTMENT INCOME 38,126. FORM 990, PART XII, LINE 2: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. LEC DEVELOPMENT LLC PO BOX 970 TAHOKA TX 79373 752452483 INTERNET AND INVESTMENTS TX 1771692 22138744 LYNTEGAR ELECTRIC COOPERATIVE INC