2022-11-15T23:13:09-06:00 2021-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2021-01-01 740880813 SAN PATRICIO ELECTRIC COOPERATIVE INC SANP 3613642220 PO DRAWER 400 SINTON TX 78387 RONALD D HUGHES GENERAL MANAGER 3613642220 2022-11-15 1 RONALD HUGHES 999009999 WILLIAM M MILLER P00439459 8067473806 2022-11-15 X 0 AAL1 IAL1 2021 2022-09-23 18:48:47Z RONALD HUGHES PO DRAWER 400 SINTON TX 78387 30559053 0 X WWW.SANPATRICOELECTRIC.ORG X 1938 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 6 6 40 0 0 0 0 0 30219282 29489314 85180 76100 101455 780961 30405917 30346375 0 30000 0 3212858 3173549 3547407 0 0 0 24206130 23556110 27379679 30346375 3026238 0 80957684 78685821 34855357 32073773 46102327 46612048 PROVIDE SAFE AND RELIABLE ELECTRIC SERVICE FOR OUR MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 13,131 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 39 0 40 1 1 1 0 0 0 0 29446736 552445 0 0 0 X 6 6 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X ROSE LUJAN FINANCIAL SERVICES MANAGER 3613642220 402 E SINTON STREET SINTON TX 78387 X TOM MAYO PRESIDENT 5.40 X X 8400 0 0 JIM BASSETT VICE PRESIDENT 6.60 X X 9000 0 0 CLYDE STEWART SECRETARY/TREASURER 6.50 X X 10200 0 0 BOBBY BAUCH DIRECTOR 6.90 X 9900 0 0 DAREN WILDER DIRECTOR 4.80 X 11100 0 0 TYRNE MENGERS DIRECTOR 4.20 X 6100 0 0 AARON SALGE JAN-SEP DIRECTOR 2.60 X 4600 0 0 RONALD HUGHES GENERAL MANAGER 45.00 X 207406 0 51586 ALBERT GAITAN OPERATIONS MANAGER 40.00 X 118273 0 39821 ROSEMARY LUJAN FINANCIAL SERVICE MANAGER 40.00 X 104903 0 38040 JAMES MUSCHALEK TECHNOLOGY SERVICES MANAGER 40.00 X 100887 0 37492 BRITTANY WILLIAMS MANAGER OF MEMBER SERVICES/PR 40.00 X 82418 0 34812 RENE GUTIERREZ OPERATIONS SUPERVISOR 40.00 X 124257 0 37172 JOE CRUZ III WORKING FOREMAN 40.00 X 122051 0 36614 ARMANDO REYES JOURNEY LINEMAN 40.00 X 114871 0 35872 JOSHUA BOUNDS JOURNEY LINEMAN 40.00 X 113411 0 37329 ERNESTO GUTIERREZ JOURNEY LINEMAN 40.00 X 112289 0 35643 1260066 0 384381 11 0 1 0 URBAN ELECTRICAL SERVICES INC PO BOX 219 CARRIZO SPRINGS TX 78834 ELECTRICAL 1607723 ASPLUNDH TREE EXPERT CO 1700 SOLUTIONS CENTER CHICAGO IL 60677 RIGHT OF WAY CLEARING 1035121 LAMAR TECHNICAL SERVICES INC 2002 WINDY TERRACE CEDAR PARK TX 78613 ELECTRICAL ENGINEERING 165889 SCHNEIDER ENGINEERING LTD 191 MENGER SPRINGS PKWY BOERNE TX 78006 ELECTRICAL ENGINEERING 102476 4 X SALES OF ELECTRICITY 221000 28405499 28405499 PATRONAGE DIVIDENDS 211110 932627 932627 SERVICE FEES 221000 151188 151188 29489314 52300 52300 1413 0 1413 1413 1413 23800 0 23800 23800 23800 187915 212678 -24763 -24763 PPP LOAN FORGIVENESS 221000 741009 741009 POLE ATTACHMENT INCOME 221000 63302 63302 804311 30346375 29488351 0 858024 X 30000 3212858 874938 1856923 166844 466653 182049 966526 2092481 PURCHASED POWER 16667051 DISTRIBUTION EXPENSE 2921232 CONSUMER EXPENSE 470716 ADMINISTRATIVE & GENERA 381386 56718 30346375 1221889 1276971 4447800 19337 1678022 1493938 15845 17882 78286 213615 67027651 14857168 50817995 52170483 22114632 23027798 583215 465797 80957684 78685821 1548749 1677942 31187561 29854223 2119047 541608 34855357 32073773 X 29275 27965 0 0 46073052 46584083 46102327 46612048 80957684 78685821 X 0 -1114287 1624008 X X 0 1 X 0 0 253122 253122 2302593 2302593 63446206 14857168 48589038 1025730 1025730 52170483 PATRONAGE CAPITAL - STEC 21148658 C PATRONAGE CAPITAL - CFC 90562 C PATRONAGE CAPITAL - TEC 757292 C PATRONAGE CAPITAL - NISC 118699 C PATRONAGE CAPITAL - CRC 9917 C PATRONAGE CAPITAL - NRTC 109832 C PATRONAGE CAPITAL - COBANK 109957 C CAPITAL TERM CERIFICATES - CFC 677462 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 5419 C 23027798 ACCRUED INTEREST 1986 UNCLAIMED CAPITAL CREDITS 539622 541608 X 30346375 0 30346375 0 30346375 27133517 0 27133517 3212858 3212858 30346375 PART X, LINE 2: THE COOPERATIVE HAS ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE COOPERATIVE IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE COOPERATIVE DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT THEIR TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ASSIGNABLE 3,212,858. 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". 0 SCHOLARSHIPS 15 30000 SCHOLARSHIPS TO 15 LOCAL STUDENTS IN THE AMOUNT OF $2,000 EACH. PART III: ALL SCHOLARSHIPS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. THE SCHOLARSHIPS ARE MONITORED TO INSURE THAT THEY ARE USED FOR THEIR INTENDED PURPOSES. X X 0 0 0 RONALD HUGHES GENERAL MANAGER 193029 0 8226 0 6151 0 23370 0 28216 0 258992 0 0 0 RENE GUTIERREZ OPERATIONS SUPERVISOR 118526 0 4887 0 844 0 11358 0 25814 0 161429 0 0 0 JOE CRUZ III WORKING FOREMAN 116563 0 4682 0 806 0 10888 0 25726 0 158665 0 0 0 ALBERT GAITAN OPERATIONS MANAGER 111130 0 6107 0 1036 0 13543 0 26278 0 158094 0 0 0 ARMANDO REYES JOURNEY LINEMAN 109629 0 4475 0 767 0 10234 0 25638 0 150743 0 0 0 JOSHUA BOUNDS JOURNEY LINEMAN 108395 0 4306 0 710 0 10025 0 27304 0 150740 0 0 0 FORM 990, PART VI, SECTION A, LINE 1A THE COOPERATIVE HAS 7 BOARD MEMBERS; ALL 7 ARE ALLOWED TO VOTE, HOWEVER THE BOARD PRESIDENT VOTES ONLY IN THE CASE OF A TIE. AT YEAR END, ONE BOARD SEAT WAS OPEN, THEREFORE, THERE WERE ONLY 6 BOARD MEMBERS ON DECEMBER 31, 2021. 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 B, LINE 11B MANAGEMENT PRESENTED A COMPLETE COPY OF THE FORM 990 TO ALL BOARD MEMBERS FOR DISCUSSION AND REVIEW SUBSEQUENT TO FILING. FORM 990, PART VI, SECTION B, LINE 12C SAN PATRICIO COOPERATIVE REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY WITH AN ANNUAL STATEMENT OF COMPLIANCE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD AND THE GENERAL MANAGER USE THE EXPERTISE OF A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S GENERAL MANAGER/CEO'S SALARY AND 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. 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. ANNUALLY, THE COOPERATIVE PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. THE ANNUAL REPORT AND BYLAWS CAN ALSO BE FOUND ON THE COOPERATIVE'S WEBSITE. 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. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION, AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND INSURANCE PAID ON BEHALF OF AND FOR THEIR BENEFIT. IN ADDITION TO THE ABOVE PENSION PLANS, THE COOPERATIVE ALSO PROVIDES POST-RETIREMENT HEALTH INSURANCE BENEFITS THROUGH AN UNFUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. FORM 990, PART VIII, LINE 2: PATRONAGE DIVIDENDS RESULT FROM THE 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, 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 $ 2,731,861 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (59,300) LESS: OFFICER & KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (201,751) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 45,786 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 417,127 PLUS: SALARIES AND WAGES CAPITALIZED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 2,291 TOTAL WAGES ACCRUED AND/OR PAID $ 2,936,014 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 508,724 OFFICE SUPPLIES 153,572 OUTSIDE SERVICES 132,195 RAILROAD COMMISSION EXPENSE 21,675 RATE STUDY 22,555 INSURANCE EXPENSE 283,825 DUES 120,239 DIRECTORS 97,485 REGULATORY COMMISSION 3,208 ANNUAL MEETING 32,617 MISCELLANEOUS GENERAL 16,643 WELLNESS PROGRAM 723 MAINTENANCE OF GENERAL PLANT 231,410 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 1,624,871 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (30,000) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (59,300) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (817,569) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (336,617) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 381,385 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 XI, LINE 9: PATRONAGE CAPITAL ASSIGNABLE 3,212,858. PATRONAGE CAPITAL RETIRED - TOTAL -1,600,877. PATRONAGE CAPITAL RETIRED - DISCOUNT 13,337. NET CHANGE IN MEMBERSHIPS -1,310. FORM 990, PART XII, LINE 2C: THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. SAN PATRICIO ELECTRIC EDUCATION TRUST PO BOX 400 SINTON TX 78387 742915182 SCHOLARSHIPS TX 501(C)(3) LINE 7 SAN PATRICIO ELECTRIC COOPERATIVE INC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0