2021-10-29T08:07:05-05:00 2020-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2020-01-01 880106922 MT WHEELER POWER INC MTWH 7752898981 1600 GREAT BASIN BLVD ELY NV 89301 KEVIN ROBISON CEO 7752898981 2021-10-27 1 KEVIN ROBISON 999009999 WILLIAM M MILLER P00439459 8067473806 2021-10-27 X 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z KEVIN ROBISON 1600 GREAT BASIN BLVD ELY NV 89301 40229957 0 X WWW.MWPOWER.NET X 1963 NV TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 9 9 37 0 10836 0 0 0 37565232 39222556 58634 36620 268472 934201 37892338 40193377 12628 5268 1997519 2971894 3929470 4152246 0 0 0 32329652 33440900 38269269 40570308 -376931 -376931 60236204 60003442 27347245 25834932 32888959 34168510 PROVIDE OUR MEMEBERS WITH SAFE, RELIABLE, CONVENIENT AND EQUITABLE ENERGY SERVICES AND OTHER PRODUCTS DEEMED NECESSARY AND BENEFICIAL TO THE MEMBERS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 7,467 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 116 0 37 1 1 1 0 0 0 0 40435810 1259611 0 0 0 X 9 9 1 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X KEVIN ROBISON CEO 7752898981 1600 GREAT BASIN BLVD ELY NV 89315 X MARY KERNER TREASURER 3.30 X X 16299 0 0 CATHERINE BAKARIC DIRECTOR 3.10 X 13234 0 0 RICK HENDRIX PRESIDENT 5.30 X X 10893 0 0 JERALD ANDERSON DIRECTOR 10.10 X 10679 0 0 BOB PRATT DIRECTOR 2.60 X 8400 0 0 WADE ROBISON DIRECTOR 3.10 X 8300 0 0 RON MILLER SECRETARY 2.00 X X 8011 0 0 RON NIMAN VICE PRESIDENT 1.70 X X 6050 0 0 SANDRA GREEN TREASURER (JAN-APR) 1.40 X X 4978 0 0 MARTIN PLASKETT DIRECTOR 1.30 X 4383 0 0 KEVIN ROBISON CEO 55.00 X 213449 0 60492 PATRICIA STANTON ACCOUNTING MANAGER 40.00 X 134953 0 49079 WILLIAM RICCI OPERATIONS MANAGER 40.00 X 140317 0 50076 SHELLIE WATTS MEMBER SERVICES MANAGER/HR 40.00 X 137909 0 51478 JESSE MURDOCK ENGINEERING MANAGER 40.00 X 127841 0 53454 BEVAN HARDY SUSTATION TECH 47.00 X 128588 0 46105 JERAMIE WILLIAMS LINEMAN 47.00 X 121561 0 44144 1095845 0 354828 7 0 1 0 COOPERATIVE BUILDING SOLUTIONS 77 WESTPORT PLAZA DRIVE STE 250 ST LOUIS MO 63146 CONSTRUCTION CONTRACTOR 1030045 CACHE VALLEY ELECTRIC COMPANY 875 NORTH 1000 WEST LOGAN UT 84323 LINE CONSTRUCTION 576193 DAVEY RESOURCE GROUP INC PO BOX 74142 CLEVELAND OH 44194 GPS MAPPING ENTIRE SERVICE TERRITORY 565187 ENERGY ERECTORS 31588 PROGRESS ROAD LEESBURG FL 34748 SUBSTATION REBUILD 471528 ELECTRICAL CONSULTANTS INC 3521 GABEL ROAD BILLINGS MT 59102 CONSULTING 115920 5 X SALES OF ELECTRICITY 221000 39068240 39068240 PATRONAGE DIVIDENDS 221000 92983 91393 1590 SERVICE FEES 221000 61333 61333 39222556 35592 35592 1313 0 1313 1313 1313 1200 172 1028 1028 1028 40271 36408 3863 3863 MISCELLANEOUS NONOPERATING INCOME 221000 698600 698600 POLE ATTACHMENT INCOME 221000 221179 221179 INTERNET SERVICE 517000 6376 6376 2870 2870 929025 40193377 39224829 10836 957712 X 5268 2971894 549200 2411347 271222 730023 190454 850713 2208813 PURCHASED POWER 27976228 DISTRIBUTION EXPENSE 958467 ADMIN & GENERAL EXPENSE 590427 TAXES 396602 459650 40570308 7555539 3245042 2495907 2555776 4382797 4332486 232062 877393 88606538 42114658 42683620 46491880 2886279 2500865 60236204 60003442 4478095 4040131 719538 793195 20525351 19322720 1624261 1678886 27347245 25834932 X 994576 1047681 0 0 31894383 33120829 32888959 34168510 60236204 60003442 X -376931 1656482 X X 0 1 X 0 0 0 1 X 377801 377801 11528025 2962704 8565321 74322630 39151954 35170676 2378082 2378082 46491880 CONSUMER DEPOSITS 1152910 DEFERRED CREDITS 525976 1678886 X 40175316 0 40175316 18061 18061 40193377 37580353 0 37580353 2989955 2989955 40570308 PART IV, LINE 2B: PURSUANT TO SECTION 81.507 OF THE NEVADA REVISED STATUTES CODE AND THE COOPERATIVE'S BYLAWS, THE COOPERATIVE CAN RETAIN ANY CAPITAL CREDIT OF A MEMBER, WHO IS RESIDENT OF NEVADA, WHICH REMAINED UNCLAIMED FOR A PERIOD OF ONE YEAR. THE COOPERATIVE HAS CHOSEN TO APPLY THESE UNCLAIMED PATRONAGE CAPITAL CREDITS TOWARDS (A) YOUTH LEADERSHIP AND WORK SCHOLARSHIPS TO QUALIFYING INDIVIDUALS AND (B) GRANTS, SPONSORSHIPS AND DONATIONS TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. IN THE STATE OF UTAH, PURSUANT TO UTAH'S UNIFORM AGRICULTURAL COOPERATIVE ASSOCIATION ACT (TITLE 3, CHAPTER 1, SECTION 11), THE COOPERATIVE CAN RETAIN CAPITAL CREDITS GIVEN TO ITS MEMBERS THAT REMAIN UNCLAIMED FOR A PERIOD OF THREE YEARS, BUT CAN ONLY APPLY THESE UNCLAIMED CAPITAL CREDITS TO UTILITY BILL ASSISTANCE OF LOW-INCOME PERSONS AND SCHOLARSHIPS FOR HIGH-SCHOOL SENIORS. THEREFOREE UNCLAIMED CAPITAL CREDITS ASSOCIATED WITH ACCOUNTS RESIDING IN THE STATE OF UTAH ARE ALSO HELD BY THE COOPERATIVE TO (A) ASSIST LOW-INCOME PERSONS TO PAY THEIR UTILITY BILLS, AND (B) TO PROVIDE SCHOLARSHIPS TO LOCAL GRADUATING HIGH SCHOOL SENIORS. PART X, LINE 2: THE CORPORATION HAS ADOPTED THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE CORPORATION IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE CORPORATION DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE,OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 18,061. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 18,061. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,971,894. PART VIII: THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ON FORM 990, PAGE 11, PART X, LINE 13 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 VIII 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 X 0 0 0 KEVIN ROBISON CEO 186157 0 15000 0 12292 0 28860 0 31632 0 273941 0 0 0 WILLIAM RICCI OPERATIONS MANAGER 124545 0 2525 0 13247 0 19471 0 30605 0 190393 0 0 0 SHELLIE WATTS MEMBER SERVICES MANAGER/HR 123143 0 2875 0 11891 0 19471 0 32007 0 189387 0 0 0 PATRICIA STANTON ACCOUNTING MANAGER 125474 0 3500 0 5979 0 19471 0 29608 0 184032 0 0 0 JESSE MURDOCK ENGINEERING MANAGER 118530 0 2450 0 6861 0 19110 0 34344 0 181295 0 0 0 BEVAN HARDY SUSTATION TECH 124860 0 1500 0 2228 0 15462 0 30643 0 174693 0 0 0 JERAMIE WILLIAMS LINEMAN 118837 0 1500 0 1224 0 14509 0 29635 0 165705 0 0 0 ZEKE STANTON FAMILY RELATIONSHIP - OFFICER (P. STANTON) 120596 EMPLOYMENT 0 FORM 990, PART VI, SECTION A, LINE 2 A BUSINESS RELATIONSHIP EXISTS BETWEEN RICK HENDRIX (DIRECTOR), AND KEVIN ROBISON (GM). BOTH INDIVIDUALS SERVED ON THE BOARD OF DESERET GENERATION & TRANSMISSION AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE BYLAWS OF THE COOPERATIVE WERE AMENDED. A SUMMARY OF THE AMENDMENTS ARE AS FOLLOWS: ARTICLE III - BOARD OF DIRECTORS SECTION 3.06.1 - DIRECTORATE DISTRICTS, WAS AMENDED TO STATE THAT THE TERRITORY SERVED BY THE COOPERATIVE SHALL HAVE NINE (9) DIRECTORATE DISTRICTS AND EACH SHALL BE REPRESENTED BY ONE DIRECTOR, UNLESS THERE IS A VACANCY ADDRESSED BY SECTION 3.10 BELOW. THE DISTRICTS ARE NUMBERED AND DESCRIBED IN THE BYLAWS. SECTION 3.08.1 - DIRECTORS' COMPENSATION, EXPENSES, WAS AMENDED TO STATE THAT DIRECTORS SHALL, AS DETERMINED BY POLICY OF THE BOARD OF DIRECTORS, RECEIVE A REASONABLE FIXED FEE FOR ATTENDING MEETINGS OF THE BOARD OF DIRECTORS OR FOR OTHERWISE PERFORMING THEIR DUTIES. THIS SECTION HAS ELIMINATED THE OPTION TO INCLUDE INSURANCE BENEFITS AS PART OF COMPENSATION. SECTION 3.10.1 - VACANCIES, WAS AMENDED TO STATE THAT A VACANCY OCCURING IN THE BOARD OF DIRECTORS SHALL BE FILLED BY THE BOARD OF DIRECTORS. A DIRECTOR APPOINTED BY THE BOARD OF DIRECTORS TO FILL A VACANCY SHALL BE A MEMBER OF THE SAME DIRECTORATE DISTRICT AS THE REPLACED DIRECTOR AND SHALL MEET THE QUALIFICATIONS SET FORTH IN SECTION 3.03.1. IN THE EVENT THERE IS NO QUALIFIED APPLICANT FROM THE DIRECTORATE DISTRICT FOR THE VACANCY, THE BOARD OF DIRECTORS MAY APPOINT AN AT-LARGE MEMBER TO SERVE THE UNEXPIRED TERM OF THE DIRECTOR WHOSE OFFICE WAS ORIGINALLY VACATED. THE APPOINTED DIRECTOR SHALL SERVE OUT THE UNEXPIRED TERM OF THE DIRECTOR WHOSE OFFICE WAS ORIGINALLY VACATED, AND SHALL SERVE UNTIL HIS/HER SUCCESSSOR IS ELECTED AND QUALIFIED. IN THE EVENT THERE ARE NINE (9) MONTHS OR LESS REMAINING ON THE TERM OF THE VACANCY, THE BOARD OF DIRECTORS SHALL HAVE THE OPTION OF NOT APPOINTING A DIRECTOR TO FILL THE POSITION AND WAIT FOR THE ELECTION TO FILL THE POSITION. 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, THE QUESTION HAS BEEN ANSWERED "NO". FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE BOARD OF 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. THE CONFLICT OF INTEREST POLICY IS REVIEWED ON AN ANNUAL BASIS. WHEN A CONTRACT OR BUSINESS TRANSACTION IS UNDER CONSIDERATION AND A DIRECTOR OR EMPLOYEE KNOWS THAT HE, SHE, OR A CLOSE RELATIVE HAS A FINANCIAL INTEREST, THIS INTEREST IS REQUIRED TO BE DISCLOSED FULLY TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS SHALL DECIDE IF SUCH AN INTEREST SHOULD PREVENT THE COOPERATIVE FROM ENTERING INTO A PARTICULAR TRANSACTION OR CONTRACT. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE COMPENSATION SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN NEVADA 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 PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO SUBMITS A WRITTEN REQUEST, SUBJECT TO APPROVAL. 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. EMPLOYER CONTRIBUTIONS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH 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 AMOUNTS CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THEIR BENEFIT. 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 BORROWER OF THE RURAL UTILITIES SERVICE (RUS), THE ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE 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 $ 2,960,547 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (91,227) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (109,571) PLUS: SALARIES AND WAGES ALLOCATED TO PURCHASE POWER 35,933 PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 16,633 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 664,667 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 185,907 TOTAL WAGES ACCRUED AND/OR PAID $ 3,662,889 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $1,142,202 PUBLIC RELATIONS 42,498 ANNUAL MEETING 11,192 DUES AND SUBSCRIPTIONS 78,994 DIRECTORS 104,807 OUTSIDE SERVICES EMPLOYED 115,009 INSURANCE 126,099 MAINTENANCE OF GENERAL PLANT 306,852 MISCELLANEOUS GENERAL 69,505 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 1,997,158 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (5,268) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (91,227) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (890,397) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (419,839) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 590,427 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 263,792 CUSTOMER SERVICE AND INFORMATION 54,876 INTERNET 16,753 SECURITY SYSTEM 1,308 SALES 60,282 TRANSMISSION 62,639 TOTAL OTHER EXPENSES PER FORM 990, LINE 24E $ 459,650 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 2020 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 ALL 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 2,971,894. PATRONAGE CAPITAL RETIRED - TOTAL -1,368,517. PATRONAGE CAPITAL RETIRED - DISCOUNT 53,105. 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.