2021-11-15T08:25:16-06:00 2020-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2020-01-01 740708876 JACKSON ELECTRIC COOPERATIVE INC JACK 3617714400 PO BOX 1189 EDNA TX 779571189 JAMES COLEMAN GENERAL MANAGER 3617714400 2021-11-11 1 JAMES COLEMAN 999009999 WILLIAM M MILLER P00439459 8067473806 2021-11-11 X 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z JAMES COLEMAN PO BOX 1189 EDNA TX 779571189 62648660 0 X WWW.JECEC.COM X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 10 10 106 0 4158742 0 0 0 56228791 58127959 156960 121115 3969309 4265065 60355060 62514139 12687 9070 0 0 6099491 6792982 0 0 0 51706668 53169064 57818846 59971116 2536214 2543023 139103349 153123644 77836322 88783977 61267027 64339667 PROVIDE DEPENDABLE ELECTRIC AND SUBSIDIARY SERVICES AT COMPETITIVE PRICES, TO MAINTAIN LINES OF COMMUNICATION BETWEEN THE BOARD OF DIRECTORS, MANAGEMENT, EMPLOYEES, MEMBERS AND COMMUNITY LEADERS TO ACTIVELY PARTICIPATE IN COMMUNITY AFFAIRS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 16,671 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 82 0 106 1 1 1 0 0 0 0 56719595 2878269 0 0 0 X 10 10 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X JAMES COLEMAN GENERAL MANAGER 3617714400 8925 STATE HIGHWAY 111 SOUTH GANADO TX 77962 X JAMES HOFFMEISTER DIRECTOR 6.00 X 10200 0 0 PATRICK STUART DIRECTOR 2.00 X 9000 0 0 DOUG TISE DIRECTOR 8.00 X 9000 0 0 BRUCE ELLIOTT DIRECTOR 2.00 X 9000 0 0 LH CORNELIUS JR PRESIDENT 2.00 X X 9000 0 0 MICHAEL JACOBS SECRETARY/TREASURER 3.00 X X 9000 0 0 LAVAL SIMONS DIRECTOR 4.00 X 9000 0 0 WILLIAM HANSEN VICE PRESIDENT 1.50 X X 9000 0 0 ANTHONY SMITH DIRECTOR 1.50 X 9000 0 0 TOM HUDGINS DIRECTOR 1.50 X 8250 0 0 W H WEBERNICK JAN-OCT DIRECTOR 1.00 X 6000 0 0 JAMES E COLEMAN GENERAL MANAGER 50.00 X 231291 0 95821 MARTIN FLORES FOREMAN 57.00 X 130933 0 28704 ROY BARNES FOREMAN 56.00 X 133441 0 18437 ERSKINE DAVIS FOREMAN 50.00 X 113891 0 35002 TYLER STASTNY FOREMAN 49.00 X 120300 0 18184 AUSTIN BOURLAND WAREHOUSE MANAGER 51.00 X 103285 0 13563 929591 0 209711 13 0 1 0 POWERLINE CONSTRUCTION INC PO BOX 889 EDNA TX 77957 LINE CONSTRUCTION 1454259 ASPLUNDH TREE EXPERT CO PO BOX 725124 PHILIDELPHIA PA 19090 TREE TRIMMING 682188 SOUTHEASTERN DATA COOPERATIVE 100 ASHFORD CTR N SUITE 500 ATLANTA GA 30338 BILL PRINTING AND COMPUTER SUPPORT 342973 QUANTA TELECOM SVC LLC 7908 N SAM HOUSTON PARKWAY W SUITE HOUSTON TX 77064 FIBER CONSTRUCTION 325220 NEXGRID 915 MAPLE GROVE DR SUITE 200 FREDERICKSBURG VA 22407 METERING SUPPORT 270988 8 X SALES OF ELECTRICITY 221000 55865527 55865527 PATRONAGE DIVIDENDS 221000 2089054 2089054 OTHER PROGRAM REVENUE 221000 92811 92811 SERVICE FEES 221000 80567 80567 58127959 121115 121115 193543 134521 59022 59022 SALES OF PROPANE 221000 2598978 2598978 INTERNET SERVICE PROVIDER 517000 1559764 1559764 POLE ATTACHMENT INCOME 221000 47301 47301 4206043 62514139 58186981 4158742 168416 X 9070 423562 4624332 658723 759711 326654 2889261 3053998 PURCHASED POWER 39308760 DISTRIBUTION EXPENSE 3173429 INTERNET SERVICE PROVID 1689379 UBIT EXPENSE/BENEFIT -70882 3125119 59971116 1008660 1722676 834391 4240729 265815 205367 2811373 3816474 567751 243775 131728869 24836550 100357315 106892319 4041370 4615180 29090023 31024749 126651 362375 139103349 153123644 2465289 5670797 2742329 2742184 158073 120463 71249211 77445794 1520700 1221420 1284039 77836322 88783977 X 202535 209145 0 0 61064492 64130522 61267027 64339667 139103349 153123644 X 2543023 522054 7563 X X 0 1 X 0 0 0 1 X 71957 1652360 1724317 15482349 15482349 100126250 24836550 75289700 14395953 14395953 106892319 PATRONAGE CAPITAL-TEC 396860 C PATRONAGE CAPITAL-CFC 1109016 C PATRONAGE CAPITAL-STEC 28474495 C PATRONAGE CAPITAL-SEDC 128780 C PATRONAGE CAPITAL-NRTC 3761 C CAPITAL TERM CERTIFICATES 893047 C OTHER INVESTMENTS 18790 C 31024749 CONSUMER DEPOSITS 1239687 OTHER CURRENT & ACCRUED LIABILITIES 44352 1284039 X 61322064 522054 522054 60800010 1714129 1714129 62514139 58256987 0 58256987 1714129 1714129 59971116 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 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 UTILIZES 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 XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFIED EXPENSES 1,714,129. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFIED EXPENSES 1,714,129. 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. X 0 0 X 0 0 0 JAMES E COLEMAN GENERAL MANAGER 200522 0 1820 0 28949 0 69209 0 26612 0 327112 0 0 0 MARTIN FLORES FOREMAN 125243 0 816 0 4874 0 20140 0 8564 0 159637 0 0 0 ROY BARNES FOREMAN 120650 0 697 0 12094 0 9939 0 8498 0 151878 0 0 0 PART I, LINE 1A HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES - THE COOPERATIVE HAS A WELLNESS PROGRAM IN WHICH THE COOPERATIVE WILL DEDUCT $10 PER MONTH PER ELIGIBLE EMPLOYEE AND INCUR THE ENTIRE BILLING COSTS FOR EMPLOYEE SELECTED WELLNESS VENDORS. PART II, COLUMN C: INCLUDED IN THIS AMOUNT IS THE INCREASE IN ACTUARIAL VALUE OF BENEFITS PAYABLE UNDER A DEFINED BENEFIT RETIREMENT PLAN. THE CONTRIBUTION RATE FOR PARTICIPANTS IN THE NRECA R&S DEFINED BENEFIT PENSION PLAN ARE THE SAME FOR ALL INDIVIDUALS IN THIS MULTI-EMPLOYER PLAN. THE CHANGE IN ACTUARIAL VALUE FOR EACH PARTICIPANT, HOWEVER, VARIES WITH AGE, YEARS OF SERVICE AND THE CURRENT INTEREST RATE ENVIRONMENT. IN OTHER WORDS, THE OLDER A PLAN PARTICIPANT IS, THE GREATER THE INCREASE IN THAT INDIVIDUAL'S CHANGE IN ACTUARIAL VALUE, ALL OTHER THINGS BEING EQUAL. BECAUSE THIS RELATES TO A MULTI-EMPLOYER PLAN, CASH CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. JAMES COLEMAN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 66,859 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,350 TOTAL REPORTED IN COLUMN C $ 69,209 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (66,859) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 45,015 EXPENSE TO THE COOPERATIVE $ 47,365 MARTIN FLORES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 18,809 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,331 TOTAL REPORTED IN COLUMN C $ 20,140 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,809) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 14,007 EXPENSE TO THE COOPERATIVE $ 15,338 ROY BARNES: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 8,550 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,389 TOTAL REPORTED IN COLUMN C $ 9,939 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (8,550) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,921 EXPENSE TO THE COOPERATIVE $ 17,310 DAMIEN COLEMAN FAMILY RELATIONSHIP - OFFICER (J. COLEMAN) 87716 EMPLOYMENT 0 BRYTON HERDES FAMILY RELATIONSHIP - OFFICER (J. COLEMAN) 108222 EMPLOYMENT 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. THE DISCUSSION AND REVIEW TOOK PLACE AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C ON A MONTHLY BASIS, THE BOARD OF DIRECTORS AND OFFICERS REVIEW ALL TRANSACTIONS THAT MIGHT VIOLATE THE CONFLICT OF INTEREST POLICY. ADDITIONALLY, THE BOARD OF DIRECTORS AND OFFICERS ARE REQUIRED TO BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY AND ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. IF A CONFLICT OF INTEREST ARISES THE INVOLVED DIRECTOR WILL NOT VOTE ON THE ISSUE. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS UTILIZE INTERNAL RESOURCES AND PERFORM AN ANNUAL REVIEW WHEN DETERMINING THE GENERAL MANAGER'S COMPENSATION. 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 THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, OR GOVERNING DOCUMENTS TO ANY MEMBER WHO REQUESTS A COPY. FORM 990, PARTS VI & VII THE COOPERATIVE ANNUALLY PROVIDES EACH DIRECTOR WHO SERVED ON THE BOARD DURING THE YEAR A QUESTIONNAIRE AND TIME LOG. THE COMPLETED QUESTIONNAIRES AND TIME LOGS ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". IF THE COOPERATIVE WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE AND/OR TIME LOG, THE COOPERATIVE RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. W H WEBERNICK PASSED AWAY IN OCTOBER 2020; THEREFORE, WE RELIED UPON HIS 2019 QUESTIONNAIRE WHEN PREPARING THIS RETURN. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE COOPERATIVE HAS ESTABLISHED A DEFINED CONTRIBUTION PLAN UNDER SECTION 401(K) OF THE INTERNAL REVENUE CODE. EMPLOYER CONTRIBUTIONS TO THE PLAN ARE MADE PURSUANT TO THE PLAN DOCUMENT. ADDITIONALLY, THE COOPERATIVE PARTICIPATES IN A MULTI-EMPLOYER DEFINED BENEFIT PLAN. CONTRIBUTIONS TO THIS PLAN ARE BASED ON THE FULL FUNDING LIMITATION OF SUCH PLAN. EMPLOYER CONTRIBUTIONS FOR BOTH PLANS ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING THE EMPLOYEE OFFICER AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. 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 EMPLOYEE OFFICER 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 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: THE ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE 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 NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (CFC). 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 $ 5,047,894 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (96,450) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (95,821) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,570,305 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 434,921 TOTAL WAGES ACCRUED AND/OR PAID $ 6,860,848 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: ADMINISTRATIVE AND GENERAL EXPENSES $ 1,406,356 CUSTOMER ACCOUNTS 401,695 INVESTMENT EXPENSES 24,750 TAXES 30,942 PROPANE OPERATIONS 1,261,376 TOTAL OTHER EXPENSE PER 990, LINE 24E $ 3,125,119 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 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 567,030 OFFICE SUPPLIES 479,769 INJURIES AND DAMAGES 90,295 REGULATORY COMMISSION 92,716 MISCELLANEOUS GENERAL 933,613 MAINTENANCE OF GENERAL PLANT 203,185 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,366,608 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (9,070) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (96,450) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (619,761) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (234,971) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,406,356 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 0. NET CHANGE IN MEMBERSHIPS 6,610. NET CHANGE IN OTHER EQUITIES 0. DONATED CAPITAL 953. 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. JEC BROADBAND LLC PO 1189 EDNA TX 779571189 BROADBAND SERVICE PROVIDER TO MEMBERS OF THE COOPERATIVE TX 1559764 8148008 JACKSON ELECTRIC COOPERATIVE INC