2021-11-15T17:00:57-06:00 2020-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2020-01-01 356043583 SOUTH CENTRAL INDIANA RURAL ELECTRIC MEMBERSHIP CORPORATION SOUT 7653423344 300 MORTON AVENUE MARTINSVILLE IN 46151 JAMES TANNEBERGER PRESIDENT & CEO 8002647362 2021-11-15 1 JAMES TANNEBERGER 999009999 WILLIAM M MILLER P00439459 8067473806 2021-11-12 X 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z JAMES TANNEBERGER 300 MORTON AVENUE MARTINSVILLE IN 46151 89103276 0 X WWW.SCIREMC.COM X 1939 IN TO PROVIDE SAFE, RELIABLE, COST-EFFECTIVE ELECTRICITY AND ENERGY SOLUTIONS. 9 9 123 0 2285953 0 0 0 87309891 86817884 55018 1144846 638098 499727 88003007 88462457 15601 8895 6340567 5228034 11683968 12083695 0 0 0 71507352 71502462 89547488 88823086 -1544481 -360629 221096480 245308868 139746694 159748968 81349786 85559900 SCI REMC IS A TRUSTED ELECTRIC COOPERATIVE SERVING OUR DIVERSE COMMUNITIES WITH INNOVATIVE ENERGY SOLUTIONS AND LIFE-ENHANCING SERVICES. 0 0 ELECTRIC DIVISION:PROVIDING RELIABLE ELECTRICITY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 34,257 ACTIVE SERVICES AT YEAR END. FIBER DIVISION:A SEPERATE DIVISION OF THE COOPERATIVE WAS CREATED TO PROVIDE BROADBAND INTERNET SERVICES TO ITS MEMBERS THROUGH THE CONSTRUCTION OF A FIBER OPTIC NETWORK. THE FIRST CONNECTIONS BEGAN RECEIVING SERVICE DURING 2019. FIBER OPTIC BROADBAND SERVICES OF THIS DIVISION WILL BE PROVIDED TO MEMBERS ON A PATRONAGE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL TO THE EXTENT NET MARGINS WILL EXCEED CUMULATIVE LOSSES FOR SUCH DIVISION. 0 0 1 0 0 0 0 0 0 1 0 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 1 1 0 0 1 58 0 123 1 1 1 0 0 0 0 84445573 2578854 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 IN X RANDY ELLIOTT VP OF FINANCE & MEMBER SERVICES 7653423344 300 MORTON AVE MARTINSVILLE IN 46151 X JAMES KOCH DIRECTOR 10.30 X 17325 0 0 JAMES COX VICE CHAIRMAN 4.10 X X 15820 0 0 STEVE WILLIAMSON DIRECTOR 5.60 X 15775 0 0 HEATHER MOLLO DIRECTOR 4.00 0.50 X 15050 0 0 BRUCE HAMLIN CHAIRMAN 6.00 X X 14795 0 0 MARK SMITH DIRECTOR 2.00 X 14750 0 0 LISA PROSSER DIRECTOR 4.00 0.50 X 14250 0 0 JERRY PHEIFER SECRETARY-TREASURER 4.30 X X 10400 0 0 REX FRANKLIN DIRECTOR 6.00 X 7700 0 0 JAMES TANNEBERGER PRESIDENT & CEO 60.00 0.50 X 234439 0 128417 RANDY ELLIOT VP OF FINANCE & MEMBER SER 59.00 X 158797 0 142789 TIMOTHY LEMERE VP DISTRIBUTION SERVICES 50.00 X 167568 0 87842 MARILOU IDLAND VP OF HUMAN RESOURCES 55.00 X 157978 0 64542 MICHAEL STUCKEY JOURNEYMAN LINEWORKER 58.00 X 151334 0 52876 JASON DIPERT JOURNEYMAN LINEWORKER 59.00 X 157082 0 41643 ANDREW POLLEY JOURNEYMAN LINEWORKER 56.00 X 149903 0 45807 CHAD GRIFFIN JOURNEYMAN LINEWORKER 51.00 X 127703 0 55091 AARON HANSEN JOURNEYMAN LINEWORKER 54.00 X 136006 0 44818 1566675 0 663825 40 0 1 0 LSB UTILITY CONSTRUCTION 601 HAPPY VALLEY RD GLASGOW KY 42141 FIBER CONTRACT SERVICES 2720700 JE REEDY INC PO BOX 1265 SEYMOUR IN 47274 UNDERGROUND CONTRACTOR SERVICES 2060891 PRINCE EXCAVATING 5412 E GUTHRIE ROAD HELTONVILLE IN 47436 UNDERGROUND CONTRACTOR SERVICES 1811950 PULSE BROADBAND LLC 225 MORTON AVE MARTINSVILLE IN 46151 FIBER CONTRACT SERVICES 1702812 ERVIN CABLE CONSTRUCTION 450 PRYOR BLVD STURGIS KY 42459 FIBER CONTRACT SERVICES 1486562 27 X SALES OF ELECTRICITY 221000 80496200 80496200 FIBER REVENUE 221000 4196619 2844118 1352501 PATRONAGE DIVIDENDS 221000 1786179 1786179 SERVICE FEES 221000 338886 338886 86817884 68323 68323 5765 0 5765 5765 5765 1365197 288674 1076523 1076523 920030 156493 335497 352145 -16648 -16548 -100 POLE ATTACHEMENT INCOME 221000 497088 497088 THIRD PARTY BILLING & COLLECTING 561000 12727 12727 SECURITY SYSTEMS & MONITORING 561700 795 795 510610 88462457 85448835 2285953 727669 X 8895 5228034 1268237 7068614 1287097 1756157 703590 5022903 8559547 PURCHASED POWER 48326402 DISTRIUBTION EXPENSE 4273566 ADMIN & GENERAL EXPENSE 1995044 OPERATING TAXES 1883853 1441147 88823086 887175 1023691 2760405 2764169 4581177 5672674 2240 2240 3652464 3229655 1819231 1182284 277244118 88162936 165514635 189081182 114989 114989 37276509 37192092 4487655 5045892 221096480 245308868 12260178 18744372 120501098 132145890 6985418 8858706 139746694 159748968 X 232580 222785 0 0 81117206 85337115 81349786 85559900 221096480 245308868 X -360629 4570743 X X 0 1 X 1 0 2000 2000 2000 1 INDIANA FORE PO BOX 24517 INDIANAPOLIS IN 46214 351998087 2000 PART I-A, LINE 1: THE COOPERATIVE'S SOLE DIRECT POLITICAL ACTIVITY WAS A $2,000 DONATION OF ITS OWN FUNDS TO INDIANA FRIENDS OF RURAL ELECTRIFICATION (INDIANA FORE). THE COOPERATIVE WAS INDIRECTLY INVOLVED IN POLITICAL CAMPAIGN ACTIVITIES OF INDIANA FORE. RESOURCES TO INDIANA FORE ARE USED EXCLUSIVELY TO SUPPORT STATE AND FEDERAL CANDIDATES WHO UNDERSTAND AND CONSISTENTLY SUPPORT THE ISSUES AND POLICIES IMPACTING INDIANA'S ELECTRIC COOPERATIVES. 694344 694344 15200397 2925264 12275133 237010976 85237672 151773304 24338401 24338401 189081182 CAPITAL TERM CERTIFICATES 1339815 C PATRONAGE CAPITAL IN ASSOCIATED ORGANIZATIONS 35078776 C RURAL ECONOMIC DEVELOPMENT LOAN PROGRAM 333312 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 440189 C 37192092 CONSUMER ADVANCES FOR CONSTRUCTION 1285931 CONSUMER DEPOSITS 1100145 EMPLOYEE POST RETIREMENT BENEFIT OBLIGATION 3254855 ACCRUED OPERATING TAXES 1102394 FIBER UNEARNED REVENUES 1324544 OTHER LIABILITIES 790837 8858706 X 88494740 32283 32283 88462457 0 88462457 83627335 32283 32283 83595052 5228034 5228034 88823086 PART X, LINE 2: THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLE RELATED TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS PROVIDES DETAILED GUIDANCE FOR THE FINANCIAL STATEMENT RECOGNITION, MEASUREMENT AND DISCLOSURE OF UNCERTAIN TAX POSITIONS RECOGNIZED IN AN ENTERPRISE'S FINANCIAL STATEMENTS. THE ACCOUNTING PRINCIPLE REQUIRES AN ENTITY TO RECOGNIZE THE FINANCIAL STATEMENT IMPACT OF A TAX POSITION WHEN IT IS MORE LIKELY THAN NOT THAT THE POSITION WILL BE SUSTAINED UPON EXAMINATION. THE ADOPTION OF THIS ACCOUNTING PRINCIPLE DOES NOT HAVE A MATERIAL EFFECT ON ITS FINANCIAL POSITION, RESULTS OF OPERATIONS OR CASH FLOWS AS THE REMC DOES NOT BELIEVE THEY ARE TAKING UNCERTAIN TAX POSITIONS. PART XI, LINE 2D - OTHER ADJUSTMENTS: RECLASSIFICATION OF COST OF GOODS SOLD 200. RECLASSIFICATION OF NON-OPERATING EXPENSES 32,083. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASSIFICATION OF COST OF GOODS SOLD 200. RECLASSIFICATION OF NON-OPERATING EXPENSES 32,083. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,228,034. PART IX: THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF 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". 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 X X X 0 0 0 JAMES TANNEBERGER PRESIDENT & CEO 223381 0 10000 0 1058 0 99022 0 29395 0 362856 0 0 0 RANDY ELLIOT VP OF FINANCE & MEMBER SER 155024 0 1500 0 2273 0 110367 0 32422 0 301586 0 0 0 TIMOTHY LEMERE VP DISTRIBUTION SERVICES 165517 0 1500 0 551 0 58042 0 29800 0 255410 0 0 0 MARILOU IDLAND VP OF HUMAN RESOURCES 153167 0 1500 0 3311 0 48826 0 15716 0 222520 0 0 0 MICHAEL STUCKEY JOURNEYMAN LINEWORKER 151120 0 0 0 214 0 25010 0 27866 0 204210 0 0 0 JASON DIPERT JOURNEYMAN LINEWORKER 156681 0 0 0 401 0 14544 0 27099 0 198725 0 0 0 ANDREW POLLEY JOURNEYMAN LINEWORKER 149644 0 0 0 259 0 16573 0 29234 0 195710 0 0 0 CHAD GRIFFIN JOURNEYMAN LINEWORKER 127703 0 0 0 0 0 24532 0 30559 0 182794 0 0 0 AARON HANSEN JOURNEYMAN LINEWORKER 135793 0 0 0 213 0 17510 0 27308 0 180824 0 0 0 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. 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 TANNEBERGER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 87,170 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,852 TOTAL REPORTED IN COLUMN C $ 99,022 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (87,170) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,745 EXPENSE TO THE COOPERATIVE $ 50,597 RANDY ELLIOT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 103,853 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,514 TOTAL REPORTED IN COLUMN C $ 110,367 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (103,853) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 31,781 EXPENSE TO THE COOPERATIVE $ 38,295 TIMOTHY LEMERE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 58,042 EMPLOYER CONTRIBUTION TO 401(K) PLAN -0- TOTAL REPORTED IN COLUMN C $ 58,042 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (58,042) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 35,506 EXPENSE TO THE COOPERATIVE $ 35,506 MARILOU IDLAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 48,826 EMPLOYER CONTRIBUTION TO 401(K) PLAN -0- TOTAL REPORTED IN COLUMN C $ 48,826 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,826) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,303 EXPENSE TO THE COOPERATIVE $ 26,303 MICHAEL STUCKEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 23,768 EMPLOYER CONTRIBUTION TO 401(K) PLAN 1,242 TOTAL REPORTED IN COLUMN C $ 25,010 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (23,768) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,871 EXPENSE TO THE COOPERATIVE $ 20,113 JASON DIPERT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 14,443 EMPLOYER CONTRIBUTION TO 401(K) PLAN 101 TOTAL REPORTED IN COLUMN C $ 14,544 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,443) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 14,806 EXPENSE TO THE COOPERATIVE $ 14,907 ANDREW POLLEY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 13,558 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,015 TOTAL REPORTED IN COLUMN C $ 16,573 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (13,558) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,729 EXPENSE TO THE COOPERATIVE $ 18,744 CHAD GRIFFIN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 21,614 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,918 TOTAL REPORTED IN COLUMN C $ 24,532 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (21,614) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,729 EXPENSE TO THE COOPERATIVE $ 18,647 AARON HANSEN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 14,709 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,801 TOTAL REPORTED IN COLUMN C $ 17,510 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (14,709) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 13,367 EXPENSE TO THE COOPERATIVE $ 16,168 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: ARTICLE III - MEETINGS OF MEMBERS SECTION VII. ELECTION PROCEDURES AND ELECTION SUPERVISORY COMMITTEE, WAS AMENDED TO STATE AS NECESSARY, THE BOARD SHALL APPOINT A CERTIFIED ACCOUNTING FIRM ("CPA FIRM") TO RECEIVE, PREPARE AND SECURE BALLOTS FOR VOTING TO TAKE PLACE AT A ANNUAL MEETING NO LESS THAN THIRTY (30) DAYS PRIOR TO MEETING DATE. ARTICLE IV - DIRECTORS SECTION II. QUALIFICATIONS AND TENURE, AMENDED THE QUALIFICATIONS TO BECOME OR REMAIN A DIRECTOR OF THE COOPERATIVE TO INCLUDE ADDITIONAL ELIGIBILITY REQUIREMENTS. A MEMBER MUST HAVE BEEN A MEMBER OF THE COOPERATIVE FOR TWENTY-FOUR (24) CONSECUTIVE MONTHS FROM TO THE ANNUAL MEETING, AND BE AT LEAST TWENTY-ONE (21) YEARS OF AGE. SECTION III. NOMINATIONS, WAS AMENDED TO STATE THAT THIRTY MEMBERS FROM A DISTRICT MAY MAKE NOMINATIONS FOR THAT DISTRICT BY PETITION SIGNED NOT MORE THAN 120 DAYS BEFORE THE DATE OF THE MEETING OF THE MEMBERS. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://WWW.SCIREMC.COM/SCI-REMC-BYLAWS. 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 MEMBERS HAVE THE OPPORTUNITY TO VOTE AND ELECT THEIR OWN MEMBER REPRESENTATIVE ON THE BOARD OF DIRECTORS. EACH ELIGIBLE MEMBER IS ENTITLED TO ONE VOTE. 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 WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, A SURVEY IS DISTRIBUTED TO ALL THE RELEVENT PARTIES WHICH ASKS ABOUT ANY RELATIONSHIPS AND CONFLICTS OF INTEREST. IT IS THE DUTY OF THE BOARD MEMBER TO DISCLOSE ANY CONFLICTS OF INTEREST. A BOARD MEMBER WITH A CONFLICT OF INTEREST MUST RECUSE HIMSELF FROM ANY DISCUSSION OR VOTING ON ISSUES THAT ARISE AS A RESULT OF THAT CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE CEO AND OTHER EMPLOYEE OFFICER'S COMPENSATION PACKAGES ARE DETERMINED BY USING COMPARABILITY DATA FOR SIMILAR POSITIONS. THIS DATA IS THEN REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS, WITH CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION OF THE DECISION. FORM 990, PART VI, SECTION C, LINE 19 A CURRENT COPY OF THE BYLAWS AND MONTHLY BOARD MINUTES ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE AT WWW.SCIREMC.COM/BOARD-DIRECTORS. ADDITIONALLY, CURRENT MEMBERS MAY SUBMIT A REQUEST TO REVIEW THE COOPERATIVE'S ARTICLES OF INCORPORATION, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS. 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 OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH 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 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 COOPERATIVE TO ITS MEMBERS. FORM 990, PART IX: THE COOPERATIVE MAINTAINS ITS BOOKS AND RECORDS IN ACCORDANCE WITH POLICIES PRESCRIBED OR PERMITTED BY THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL UTILITIES SERVICES (RUS) AND THE INDIANA UTILITY REGULATORY COMMISSION (IURC), ALTHOUGH THE COOPERATIVE IS NO LONGER REGULATED BY THESE AGENCIES. THE APPLICABLE UNIFORM SYSTEM OF ACCOUNTS (USOA) FOLLOWED BY THE COOPERATIVE 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, LINE 1: ALL GRANTS, DONATIONS, AND/OR SPONSORSHIPS 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, DONATION, AND/OR SPONSORSHIP MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. 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, 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 $ 8,336,851 LESS: DIRECTORS FEES AND DEFERRED COMPENSATION (125,865) LESS: OFFICER AND KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (423,590) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,824,595 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 536,982 TOTAL WAGES ACCRUED AND/OR PAID $10,148,973 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,699,604 EMPLOYEE DUES & MEMBERSHIP 8,876 TRAINING & SEMINARS 74,484 BUSINESS MEALS 2,864 SUBSCRIPTIONS 1,027 MAINTENANCE OF OFFICE EQUIPMENT 125,992 MILEAGE 607 MOBILE PHONES 45,416 OFFICE SUPPLIES 688,545 UTILITIES & MONTHLY CHARGES 856,622 OUTSIDE SERVICES 189,709 INSURANCE & REGULATORY FEES 303,024 PUBLIC RELATIONS 9,201 ANNUAL MEETING 144,933 DIRECTORS 181,396 MAINTENANCE OF GENERAL PLANT 712,624 MISCELLANEOUS GENERAL EXPENSE 453,249 TOTAL ADMIN & GENERAL EXPENSE PER FINANCIAL STATEMENTS $ 5,498,173 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,976,399) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,073,813) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (125,865) LESS: RECLASS OF ROW MAINTENANCE TO DISTRIBUTION EXPENSE (327,052) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,995,044 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER EXPENSE $ 2,100,253 SECURITY - COST OF SALES 767,594 OTHER DEDUCTIONS 3,300 TOTAL OTHER EXPENSES PER THE BOOKS $ 2,871,187 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 ( 895,986) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 ( 534,054) TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 1,441,147 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 5,228,034. PATRONAGE CAPITAL RETIRED - TOTAL -113,362. PATRONAGE CAPITAL RETIRED - DISCOUNT 62,300. OTHER COMPREHENSIVE INCOME - POST RETIREMENT BENEFITS OTHER THAN PENSIONS -596,434. NET DECREASE IN MEMBERSHIPS -9,795. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. SCI SERVICES LLC 300 MORTON AVENUE MARTINSVILLE IN 46151 352091210 RIGHT OF WAY MAINTENANCE IN 4107692 2087288 SOUTH CENTRAL INDIANA REMC SCI MEMBERSHIP COMMUNITY FUND INC 300 MORTON AVE MARTINSVILLE IN 46151 351937189 DISBURSEMENT OF FUNDS FOR CHARITABLE PURPOSES IN THE COOP'S SERVICE AREA IN 501(C)(3) LINE 7 SOUTH CENTRAL INDIANA REMC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 SCI MEMBERSHIP COMMUNITY FUND INC N N/A - LESS THAN $50,000 SCI MEMBERSHIP COMMUNITY FUND INC O N/A - LESS THAN $50,000