2021-11-15T22:24:45-06:00 2020-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2020-01-01 730177775 CENTRAL RURAL ELECTRIC COOPERATIVE INC CENT 8003752884 PO BOX 1809 STILLWATER OK 74076 CAROL DVORAK PRESIDENT 8003752884 2021-11-15 1 CAROL DVORAK 999009999 WILLIAM M MILLER P00439459 8067473806 2021-11-15 X 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z HUNTER ROBINSON PO BOX 1809 STILLWATER OK 74076 59001752 0 X WWW.MYCENTRAL.COOP X 1938 OK TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 7 7 89 0 3240 1740 0 0 61293297 58521327 519326 289323 87293 154342 61899916 58964992 19045 9975 4626607 4686233 7637047 7608135 0 0 0 49617217 46660649 61899916 58964992 0 0 160483561 169524618 80032516 86451394 80451045 83073224 EMPOWERING OUR MEMBERS AND COMMUNITIES. 0 0 SALE OF ELECTRIC POWER TO MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 22,319 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 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 75 0 89 1 1 1 0 0 0 0 55872636 4799352 0 0 0 X 7 7 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 OK X X SONDRA WHITE VP OF FINANCE 4053722884 3305 S BOOMER ROAD STILLWATER OK 74076 X CAROL DVORAK PRESIDENT 7.90 X X 20250 0 0 MARK PITTMAN TRUSTEE 7.10 X 18000 0 0 STU PRESTON VICE PRESIDENT 8.30 X 17500 0 0 LEN TONTZ TRUSTEE 5.70 X 17000 0 0 GARY MCCUNE TRUSTEE 6.30 X 16500 0 0 BILL DAVIS SECRETARY/TREASURER 6.10 X X 15000 0 0 RAY NETTLES JAN-AUG TRUSTEE 5.00 X X 9000 0 0 JAMES WELLS OCT-DEC TRUSTEE 9.80 X 3500 0 0 HUNTER ROBINSON CEO 45.00 X 207048 0 195476 SONDRA WHITE VP OF FINANCE 45.00 X 141798 0 38189 YUVARAJ KONDASWAMY SYSTEM ENGINEER 40.00 X 126495 0 49726 MICHAEL CROSS LINE FOREMAN 40.00 X 112118 0 62514 LEE LINSENMEYER LINEMAN 40.00 X 107187 0 38323 JILLIANNE TEBOW VP OF BUSINESS DEV & MARKING 40.00 X 108156 0 34480 JACKIE BERNA VP OF SYSTEM OPERATIONS 40.00 X 113351 0 29218 1032903 0 447926 7 0 1 0 RIGGS TREE SERVICE INC PO BOX 453225 GROVE OK 74345 TREE CLEARING 2754592 ERVIN CABLE CONSTRUCTION PO BOX 10 STURGIS KY 42459 CONSTRUCTION 1057291 BHI ENERGY 97 LIBBEY INDUSTRIAL PKWY 4TH FLOOR WEYMOUTH MA 02189 CONSTRUCTION 1002924 OSMOSE UTILITIES SERVICES INC PO BOX 8000560 BUFFALO NY 14267 POLE INSPECTION & RESTORATION 662013 MDR CONSTRUCTION 621 E BAYLIS CHAPEL RD COLUMBIA MS 39429 CONSTRUCTION 617515 11 X SALES OF ELECTRICITY 221000 55312160 55312160 PATRONAGE DIVIDENDS 221000 2493535 2493535 CONSTRUCTION ADVANCES RETAINED 211110 344569 344569 SERVICE FEES & OTHER CHARGES 221000 195665 195665 OTHER PROGRAM REVENUE 221000 175398 175398 58521327 280350 280350 3240 0 3240 3240 3240 45733 36760 8973 8973 8973 MISC NON-OPERATING REVENUE 221000 82782 82782 POLE ATTACHMENT INCOME 221000 68320 68320 151102 58964992 58604109 3240 357643 X 9975 4686233 699261 4424395 954421 1151943 378115 1591522 5314731 PURCHASED POWER 32991588 DISTRIBUTION EXPENSE 4421976 ADMIN & GENERAL EXPENSE 1338439 CONSUMER EXPENSE 758878 243515 58964992 2323768 9226198 13021735 11220375 3793493 2684131 30476 30476 2217014 1199531 174140564 69848653 100886402 104291911 33420344 35233178 4790329 5638818 160483561 169524618 4986154 4689367 59402772 67024474 15643590 14737553 80032516 86451394 X 796430 819315 0 0 79654615 82253909 80451045 83073224 160483561 169524618 X 0 2622179 X X 0 1 X 1 0 1179946 1179946 20670571 6370328 14300243 146876371 63471848 83404523 5413676 6477 5407199 104291911 CAPITAL TERM CERTIFICATES - CFC 945943 C PATRONAGE CAPITAL - CFC 193265 C PATRONAGE CAPITAL - KAMO POWER 31220366 C PATRONAGE CAPITAL - NISC 147564 C PATRONAGE CAPITAL - COBANK 457040 C PATRONAGE CAPITAL - AECI 1701339 C PATRONAGE CAPITAL - OTHER 389751 C NOTES RECEIVABLE-CIA INSTALL 146472 C INVESTMENTS IN OTHERS 31438 C 35233178 CONSUMER DEPOSITS 1465176 CUSTOMER ADVANCES FOR CONSTRUCTION 584331 OIL LOAD REVENUE DEFERRAL PLAN 9073762 DEFERRED CREDITS 464063 PROVISION FOR POST-RETIREMENT BENEFIT 3064091 ACCOUNTS PAY - GROSS RECEIPTS TAX 86130 14737553 X 58521697 0 58521697 443295 443295 58964992 53835464 0 53835464 5129528 5129528 58964992 PART X, LINE 2: THE COOPERATIVE AND SUBSIDIARIES FOLLOWS 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 AND SUBSIDIARIES DETERMINED THAT IT IS MORE LIKELY THAN NOT THAT ITS 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: EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 443,295. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 4,686,233. EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 443,295. 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 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 0 0 0 HUNTER ROBINSON CEO 196760 0 1000 0 9288 0 168964 0 26512 0 402524 0 0 0 SONDRA WHITE VP OF FINANCE 140356 0 1000 0 442 0 25193 0 12996 0 179987 0 0 0 YUVARAJ KONDASWAMY SYSTEM ENGINEER 125135 0 1000 0 360 0 23858 0 25868 0 176221 0 0 0 MICHAEL CROSS LINE FOREMAN 111081 0 807 0 230 0 38035 0 24479 0 174632 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. HUNTER ROBINSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 162,704 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,260 TOTAL REPORTED IN COLUMN C $ 168,964 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (162,704) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 52,764 EXPENSE TO THE COOPERATIVE $ 59,024 SONDRA WHITE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 20,976 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,217 TOTAL REPORTED IN COLUMN C $ 25,193 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (20,976) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,704 EXPENSE TO THE COOPERATIVE $ 44,921 YUVARAJ KONDASWAMY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 19,991 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,867 TOTAL REPORTED IN COLUMN C $ 23,858 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (19,991) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 36,171 EXPENSE TO THE COOPERATIVE $ 40,038 MICHAEL CROSS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 35,474 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,561 TOTAL REPORTED IN COLUMN C $ 38,035 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (35,474) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 23,611 EXPENSE TO THE COOPERATIVE $ 26,172 FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE BYLAWS OF THE COOPERATIVE WERE AMENDED. MEMBERS OF THE COOPERATIVE WHO ATTENDED THE ANNUAL MEETING OF MEMBERS APPROVED PROPOSED BYLAW AMENDMENTS BY A MAJORITY VOTE. A SUMMARY OF THE AMENDMENTS IS AS FOLLOWS: ARTICLE I - MEMERSHIP SECTION 2 - JOINT MEMBERSHIP, WAS AMENDED TO CHANGE JOINT MEMBERSHIP FROM HUSBAND AND WIFE TO MARRIED COUPLE IN ORDER TO COMPLY WITH CURRENT OKLAHOMA LAW. ARTICLE III - MEETINGS OF MEMBERS SECTION 1 - ANNUAL MEETINGS. WAS AMENDED TO ELIMINATE A SPECIFIC TIMEFRAME AND GIVE AUTHORITY TO THE BOARD OF TRUSTEES TO SCHEDULE THE MEETING AT ANY TIME DURING THE YEAR. THIS WILL HELP THE COOPERATIVE SCHEDULE THE MEETING DURING A TIME IT FEELS IS CONDUCIVE TO A MAJORITY OF MEMBERS TO INCREASE OPPORTUNITIES FOR MEMBER ENGAGEMENT AND OUTDOOR CHILDREN ACTIVITIES. ARTICLE IV- TRUSTEES SECTION 3 - QUALIFICATION. WAS AMENDED TO ADD THAT BREACHED THE DUTY OF CARE AND LOYALTY TO THE COOPERATIVE AS AN ADDITION TO OUR CURRENT BOARD MEMBER QUALIFICATION AS STATED IN OUR BYLAWS REDUCES THE COOPERATIVE'S RISK AND HELPS CREATE A HEALTHIER BOARD. IT ALLOWS FOR THE DISQUALIFICATION OR REMOVAL OF A BOARD MEMBER DUE TO CAUSE OF COOPERATIVE HARM. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE AT: HTTPS://MYCENTRAL.COOP/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 THE MEMBERS OF THE COOPERATIVE VOTE ON THE BOARD OF TRUSTEES. ELECTIONS ARE DONE ON A ONE MEMBER ONE VOTE BASIS BY DISTRICT. 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 5. AMENDMENT TO THE BYLAWS 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 PROVIDED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES AND OFFICERS ARE REQUIRED TO REVIEW AND 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 AS SOON AS POSSIBLE. THE CONFLICT OF INTEREST POLICY IS PERIODICALLY REVIEWED WITH EMPLOYEES AND TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF TRUSTEES UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE CEO. THE BOARD AND THE CEO UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. FORM 990, PART VI, SECTION C, LINE 18 ONCE THE FORM 990 FOR THE YEAR IS ELECTRONICALLY FILED, THE COOPERATIVE WILL UPLOAD A PDF COPY TO GUIDESTAR AT WWW.GUIDESTAR.ORG. THIS WILL INSURE THAT THE PUBLIC HAS TIMELY ACCESS TO THE FORM 990. THE COOPERATIVE ALSO PROVIDES A LINK TO GUIDESTAR FROM ITS OWN WEBSITE. INSURING A COPY OF THE FORM 990 IS UPLOADED STARTED WITH THE 2020 FORM 990. HOWEVER, UPON IMPLEMENTATION, THE COOPERATIVE ALSO UPLOADED THE 2019 FORM 990 TO GUIDESTAR SO THAT ALL YEARS SUBJECT TO PUBLIC INSPECTION ARE AVAILABLE. 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'S BYLAWS AND ANNUAL REPORT ARE AVAILABLE ON ITS WEBSITE AS WELL AS A SUMMARY OF THE CURRENT YEAR REGULAR BOARD MEETINGS AT WWW.MYCENTRAL.COOP. 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 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 ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION PLAN AND THE INSURANCE PREMIUMS PAID 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 $ 5,123,656 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-MISC (116,750) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (233,665) PLUS: SALARIES & WAGES ALLOCATED TO NONOPERATING MARGINS 36,780 PLUS: SALARIES & WAGES CAPITALIZED DIRECTLY TO PLANT 938,496 PLUS: SALARIES & WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 247,024 TOTAL WAGES ACCRUED AND/OR PAID $ 5,995,541 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 1,738,607 OFFICE SUPPLIES 329,459 OUTSIDE SERVICES EMPLOYED 245,551 PENSIONS & BENEFITS 6,360 DUPLICATE CHARGES - CREDIT (20,682) ADVERTISING 108,882 MISCELLANEOUS GENERAL 24,603 DISTRICT & ANNUAL MEETINGS 122,463 DUES TO ASSOCIATED ORGANIZATIONS 163,196 TRUSTEES 187,305 MAINTENANCE OF GENERAL PLANT 644,406 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,550,150 LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (116,750) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,334,834) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (760,127) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,338,439 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, 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: THE ACCOUNTING RECORDS OF THE COOPERATIVE 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 ITS 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 4,686,233. PATRONAGE CAPITAL RETIRED - TOTAL -5,511,406. PATRONAGE CAPITAL RETIRED - DISCOUNT 3,168,688. UNCLAIMED PATRONAGE CAPITAL RETAINED PER STATE LAW 492,632. DONATED CAPITAL 5,236. NET CHANGE IN MEMBERSHIPS 22,885. OCI - PENSIONS & BENEFITS -242,089. FORM 990, PART XII, LINE 2C: THE BOARD OF TRUSTEES HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. INNOVATION POINTE LLC PO BOX 1809 STILLWATER OK 74076 454383291 SOFTWARE OK 260451 1088935 CENTRAL RURAL ELECTRIC COOPERATIVE INC CENTRANET LLC PO BOX 1809 STILLWATER OK 74076 FIBER CONSTRUCTION OK 0 39990 CENTRAL COMMUNITY FOUNDATION PO BOX 1809 STILLWATER OK 74076 204700369 DONATIONS OK 501(C)(3) 10 CENTRAL RURAL ELECTRIC COOPERATIVE INC 1 NESI-SES ASSOCATION 3304 SOUTH BOOMER ROAD STILLWATER OK 74074 463845407 DONATIONS OK 501(C)(6) 10 CENTRAL RURAL ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 1 0 0 1 1 0 1 0 0 CENTRAL COMMUNITY FOUNDATION N N/A - LESS THAN $50,000 CENTRAL COMMUNITY FOUNDATION O N/A - LESS THAN $50,000 CENTRAL COMMUNITY FOUNDATION R N/A - LESS THAN $50,000 NESI-SES ASSOCIATION O N/A - LESS THAN $50,000 INNOVATION POINTE LLC K 85053