2020-11-16T16:45:33-06:00 2019-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2019-01-01 840358317 YAMPA VALLEY ELECTRIC ASSOCIATION YAMP 9708791160 2211 ELK RIVER ROAD STEAMBOAT SPRINGS CO 80487 AMY MAHON FINANCE MANAGER 9708791160 2020-11-09 1 WILLIAM M MILLER P00439459 8067473806 2020-11-09 X 65.182.80.152 2020-11-09 16:02:41 CS P 954CA8D01CFBC3DD23DC63FC91DC923EB9CBFAF9 587A88673713A033F58E04FDF6801CBB1F7DD2F2 2019 2022-01-07 14:23:13Z STEVE JOHNSON 2211 ELK RIVER ROAD STEAMBOAT SPRINGS CO 80487 59733777 0 X WWW.YVEA.COM X 1940 CO TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS AT COST ON A COOPERATIVE BASIS. 9 9 85 0 90235 -419613 0 0 59942263 59263214 1097766 402420 53609 53966 61093638 59719600 47004 43516 5806832 3255889 7651420 8834150 0 0 0 48517394 46954631 62022650 59088186 -929012 631414 120728228 135663611 42165734 55294113 78562494 80369498 X YVEA IS A COOPERATIVE THAT PROVIDES VALUE TO ITS MEMBER-OWNERS BY DELIVERING SAFE AND RELIABLE ELECTRIC SERVICE IN AN ENVIRONMENTALLY AND FINANCIALLY RESPONSIBLE MANNER. 1 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 27,259 CONSUMERS AT YEAR END. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 44 0 85 1 1 1 0 0 0 0 60872499 947395 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 0 1 1 1 1 0 X AMY MAHON FINANCE MANAGER 9708791160 2211 ELK RIVER ROAD STEAMBOAT SPRINGS CO 80487 X STEVE JOHNSON CEO 55.00 X 244243 0 96564 KATHY BERTRAND MEMBER SERVICES MANAGER 48.00 X 148645 0 103838 AMY MAHON FINANCE MANAGER 60.00 X 166011 0 49295 KELLI ROOT IT MANAGER 50.00 X 149620 0 68654 BENJAMIN HOFFNER ENGINEERING MANAGER 50.00 X 154931 0 50783 JOHN CROMER OPERATIONS MANAGER 55.00 X 140618 0 58321 RANDI OWENS HUMAN RESOURCES 45.00 X 136854 0 44137 THOMAS FOX CHAIRMAN 7.50 X X 28373 0 0 SCOTT MCGILL DIRECTOR 8.90 X 27344 0 0 KEN ROGERS DIRECTOR 4.50 X 15840 0 0 JEAN STETSON DIRECTOR 2.50 X 15615 0 0 LARRY ELLGEN VICE CHAIRMAN 3.90 X X 14865 0 0 QUENTIN DEAN BROSIOUS DIRECTOR 5.70 X 13944 0 0 GLYNDA S SHEEHAN DIRECTOR 3.60 X 10655 0 0 PATRICK MCCLELLAND DIRECTOR (JAN-JUNE) 3.00 X 10320 0 0 FRANKLYN W ROITSCH DIRECTOR (JAN-JUNE) 2.80 X 9165 0 0 SONJA MACYS DIRECTOR 9.40 X 7485 0 0 PATRICK DELANEY DIRECTOR 1.00 X 6155 0 0 1300683 0 471592 31 0 1 0 CROMER CONTRACTING CO INC PO BOX 368 CRAIG CO 81626 CONSTRUCTION CONTRACTOR 1760911 COLORADO POWERLINE PO BOX 937 SEDALIA CO 80135 CONSTRUCTION CONTRACTOR 845589 ROGUE RESOURCES INC PO BOX 772503 STEAMBOAT SPRINGS CO 80477 CONSTRUCTION CONTRACTOR 614893 TITAN ELECTRIC CO 8695 DELTA DR CASPER WY 82604 CONSTRUCTION CONTRACTOR 518518 WILDERNESS EARTHWORKS 24615 CR 56 STEAMBOAT SPRINGS CO 80487 CONSTRUCTION CONTRACTOR 333973 12 X SALES OF ELECTRICITY 221000 58523361 58523361 PATRONAGE DIVIDENDS 221000 318764 318764 MISC SERVICE FEES & SALES 221000 173451 173451 OTHER PROGRAM REVENUE 221000 157403 157403 LUMINATE FIBER SALES 221000 90235 90235 59263214 393046 393046 23551 14177 9374 9374 9374 POLE ATTACHMENT INCOME 221000 53966 53966 53966 59719600 59172979 90235 456386 X 43516 3255889 715874 5743479 1094054 890214 390529 1373880 5958653 PURCHASED POWER 32637462 DISTRIBUTION EXPENSE 3294513 ADMIN & GENERAL EXPENSE 2347855 CONSUMER EXPENSE 908040 434228 59088186 X 3922689 4489708 2780367 3415707 2130451 4147229 1952535 1963311 185311408 67396732 106330035 117914676 3510546 3614160 101605 118820 120728228 135663611 6419671 11038635 32202262 39963051 3543801 4292427 42165734 55294113 X 0 0 0 0 78562494 80369498 78562494 80369498 120728228 135663611 X 631414 1338348 -162758 X X 0 1 X 0 0 2679163 2679163 19596442 2894882 16701560 153490724 153490724 9545079 64501850 -54956771 117914676 DEFERRED CREDITS - REFUNDABLE AID TO CONSTRUCTIONS 997739 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 807274 DEFERRED COMPENSATION 132139 CONSUMER DEPOSITS 655832 ACCRUED OPERATING TAXES 1629488 OTHER ACCRUED LIABILITIES 69955 4292427 X 59532026 0 59532026 187574 187574 59719600 55644723 0 55644723 3443463 3443463 59088186 PART X, LINE 2: THE ASSOCIATION FOLLOWS THE "UNCERTAIN TAX POSITIONS" PROVISIONS OF ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA. THE PRIMARY TAX POSITION OF THE ASSOCIATION IS ITS FILING STATUS AS A TAX EXEMPT ENTITY. THE ASSOCIATION 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: NON-OPERATING EXPENSES RECLASSIFIED TO FORM 990 PART IX 3,106. MERCHANDISING EXPENSE RECLASSIFIED TO FORM 990 PART IX 184,468. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,255,889. NON-OPERATING EXPENSES RECLASSIFIED TO FORM 990 PART IX 3,106. MERCHANDISING EXPENSE RECLASSIFIED TO FORM 990, PART IX 184,468. 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 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 ASSOCIATION 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 ASSOCIATION'S BYLAWS. 0 YAMPA VALLEY SUSTAINABILITY COUNCIL PO BOX 881461 STEAMBOAT SPRINGS CO 80488 264753602 501(C)(3) 15000 CENSIBLE ENERGY FD DONATION ENERGY OUTREACH COLORADO 225 EAST 16TH AVE SUITE 200 DENVER CO 80203 742543881 501(C)(3) 20353 DONATION FOR LOW INCOME ENERGY ASSISTANCE 2 PART II: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE ASSOCIATION'S SERVICE AREA, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X 0 0 0 STEVE JOHNSON CEO 232578 0 810 0 10855 0 66917 0 29647 0 340807 0 0 0 KATHY BERTRAND MEMBER SERVICES MANAGER 130333 0 15043 0 3269 0 70835 0 33003 0 252483 0 0 0 AMY MAHON FINANCE MANAGER 132643 0 27172 0 6196 0 19255 0 30040 0 215306 0 0 0 KELLI ROOT IT MANAGER 131016 0 11378 0 7226 0 54232 0 14422 0 218274 0 0 0 BENJAMIN HOFFNER ENGINEERING MANAGER 129721 0 24631 0 579 0 19133 0 31650 0 205714 0 0 0 JOHN CROMER OPERATIONS MANAGER 122317 0 12074 0 6227 0 27242 0 31079 0 198939 0 0 0 RANDI OWENS HUMAN RESOURCES 121031 0 15391 0 432 0 14938 0 29199 0 180991 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, 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. STEVE JOHNSON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 59,355 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,562 TOTAL REPORTED IN COLUMN C $ 66,917 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (59,355) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,808 EXPENSE TO THE COOPERATIVE $ 51,370 KATHY BERTRAND: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 65,090 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,745 TOTAL REPORTED IN COLUMN C $ 70,835 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (65,090) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,301 EXPENSE TO THE COOPERATIVE $ 35,046 AMY MAHON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,257 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,998 TOTAL REPORTED IN COLUMN C $ 19,255 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,257) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,208 EXPENSE TO THE COOPERATIVE $ 36,206 KELLI ROOT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 48,078 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,154 TOTAL REPORTED IN COLUMN C $ 54,232 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,078) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,118 EXPENSE TO THE COOPERATIVE $ 34,272 BENJAMIN HOFFNER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,513 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,620 TOTAL REPORTED IN COLUMN C $ 19,133 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,513) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 28,938 EXPENSE TO THE COOPERATIVE $ 35,558 JOHN CROMER: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 22,353 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,889 TOTAL REPORTED IN COLUMN C $ 27,242 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (22,353) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 3,321 EXPENSE TO THE COOPERATIVE $ 8,210 RANDI OWENS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 9,134 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,804 TOTAL REPORTED IN COLUMN C $ 14,938 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (9,134) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 26,619 EXPENSE TO THE COOPERATIVE $ 32,423 FORM 990, PART III, LINE 2 LUMINATE FIBER, LLC OFFERS HIGH SPEED INTERNET AND VOIP PHONE SERVICE TO CRAIG, HAYDEN, STEAMBOAT SPRINGS AND OUTLYING AREAS. SERVICES BEGAN AUGUST 2019. FORM 990, PART VI, SECTION A, LINE 1 THE ASSOCIATION HAS 9 BOARD MEMBERS; ALL 9 ARE ALLOWED TO VOTE, HOWEVER THE BOARD PRESIDENT VOTES ONLY IN THE CASE OF A TIE. FORM 990, PART VI, SECTION A, LINE 4 DURING THE YEAR, THE ARTICLES OF INCORPORATION WERE AMENDED TO EXPAND THE PURPOSES OF THE ASSOCIATION AS FOLLOWS: "TO SELL AND PROVIDE OTHER GOODS AND SERVICES TO MEMBERS AND NON-MEMBER CONSUMERS, INCLUDING ENERGY DERIVED FROM ANY SOURCE WHATSOEVER, TELECOMMUNICATION SERVICES, SYSTEMS, AND RELATED DEVICES AND EQUIPMENT, AND TO CREATE AND MAINTAIN SUPPORTING INFRASTRUCTURE AS NECESSARY OR CONVENIENT INCLUDING ENERGY STORAGE FACILITIES AND PHYSICAL OR WIRELESS COMMUNICATION NETWORKS AND SYSTEMS." THE AMENDMENT WAS MADE PURSUANT TO THE ASSOCIATION CREATING A NEW DIVISION, LUMINATE FIBER, WHICH OFFERS HIGH SPEED INTERNET AND VOIP PHONE SERVICE. FORM 990, PART VI, SECTION A, LINE 6 THE ASSOCIATION 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 ASSOCIATION 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 ASSOCIATION: 1. DISSOLUTION/LIQUIDATION OF THE ASSOCIATION 2. MERGER OR CONSOLIDATION OF THE ASSOCIATION WITH ANOTHER ORGANIZATION 3. DISPOSAL OF A SUBSTANTIAL PORTION OF THE ASSOCIATION'S ASSETS 4. AMENDMENT TO THE ARTICLES OF INCORPORATION FORM 990, PART VI, SECTION A, LINE 8B THE ASSOCIATION 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 RETURN TO THE BOARD OF DIRECTORS PRIOR TO FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS PERFORM AN ANNUAL REVIEW AND UTILIZE INTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE GENERAL MANAGER UTILIZES INTERNAL 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 19 THE ASSOCIATION 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 ASSOCIATION PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE ASSOCIATION WITH THE ANNUAL REPORT. ADDITIONALLY, A COMPLETE COPY OF THE BYLAWS ARE LOCATED ON THE COOPERATIVE'S WEBSITE AT WWW.YVEA.COM/YVEA-BYLAWS. FORM 990, PARTS VI & VII: THE ASSOCIATION ANNUALLY PROVIDES EACH DIRECTOR/TRUSTEE 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 ASSOCIATION WAS UNABLE TO OBTAIN A COMPLETED QUESTIONNAIRE AND/OR TIME LOG, THE ASSOCIATION RELIED UPON THE COMPLETED INFORMATION FOR THE PRIOR YEAR. FORM 990, PART VII, COLUMN F: IN ORDER TO PROVIDE RETIREMENT BENEFITS TO ITS EMPLOYEES, THE ASSOCIATION 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 ASSOCIATION 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 EMPLOYEE OFFICERS AND HIGLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE ASSOCIATION ALSO PROVIDES HEALTH, DENTAL AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES, INCLUDING EMPLOYEE OFFICERS AND HIGLY COMPENSATED EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE EMPLOYEE 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 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 ASSOCIATION TO ITS MEMBERS. FORM 990, PART IX: ALTHOUGH NO LONGER A USDA RURAL UTILITIES SERVICE (RUS) BORROWER, THE ACCOUNTING RECORDS OF THE ASSOCIATION ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) 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 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 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 ASSOCIATION ALLOCATES PATRONAGE CAPITAL TO AND, THEREFORE, OPERATES AT COST WITH ITS PATRONS. THE ASSOCIATION'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 ASSOCIATION 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 ASSOCIATION'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 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 ASSOCIATION FOR THE 2019 CALENDAR YEAR. BECAUSE PATRONAGE DIVIDENDS ARE THE PROCESS BY WHICH THE ASSOCIATION OPERATES AT COST WITH ITS PATRONS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE ASSOCIATION 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 $ 6,459,353 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (159,761) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (145,859) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 114 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,407,018 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 483,030 TOTAL WAGES ACCRUED AND/OR PAID $ 8,043,895 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 2,226,777 EMPLOYEE TRAINING & BENEFITS 433,886 OFFICE SUPPLIES 436,149 OUTSIDE SERVICES 334,443 INJURIES & DAMAGES 332,073 INSURANCE & REGULATORY FEES 69,585 PUBLIC RELATIONS 19,061 DUES & SUBSCRIPTIONS 141,267 DIRECTORS 228,647 MAINTENANCE OF GENERAL PLANT 757,120 MISCELLANEOUS GENERAL 138,449 LUMINATE FIBER ADMIN & GENERAL 389,897 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 5,507,354 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (159,761) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,120,659) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (879,079) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,347,855 FORM 990, PART XI, LINE 8: DURING 2019, THE COOPERATIVE CHANGED ITS METHOD OF REVENUE RECOGNITION TO ACCRUE REVENUE EARNED, BUT NOT YET BILLED AT THE END OF EACH PERIOD. THE COOPERATIVE BELIEVES THAT THE NEW REVENUE RECOGNITION METHOD MORE ACCURATELY REFLECTS PERIODIC RESULTS OF OPERATIONS AND ITS ACCRUED REVENUE POSITION AT YEAR END. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 3,255,889. NET CHANGE IN OTHER EQUITIES -1,225. PATRONAGE CAPITAL RETIRED - TOTAL -3,435,561. PATRONAGE CAPITAL RETIRED - DISCOUNT 18,139. 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. LUMINATE FIBER LLC 2211 ELK RIVER RD STEAMBOAT SPRINGS CO 80487 833781878 HIGH SPEED INTERNET & VOIP PHONE SERVICE CO 78813 1279871 YAMPA VALLEY ELECTRIC ASSOCIATION YVEA CARING CONSUMERS FOUNDATION PO BOX 771218 STEAMBOAT SPRINGS CO 80477 881424966 BETTERING THE QUALITY OF LIFE OF CITIZENS WITHIN THE AREA CO 501(C)(3) LINE 7 YAMPA VALLEY ELECTRIC ASSOCIATION 1 YAMPA VENTURE SERVICES INC PO BOX 771218 STEAMBOAT SPRINGS CO 80477 841537973 INACTIVE CO YAMPA VALLEY ELECTRIC ASSOCIATION C 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 YVEA CARING CONSUMERS FOUNDATION N N/A - LESS THAN $50,000 YVEA CARING CONSUMERS FOUNDATION O N/A - LESS THAN $50,000