2020-11-16T08:16:46-06:00 2019-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2019-01-01 740708876 JACKSON ELECTRIC COOPERATIVE INC JACK 3617714400 PO BOX 1189 EDNA TX 779571189 JAMES COLEMAN GENERAL MANAGER 3617714400 2020-11-13 1 WILLIAM M MILLER P00439459 8067473806 2020-11-06 X 65.182.80.152 2020-11-13 16:14:33 CS P 954CA8D01CFBC3DD23DC63FC91DC923EB9CBFAF9 587A88673713A033F58E04FDF6801CBB1F7DD2F2 2019 2021-04-22 16:20:28Z JAMES COLEMAN PO BOX 1189 EDNA TX 779571189 60525532 0 X WWW.JECEC.COM X 1939 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 11 11 101 0 3880601 0 0 0 56944084 56228791 431798 156960 3819127 3969309 61195009 60355060 34194 12687 1996161 0 5887503 6099491 0 0 0 51808662 51706668 59726520 57818846 1468489 2536214 135019297 139103349 77025982 77836322 57993315 61267027 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 16,322 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 0 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 72 0 101 1 1 1 0 0 0 0 54605871 4278489 0 0 0 X 11 11 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 E COLEMAN GENERAL MANAGER 60.00 X 201474 0 76869 ROY BARNES FOREMAN 55.00 X 113996 0 14255 AUSTIN BOURLAND WAREHOUSE MANAGER 52.00 X 101349 0 18368 TYLER STASTNY LINEMAN 50.00 X 105777 0 8324 MARTIN PALOMARES FOREMAN 49.00 X 101834 0 9766 PATRICK STUART DIRECTOR 4.30 X 13050 0 0 DOUG TISE DIRECTOR 2.70 X 11700 0 0 BRUCE ELLIOTT DIRECTOR 2.00 X 10650 0 0 JAMES HOFFMEISTER DIRECTOR 4.30 X 10050 0 0 LH CORNELIUS JR PRESIDENT 2.00 X X 9750 0 0 MICHAEL JACOBS SECRETARY/TREASURER 4.00 X X 9750 0 0 TOM HUDGINS DIRECTOR 2.00 X 9750 0 0 LAVAL SIMONS DIRECTOR 3.00 X 9750 0 0 W H WEBERNICK DIRECTOR 1.50 X 9750 0 0 WILLIAM HANSEN DIRECTOR 2.00 X 9000 0 0 ANTHONY SMITH DIRECTOR 4.00 X 6000 0 0 TOM WARD DIRECTOR (JAN-MAY) 2.00 X 3750 0 0 737380 0 127582 5 0 1 0 POWERLINE CONSTRUCTION INC PO BOX 889 EDNA TX 77957 LINE CONSTRUCTION 1885743 QUANTA TELECOM SVC LLC 7908 N SAM HOUSTON PARKWAY W SUITE HOUSTON TX 77064 FIBER CONSTRUCTION 757166 ASPLUNDH TREE EXPERT CO PO BOX 725124 PHILIDELPHIA PA 19090 TREE TRIMMING 632801 SOUTHEASTERN DATA COOPERATIVE 100 ASHFORD CTR N SUITE 500 ATLANTA GA 30338 BILL PRINTING AND COMPUTER SUPPORT 314846 NEXGRID 915 MAPLE GROVE DR SUITE 200 FREDERICKSBURG VA 22407 METERING SUPPORT 107212 6 X SALES OF ELECTRICITY 221000 53413133 53413133 PATRONAGE DIVIDENDS 221000 2634341 2634341 SERVICE FEES 221000 181317 181317 56228791 156960 156960 232468 170472 61996 61996 SALES OF PROPANE 221000 2836129 2836129 INTERNET SERVICE PROVIDER 517000 1044472 1044472 POLE ATTACHMENT INCOME 221000 26712 26712 3907313 60355060 56290787 3880601 183672 X 12687 391293 4106171 616429 697465 288133 2789209 2871968 PURCHASED POWER 37522103 DISTRIBUTION EXPENSE 3570361 ADMIN & GENERAL EXPENSE 1738681 UNRELATED BUS. INC. TAX 46500 3167846 57818846 1271831 1008660 49365 0 6375183 834391 326798 265815 2885297 2811373 415614 567751 123629731 23272416 93816472 100357315 3196542 4041370 26682195 29090023 0 126651 135019297 139103349 5691984 2465289 3142071 2742329 166898 158073 66867390 71249211 1157639 1221420 77025982 77836322 X 195640 202535 0 0 57797675 61064492 57993315 61267027 135019297 139103349 X 2536214 730391 7107 X X 0 0 0 0 1 X 71957 1652360 1724317 15313664 15313664 92877313 23272416 69604897 13714437 13714437 100357315 PATRONAGE CAPITAL-TEC 376652 C PATRONAGE CAPITAL-CFC 990897 C PATRONAGE CAPITAL-STEC 26659328 C PATRONAGE CAPITAL-SEDC 131651 C PATRONAGE CAPITAL-NRTC 4709 C CAPITAL TERM CERTIFICATES 908727 C OTHER INVESTMENTS 18059 C 29090023 CONSUMER DEPOSITS 1180550 OTHER CURRENT & ACCRUED LIABILITIES 40870 1221420 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 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 177908 0 1758 0 21808 0 50957 0 25912 0 278343 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 $ 48,905 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,052 TOTAL REPORTED IN COLUMN C $ 50,957 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,905) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 43,244 EXPENSE TO THE COOPERATIVE $ 45,296 DAMIEN COLEMAN FAMILY RELATIONSHIP 83497 DAMIEN COLEMAN RECEIVED COMPENSATION AS AN EMPLOYEE OF THE COOPERATIVE. HE AND JAMES COLEMAN, EMPLOYEE OFFICER, ARE FAMILY MEMBERS PER THE 990 DEFINITION OF FAMILY MEMBERS. 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, 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 $ 4,497,464 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (112,950) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (76,869) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 23,518 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,308,898 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 431,349 TOTAL WAGES ACCRUED AND/OR PAID $ 6,071,410 FORM 990, PART IX, LINE 24E: OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: INTERNET SERVICE PROVIDER EXPENSE $ 1,281,787 CUSTOMER ACCOUNTS 370,177 INVESTMENT EXPENSES 24,131 TAXES 32,775 PROPANE OPERATIONS 1,458,976 TOTAL OTHER EXPENSE PER 990, LINE 24E $ 3,167,846 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 2019 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 $ 466,371 OFFICE SUPPLIES 479,896 INJURIES AND DAMAGES 84,224 REGULATORY COMMISSION 89,275 MISCELLANEOUS GENERAL 1,308,368 MAINTENANCE OF GENERAL PLANT 130,498 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 2,558,632 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (12,687) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (112,950) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (499,598) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (194,716) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,738,681 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 0. NET CHANGE IN MEMBERSHIPS 6,895. NET CHANGE IN OTHER EQUITIES 0. DONATED CAPITAL 212. 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 1047987 6689130 JACKSON ELECTRIC COOPERATIVE INC