2019-11-07T13:50:49-06:00 2018-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2018-01-01 850058679 OTERO COUNTY ELECTRIC COOPERATIVE INC OTER 5756822521 404 BURRO AVE CLOUDCROFT NM 88317 MARIO ROMERO CEO 5756822521 2019-11-05 1 WILLIAM M MILLER P00439459 8067473806 2019-11-05 X 65.182.80.152 2019-11-05 13:19:06 CS P 2EBFA2265763A01132BE48D36E167D9476E1DDEB 587A88673713A033F58E04FDF6801CBB1F7DD2F2 2018 2020-03-31 21:24:44Z MARIO ROMERO 404 BURRO AVE CLOUDCROFT NM 88317 33196849 0 X WWW.OCEC-INC.COM X 1943 NM TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 10 10 81 0 8790 7386 0 0 31960666 32508252 646796 452956 233863 234511 32841325 33195719 26203 18195 2839615 2060392 4923667 4697578 0 0 0 25051840 26419554 32841325 33195719 0 0 103046086 114299108 66358008 76051942 36688078 38247166 PROVIDING MEMBERS WITH THE LOWEST COST, HIGHEST QUALITY, AND MOST RELIABLE ELECTRIC POWER, CONSISTENT WITH SOUND AND COST-EFFECTIVE BUSINESS PRACTICES, AND COLLABORATE WITH MEMBERS TO PROVIDE RESOURCES AND SERVICES THAT MAY BE BENEFICIAL TO OUR MEMBERS AND CITIZENS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 19,486 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 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 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 85 0 81 1 1 1 0 0 0 0 31990542 977895 0 0 0 X 10 10 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 0 1 1 1 0 X JULIE WALKER-GRINDER CFO 5756822521 404 BURRO AVE CLOUDCROFT NM 88317 X CHARLES MULCOCK PRESIDENT 3.50 1.00 X X 16064 0 0 MATTHEW ALAN FLOTTE VICE PRESIDENT 15.00 1.00 X X 4532 0 0 DENNY BURNETT SECRETARY 5.50 1.00 X X 19380 0 0 SCOTT SHAFER TREASURER 3.30 1.00 X X 14654 0 0 RUSSELL BELL TRUSTEE 3.00 1.00 X 2582 0 0 TIMOTHY ALAN RABON TRUSTEE 5.90 1.00 X 18762 0 0 PRESTON STONE TRUSTEE 8.50 1.00 X 16845 0 0 WILLIAM BIRD TRUSTEE 3.40 1.00 X 15506 0 0 MARTHA MILLS TRUSTEE 5.30 1.00 X 14606 0 0 FRED HANSEN TRUSTEE 12.00 1.00 X 15376 0 0 MARIO ROMERO CEO 50.00 X 185772 0 80879 JULIA WALKER-GRINDER CFO 50.00 X 111047 0 35312 DAMON MAREZ IT MANAGER 55.00 X 130648 0 88441 WILBURN RUSH OPERATIONS MANAGER 40.00 X 118087 0 76031 MARK MARTIN WORKING FOREMAN 40.00 X 122955 0 56979 LINDA HAMILTON HR MANAGER 45.00 X 114858 0 86793 MICHAEL TESTERMAN WORKING FOREMAN 40.00 X 103429 0 30729 1025103 0 455164 9 0 1 0 HIGHER POWER 14201 CALIBER DR STE 300 OKLAHOMA CITY OK 73134 CONSTRUCTION SERVICES 961057 SOLAR ELECTRIC CO INC PO BOX 2741 LAS CRUCES NM 88004 CONSTRUCTION SERVICES 780487 ARC POWERLINE CONSTRUCTION 6551-4 SEVEN RIVERS HWY ARTESIA NM 88210 CONSTRUCTION SERVICES 618506 ROGERS TREE SERVICE PO BOX 707 HIGH ROLLS NM 88310 TREE TRIMMING 581237 TRANSMISSION AND DISTRIBUTION SERVICES 9550 SAN MATEO BLVD NE ALBUQUERQUE NM 87113 CONSTRUCTION SERVICES 164435 5 X SALES OF ELECTRICITY 221000 31235362 31235362 PATRONAGE DIVIDENDS 221000 1075094 1075094 SERVICE & OTHER FEES 221000 197796 197796 32508252 426105 426105 46794 8790 0 0 46794 8790 55584 46794 8790 26851 0 26851 26851 26851 748 1130 -382 -382 POLE ATTACHMENT INCOME 221000 179309 179309 179309 33195719 32554664 8790 632265 X 18195 2060392 551317 2705379 567297 682546 191039 2743432 3517023 PURCHASED POWER 15775321 DISTRIBUTION EXPENSE 2035388 ADMIN & GENERAL EXPENSE 1449485 CONSUMER EXPENSES 683134 215771 33195719 3577858 1762558 779178 7800716 934436 1133358 649678 619511 3998226 3666098 122602089 38269210 78888729 84332879 11313797 11928186 2904184 3055802 103046086 114299108 3268544 4631601 59426889 68089599 3662575 3330742 66358008 76051942 X 0 0 0 0 36688078 38247166 36688078 38247166 103046086 114299108 X 0 1559088 X X 0 1 X 0 0 866147 866147 4407005 1181598 3225407 104156740 37087612 67069128 13172197 13172197 84332879 MEMBERSHIPS IN ASSOCIATED ORGANIZATIONS 1220 C CAPITAL TERM CERTIFICATES - CFC 75114 C PATRONAGE CAPITAL - TSGT 10295189 C PATRONAGE CAPITAL - CFC 149675 C PATRONAGE CAPITAL - FEDERATED 348219 C PATRONAGE CAPITAL - COBANK 960676 C PATRONAGE CAPITAL - NISC 87123 C PATRONAGE CAPITAL - PVTC 2070 C PATRONAGE CAPITAL - CRC 4522 C OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 4378 C 11928186 CONSUMER DEPOSITS AND PREPAYMENTS 492320 ACCRUED OPERATING TAXES 103200 ACCUMULATED PROVISIONS FOR POST RETIREMENT OBLIGATIONS 1654902 DEFERRED CREDITS - ADVANCES FOR CONSTRUCTION 288763 DEFERRED CREDITS - ENERGY EFFICIENCY PROGRAM 507387 DEFERRED CREDITS - SOLAR FARM 207374 DEFERRED CREDITS - OTHER 76671 OVERBILLED PURCHASED POWER COST ADJUSTMENT 125 3330742 X 33194397 0 33194397 1322 1322 33195719 31134005 0 31134005 2061714 2061714 33195719 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 ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE(IRS), AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 1,322. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,060,392. EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 1,322. 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 CAPITAL 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. 0 UNITED WAY OF OTERO COUNTY PO BOX 14 ALAMOGORDO NM 88310 850197559 501(C)(3) 8462 THE COOPERATIVE MATCHES CONTRIBUTIONS MADE BY THE EMPLOYEES. 1 PART II: ALL GRANTS, SPONSORSHIPS AND/OR DONATIONS 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. X X 1 1 X X 0 0 0 MARIO ROMERO CEO 159552 0 4900 0 21320 0 61701 0 19178 0 266651 0 0 0 DAMON MAREZ IT MANAGER 106462 0 5394 0 18792 0 79797 0 8644 0 219089 0 0 0 WILBURN RUSH OPERATIONS MANAGER 102612 0 3171 0 12304 0 56056 0 19975 0 194118 0 0 0 MARK MARTIN WORKING FOREMAN 116822 0 1904 0 4229 0 38380 0 18599 0 179934 0 0 0 LINDA HAMILTON HR MANAGER 101141 0 2089 0 11628 0 67855 0 18938 0 201651 0 0 0 PART I, LINE 1A TRAVEL FOR COMPANIONS - THE COOPERATIVE MAY, LIMITED TO ONCE ANNUALLY, REIMBURSE TRUSTEES AND THE GENERAL MANAGER THE COST OF HIS/HER SPOUSE TO ACCOMPANY HIM/HER ON OFFICIAL, APPROVED, BUSINESS OF THE COOPERATIVE. REIMBURSABLE COSTS INCLUDE TRAVEL AND MEAL ALLOWANCES. SINCE THE COOPERATIVE CONSIDERS THE REIMBURSEMENT TO BE CONSISTENT TO A BONA FIDE BUSINESS PURPOSE, SUCH REIMBURSEMENTS ARE TREATED AS EXPENSES EXCLUDED FROM REPORTABLE COMPENSATION. DURING THE YEAR, NO INDIVIDUALS REPORTED ON FORM 990, PART VII RECEIVED THIS BENEFIT. HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES - THE COOPERATIVE PAYS A PORTION OF GYM MEMBERSHIPS FOR EMPLOYEES AND THEIR SPOUSE. 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 CONTRIBUTION TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. MARIO ROMERO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 54,473 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,228 TOTAL REPORTED IN COLUMN C $ 61,701 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (54,473) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 47,872 EXPENSE TO THE COOPERATIVE $ 55,100 DAMON MAREZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 74,877 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,920 TOTAL REPORTED IN COLUMN C $ 79,797 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (74,877) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 32,693 EXPENSE TO THE COOPERATIVE $ 37,613 WILBURN RUSH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 51,462 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,594 TOTAL REPORTED IN COLUMN C $ 56,056 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (51,462) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 30,500 EXPENSE TO THE COOPERATIVE $ 35,094 MARK MARTIN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,637 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,743 TOTAL REPORTED IN COLUMN C $ 38,380 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,637) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 25,067 EXPENSE TO THE COOPERATIVE $ 28,810 LINDA HAMILTON: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 63,364 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,491 TOTAL REPORTED IN COLUMN C $ 67,855 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (63,364) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 29,648 EXPENSE TO THE COOPERATIVE $ 34,139 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 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 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 SCHEDULED BOARD MEETING BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES ARE GOVERNED BY THE BYLAWS. A TRUSTEE IS DISQUALIFIED AND SHALL BE REMOVED IF HE/SHE IS EMPLOYED BY OR INVESTS IN A BUSINESS, WHICH COMPETES WITH THE COOPERATIVE. THE EMPLOYEES ARE GOVERNED BY A CONFLICT OF INTEREST POLICY. THE COOPERATIVE ENFORCES THE POLICY BY EXPLAINING IT TO NEW EMPLOYEES AND BY REMINDING ITS EMPLOYEES OF THEIR DUTIES TO ANNUALLY DISCLOSE CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 ANNUALY, THE BOARD VOTES TO APPROVE THE CEO'S SALARY BASED ON A REVIEW OF A NATIONAL COMPENSATION SURVEY AS WELL AS THE CONSUMER PRICE INDEX. THE CEO DETERMINES THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND/OR KEY EMPLOYEE, IF ANY, BASED ON A REVIEW OF A NATIONAL COMPENSATION SURVEY AS WELL AS THE CONSUMER PRICE INDEX. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTERST POLICY AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. THE COOPERATIVE ANNUALLY MAILS A SUMMARIZED COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THEIR ANNUAL MEETING NOTICE. ADDITIONALLY, THE BYLAWS AND ARTICLES OF INCORPORATION ARE INCLUDED IN THE MEMBER HANDBOOK THAT IS ALSO AVAILABLE ON THE COOPERATIVE'S WEBSITE. 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, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS IS COMPRISED OF THE 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. 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 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 ACCOUNTING RECORDS OF THE COOPERATIVE ARE MAINTAINED IN ACCORDANCE WITH THE RURAL UTILITY SERVICES (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, 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 $ 3,256,696 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-MISC (138,307) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (116,191) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,209,836 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 177,815 TOTAL WAGES ACCRUED AND/OR PAID $ 4,389,849 FORM 990, PART IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 1,425,814 OFFICE SUPPLIES 311,152 OUTSIDE SERVICES 182,222 INJURIES AND DAMAGES 415,404 REGULATORY COMMISSION 157,583 MISCELLANEOUS GENERAL 209,842 TRUSTEES 217,591 MAINTENANCE OF GENERAL PLANT 201,255 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,120,863 LESS: RECLASS OF TRUSTEE FEES TO PART IX, LINE 5 (138,307) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,009,500) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (523,571) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,449,485 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 2018 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 2,060,392. PATRONAGE CAPITAL RETIRED - TOTAL -758,968. PATRONAGE CAPITAL RETIRED - DISCOUNT 25,166. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS 232,498. 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. OTERO COUNTY ELECTRIC EDUCATION FOUNDATION PO BOX 227 CLOUDCROFT NM 88317 850374112 TO PROVIDE COLLEGE SCHOLARSHIPS TO ACTIVE MEMBERS OF THE COOP. NM 501(C)(3) PF OTERO COUNTY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 OTERO COUNTY ELECTRIC EDUCATION FOUNDATION N N/A - LESS THAN $50,000 OTERO COUNTY ELECTRIC EDUCATION FOUNDATION O N/A - LESS THAN $50,000 OTERO COUNTY ELECTRIC EDUCATION FOUNDATION Q N/A - LESS THAN $50,000