2025-11-10T15:48:57-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 740964933 VICTORIA ELECTRIC COOPERATIVE INC VICT 3615732428 PO BOX 2178 VICTORIA TX 77902 BLAINE WARZECHA GENERAL MANAGER 3615732428 2025-09-11 1 0 WILLIAM M MILLER P00439459 8067473806 2025-09-11 X 2024 2025-03-06 01:10:19Z BLAINE WARZECHA PO BOX 2178 VICTORIA TX 77902 72490199 0 X WWW.VICTORIAELECTRIC.COOP X 1938 TX TO PROVIDE ELECTRIC & BROADBAND INTERNET GOODS & SERVICES TO MEMBERS ON A COOPERATIVE BASIS. 8 8 98 0 404141 0 0 0 75450074 72076145 106461 95589 338011 318465 75894546 72490199 2800 2550 7938237 6131632 6704471 7249537 0 0 0 61581722 59259884 76227230 72643603 -332684 -153404 167305829 174968149 72590913 75067735 94714916 99900414 TO EXCEED THE EXPECTATIONS OF THOSE WE SERVE BY DELIVERING ESSENTIAL SERVICES THAT ARE SAFE, RELIABLE AND AFFORDABLE WITH A COMMITMENT TO PRESERVING OUR LEGACY, DEDICATED TO EMPOWERING OUR MEMBERS, OUR TEAM AND OUR COMMUNITY, THE COOPERATIVE WAY. 0 0 ELECTRIC DIVISION:PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 25,087 ACTIVE SERVICES AT YEAR END. INFINIUM DIVISION:PROVIDING BROADBAND INTERNET SERVICES THROUGH THE CONSTRUCTION OF A FIBER OPTIC NETWORK. WHEN CUMULATIVE NET MARGINS DERIVED FROM MEMBER SALES OF BROADBAND INTERNET SERVICES EXCEED CUMULATIVE NET LOSSES FROM SUCH SALES, THE COOPERATIVE WILL ALLOCATE PATRONAGE CAPITAL TO THE MEMBERS. THERE WERE 2,727 SUBSCRIBERS OF THE INFINIUM DIVISION AT YEAR END. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 11 0 98 1 1 1 0 0 0 0 69056904 803095 0 0 0 X 8 8 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X ALEXA NICHOLS FINANCIAL SERVICES MANAGER 3615732428 5502 US HWY 59 NORTH VICTORIA TX 77905 X RICHARD ADAMS DIRECTOR 2.00 X 23275 0 0 JOHN BECK ASSISTANT SECRETARY 6.00 X X 17681 0 0 TAMMIE BOYD SECRETARY/TREASURER 12.70 X X 23555 0 0 RAYMOND BRANDL JR DIRECTOR 3.00 X 22685 0 0 BYRON HAUSMANN VICE PRESIDENT 4.40 X X 26095 0 0 JAMES HAYES DIRECTOR 7.50 X 23975 0 0 MICHAEL MARAGGIA DIRECTOR 1.60 X 17431 0 0 SAMUEL F RUSCHHAUPT III PRESIDENT 3.50 X X 19075 0 0 BLAINE WARZECHA GENERAL MANAGER 55.00 X 272712 0 93310 JESSICA GRAY CHIEF FINANCIAL OFFICER 52.00 X 157875 0 35818 PATRICK URESTI ENGINEERING MANAGER 48.00 X 159703 0 21977 LADDY BROWN OPERATIONS SUPERINDENDENT 48.00 X 140195 0 76648 DAVID NERADA SERVICE LINE SUPERVISOR 48.00 X 138187 0 58386 ADAM ESTRADA INFORMATION TECH MANAGER 48.00 X 124991 0 37717 RICHARD VARELA CREW FOREMAN 49.00 X 123719 0 48680 JOHN RODARTE CREW FOREMAN 50.00 X 124981 0 44380 1416135 0 416916 18 0 1 0 URBAN ELECTRICAL SERVICES PO BOX 219 CARRIZO SPRINGS TN 78006 CONSTRUCTON CONTRACTOR 1400083 JC COMMUNICATIONS 16504-1 RED WAGON LANE LEANDER TX 78641 FIBER CONTRACTOR 1175529 ABC PROFESSIONAL TREE SERVICE 201 FLINT RIDGE RD STE 201 WEBSTER TX 77598 TREE TRIMMING CONTRACTOR 999399 ROADSIDE INC 2458 LEE ROAD 88 WAVERLY AL 36879 HERBICIDE SPRAYING & MULCHING 284713 M&S ENGINEERING PO BOX 970 SPRING BRANCH TX 78070 ENGINEERING CONSULTANT 111343 5 X SALES OF ELECTRICITY 221000 64692865 64692865 PATRONAGE DIVIDENDS 221000 4113699 4113699 BROADBAND ACCESS 517000 2727467 2323326 404141 SERVICE FEES 221000 542114 542114 72076145 83383 83383 12206 0 12206 12206 12206 6260 0 6260 6260 POLE ATTACHMENT INCOME 221000 286260 286260 MISC NON-OPERATING INCOME 221000 25945 25945 312205 72490199 71716415 404141 369643 X 2550 6131632 915167 4396612 585506 1003378 348874 2209272 5645036 PURCHASED POWER 45937185 DISTRIBUTION EXPENSE 2759456 ADMINISTRATIVE AND GENE 1049265 BROADBAND EXPENSES 777934 881736 72643603 2227872 1647641 170000 242000 3615063 3753439 3225064 3222782 388241 406642 161468900 55280906 102033567 106187994 53994769 57980332 1651253 1527319 167305829 174968149 5608104 5985267 154629 177701 63376828 64924525 3451352 3980242 72590913 75067735 X 88395 89430 93059848 98245831 1566673 1565153 94714916 99900414 167305829 174968149 X -153404 5338902 X X 0 1 X 1 0 0 1 X 617818 617818 13439257 3276849 10162408 144726787 52004057 92722730 2685038 2685038 106187994 PATRONAGE CAPITAL - CFC CAPITAL TERM CERT 571479 C PATRONAGE CAPITAL - COBANK 610506 C PATRONAGE CAPITAL - NEC 1188 C PATRONAGE CAPITAL - NRTC 20503 C PATRONAGE CAPITAL - NRUCFC 378047 C PATRONAGE CAPITAL - SEDC 108069 C PATRONAGE CAPITAL - SO. TEXAS ELECTRIC COOP 55359512 C PATRONAGE CAPITAL - TEXAS ELECTRIC COOPS 928878 C MEMBERSHIPS TO ASSOCIATED ORGS 2150 C 57980332 DEFERRED CREDITS 707872 ADVANCES FOR CONSTRUCTION 1357594 OTHER ACCRUED LIABILITIES 116998 UNCLAIMED CAPITAL CREDITS 680261 ACCRUED TAXES AND FEES 191177 CONSUMER DEPOSITS 768365 POWER COST - OVERCOLLECTED 157975 3980242 X 72453435 0 72453435 36764 36764 72490199 66511971 0 66511971 6131632 6131632 72643603 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 PER STATE LAW. THE AMOUNTS DEPOSITED INTO THE RURAL SCHOLARSHIP FUND ARE REPORTED TO 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 X, LINE 2: THE COOPERATIVE HAS ADOPTED 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 THEIR 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: NON-MEMBER INFINIUM CIAC 36,764. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 6,131,632. 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. 1 X X X 0 0 0 BLAINE WARZECHA GENERAL MANAGER 261657 0 10500 0 555 0 60160 0 33150 0 366022 0 0 0 LADDY BROWN OPERATIONS SUPERINDENDENT 132866 0 4922 0 2407 0 43041 0 33607 0 216843 0 0 0 DAVID NERADA SERVICE LINE SUPERVISOR 132971 0 4661 0 555 0 26220 0 32166 0 196573 0 0 0 JESSICA GRAY CHIEF FINANCIAL OFFICER 151608 0 6080 0 187 0 21725 0 14093 0 193693 0 0 0 PATRICK URESTI ENGINEERING MANAGER 152117 0 6057 0 1529 0 7599 0 14378 0 181680 0 0 0 RICHARD VARELA CREW FOREMAN 119046 0 4083 0 590 0 22078 0 26602 0 172399 0 0 0 JOHN RODARTE CREW FOREMAN 120832 0 4045 0 104 0 10945 0 33435 0 169361 0 0 0 ADAM ESTRADA INFORMATION TECH MANAGER 119769 0 5000 0 222 0 5698 0 32019 0 162708 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. BLAINE WARZECHA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 44,077 EMPLOYER CONTRIBUTION TO 401(K) PLAN 16,083 TOTAL REPORTED IN COLUMN C $ 60,160 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (44,077) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 37,142 EXPENSE TO THE COOPERATIVE $ 53,225 LADDY BROWN: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 34,658 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,383 TOTAL REPORTED IN COLUMN C $ 43,041 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (34,658) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 18,235 EXPENSE TO THE COOPERATIVE $ 26,618 DAVID NERADA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 17,917 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,303 TOTAL REPORTED IN COLUMN C $ 26,220 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (17,917) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 15,314 EXPENSE TO THE COOPERATIVE $ 23,617 JESSICA GRAY: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 12,609 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,116 TOTAL REPORTED IN COLUMN C $ 21,725 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (12,609) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,556 EXPENSE TO THE COOPERATIVE $ 30,672 PATRICK URESTI: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 7,001 EMPLOYER CONTRIBUTION TO 401(K) PLAN 598 TOTAL REPORTED IN COLUMN C $ 7,599 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (7,001) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 8,991 EXPENSE TO THE COOPERATIVE $ 9,589 RICHARD VARELA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 18,343 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,735 TOTAL REPORTED IN COLUMN C $ 22,078 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (18,343) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 12,922 EXPENSE TO THE COOPERATIVE $ 16,657 JOHN RODARTE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 3,295 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,650 TOTAL REPORTED IN COLUMN C $ 10,945 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (3,295) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 12,854 EXPENSE TO THE COOPERATIVE $ 20,504 ADAM ESTRADA: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,698 EMPLOYER CONTRIBUTION TO 401(K) PLAN -0- TOTAL REPORTED IN COLUMN C $ 5,698 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (5,698) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 17,812 EXPENSE TO THE COOPERATIVE $ 17,812 SCHEDULE O - PART I, LINE 19 IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET BOOK INCOME/(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL BE $0. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19 REPORTS NET LOSS OF $153,404, WHICH CONSISTS OF THE FOLLOWING: BROADBAND DIVISION NET LOSS $ (317,961) NONOPERATING MARGINS 127,793 NON-MEMBER INFINIUM CIAC 36,764 NET LOSS ON PAGE 1, PART I, LINE 19 $ (153,404) PURSUANT TO THE BYLAWS, THE BROADBAND DIVISION LOSSES WILL BE ACCUMULATED UNTIL CUMULATIVE NET INCOME EXCEEDS CUMULATIVE LOSSES. AT THAT TIME, NET INCOME OF THE DIVISION WILL BE ALLOCATED TO THE MEMBERS. NONOPERATING MARGINS ARE RETAINED BY THE COOPERATIVE AS AN UNALLOCATED RESERVE. 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 PROVIDED 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 AN ANNUAL BASIS, THE COOPERATIVE WILL REQUIRE THE BOARD OF DIRECTORS AND OFFICERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS USES THE EXPERTISE OF A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN TEXAS AND THE NATION. INTERNAL AND/OR EXTERNAL RESOURCES ARE ALSO USED TO COMPARE ANNUAL COMPENSATION WITHIN THE INDUSTRY. THE ENTIRE BOARD OF DIRECTORS APPROVES THE GENERAL MANAGER'S COMPENSATION. THE BOARD AND THE GENERAL MANAGER USE THE EXPERTISE OF A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE 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 COOPERATIVE PROVIDES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. THE BYLAWS CAN ALSO BE FOUND UNDER MEMBER RESOURCES 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, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES, 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, KEY EMPLOYEES, 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 GENERATION & TRANSMISSION COOPERATIVES. 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, 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 $ 5,311,779 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (173,772) LESS: EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (151,105) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,488,637 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 275,016 TOTAL WAGES ACCRUED AND/OR PAID $ 6,750,555 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 1,428,386 OFFICE SUPPLIES 373,605 OUTSIDE SERVICES 137,896 REGULATORY COMMISSION 108,238 DIRECTORS 205,432 MISCELLANEOUS GENERAL 414,302 MAINTENANCE OF GENERAL PLANT 815,380 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,483,238 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (173,772) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,592,960) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (667,241) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 1,049,265 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CUSTOMER ACCOUNTS $ 1,047,740 OTHER DEDUCTIONS 339 TAXES 495,074 TOTAL OTHER EXPENSES REPORTED ON FINANCIAL STATEMENTS $ 1,543,153 LESS: RECLASS OF LABOR AND OVERHEAD (661,417) TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 881,736 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 AND BROADBAND INTERNET RELATED GOODS AND SERVICES 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 AND BROADBAND INTERNET RELATED GOODS AND SERVICES FROM THE COOPERATIVE FOR THE 2024 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, 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. EACH GRANT, SPONSORSHIP, AND/OR DONATION 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) PRESCRIBED BY RUS FOR 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 6,131,632. PATRONAGE CAPITAL RETIRED -757,802. NET CHANGE IN MEMBERSHIPS 1,035. NON-MEMBER INFINIUM CIAC -36,764. OTHER CHANGES IN EQUITY 801. FORM 990, PART XII, LINE 2C: THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS OF THE BOARD 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.