2017-11-14T16:29:40-06:00 2016-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2016-01-01 850094212 COLUMBUS ELECTRIC COOPERATIVE INC COLU 5755468838 PO BOX 631 DEMING NM 880310631 CHRISTOPHER MARTINEZ GENERAL MANAGER 5755468838 2017-11-02 1 WILLIAM M MILLER P00439459 8067473806 2017-11-02 X 65.182.80.152 2017-11-02 08:55:37 CD P BB0A6EFF21CE0653C6B3B49029A3E11A3F81D504 587910E538FB33049B4D87AFCCD061243FC33F22 2016 2017-02-10 21:41:12Z CHRISTOPHER MARTINEZ PO BOX 631 DEMING NM 880310631 14312439 0 X WWW.COLUMBUSCO-OP.ORG X 1958 NM TO PROVIDE ELECTRIC ENERGY TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 9 9 36 0 0 0 0 0 14629808 14256388 45396 31314 26000 24737 14701204 14312439 0 0 1614391 1323828 1610015 1597637 0 0 0 11431402 11359660 14655808 14281125 45396 31314 38638394 39411211 24335060 24238688 14303334 15172523 THE COOPERATIVE'S RESPONSIBILITY AND AIM IS TO PROVIDE EXCELLENT AND INNOVATIVE CUSTOMER SERVICE AS REFLECTED IN TOP QUALITY ELECTRIC SERVICE RELIABILITY, AFFORDABLE RATES, EMPLOYEE TEAMWORK AND THE HIGHEST DEGREE OF INTEGRITY IN ALL COOPERATIVE ENDEAVORS. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 5,053 ACTIVE SERVICES WERE PROVIDED POWER AT YEAR END AT COST 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 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 1 1 0 0 1 26 0 36 1 0 0 0 0 0 14736240 97366 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 0 1 0 0 0 0 X CHRISTOPHER MARTINEZ 5755468838 900 N GOLD STREET DEMING NM 88031 X EDWARD ELBROCK PRESIDENT (JAN-OCT) 4.50 1.00 X X 12620 0 0 RANDY MASSEY PRESIDENT 3.50 1.00 X X 14850 0 0 NANCY CLOPTON VICE PRESIDENT 4.00 1.00 X X 22567 0 0 WILLIAM C MILLER JR SECRETARY/TREASURER 6.50 1.00 X X 7164 0 0 EDDIE DIAZ ASST SECRETARY/TREASURER 2.60 1.00 X X 22267 0 0 JAY PETERSON TRUSTEE 3.60 1.00 X 22467 0 0 WILLIAM J CLOUDT TRUSTEE 4.00 1.00 X 22867 0 0 HAL B KEELER TRUSTEE 3.00 1.00 X 8878 0 0 JOE JOHNSON TRUSTEE 3.00 1.00 X 21967 0 0 CHRISTOPHER MARTINEZ GENERAL MANAGER 40.00 X 118485 0 76530 274132 0 76530 1 0 1 0 GILA CUT-OUT CONSTRUCTION PO BOX 2429 SILVER CITY NM 88061 LINE CONTRUCTION 804957 TRANSMISSION & DISTRIBUTION SERVICES LL 9550 SAN MATEO BLVD NE STE G ALBUQUERQUE NM 87113 ENGINEERING SERVICES 158637 NATIONAL INFORMATION SOLUTIONS COOPERATI PO BOX 1147 MANDAN ND 58554 COMPUTER SUPPORT/PRINTING & MAILING OF B 104497 3 X SALES OF ELECTRICITY 221000 13955819 13955819 PATRONAGE DIVIDENDS 221000 300569 300569 14256388 31314 31314 POLE ATTACHMENT INCOME 221000 24737 24737 24737 14312439 14256388 0 56051 X 1323828 350662 747526 123944 312018 63487 659471 1328498 PURCHASED POWER 8068121 ADMIN & GENERAL EXPENSE 564573 DISTRIBUTION EXPENSE 475042 CONSUMER EXPENSE 247567 16388 14281125 X 2356209 3732143 2000000 1008713 1171565 433960 487241 1390587 1257642 45363448 17994773 26239774 27368675 4833416 5099112 375735 294833 38638394 39411211 895906 880880 22746425 22297671 692729 1060137 24335060 24238688 X 0 0 0 0 14303334 15172523 14303334 15172523 38638394 39411211 X 31314 837875 X X 0 0 0 39492 39492 1542244 803314 738930 43126297 17191459 25934838 655415 655415 27368675 PATRONAGE CAPITAL - CFC 85690 C PATRONAGE CAPITAL - FEDERATED 111031 C PATRONAGE CAPITAL - OTHER 25103 C PATRONAGE CAPITAL - COBANK 23830 C CAPITAL TERM CERTIFICATES - CFC 314310 C PATRONAGE CAPITAL - TRI-STATE 4496126 C MEMBERSHIPS 1220 C OTHER INVESTMENTS 7665 C WUESC PATRONAGE CAPITAL 34137 C 5099112 CONSUMER DEPOSITS 317361 DEFERRED CREDITS 451289 ACCUMULATED PROVISION FOR PENSION & BENEFITS 138282 ACCRUED OPERATING TAXES 153205 1060137 X 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. SCHEDULE D PART IX THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5 PERCENT OF 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 1 1 X 0 0 0 CHRISTOPHER MARTINEZ GENERAL MANAGER 106062 0 10000 0 2423 0 52637 0 23893 0 195015 0 0 0 PART I, LINE 1A THE COOPERATIVE PAYS HEALTH CLUB DUES AFTER THE FIRST $50. THIS IS PART OF THE COOPERATIVE'S WELLNESS PROGRAM AND IS COMPLETELY VOLUNTARY. THE COOPERATIVE WILL PAY FOR EMPLOYEES, BOARD MEMBERS AND THEIR DEPENDENTS. FORM 990, 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. CHRISTOPHER MARTINEZ: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 46,554 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,083 TOTAL REPORTED IN COLUMN C 52,637 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (46,554) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 24,133 EXPENSE TO THE COOPERATIVE $ 30,216 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. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING ACTS REQUIRE APPROVAL OF THE MEMBERS OF THE COOPERATIVE: 1. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; 2. THE DISSOLUTION/LIQUIDATION OF THE COOPERATIVE; 3. THE MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION; 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, REVIEW AND APPROVAL PRIOR TO FILING. THE DISCUSSION AND REVIEW WAS PERFORMED AT THE BOARD MEETING IMMEDIATELY BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12 THE COOPERATIVE DOES NOT HAVE A WRITTEN POLICY, BUT THE BOARD AND MANAGEMENT ANNUALLY REVIEW THE SERVICES THAT ARE RELATED TO BOARD, MANAGEMENT OR EMPLOYEES TO DISCLOSE THOSE RELATIONSHIPS AND APPROVE THE USE OF THOSE SERVICES THAT ARE IN THE BEST INTEREST OF THE COOPERATIVE. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. FORM 990, PART VI, LINE 14 THE COOPERATIVE DOES NOT HAVE A WRITTEN DOCUMENT RETENTION AND DESTRUCTION POLICY IN PLACE, BUT FOLLOWS THE RUS AND PRC RECOMMENDATIONS REGARDING DOCUMENT RETENTION AND DESTRUCTION. 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, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER 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. FORM 990, PART VII, SECTION A THE BOARD OF TRUSTEES 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 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 RUS UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICE(RUS). THE UNIFORM SYSTEM OF ACCOUNTING DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1 - 23. THE COOPERATIVE SEPARETLY 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 UNIFORM SYSTEM OF ACCOUNTS. 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 $ 1,098,188 LESS TRUSTEES FEES REPORTED ON 1099-MISC (155,647) LESS EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (76,530) PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 469,123 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 230,396 TOTAL WAGES ACCRUED AND/OR PAID $ 1,565,530 FORM 990, PART IX, LINE 24 THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS ADMINISTRATIVE AND GENERAL EXPENSE ON FORM 990, PART IX, LINE 24 OFFICE SUPPLIES $ 73,264 OUTSIDE SERVICES 33,790 REGULATORY COMMISSION EXPENSE 68,629 BOARD EXPENSE 71,607 DUES AND MEMBERSHIP FEES 68,142 ANNUAL MEETING EXPENSE 28,271 TRAVEL EXPENSE 20,795 SAFETY EXPENSE 54,599 FREE SERVICES 39,049 MAINTENANCE OF GENERAL PLANT 106,427 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 564,573 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 2016 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 X, LINES 9 AND 15 THE COOPERATIVE PREVIOUSLY INCLUDED DEFERRED CHARGES AS COMPONENTS OF OTHER ASSETS ON LINE 15 OF PART X. HOWEVER, FOR THE 2016 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS ON LINE 9. TO INCREASE CONSISTENCY, DEFERRED CHARGES IN THE AMOUNT OF $1,241,713 FOR THE 2015 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 15 TO LINE 9. FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ASSIGNABLE 1,323,828. PATRONAGE CAPITAL RETIRED -486,045. NET CHANGE IN OTHER EQUITIES 92. FORM 990, PART XII, LINE 2B AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FISCAL YEAR END OF JULY 31ST. THE TAX RETURN HAS BEEN AND CONTINUES TO BE PREPARED BASED ON A CALENDAR YEAR END OF DECEMBER 31. THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. COLUMBUS ELECTRIC SCHOLARSHIP INC PO BOX 631 DEMING NM 88031 850373471 TO PROVIDE COLLEGE SCHOLARSHIPS TO ACTIVE MEMBERS AND FAMILIES. NM 501(C)(3) PF COLUMBUS ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 COLUMBUS ELECTRIC SCHOLARSHIP INC O N/A - LESS THAN $50,000 COLUMBUS ELECTRIC SCHOLARSHIP INC P N/A - LESS THAN $50,000