2016-10-25T08:42:43-05:00 2015-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2015-01-01 750712525 RITA BLANCA ELECTRIC COOPERATIVE INC RITA 8062494506 PO BOX 1947 DALHART TX 790225947 BRENT WHEELER GENERAL MANAGER 8062494506 2016-10-20 1 Matt R Willis P00419741 8067473806 2016-10-20 X 2015 2017-02-10 21:41:12Z BRENT WHEELER PO BOX 1947 DALHART TX 790225947 41132053 0 X WWW.RITABLANCAELECTRIC.COM X 1945 TX TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 9 9 42 0 3675 2675 0 0 43847620 41020630 57297 98527 3675 3675 43908592 41122832 9000 9000 6638120 5869177 2345567 2614166 0 0 0 34915905 32630489 43908592 41122832 0 0 74039479 79795116 16853615 17963071 57185864 61832045 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 SALE OF ELECTRIC ENERGY TO OUR MEMBERS - 7,522 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 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 40 0 42 1 1 1 0 0 0 0 42196274 523546 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X BRENT WHEELER GENERAL MANAGER 8062494506 12198 US HWY 87 DALHART TX 790225947 X CARL D FINCH CHAIRMAN 2.40 X X 25647 0 0 CHARLES SHELDON VICE CHAIRMAN 2.20 X X 26989 0 0 STEVEN SPURLOCK SECRETARY/TREASURER 2.70 X X 24463 0 0 DAVID HIGGINS DIRECTOR 2.00 X 28403 0 0 BRADLEY MCBRYDE DIRECTOR 1.70 X 24313 0 0 JIMMY STOKES DIRECTOR 2.30 X 27064 0 0 SHAD MCDANIEL DIRECTOR 3.40 X 19477 0 0 BRAD GREEN DIRECTOR 2.00 X 25392 0 0 JOHN KILLIAN DIRECTOR 1.80 X 18750 0 0 BRENT WHEELER GENERAL MANAGER 45.00 X 179453 0 57273 TRACY HOWELL OPERATIONS MANAGER 45.00 X 153206 0 26298 RICHARD MILLER LINEMAN FOREMAN 45.00 X 117754 0 46486 JOHN POPE LINEMAN 40.00 X 118017 0 41298 GRACIELA SUBEALDEA OFFICE MANAGER 45.00 X 114397 0 41109 ROGER PRATER DISPATCHER 40.00 X 107998 0 39817 1011323 0 252281 7 0 1 0 COOPERATIVE BUILDING SOLUTIONS 77 WESTPORT PLAZA DR STE 250 SAINT LOUIS MO 63146 CONTRACT LABOR 2922183 INTERSTATE ELECTRICAL CONTRACTORS 12421 W 49TH AVE UNIT 8 WHEAT RIDGE CO 80033 CONTRACT LABOR 872823 HI RANGE ELECTRIC PO BOX 2688 HEREFORD TX 79045 CONTRACT LINE BUILDING 830118 MCNABB ENTERPRISES LLC PO BOX 309 HARTLEY TX 79044 CONTRACT LABOR 547843 ARROWHEAD LINE LLC PO BOX 755 CANYON TX 79015 CONTRACT LABOR 452762 6 X ELECTRIC SERVICE 221000 41020630 41020630 41020630 41493 41493 3675 0 3675 3675 3675 66255 9221 57034 57034 57034 41122832 41020630 3675 98527 X 9000 5869177 457224 1297773 108883 635030 115256 428947 1585636 PURCHASED POWER 29372158 ADMIN AND GENERAL 507043 DISTRIBUTION EXPENSE 497380 CUSTOMER ACCOUNTS 200973 38352 41122832 X 5722136 3492335 2700073 2192667 3316404 2607660 2331236 1014144 234186 316547 64483061 16427335 39191412 48055726 103506 105277 20435481 22005970 5045 4790 74039479 79795116 3310879 2802029 10000 10358 11828108 11485368 1704628 3665316 16853615 17963071 X 8470 8380 0 0 57177394 61823665 57185864 61832045 74039479 79795116 X 0 4646181 X X 0 0 0 0 1 X 151235 151235 889907 538755 351152 59345831 15888580 43457251 4096088 4096088 48055726 OTHER INVESTMENTS IN ASSOCIATED ORGANIZATIONS 2045 C PATRONAGE CAPITAL 21623896 C CAPITAL TERM CERTIFICATES 380029 C 22005970 ACCUMULATED PROVISION FOR PENSIONS & BENEFITS 161252 CUSTOMER DEPOSITS 11297 DEFERRED CREDITS 3492767 3665316 X 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 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 VII: THE AMOUNT OF INVESTMENTS - OTHER SECURITIES ON FORM 990, PAGE 11, PART X, LINE 12 DOES NOT EQUAL OR EXCEED 5 PERCENT OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQUENTLY IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART VII 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 PERCENT OF THE TOTAL ASSETS ON FORM 990, PAGE 11, PART X, LINE 16, COLUMN B. CONSEQENTLY IN ACCORDANCE WITH IRS INSTRUCTIONS SCHEDULE D, PART IX HAS BEEN LEFT BLANK. X X 0 0 0 BRENT WHEELER GENERAL MANAGER 141399 0 20435 0 17619 0 29154 0 28119 0 236726 0 0 0 TRACY HOWELL OPERATIONS MANAGER 120583 0 17788 0 14835 0 22398 0 3900 0 179504 0 0 0 RICHARD MILLER LINEMAN FOREMAN 93643 0 12038 0 12073 0 19373 0 27113 0 164240 0 0 0 JOHN POPE LINEMAN 99266 0 10787 0 7964 0 14293 0 27005 0 159315 0 0 0 GRACIELA SUBEALDEA OFFICE MANAGER 87768 0 14038 0 12591 0 14686 0 26423 0 155506 0 0 0 FORM 990, SCHEDULE J, 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. BRENT WHEELER ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $14,063 EMPLOYER CONTRIBUTION TO 401(K) PLAN 15,091 TOTAL REPORTED IN COLUMN C: $29,154 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (14,063) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 4,714 EXPENSE TO THE COOPERATIVE 19,805 TRACY HOWELL ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 9,255 EMPLOYER CONTRIBUTION TO 401(K) PLAN 13,143 TOTAL REPORTED IN COLUMN C: $22,398 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (9,255) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 4,022 EXPENSE TO THE COOPERATIVE 17,165 RICHARD MILLER ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 9,501 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,872 TOTAL REPORTED IN COLUMN C: $19,373 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (9,501) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 3,007 EXPENSE TO THE COOPERATIVE 12,879 JOHN POPE ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,539 EMPLOYER CONTRIBUTION TO 401(K) PLAN 8,754 TOTAL REPORTED IN COLUMN C: $14,293 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (5,539) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 2,680 EXPENSE TO THE COOPERATIVE 11,434 GRACIELA SUBEALDEA ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 5,168 EMPLOYER CONTRIBUTION TO 401(K) PLAN 9,518 TOTAL REPORTED IN COLUMN C: $14,686 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (5,168) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 2,954 EXPENSE TO THE COOPERATIVE 12,472 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 B, line 11 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 IMMEDIATLY BEFORE THE FILING OF THE FORM 990. Form 990, Part VI, Section B, line 12c ON AN ANNUAL BASIS, THE COOPERATIVE WILL REQUIRE THE BOARD OF DIRECTORS TO DISCLOSE ALL POTENTIAL CONFLICTS OF INTERESTS. Form 990, Part VI, Section B, line 15 THE BOARD OF DIRECTORS COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE'S IRS FORM 990S WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE BOARD AND THE GENERAL MANAGER COMPARE COMPENSATION REPORTED ON OTHER COOPERATIVE'S IRS FORM 990S WHEN DETERMINING THE COMPENSATION OF OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. Form 990, Part VI, Section C, line 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, FINANCIAL STATEMENTS AND CONFLICT OF INTEREST POLICY TO ANY MEMBER WHO MAKES A WRITTEN REQUEST OF ANY SUCH DOCUMENT. Form 990, Part VI, Section A, Line 1 THE COOPERATIVE HAS 9 BOARD MEMBERS; ALL 9 ARE ALLOWED TO VOTE, HOWEVER THE BOARD CHAIRMAN VOTES ONLY IN THE CASE OF A TIE. 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 AND HIGLY 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 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 CONSIDERS 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. Part VIII, Line 2a INCLUDED IN THE TOTAL OF $41,020,630 REPORTED ON PART VIII, LINE 2A AS "ELECTRIC SERVICE" IS $1,991,276 IN PATRONAGE DIVIDENDS. 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 SERVICES (RUS). THE UNIFORM SYSTEM OF ACCOUNTSS 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 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 THE TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 1,754,997 LESS DIRECTORS FEES REPORTED ON 1099-MISC (220,498) LESS EMPLOYEE OFFICER BENEFITS REPORTED ON LINE 5 (57,273) PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 463,170 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 562,711 TOTAL WAGES ACCRUED AND/OR PAID $ 2,503,107 Form 990, Part IX, Line 24 ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: OFFICE AND SUPPLIES $ 56,150 OUTSIDE SERVICES 50,859 SAFETY/INJURY/DAMAGE 56,639 GROSS RECEIPTS TAX 61,602 ANNUAL MEETING EXPENSES 56,511 DIRECTOR EXPENSE 96,921 DUES TO ASSOCIATED ORGANIZATIONS 103,465 ADVERTISING 17,440 CAPITAL CREDITS 6,924 OFFICE BUILDING MAINTENANCE 14,925 DUPLICATE CHARGE (CREDIT) (14,393) TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 507,043 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 2015 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 DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA. ALL DONATIONS ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. EACH GRANT, SCHOLARSHIP AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. FORM 990, PART X, LINES 17 AND 25 THE COOPERATIVE PREVIOUSLY INCLUDED ACCRUED EXPENSES (COMPRISED OF "OTHER CURRENT AND ACCRUED LIABILITIES") AS COMPONENTS OF OTHER LIABILITIES ON LINE 25 OF PART X. HOWEVER, FOR THE 2015 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS ON LINE 17 IN ACCORDANCE WITH FORM 990 INSTRUCTIONS. TO INCREASE CONSISTENCY, ACCRUED EXPENSES IN THE AMOUNT OF $536,171 FOR "OTHER CURRENT AND ACCRUED LIABILITIES" FOR THE 2014 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 25 TO LINE 17. Form 990, Part XI, line 9: PATRONAGE CAPTITAL RETIRED -1,223,130. NET CHANGE IN MEMBERSHIPS -90. GAIN ON RETIREMENTS 5,479. PATRONAGE DIVIDENDS ALLOCATED TO PATRONS (SEE PART IX, LINE 4) 5,869,177. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSION & BENEFITS -5,255. Form 990, Part XII, Line 2B AUDITED FINANCIAL STATEMENTS WERE PREPARED BY AN INDEPENDENT ACCOUNTANT FOR THE COOPERATIVE'S FISCAL YEAR END OF JUNE 30TH. 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.