2025-11-12T16:53:26-06:00 2024-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2024-01-01 750405473 LYNTEGAR ELECTRIC COOPERATIVE INC LYNT 8065614588 PO BOX 970 TAHOKA TX 79373 BRENDA WHITTEN CFO 8065614588 2025-11-12 1 0 WILLIAM M MILLER P00439459 8067473806 2025-11-11 X 2024 2025-03-06 01:10:19Z GREG HENLEY PO BOX 970 TAHOKA TX 79373 79831185 0 X WWW.LYNTEGAR.COOP X 1938 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 7 7 133 0 60778 0 0 0 91077382 77805002 1480886 1823256 184878 58710 92743146 79686968 15937 2500 13680450 4958350 8602194 8963171 0 0 0 69752198 64644171 92050779 78568192 692367 1118776 301859596 312974671 146174581 155042430 155685015 157932241 OWNED AND OPERATED BY THOSE WE SERVE. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 24,031 ACTIVE SERVICES AT YEAR END. 0 0 0 0 0 0 0 1 0 1 1 1 0 1 1 1 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 59 0 133 1 1 1 0 0 0 0 74808645 4795457 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X BRENDA WHITTEN CFO 8065614588 1701 US HIGHWAY 87 TAHOKA TX 79373 X BENJAMIN FRANKLIN PRESIDENT 18.10 X X 31972 0 0 KEVIN MITCHELL VICE PRESIDENT 16.60 X X 24579 0 0 BILLY WEAVER SECRETARY/TREASURER 17.10 X X 24500 0 0 RICKY DAY DIRECTOR 13.40 X 23079 0 0 THERON TIDWELL DIRECTOR 14.60 X 24209 0 0 ANDREW FURLOW DIRECTOR 13.00 X 4770 0 0 TODD HOWARD DIRECTOR 15.70 X 26229 0 0 GREGORY HENLEY CHIEF EXECUTIVE OFFICER 40.00 X 296295 0 72677 WILLIAM ROSS ATEN CHIEF OPERATING OFFICER 60.00 X 182600 0 60550 BRENDA WHITTEN CHIEF FINANCIAL OFFICER 46.00 X 166405 0 37243 RODDY GANDY LINE SUPERINTENDENT 40.00 X 164924 0 50956 BRENT FOWLER CREW FOREMAN 46.00 X 140865 0 17294 JESUS GARZA CREW FOREMAN 44.00 X 136887 0 17002 JANA BISHOP MANAGER OF HUMAN RESOURCES 40.00 X 141296 0 48650 BRANDON BEAN JOURNEYMAN 51.00 X 146968 0 23659 1535578 0 328031 43 0 1 0 ARROWHEAD LINE LLC PO BOX 755 CANYON TX 79015 CONSTRUCTION OF LINE 4840232 PLASKA PO BOX 7630 AMARILLO TX 79114 TRANSMISSION LINE CONSTRUCTION 547188 NIX ELECTRIC INC 720 LOOP 289 SE LUBBOCK TX 79404 TRANSFORMER REPAIR SERVICES 397675 MCGINNIS LOCHRIDGE & KILGORE LLP 1111 W 6TH STREET SUITE 400 AUSTIN TX 78703 LEGAL FEES 198890 COMPUTER TRANSITION SERVICES INC 3223 S LOOP 289 LUBBOCK TX 79423 COMPUTER/IT SERVICES 173719 8 X SALES OF ELECTRICITY 221000 72398216 72398216 PATRONAGE DIVIDENDS 221000 4177243 4177243 TRANSMISSION ACCESS 221000 951083 951083 SERVICE FEES 221000 278460 278460 77805002 1276924 1276924 20625 32481 -11856 -11856 -11856 368125 289943 0 111736 368125 178207 546332 178207 368125 INTERNET MARKETING 517000 37637 37637 PASS-THRU INVESTMENT INCOME(LOSS) 523000 23141 23141 POLE ATTACHMENT INCOME 221000 9788 9788 70566 79686968 77983209 60778 1642981 X 2500 4958350 975108 6123028 385149 1033050 446836 5938615 9293765 PURCHASED POWER 41129426 DISTRIBUTION EXPENSE 5396030 ADMIN & GENERAL EXPENSE 2053427 CONSUMER EXPENSE 495591 337317 78568192 513441 706698 1020831 962607 4927882 4680306 4879552 4686240 688678 312345 273636954 74541148 188385522 199095806 20283917 20056530 80218302 82108605 941471 365534 301859596 312974671 8417557 8583822 136279 267412 130736963 138726588 6883782 7464608 146174581 155042430 X 29705 30330 0 0 155655310 157901911 155685015 157932241 301859596 312974671 X 1118776 603916 524534 X X 0 1 X 0 0 0 1 X 479276 479276 9779566 2988583 6790983 261582380 71552565 190029815 1795732 1795732 199095806 ALTERNATIVE INVESTMENTS 4299370 F MUTUAL FUNDS 7257784 F EXCHANGE-TRADED FUNDS & CLOSED-END FUNDS 5065311 F CORP FIXED INCOME 3434065 F 20056530 PATRONAGE CAPITAL - CFC 3429383 C PATRONAGE CAPITAL - NISC 94545 C PATRONAGE CAPITAL - NRTC 434060 C PATRONAGE CAPITAL - TEC 1470672 C PATRONAGE CAPITAL - GSEC 65473218 C PATRONAGE CAPITAL - OTHER 10998 C OTHER INVESTMENTS - FEDERATED 172872 C CONTRIBUTED CAPITAL - GSEC 3652037 C CAPITAL TERM CERTIFICATES - CFC 2366110 C MEMBER CAPITAL SECURITIES - CFC 5000000 C OTHER INVESTMENTS - MEMBERSHIPS 4710 C 82108605 POWER COST OVER RECOVERY 1394809 ACCUMULATED POST RETIREMENT BENEFIT OBLIGATION 596589 UNCLAIMED PATRONAGE CAPITAL 1331057 CONSUMER PREPAYMENTS 258354 DEFERRED CREDITS - CONSUMER DEPOSITS 197176 ACCRUED TAXES 785760 AID TO CONSTRUCTION 2900863 7464608 X 80128770 603916 -23141 580775 79547995 132165 6808 138973 79686968 73470869 0 73470869 132165 4965158 5097323 78568192 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 TEXAS 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ECONOMIC DEVELOPMENT FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER TEXAS STATE LAW. THE AMOUNTS DEPOSITED INTO THE ECONOMIC DEVELOPMENT FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED FOR THE STIMULATION AND IMPROVEMENT OF BUSINESS AND COMMERCIAL ACTIVITY FOR ECONOMIC DEVELOPMENT IN RURAL COMMUNITIES. ANY AMOUNTS SO DEPOSITED INTO THE ECONOMIC DEVELOPMENT 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 ITS TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE OR OTHER STATE TAX AUTHORITY, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: BOOK TO TAX ADJUSTMENTS FOR INCOME REPORTED ON PARTNERSHIP SCHEDULES K-1 -23,141. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFIED EXPENSES 6,808. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 4,958,350. RECLASSIFIED EXPENSES 6,808. 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 DIVIDENDS ALLOCATED OR TO BE 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. X 1 1 X X 0 0 0 GREGORY HENLEY CHIEF EXECUTIVE OFFICER 278679 0 4500 0 13116 0 29620 0 43057 0 368972 0 0 0 WILLIAM ROSS ATEN CHIEF OPERATING OFFICER 179908 0 1200 0 1492 0 19066 0 41484 0 243150 0 0 0 RODDY GANDY LINE SUPERINTENDENT 151565 0 6000 0 7359 0 16188 0 34768 0 215880 0 0 0 BRENDA WHITTEN CHIEF FINANCIAL OFFICER 159565 0 900 0 5940 0 16523 0 20720 0 203648 0 0 0 JANA BISHOP MANAGER OF HUMAN RESOURCES 135466 0 1800 0 4030 0 14550 0 34100 0 189946 0 0 0 BRANDON BEAN JOURNEYMAN 145804 0 600 0 564 0 6392 0 17267 0 170627 0 0 0 BRENT FOWLER CREW FOREMAN 137067 0 2400 0 1398 0 11420 0 5874 0 158159 0 0 0 JESUS GARZA CREW FOREMAN 132291 0 1800 0 2796 0 11515 0 5487 0 153889 0 0 0 PART I, LINE 1A GYM/FITNESS REIMBURSEMENT - ONE INDIVIDUAL REPORTED ON FORM 990 PART VII, BRANDON BEAN, RECEIVED THE BENEFIT DURING THE YEAR. KD'S KORRAL FAMILY RELATIONSHIP (OFFICER - ATEN) 122024 KIM ATEN IS THE OWNER OF KD'S KORRAL, THE VENDOR USED FOR THE SALE OF FIRE RETARDANT CLOTHING. 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. FORM 990, PART VI, SECTION B, LINE 12C ON AN ANNUAL BASIS, LEGAL COUNSEL IS REQUIRED TO REVIEW THE CONFLICT OF INTEREST POLICY WITH THE DIRECTORS AND OFFICERS AT THE FIRST MEETING OF THE BOARD OF DIRECTORS FOLLOWING ELECTIONS. EACH DIRECTOR AND OFFICER MUST ALSO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. THEREAFTER, 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 BOARD OF DIRECTORS UTILIZE INTERNAL RESOURCES AND PERFORM AN ANNUAL REVIEW WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER/CEO. THE BOARD AND THE GENERAL MANAGER/CEO USE AN INDEPENDENT CONSULTANT AND COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND HIGHLY COMPENSATED EMPLOYEES. THE SURVEY INCLUDES SALARIES FROM SIMILAR COOPERATIVES THROUGHOUT TEXAS AND THE NATION. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING AND THE COOPERATIVE BYLAWS ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE. 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. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A BASE AND A MATCHING CONTRIBUTION. EMPLOYER CONTRIBUTIONS TO THIS PLAN ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE 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 PER PERSON OF THESE BENEFITS HAS NOT BEEN ESTIMATED. 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: ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) AS 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 $ 7,098,136 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (159,338) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (170,470) PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 2,845,129 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,141,629 TOTAL WAGES ACCRUED AND/OR PAID $10,755,086 FORM 990, PART IX, LINE 24: ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS & OTHER $ 1,754,175 SAFETY, WELLNESS AND CONTINUING EDUCATION 81,592 OFFICE SUPPLIES 643,410 OUTSIDE SERVICES EMPLOYED 86,927 INSURANCES AND DAMAGES 141,540 REGULATORY COMMISSION 122,754 DIRECTORS 191,659 DUES PAID TO ASSOCIATED ORGANIZATIONS 93,404 ANNUAL MEETING 109,579 MISCELLANEOUS GENERAL 139,750 GENERAL ADVERTISING 132,524 MAINTENANCE OF GENERAL PLANT 474,126 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 3,971,440 PLUS: RECLASS OF MISCELLANEOUS EXPENSES 808 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (159,338) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,352,680) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (406,803) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,053,427 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: INVESTMENT EXPENSE & DEDUCTIONS $ 132,165 SALES 312,239 SATELLITE & INTERNET OPERATING EXPENSES 3,500 TRANSMISSION 124,966 TOTAL OTHER EXPENSES PER FINANCIAL STATEMENTS $ 572,870 LESS: RECLASS OF LABOR TO PART IX, LINE 5 (181,091) LESS: RECLASS OF BENEFITS TO PART IX, LINE 8-10 (54,462) TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 337,317 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 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 XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 4,958,350. PATRONAGE CAPITAL RETIRED - TOTAL -4,408,347. PATRONAGE CAPITAL RETIRED - DISCOUNT 5,022. NET CHANGE IN MEMBERSHIPS 625. OTHER COMPREHENSIVE INCOME - POST RETIREMENT HEALTH BENEFITS -7,975. OTHER - BOOK/TAX DIFFERENCE ON OTHER INVESTMENT INCOME -23,141. FORM 990, PART XII, LINE 2: 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. LEC DEVELOPMENT LLC PO BOX 970 TAHOKA TX 79373 752452483 INTERNET AND INVESTMENTS TX 1966502 21401778 LYNTEGAR ELECTRIC COOPERATIVE INC