2016-10-11T15:54:53-05:00 2015-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2015-01-01 860059728 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC SULP 5203842221 350 N HASKELL WILLCOX AZ 85643 CREDEN HUBER CEO/GENERAL MANAGER 5203842221 2016-09-23 1 Matt R Willis P00419741 8067473806 2016-09-23 X 2015 2017-02-10 21:41:12Z CREDEN HUBER 350 N HASKELL WILLCOX AZ 85643 99591860 0 X WWW.SSVEC.ORG X 1938 AZ TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 10 10 236 0 303893 174647 0 0 105580056 98369313 171224 121635 954657 1013092 106705937 99504040 213974 166460 8214283 7720096 12381044 12352234 0 0 0 85896636 79265250 106705937 99504040 0 0 288046908 289694409 190931006 185123631 97115902 104570778 X WE SHALL BE THE VENDOR OF CHOICE FOR ENERGY AND OTHER SERVICES, BY PROVIDING THE BEST VALUE TO OUR MEMBERS THROUGH COMPETITIVE PRICING, EXCEPTIONAL CUSTOMER SERVICE, AND SUPERIOR COMPETENCE. WE RECOGNIZE THE VALUE OF THE EMPLOYEES AND ACKNOWLEDGE THEIR INITIATIVE, INTEGRITY, AND COMMITMENT TO OUR CUSTOMERS' SATISFACTION. WE SHALL CONTINUE OUR STRONG COMMITMENT TO OUR COMMUNITIES AND UPHOLD THE HIGHEST DEGREE OF CORPORATE INTEGRITY. 0 0 PROVIDING ELECTRIC ENERGY TO OUR MEMBERS - 51,555 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. ELECTRIC DISTRIBUTION SERVICES (THE DELIVERY, BUT NOT THE SALE OF ELECTRICITY, TO A CUSTOMER OVER LINES OWNED, OPERATED AND MAINTAINED BY THE COOPERATIVE) WERE PROVIDED TO THE CLASS B MEMBERSHIP ON A COOPERATIVE BASIS. 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 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 297 0 236 1 1 1 0 0 0 0 98150937 2597466 0 X 10 10 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 AZ X CREDEN HUBER 5203842221 350 N HASKELL AVE WILLCOX AZ 85643 X PAT ENGLISH PRESIDENT 6.15 1.00 X X 15725 0 0 EDWARD MOLINA VICE PRESIDENT 5.00 1.00 X X 9150 0 0 KATHRYN THATCHER SECRETARY 11.54 1.00 X X 14100 0 0 DANIEL BARRERA TREASURER 7.00 1.00 X X 10563 0 0 HAROLD HINKLEY DIRECTOR (1/2015 - 4/2015) 2.10 1.00 X 1750 0 0 DONALD GENE MANRING DIRECTOR 10.89 1.00 X 13375 0 0 DONALD KYTE DIRECTOR 4.00 1.00 X 6875 0 0 DAVID LUNA DIRECTOR 6.00 1.00 X 13600 0 0 CURTIS NOLAN DIRECTOR 7.00 1.00 X 11900 0 0 THOMAS GOODMAN DIRECTOR 6.62 1.00 X 11400 0 0 LEX HERRON DIRECTOR (5/2015 - 12/2015) 5.00 1.00 X 10425 0 0 CREDEN HUBER CEO/GENERAL MANAGER 48.00 X 404280 0 122723 KIRBY CHAPMAN CFO & ADMIN OFFICER 50.00 X 230325 0 71785 ANSELMO TORRES CHIEF OPERATIONS & ENGINEE 60.00 X 211552 0 20345 JACK BLAIR CHIEF MEMBER SERVICES 45.00 X 194644 0 9782 ORSON GARNSEY IT MANAGER 44.00 X 142616 0 37593 JAMES GROSS CONTROLLER 43.00 X 139607 0 32819 NATHAN HODGES FOREMAN II 46.00 X 134490 0 16821 DANIEL WILSON ENGINEERING MANAGER 47.00 X 129726 0 29336 RICHARD ELLIS JOURNEYMAN LINEMAN 52.00 X 128917 0 44582 1835020 0 385786 34 0 1 0 POWER ENGINEERS 3940 GLENBROOK DR HAILEY ID 83333 ENGINEERING & CONSULTING SERVICES 480891 OSG BILLING SERVICE PO BOX 5895 ENGLEWOOD NJ 07631 BILLING SERVICE 436897 ASPLUNDH PO BOX 827464 PHILADELPHIA PA 19182 TREE TRIMMING SERVICES 385501 KE&G CONSTURCTION 1601 PASEO SAN LUIS 202 SIERRA VISTA AZ 85635 CONSTRUCTION - DIRTWORK 331793 SUTHERLAND ASBILL & BRENNAN 999 PEACHTREE ST NE 2300 ATLANTA GA 30309 LEGAL SERVICES 197477 14 X ELECTRICITY SALES 221000 93462932 93462932 PATRONAGE DIVIDENDS 221000 3089100 3089100 DISTRIBUTION SERVICES 221000 1175231 1175231 SERVICE FEES 221000 642050 642050 98369313 121635 121635 45 45 7790 0 7790 7790 7790 105616 87820 17796 17796 POLE ATTACHMENT INCOME 221000 701364 701364 INTERNET COMMISSIONS 519100 239152 239152 OUTSIDE SERVICES 811000 46844 46844 101 101 987461 99504040 98369313 303893 830834 X 166460 7720096 1384299 6520717 1832868 2038483 575867 5671485 11085162 PURCHASED POWER 50677303 DISTRIBUTION EXPENSE 6607512 ADMIN & GENERAL EXP. 2679441 UNRELATED BUS. INC. TAX 48887 2495460 99504040 X 2277833 1110437 2322373 3010585 6434681 6810262 135098 110038 3174247 2538829 1964469 1941593 344791258 127756979 216406955 217034279 47376340 49834148 7954912 7304238 288046908 289694409 13084895 12690863 169714894 165846589 8131217 6586179 190931006 185123631 X 192740 192950 0 0 96923162 104377828 97115902 104570778 288046908 289694409 X 0 7454876 X X 0 0 0 2296554 2296554 12601415 4367739 8233676 322865975 123389240 199476735 7027314 7027314 217034279 PATRONAGE CAPITAL - AEPCO 42255144 C PATRONAGE CAPITAL - CFC 2590237 C PATRONAGE CAPITAL - NISC 62280 C PATRONAGE CAPITAL - NRTC 38282 C PATRONAGE CAPITAL - FEDERATED 440486 C PATRONAGE CAPITAL - CRC 19655 C COBANK EQUITY INVESTMENT 635441 C ASSOCIATED ORGANIZATIONS - GENERAL FUNDS 1010 C ASSOCIATED ORGANIZATIONS - GCSECA BLDG 182881 C CAPITAL TERM CERTIFICATES-CFC 3608732 C 49834148 CONSUMER DEPOSITS 2207378 ACCUMULATED PROVISION - PENSIONS & BENEFITS 2639544 DEFERRED CREDITS 1739257 6586179 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 ITS TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, 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 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. 0 SIERRA VISTA CHAMBER OF COMMERCE 21 EAST WILCOX DRIVE SIERRA VISTA AZ 85635 742586694 501(C)(6) 7540 SPONSORING LOCAL ACTIVITIES HOSTED BY THE CHAMBER OF COMMERCE. COCHISE EDUCATION FOUNDATION PO BOX 208 C/O ROBERT BLAKELY BISBEE AZ 85603 263735497 501(C)(3) 5350 SPONSORSHIP OF TEACHER OF THE YEAR BANQUET. NORTHERN COCHISE COMMUNITY HOSPITAL 901 W REX ALLEN DR WILLCOX AZ 85643 860208451 501(C)(3) 6150 SPONSOR FUNDRAISING EVENT REX ALLEN DAYS INC PO BOX 429 WILLCOX AZ 85643 510166786 501(C)(3) 5740 ANNUAL SPONSORSHIP AND QUEEN'S CROWN SPONSORSHIP THE SALVATION ARMY PO BOX 1838 SIERRA VISTA AZ 85636 941156347 501(C)(3) 9750 SUPPORT FOR COMMUNITY CENTER BOYS AND GIRLS CLUB OF SIERRA VISTA INC 1746 PASEO SAN LUIS SIERRA VISTA AZ 85636 860801728 501(C)(3) 8000 DONATIONS FOR GREAT FUTURE CAMPAIGN AND DINNER AND KARS FOR KIDS EVENT. 5 1 Schedule I, Part II 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. X 1 1 X X 0 0 0 CREDEN HUBER CEO/GENERAL MANAGER 357520 0 795 0 45965 0 112007 0 10716 0 527003 0 0 0 KIRBY CHAPMAN CFO & ADMIN OFFICER 196660 0 560 0 33105 0 63220 0 8565 0 302110 0 0 0 ANSELMO TORRES CHIEF OPERATIONS & ENGINEE 187470 0 250 0 23832 0 5838 0 14507 0 231897 0 0 0 JACK BLAIR CHIEF MEMBER SERVICES 170676 0 555 0 23413 0 5161 0 4621 0 204426 0 0 0 ORSON GARNSEY IT MANAGER 140989 0 1100 0 527 0 27865 0 9728 0 180209 0 0 0 JAMES GROSS CONTROLLER 133574 0 5210 0 823 0 30675 0 2144 0 172426 0 0 0 NATHAN HODGES FOREMAN II 112533 0 690 0 21267 0 14137 0 2684 0 151311 0 0 0 DANIEL WILSON ENGINEERING MANAGER 126148 0 2665 0 913 0 19442 0 9894 0 159062 0 0 0 RICHARD ELLIS JOURNEYMAN LINEMAN 119135 0 1520 0 8262 0 39447 0 5135 0 173499 0 0 0 Part I, Line 1a PART I, LINE 1A - HEALTH OR SOCIAL CLUB DUES OR INITIATION FEES - THE COOPERATIVE HAS A WELLNESS PROGRAM THAT WILL REIMBURSE EMPLOYEES FOR 50% OF THEIR OUT OF POCKET COSTS FOR PARTICIPATION IN QUALIFIED WELLNESS ACTIVITIES. THE TOTAL ANNUAL REIMBURSEMENT IS LIMITED TO $360 PER EMPLOYEE AND $360 FOR AN EMPLOYEE SPOUSE, PROVIDED THE SPOUSE IS COVERED UNDER THE COOPERATIVE'S HEALTH INSURANCE PROGRAM. EMPLOYEES ARE ELIGIBLE TO PARTICIPATE IN THE WELLNESS PROGRAM AFTER 60 DAYS OF EMPLOYEMENT. 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. CREDEN HUBER ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $104,407 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,600 TOTAL REPORTED IN COLUMN C: 112,007 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (104,407) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 98,681 EXPENSE TO THE COOPERATIVE 106,281 KIRBY CHAPMAN ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 57,190 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,030 TOTAL REPORTED IN COLUMN C: 63,220 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (57,190) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 55,160 EXPENSE TO THE COOPERATIVE 61,190 ANSELMO TORRES ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,838 TOTAL REPORTED IN COLUMN C: 5,838 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (0) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 53,558 EXPENSE TO THE COOPERATIVE 59,396 JACK BLAIR ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 0 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,161 TOTAL REPORTED IN COLUMN C: 5,161 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: 0 ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 47,070 EXPENSE TO THE COOPERATIVE 52,231 ORSON GARNSEY ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,914 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,951 TOTAL REPORTED IN COLUMN C: 27,865 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (24,914) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 39,610 EXPENSE TO THE COOPERATIVE 42,561 JAMES GROSS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 26,664 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,011 TOTAL REPORTED IN COLUMN C: 30,675 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (26,664) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 36,582 EXPENSE TO THE COOPERATIVE 40,593 NATHAN HODGES ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 11,394 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,743 TOTAL REPORTED IN COLUMN C: 14,137 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (11,394) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 24,980 EXPENSE TO THE COOPERATIVE 27,723 DANIEL WILSON ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 15,509 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,933 TOTAL REPORTED IN COLUMN C: 19,442 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (15,509) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 35,283 EXPENSE TO THE COOPERATIVE 39,216 RICHARD ELLIS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 36,937 EMPLOYER CONTRIBUTION TO 401(K) PLAN 2,510 TOTAL REPORTED IN COLUMN C: 39,447 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (36,937) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 22,917 EXPENSE TO THE COOPERATIVE 25,427 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 B, line 11 MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR REVIEW AND APPROVAL PRIOR TO FILING. Form 990, Part VI, Section B, line 12c THE DIRECTORS REVIEW THE CONFLICT OF INTEREST POLICY ANNUALLY, AND IMMEDIATELY ADDRESS ANY QUESTIONS OR CONCERNS IF THEY ARISE. THE BOARD OF DIRECTORS AND OFFICERS ARE ALSO 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 USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE BOARD AND THE GENERAL MANAGER USE THE EXPERTISE OF AN INDEPENDENT COMPENSATION CONSULTANT WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. Form 990, Part VI, Section C, line 19 THE COOPERATIVE ANNUALLY MAILS A SUMMARIZED COPY OF THE AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE. THE COOPERATIVE ALSO PROVIDES COPIES OF THEIR CURRENT AND PAST ANNUAL REPORTS AND GOVERNING DOCUMENTS ON THEIR 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. 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, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION 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 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 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 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 $7,905,016 LESS DIRECTORS FEES REPORTED ON 1099-MISC (118,863) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (194,508) LESS KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (30,128) PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 15,549 PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 3,644,667 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 2,965,445 TOTAL WAGES ACCRUED AND/OR PAID $14,187,178 Form 990, Part IX, Line 24 ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: OFFICE SUPPLIES AND EXPENSE $156,338 OUTSIDE SERVICES EMPLOYED 816,143 INSURANCE - INJURIES AND DAMAGES 232,420 DUES PAID ASSOCIATED ORGANIZATIONS 210,827 FORT HUACHUCA EXPENSES 394,531 SAFETY 47,513 DIRECTORS EXPENSES 1,671 EMPLOYEE ACTIVITIES 79,489 MAINTENANCE OF GENERAL PLANT 152,810 CAPITAL CREDITS 8,675 MISCELLANEOUS GENERAL EXPENSE 579,024 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $2,679,441 Form 990, Part IX, Line 24e THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS OTHER EXPENSES ON FORM 990, PART IX, LINE 24E. TAX - OTHER $ 8,474 CONSUMER ACCOUNT AND SERVICE 1,695,905 SALES EXPENSE 142,198 TRANSMISSION EXPENSE 484,300 INTERNET EXPENSES 82,568 PHONE CARD EXPENSES 248 OUTSIDE EXPENSES 25,881 OTHER DEDUCTIONS 55,886 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $2,495,460 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 X, LINES 17 AND 25 THE COOPERATIVE PREVIOUSLY INCLUDED ACCRUED EXPENSES ("OTHER CURRENT ACCRUED LIABILITES") AS COMPONENTS OF OTHER LIABILITIES ON LINE 25 OF PART X. HOWEVER, FOR THE 2015 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THIS AMOUNT ON LINE 17 IN ACCORDANCE WITH FORM 990 INSTRUCTIONS. TO INCREASE CONSISTENCY, ACCRUED EXPENSES IN THE AMOUNT OF $7,962,427 FOR "OTHER CURRENT ACCRUED LIABILITES" FOR THE 2014 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 25 TO LINE 17. Form 990, Part XI, line 9: NET CHANGE IN MEMBERSHIPS 210. PATRONAGE CAPITAL CREDIT RETIREMENTS -299,452. PATRONAGE CAPITAL ASSIGNABLE 7,720,096. GAIN ON RETIREMENT OF ESTATE CAPITAL CREDITS 24,821. OTHER COMPREHENSIVE INCOME - PROVISION FOR PENSIONS AND BENEFITS 15,365. OTHER CHANGE IN EQUITY -6,164. Form 990, Part XII, Line 2 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 OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE FOUNDATION 350 N HASKELL WILLCOX AZ 85643 860488826 FUND EDUCATIONAL YOUTH ACTIVIES AND QUALIFIED PROGRAMS AZ 501(c)(3) PF SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE CHARITABLE TRUST 350 N HASKELL WILLCOX AZ 85643 860993649 ASSISTANCE TO NATURAL DISASTER VICTIMS AND FAMILIES AZ 501(c)(3) Line 7 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 SULPHUR SPRINGS VALLEY ELECTRIC COOP FOUNDATION - NA LESS THAN 50000 Q CASH