2014-11-17T12:37:25-06:00 2013-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2013-01-01 860059728 SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC SULP 5203842221 350 N HASKELL WILLCOX AZ 85643 CREDEN HUBER CEO/GENERAL MANAGER 5203842221 2014-11-06 1 Matt R Willis P00419741 8067473806 2014-11-06 X 2013 2015-11-30 17:44:51Z CREDEN HUBER 350 N HASKELL WILLCOX AZ 85643 110762836 0 X WWW.SSVEC.ORG X 1938 AZ TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 12 12 240 0 282370 212449 0 0 110816193 109514136 336509 175934 1051851 1011321 112204553 110701391 192661 209293 5209538 5373075 10279378 11227464 0 0 0 96522976 93891559 112204553 110701391 0 0 280477681 285519336 196240621 196354857 84237060 89164479 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 - 50,813 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 1 0 0 0 0 0 1 1 1 0 1 397 0 240 1 1 1 0 0 0 0 104536101 2879487 0 X 12 12 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 KATHRYN THATCHER PRESIDENT 10.00 1.00 X X 11350 0 0 LESLIE THOMPSON VICE PRESIDENT 11.00 1.00 X X 11550 0 0 HAROLD HINKLEY SECRETARY 4.20 1.00 X X 9675 0 0 DANIEL BARRERA TREASURER 6.00 1.00 X X 5100 0 0 PAT ENGLISH DIRECTOR 5.70 1.00 X 13625 0 0 JOSEPH FURNO DIRECTOR 6.30 1.00 X 10100 0 0 DONALD GENE MANRING DIRECTOR 10.50 1.00 X 15275 0 0 DONALD KYTE DIRECTOR 5.00 1.00 X 6150 0 0 DAVID LUNA DIRECTOR 10.00 1.00 X 13950 0 0 CURTIS NOLAN DIRECTOR 7.30 1.00 X 7300 0 0 ARCHIE SMITH DIRECTOR (1/2013 - 4/2013) 6.60 1.00 X 2850 0 0 SANDRA HUNTINGTON DIRECTOR (5/2013 - 12/2013) 10.70 1.00 X 10300 0 0 EDWARD MOLINA DIRECTOR 5.00 1.00 X 11250 0 0 CREDEN HUBER CEO/GENERAL MANAGER 48.00 X 341297 0 165042 KIRBY CHAPMAN CFO & ADMIN OFFICER 45.00 X 224401 0 95611 ANSELMO TORRES CHIEF OPERATIONS & ENGINEERING OFFICER 50.00 X 193155 0 -26988 JACK BLAIR CHIEF MEMBER SERVICES 45.00 X 177864 0 40626 RON OROZCO ENGINEERING MANAGER 44.00 X 143809 0 53085 ORSON GARNSEY IT MANAGER 44.00 X 121264 0 41307 EILEEN BRIEN SMART GRID PROGRAM MANAGER 43.00 X 121161 0 12336 JAMES GROSS CONTROLLER 43.00 X 116277 0 36776 LAINIE KELTNER CUSTOMER SERVICE MANAGER 44.00 X 113983 0 -65751 1681686 0 352044 20 0 1 0 POWER ENGINEERS 3940 GLENBROOK DR HAILEY ID 83333 ENGINEERING & CONSULTING SERVICES 601944 OSG BILLING SERVICE PO BOX 5895 ENGLEWOOD NJ 07631 BILLING SERVICE 458265 LINCUS INC 8727 S PRIEST DR 103 TEMPE AZ 85285 ENGINEERING SERVICES - DEMAND SIDE MANAG 278041 JIM'S ELECTRIC PO BOX 4592 BISBEE AZ 85603 ELECTRICIAN SERVICES 258537 ASPLUNDH PO BOX 827464 PHILADELPHIA PA 19182 TREE TRIMMING SERVICES 252153 14 X ELECTRICITY SALES 221000 103399949 103399949 PATRONAGE DIVIDENDS 221000 3970744 3970685 59 DISTRIBUTION SERVICES 221000 1531472 1531472 SERVICE FEES 221000 611971 611971 109514136 175934 175934 110 110 7380 721520 0 0 7380 721520 728900 728900 119023 61445 57578 57578 INTERNET COMMISSIONS 519100 220475 220475 OUTSIDE SERVICES 811000 3992 3992 PHONE CARD REVENUE 517000 266 266 224733 110701391 109514077 282370 904944 X 209293 5373075 1339483 6126901 1656575 1574225 530280 6348635 10249609 PURCHASED POWER 62412496 DISTRIBUTION EXPENSE 8304167 ADMIN & GENERAL EXP. 2491537 UNRELATED BUS. INC. TAX 54062 4031053 110701391 508987 991037 881161 321081 4444707 8420987 186058 192525 3598057 2644314 2271992 1915124 330089595 112677533 217856553 217412062 41785187 45114956 8944979 8507250 280477681 285519336 6576798 5958647 173355617 174016290 16308206 16379920 196240621 196354857 X 191875 191620 0 0 84045185 88972859 84237060 89164479 280477681 285519336 X 0 4927419 X X 0 0 1 1 2296554 2296554 11773509 3819934 7953575 305517269 108857599 196659670 10502263 10502263 217412062 PATRONAGE CAPITAL - AEPCO 36025031 C PATRONAGE CAPITAL - CFC 2294901 C PATRONAGE CAPITAL - NISC 35653 C PATRONAGE CAPITAL - NRTC 39984 C PATRONAGE CAPITAL - FEDERATED 297566 C PATRONAGE CAPITAL - CRC 12846 C COBANK EQUITY INVESTMENT 202326 C ASSOCIATED ORGANIZATIONS - GENERAL FUNDS 2001010 C ASSOCIATED ORGANIZATIONS - GCSECA BLDG 194855 C CAPITAL TERM CERTIFICATES-CFC 4010784 C 45114956 CONSUMER DEPOSITS 2760400 ACCUMULATED PROVISION - PENSIONS & BENEFITS 2246570 OTHER CURRENT & ACCRUED LIABILITIES 7615692 DEFERRED CREDITS 3757258 16379920 X Part X, Line 2: THE COOPERATIVE 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, 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) 20144 SPONSORING LOCAL ACTIVITIES HOSTED BY THE CHAMBER OF COMMERCE. BENSON BOBCATS BOOSTER CLUB INC 360 S PATAGONIA STREET BENSON AZ 85602 861038547 501(C)(3) 11960 SUPPORT OF PRO WRESTLING FUNDRAISER. COCHISE EDUCATION FOUNDATION PO BOX 208 C/O ROBERT BLAKELY BISBEE AZ 85603 263735497 501(C)(3) 5550 SPONSORSHIP OF TEACHER OF THE YEAR BANQUET. NORTHERN COCHISE COMMUNITY HOSPITAL 901 W REX ALLEN DR WILLCOX AZ 85643 860208451 501(C)(3) 6000 SPONSOR FUNDRAISING EVENT REX ALLEN DAYS INC PO BOX 429 WILLCOX AZ 85644 510166786 501(C)(3) 5941 ANNUAL SPONSORSHIP AND QUEEN'S CROWN SPONSORSHIP SOUTHEASTERN ARIZONA CONTRACTORS ASSOCIATION PO BOX 1004 SIERRA VISTA AZ 85636 953534340 501(C)(6) 10000 SACA HOME SHOW SPONSOR THE SALVATION ARMY PO BOX 1838 SIERRA VISTA AZ 85636 941156347 501(C)(3) 6000 DONATION FOR NEW BUILDING 5 2 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 293234 0 355 0 47708 0 144207 0 20835 0 506339 0 0 0 KIRBY CHAPMAN CFO & ADMIN OFFICER 157595 0 16100 0 50706 0 81254 0 14357 0 320012 0 0 0 ANSELMO TORRES CHIEF OPERATIONS & ENGINEERING OFFIC 149229 0 1100 0 42826 0 -46491 0 19503 0 166167 0 0 0 JACK BLAIR CHIEF MEMBER SERVICES 144690 0 1100 0 32074 0 34945 0 5681 0 218490 0 0 0 RON OROZCO ENGINEERING MANAGER 140356 0 940 0 2513 0 41228 0 11857 0 196894 0 0 0 ORSON GARNSEY IT MANAGER 120768 0 100 0 396 0 23242 0 18065 0 162571 0 0 0 JAMES GROSS CONTROLLER 115792 0 100 0 385 0 32692 0 4084 0 153053 0 0 0 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 $136,557 401(K) EMPLOYER MATCH 7,650 TOTAL COLUMN C: 144,207 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (136,557) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 92,713 TOTAL COOPERATIVE CASH CONTRIBUTION 100,363 KIRBY CHAPMAN ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 76,392 401(K) EMPLOYER MATCH 4,862 TOTAL COLUMN C: 81,254 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (76,392) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 52,462 TOTAL COOPERATIVE CASH CONTRIBUTION 57,324 ANSELMO TORRES ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $(51,341) 401(K) EMPLOYER MATCH 4,850 TOTAL COLUMN C: (46,491) LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: 51,341 ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 52,578 TOTAL COOPERATIVE CASH CONTRIBUTION 57,428 JACK BLAIR ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,601 401(K) EMPLOYER MATCH 4,344 TOTAL COLUMN C: 34,945 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (30,601) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 44,436 TOTAL COOPERATIVE CASH CONTRIBUTION 48,780 RON OROZCO ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $36,958 401(K) EMPLOYER MATCH 4,270 TOTAL COLUMN C: 41,228 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (36,958) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 41,607 TOTAL COOPERATIVE CASH CONTRIBUTION 45,877 ORSON GARNSEY ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $23,242 TOTAL COLUMN C: 23,242 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (23,242) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 36,307 TOTAL COOPERATIVE CASH CONTRIBUTION 36,307 JAMES GROSS ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $29,215 401(K) EMPLOYER MATCH 3,477 TOTAL COLUMN C: 32,692 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (29,215) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 33,799 TOTAL COOPERATIVE CASH CONTRIBUTION 37,276 FEDERATED RURAL ELECTRIC INSURANCE EXCHANGE THE COOPERATIVE'S CEO/GM, CREDEN HUBER, SERVES ON FEDERATED'S BOARD 645502 THE COOPERATIVE OBTAINED INSURANCE THROUGH FEDERATED RURAL ELECTRIC INSURANCE EXCHANGE AND PAYS INSURANCE PREMIUMS TO FEDERATED RURAL ELECRIC INSURANCE. 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. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS, AND 4. CHANGES TO THE BYLAWS OR ARTICLES OF INCORPORATION. 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. AS PART OF THE PLAN DOCUMENT, THE COOPERATIVE PROVIDES A MATCHING CONTRIBUTION UP TO 3% OF A PARTICIPATING EMPLOYEE'S SALARY. 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 KEY EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS AND KEY EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER OR KEY EMPLOYEE IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER OR KEY EMPLOYEE, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER OR KEY EMPLOYEE. 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 UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED 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 WILL BREAK OUT 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 WILL BE 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. IN AN EFFORT TO EXPLAIN WHY THE AMOUNTS REPORTED ON LINES 5-7 DO NOT AGREE TO THE TOTAL WAGES ACCRUED AND/OR PAID THE FOLLOWING RECONCILIATION IS PROVIDED. TOTAL PER LINES 5-7 $7,466,384 LESS DIRECTORS FEES REPORTED ON 1099-MISC (128,475) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (260,653) LESS KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (13,638) PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 7,365,449 PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 15,510 TOTAL WAGES ACCRUED AND/OR PAID $14,444,577 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 AND EXPENSE $335,194 OUTSIDE SERVICES EMPLOYED 924,613 INSURANCE - INJURIES AND DAMAGES 241,817 DUES PAID ASSOCIATED ORGANIZATIONS 187,698 FORT HUACHUCA EXPENSES 79,572 SAFETY 9,767 DIRECTORS EXPENSES 115,545 EMPLOYEE ACTIVITIES 54,062 MAINTENANCE OF GENERAL PLANT 95,363 CAPITAL CREDITS 13,686 MISCELLANEOUS GENERAL EXPENSE 184,742 ADMINISTRATIVE & GENERAL EXPENSE -OTHER 249,478 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $2,491,537 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 $1,203,561 CONSUMER ACCOUNT AND SERVICE 1,975,976 SALES EXPENSE 225,848 TRANSMISSION EXPENSE 514,198 INTERNET EXPENSES 40,045 PHONE CARD EXPENSES 161 OUTSIDE SERVICES EXPENSE 3,017 OTHER DEDUCTIONS 68,247 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $4,031,053 Form 990, Part IX, Line 4 THE FORM 990 INSTRUCTIONS SPECIFICALLY STATE THAT THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE MEMBERS 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 MEMBERS. THE COOPERATIVE'S TAX EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO ITS MEMBERS 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 MEMBERS. 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 MEMBERS, AND (3) IN A FAIR AND EQUITABLE BASIS 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 COOPERATIVES BYLAWS AND IS SUMMARIZED AS FOLLOWS: (A) IN ORDER TO INDUCE PATRONAGE AND TO ASSURE THAT THE COOPERATIVE WILL OPERATE ON A NONPROFIT BASIS, THE COOPERATIVE IS OBLIGATED TO ACCOUNT ON A PATRONAGE BASIS TO ALL ITS MEMBERS FOR ALL AMOUNTS RECEIVED AND RECEIVABLE FROM THE FURNISHING OF ELECTRIC ENERGY IN EXCESS OF OPERATING COSTS AND EXPENSES PROPERLY CHARGEABLE AGAINST SUCH SERVICES (I.E. MARGINS FROM THE PROVISION OF ELECTRIC ENERGY). (B) THE MARGINS FROM THE PROVISION OF ELECTRIC ENERGY ARE RECEIVED WITH THE UNDERSTANDING THAT THEY ARE FURNISHED BY THE MEMBERS AS CAPITAL. (C) THE COOPERATIVE IS OBLIGATED TO PAY BY CREDITS TO A CAPITAL ACCOUNT FOR EACH MEMBER FOR ALL SUCH MARGINS. AND (D) ALL SUCH AMOUNTS CREDITED TO THE CAPITAL ACCOUNT OF ANY MEMBER SHALL HAVE THE SAME STATUS AS THOUGH THEY HAD BEEN PAID TO THE MEMBER IN CASH IN PURSUANCE OF A LEGAL OBLIGATION TO DO SO AND THE MEMBER HAD THEN FURNISHED TO THE COOPERATIVE CORRESPONDING AMOUNTS OF CAPITAL. THE AMOUNT REPORTED ON PART IX, LINE 4 REPRESENTS THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2013 CALENDAR YEAR. AS NOTED ABOVE, SUCH AMOUNTS ARE ALLOCATED SUBSEQUENT TO YEAR-END IN A FAIR AND EQUITABLE MANNER ON THE BASIS OF PATRONAGE (I.E. PURCHASES). THE AMOUNTS ALLOCATED ARE REPRESENTATIVE OF THE MARGINS FROM THE PROVISION OF ELECTRIC ENERGY TO THE MEMBERS AND ARE DONE PURSUANT TO THE OBLIGATION THAT EXISTED IN THE BYLAWS PRIOR TO THE COOPERATIVE PROVIDING ELECTRICITY TO ITS MEMBERS. THEREFORE, THESE AMOUNTS MEET THE DEFINITION OF THE TERM "PATRONAGE DIVIDENDS PAID". PLEASE NOTE, HOWEVER, THAT BECAUSE PATRONAGE DIVIDENDS IS THE PROCESS BY WHICH THE COOPERATIVE OPERATES AT COST WITH ITS MEMBERS AND THEREBY A KEY COMPONENT TO ACCOMPLISHING ITS EXEMPT PURPOSE, THE COOPERATIVE HAS REPORTED THE AMOUNT OF ITS 2013 MARGIN THAT HAS BEEN OR IS TO BE ALLOCATED TO THE MEMBERS SUBSEQUENT TO YEAR-END. SUCH AMOUNTS ARE AN EXPENSE FOR FORM 990 REPORTING AND IS NOT AN EXPENSE FOR FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. AS A RESULT, THE DIFFERENCE BETWEEN THE COOPERATIVE'S GAAP BASIS FINANCIAL STATEMENTS AND THE REVENUE LESS EXPENSES REPORTED ON PART I, LINE 19 IS THE AMOUNT OF PATRONAGE DIVIDENDS REPORTED AS BENEFITS PAID TO MEMBERS. Form 990, Part XI, line 9: NET CHANGE IN MEMBERSHIPS -255. PATRONAGE CAPITAL CREDIT RETIREMENTS -301,371. PATRONAGE CAPITAL ASSIGNABLE 5,373,075. GAIN ON RETIREMENT OF ESTATE CAPITAL CREDITS -144,030. 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. ADDITIONALLY, AS A RESULT OF A FEDERAL AWARD, THE ORGANIZATION WAS REQUIRED AND UNDERWENT AN AUDIT AS SET FORTH IN THE SINGLE AUDIT ACT AND OMB CIRCULAR A-133 FOR THE 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