2011-11-08T15:26:16-06:00 2010-12-31 BOLINGER SEGARS GILBERT & MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2010-01-01 730431276 RURAL ELECTRIC COOPERATIVE INC RURA 4057563104 PO Box 609 LINDSAY OK 730520609 DALE NYE 4057563104 2011-10-31 1 Matt R Willis 8067473806 2011-10-31 2010 2016-03-07 17:11:31Z DALE NYE PO Box 609 LINDSAY OK 730520609 28713419 0 X WWW.RECOK.COOP X 1938 OK TO PROVIDE ELECTRIC POWER TO MEMBERS AT COST ON A COOPERATIVE BASIS. 9 8 52 0 0 0 0 0 26895800 28591360 67429 73481 90993 46529 27054222 28711370 0 6178 0 0 3579925 4092408 0 0 0 22162315 23065449 25742240 27164035 1311982 1547335 49837980 51926025 27370463 27214494 22467517 24711531 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 POWER TO OUR MEMBERS - 10,749 ACTIVE SERVICES WERE PROVIDED ELECTRIC POWER ON A COOPERATIVE BASIS AT YEAR END THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 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 48 0 52 1 0 0 0 0 0 27674964 145465 0 X 9 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 0 1 1 1 1 0 OK X LINDA RAY CHIEF FINANCIAL OFFICER 4057563104 801 N INDUSTRIAL HEIGHTS LINDSAY OK 73052 GARY JONES 6.10 X X 27725 0 0 CHARLES CRAWFORD 5.40 X X 28416 0 0 JOHNNY HARREL 4.50 X X 27099 0 0 RAY ANTHONY 5.90 X 27442 0 0 BRENT BACON 8.20 X 30959 0 0 SCOTT CHRISTIAN 11.10 X 35326 0 0 DARREL COLE 4.60 X 23797 0 0 MELTON JORDAN JR 4.10 X 27353 0 0 MERLENE RUST 5.60 X 28401 0 0 DALE NYE 50.00 X 157410 0 59746 LINDA RAY 30.00 X 104015 0 27803 517943 0 87549 2 0 1 0 MARK'S ELECTRIC CONSTRUCTION INC PO BOX 646 PAULS VALLEY OK 73075 LINE CONSTRUCTION 625968 J&L UTILITY SERVICE PO BOX 817 EDGEWOOD TX 75117 LINE CONSTRUCTION 492510 WRIGHT TREE SERVICES INC PO BOX 1718 DES MOINES IA 50306 RIGHT OF WAY 410038 NORTHEAST RURAL SERVICES INC PO BOX 399 VINITA OK 74301 SPRAYING 211934 OSMOSE UTILITIES SERVICES INC PO BOX 8000 BUFFALO NY 14267 POLE TREATMENT 158816 7 ELECTRIC SALES 221000 27366982 27366982 PATRONAGE DIVIDENDS 221000 1224378 1224378 28591360 61481 61481 2936 31479 2936 31479 34415 34415 12000 12000 12000 12000 435 2049 -1614 -1614 CONTRACT WORK REVENUE 221000 9319 9319 INCOME FROM NON-UTILIT 221000 4409 4409 13728 28711370 28589746 0 121624 6178 605492 1911546 666394 754541 154435 1214479 1577897 COST OF PURCHASED POWER 17139271 ADMIN & GENERAL EXPENSE 1370286 DISTRIBUTION EXPENSES 924697 OTHER TAXES 650677 CUSTOMER ACCOUNTS 180117 8025 27164035 40487 109688 41 5041 1769332 1921050 1384673 1041062 209181 235534 23066 1814 55130806 19066975 35033361 36063831 9111513 10257826 2266326 2290179 49837980 51926025 1658149 1678323 779620 609111 19133892 19791668 5798802 5135392 27370463 27214494 X 37800 37940 0 0 22429717 24673591 22467517 24711531 49837980 51926025 X 1547335 696679 X X 0 1 1 X 1 1 482225 482225 1955538 1116849 838689 52170986 17950126 34220860 522057 522057 36063831 CFC - CAPITAL TERM CERTIFICATES 1105658 C MEMBERSHIPS 1100 C PATRONAGE CAPITAL - WESTERN FARMERS G&T 8451710 C PATRONAGE CAPITAL - NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 470729 C PATRONAGE CAPITAL - FEDERATED INSURANCE 92022 C PATRONAGE CAPITAL - ARKANSAS ELECTRIC 70991 C PATRONAGE CAPITAL - NISC 55616 C COMMON STOCK - REC SERVICES, INC. 10000 C 10257826 OTHER ACCRUED LIABILITIES 199730 CONSUMER DEPOSITS 360540 ACCRUED TAXES 126355 ACCRUED EMPLOYEE COMPENSATED ABSENCES 512618 ACCUMULATED PROVISION - PENSION & BENEFITS 3697389 ACCUMULATED LOSS - REC SERVICES, INC. 238760 5135392 Description of Uncertain Tax Positions Under FIN 48: Part X: ON JANUARY 1, 2009, 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. 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. 0 X Other Information: Part IV: 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 X X 0 0 0 DALE NYE 129210 0 5850 0 22350 0 39840 0 19906 0 217156 0 0 0 Supplemental Information Part III 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. DALE E NYE ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 33,390 401(K) EMPLOYER MATCH 6,450 TOTAL COLUMN C: 39,840 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (33,390) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 38,790 TOTAL COOPERATIVE CASH CONTRIBUTION $ 45,240 WESTERN FARMERS ELECTRIC COOPERATIVE THE BOARD PRESIDENT IS A MEMBER ON WESTERN FARMERS BOARD. 17139271 THE COOPERATIVE PURCHASES ELECTRIC POWER FROM WESTERN FARMERS ELECTRIC COOPERATIVE. 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. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; 2. THE DISSOLUTION/LIQUIDATION OF THE COOPERATIVE; AND 3. THE MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION. 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 IMMEDIATELY BEFORE THE FILING OF THE FORM 990. Form 990, Part VI, Section B, line 15 THE BOARD OF DIRECTORS AND A COMPENSATION COMMITTEE USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN OKLAHOMA AND THE NATION. THE GENERAL MANAGER USES A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND KEY EMPLOYEES, IF ANY. THE SURVEY INCLUDES SALARIES FROM SIMILARLY SITUATED COOPERATIVES THROUGHOUT OKLAHOMA AND THE NATION. Form 990, Part VI, Section C, line 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLIT OF INTEREST POLICY, AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ANNUALLY THE COOPERATIVE DISTRIBUTES A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. A COPY OF THE BY-LAWS IS PROVIDED TO ALL NEW MEMBERS, AND ANY BY-LAWS REVISIONS ARE HANDED OUT AT THE ANNUAL MEETING. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: NET INCREASE IN MEMBERSHIPS 140. RETIREMENT OF PATRONAGE CAPITAL -187,655. EQUITY METHOD INCOME IN SUBSIDIARY 184,991. OTHER COMPREHENSIVE INCOME- PROVISION FOR PENSIONS & BENEFITS 678,668. DONATED CAPITAL 20,535. Total to Form 990, Part XI, Line 5: 696,679. AUDIT COMMITTEE Form 990, Part XII, Line 2C THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE ANNUAL AUDIT AND HELP SELECT THE CPA FIRM WHO WILL PERFORM THE AUDIT. ACCOUNTING SYSTEM 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. PATRONAGE DIVIDENDS 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. RECONCILIATION OF WAGES PER RETURN TO FORM W-3 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 W-3 THE FOLLOWING RECONCILIATION IS PROVIDED. TOTAL PER LINES 5-7 $ 2,517,038 LESS DIRECTORS FEES REPORTED ON 1099-MISC (256,518) PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 946,089 LESS EMPLOYER OFFICER BENEFITS INCLUDED IN LINE 5 (87,549) RECONCILIATION TO W-3 $ 3,119,060 TO PROVIDE DETAIL REGARDING OFFICER BENEFITS 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. 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, LONG-TERM DISABILITY AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICER EMPLOYEES, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER IS COMPROMISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER. 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. BREAKDOWN OF EXPENSES INCLUDED IN ADMINISTRATIVE AND GENERAL 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 ACCOUNTING $ 195,646 INFORMATION TECHNOLOGY 65,757 MANAGEMENT FUNCTIONS 154,648 CREDIT UNION FEES 1,160 OFFICE AND SUPPLIES 182,837 OUTSIDE SERVICES 62,299 PROPERTY INSURANCE 20,391 INJURIES & DAMAGES 89,963 SAFETY & JOB TRAINING DUES 14,377 ADVERTISING 6,851 MEETING EXPENSE 89,667 CAPITAL CREDITS 6,590 DIRECTOR EXPENSES 304,852 MAINTENANCE OF GENERAL PLANT 76,424 MISCELLANEOUS ADMINISTRATIVE AND GENERAL 98,824 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $1,370,286 INDEPENDENT DIRECTORS Form 990, Part VI, Line 1B GARY JONES PER IRS FORM 990 INSTRUCTIONS IS NOT AN INDEPENDENT DIRECTOR BECAUSE HE IS ON THE BOARD OF WESTERN FARMERS ELECTRIC COOPERATIVE. THE COOPERATIVE PURCHASES ITS ELECTRIC ENERGY FROM WESTERN FARMERS. THE COOPERATIVE IS A MEMBER OF WESTERN FARMERS, AS SUCH MR. JONES IS THE COOPERATIVE'S REPRESENTATIVE ON WESTERN FARMERS'S BOARD. MR. JONES HAS NO OWNERSHIP INTEREST IN WESTERN FARMERS AND RECEIVES NO DIRECT OR INDIRECT BENEFIT FROM THE COOPERATIVE DOING BUSINESS WITH WESTERN FARMERS. REC SERVICES INC PO BOX 609 LINDSAY OK 73052 731370914 PROPANE DISTRIBUTION OK N/A C 400288 694430 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 REC SERVICES INC R 188286 CASH RECEIPTS