2011-11-14T10:54:15-06:00 2010-12-31 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2010-01-01 750405473 LYNTEGAR ELECTRIC COOPERATIVE INC LYNT 8065614588 PO BOX 970 TAHOKA TX 79373 GREG HENLEY 8065614588 2011-11-11 1 WILLIAM M MILLER 8067473806 2011-11-11 2010 2016-02-24 21:20:13Z GREG HENLEY PO BOX 970 TAHOKA TX 79373 91167537 0 X WWW.LYNTEGAR.COOP X 1938 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 7 7 129 0 -182044 -213191 0 0 58377225 64214263 -2025850 1253966 -121584 -186403 56229791 65281826 0 0 0 0 6356642 6779235 0 0 0 47675724 51893749 54032366 58672984 2197425 6608842 156013797 166998216 78512979 83549223 77500818 83448993 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 - 21,685 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 1 0 1 1 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 36 0 129 1 1 1 0 0 0 0 58619053 2765596 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X RAY BOX CFO 8065614588 1807 MAIN STREET TAHOKA TX 79373 X EARL J BROWN JR 6.20 X X 17347 0 0 LEONARD NETTLES 7.10 X X 17811 0 0 BILLY WEAVER 6.40 X X 17646 0 0 RICKY DAY 2.00 X 18021 0 0 BENJAMIN FRANKLIN 2.00 X 17821 0 0 WAYNE T HOWARD 2.30 X 16111 0 0 HR BARRON 1.70 X 18021 0 0 GREG HENLEY 45.00 X 130654 0 36780 RAY BOX 45.00 X 105732 0 30744 GLENN ANDERSON 40.00 X 107990 0 25356 WILTON J PAYNE X 390376 0 0 857530 0 92880 3 1 1 0 JENKINS ELECTRIC SERVICE INC PO BOX 236 POST TX 79356 LINE MAINTENANCE & CONSTRUCTION 533529 GILL ELECTRIC SERVICE LTD 1201 RR AVE SEAGRAVES TX 79359 LINE MAINTENANCE & CONSTRUCTION 205289 2 ELECTRICITY SALES 221000 58256857 58256857 PATRONAGE DIVIDENDS 221000 5957406 5835696 121710 64214263 1127050 1127050 15552 16323 6411 9141 16323 25464 12771 12693 24900723 24773807 126916 126916 6259 120657 837277 1105493 -268216 -268216 OTHER PASS-THRU INVEST 523000 56349 -41797 98146 56349 65281826 64105324 -182044 1358546 426688 4201013 368677 1430328 352529 3569978 4533827 PURCHASED POWER 39448433 DISTRIBUTION EXPENSE 2323155 ADMIN. & GENERAL 1348243 CUSTOMER SERVICE 221947 448166 58672984 497323 469353 1131086 1006784 2592319 4255209 2043098 1920833 706328 660560 135220224 42008811 89357408 93211413 25666507 26400899 33367547 38475971 652181 597194 156013797 166998216 3652089 3742915 131934 177486 69283265 73973991 5445691 5654831 78512979 83549223 X 27145 26790 0 0 77473673 83422203 77500818 83448993 156013797 166998216 X 6608842 -660667 X X 0 1 0 X 1 1 0 1 150679 150679 1668885 934166 734719 132625145 41074645 91550500 775515 775515 93211413 COMMON STOCKS 10112141 F U.S. GOVERNMENT AGENCY SECURITIES 11883006 F ALTERNATIVE INVESTMENTS 4405752 F 26400899 PATRONAGE CAPITAL - NRCFC 1096716 C PATRONAGE CAPITAL - NATIONAL INFORMATION SOLUTIONS COOPERATIVE 1325 C PATRONAGE CAPITAL - NRTC 308145 C PATRONAGE CAPITAL - TEXAS ELECTRIC COOPERATIVE INC 650987 C PATRONAGE CAPITAL - GOLDEN SPREAD ELECTRIC COOPERATIVE INC 23468512 C PATRONAGE CAPITAL - OTHER 1458 C CONTRIBUTED CAPITAL - GOLDEN SPREAD ELECTRIC COOPERATIVE INC 5196730 C CAPITAL TERM CERTIFICATES - CFC 2749938 C MEMBER CAPITAL SECURITIES - CFC 5000000 C OTHER INVESTMENTS - MEMBERSHIPS 2160 C 38475971 POST RETIREMENT MEDICAL AND LIFE INSURANCE BENEFITS 1242900 UNAMORTIZED GAIN ON REACQUIRED DEBT 618354 UNCLAIMED PATRONAGE CAPITAL 648938 PREPAID AID TO CONSTRUCTION 323071 OTHER DEFERRED CREDITS 72699 ACCRUED TAXES 338749 ACCRUED INTEREST 285940 ACCRUED EMPLOYEE COMPENSATED ABSENCES 2066689 OTHER ACCRUED EXPENSES 57491 5654831 Part IV, Line 2b: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. 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 RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. 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. ALSO PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED AN ENERGY EFFICIENCY ASSISTANCE FUND WITH RETIREMENTS OF PATRONAGE CAPITAL, WHICH HAVE REMAINED UNCLAIMED FOR A PERIOD OF THREE YEARS. THE AMOUNTS DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE APPROVED BY THE STATE OF TEXAS AND CAN ONLY BE USED TO ASSIST MEMBERS OF AN ELECTRIC COOPERATIVE IN REDUCING THEIR ENERGY CONSUMPTION AND ELECTRICITY BILLS. ANY AMOUNTS SO DEPOSITED INTO THE ENERGY EFFICIENCY ASSISTANCE FUND ARE STILL PAYABLE TO THE PERSON TO WHOM THE ORIGINAL PAYMENT WAS MADE BUT UNCLAIMED. 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 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. X X 0 0 0 GREG HENLEY 127104 0 1834 0 1716 0 8232 0 28548 0 167434 0 0 0 WILTON J PAYNE 0 0 0 0 390376 0 0 0 0 0 390376 0 0 0 Supplemental Information Part III WILTON J PAYNE SERVED AS THE GENERAL MANAGER FOR THE COOPERATIVE DURING 2009. THE RENUMERATION MR. PAYNE RECEIVED DURING 2010 WAS A PAYOUT OF HIS ACCRUED SICK LEAVE AND VACATION. 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. 4. AMENDMENT TO THE ARTICLES OF INCORPORATION. Form 990, Part VI, Section B, line 11 THE FORM 990 WAS DISCUSSED AND REVIEWED BY THE BOARD AT THE FIRST BOARD MEETING OCCURING SUBSEQUENT TO THE DATE WHEN THE FORM 990 WAS FILED. Form 990, Part VI, Section B, line 12c ON AN ANNUAL BASIS, THE COOPERATIVE WILL REQUIRE THE BOARD OF DIRECTORS AND OFFICERS TO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. BOARD 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 USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE BOARD AND THE GENERAL MANAGER USE 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 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 BY-LAWS 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 VI, Section A, Line 1: THE BOARD OF DIRECTORS IS COMPRISED OF 7 VOTING MEMBERS. HOWEVER THE BOARD PRESIDENT VOTES ONLY IN THE CASE OF A TIE. TO PROVIDE DETAIL REGARDING OFFICER'S OTHER COMPENSATION 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 10% OF A PARTICIPATING EMPLOYEE'S SALARY. EMPLOYER CONTRIBUTIONS TO THIS PLAN ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS IS COMPRISED OF 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 PER PERSON OF THESE BENEFITS HAS NOT BEEN ESTIMATED. PATRONAGE DIVIDENDS 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. 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. 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. 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 $4,627,701 LESS DIRECTORS FEES REPORTED ON 1099-MISC (122,778) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (67,524) PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 123,228 PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 2,659,419 RECONCILIATION TO W-3 $7,220,046 BREAKDOWN OF EXPENSES INCLUDED IN ADMINISTRATIVE AND GENERAL Form 990, Part IX, Lines 5-7 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 $386,096 OUTSIDE SERVICES EMPLOYED 86,510 INJURIES AND DAMAGES 93,627 REGULATORY COMMISSION EXPENSE 104,402 DIRECTOR'S EXPENSES 20,750 DUES PAID ASSOCIATED ORGANIZATIONS 78,022 ANNUAL MEETING 70,364 GENERAL ADVERTISING 74,276 MAINTENANCE OF GENERAL PLANT 295,515 MISCELLANEOUS GENERAL EXPENSE 138,681 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $1,348,243 TO PROVIDE DETAIL REGARDING OTHER EXPENSES FORM 990, PART IX, LINE 24F THE FOLLOWING IS A BREAKDOWN OF THE EXPENSES REPORTED AS OTHER EXPENSES ON FORM 990, PART IX, LINE 24F. SALES EXPENSE $197,206 BROKERAGE FEES ON INVESTMENTS 197,069 BOND AMORTIZATION FROM INVESTMENTS 1,364 FOREIGN TAX PAID ON INVESTMENTS 7,936 TRANSMISSION EXPENSE 6,306 SATELLITE AND INTERNET EXPENSES ADMINISTRATIVE EXPENSES 1,507 ADVERTISING AND PROMOTION 18,927 BAD DEBT EXPENSE 9,240 PROFESSIONAL FEES 3,300 OFFICE SUPPLIES 5,311 38,285 TOTAL OTHER EXPENSES PER FORM 990 LINE 24F $447,660 Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: OTHER COMPREHENSIVE INCOME - NET UNREALIZED GAINS ON INVESTMENTS 1,072,000. PATRONAGE CAPITAL RETIREMENTS -1,588,047. NET DECREASE IN MEMBERSHIPS -355. OTHER COMPREHENSIVE INCOME - PROVISION FOR POST RETIREMENT HEALTH BENEFITS -59,100. BOOK/TAX DIFFERENCE ON OTHER INVESTMENT INCOME -85,165. Total to Form 990, Part XI, Line 5: -660,667. AUDIT COMMITTEE 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. LEC DEVELOPMENT LLC PO BOX 970 TAHOKA TX 79373 752452483 SATELLITE TV & INTERNET & INVESTMENTS TX 590872 27939445 N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA