2011-10-25T16:00:47-05:00 2010-12-31 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2010-01-01 880089964 VALLEY ELECTRIC ASSOCIATION INC VALL 7757275312 PO BOX 237 PAHRUMP NV 89041 TOM HUSTED 7757275312 2011-10-18 1 Matt R Willis 8067473806 2011-10-14 2010 2016-03-07 17:11:31Z TOM HUSTED PO BOX 237 PAHRUMP NV 89041 53834023 0 X WWW.VEA.COOP X 1965 NV TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 6 6 110 0 221272 0 0 0 49864959 51993734 25121 26070 128239 39928 50018319 52059732 0 83568 0 0 9890652 7130376 0 0 0 44051478 42131159 53942130 49345103 -3923811 2714629 153175143 165733580 113874436 125117816 39300707 40615764 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 - 20,625 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 107 0 110 1 1 1 0 0 0 0 54405794 786165 0 X 6 6 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 0 1 1 1 0 X MINDY MORROW 7757275312 800 E HWY 372 PAHRUMP NV 89048 X SHIELA RAU 9.20 X X 10400 0 0 DAVID DAWSON 5.70 X X 10400 0 0 JOHN MAURER 7.30 X X 10400 0 0 RICHARD JOHNSON 5.60 X X 10400 0 0 DAVID LOWE 9.60 X 10400 0 0 PETE GAZSY 9.80 X 10400 0 0 TOM HUSTED 60.00 X 241095 0 65901 MINDY MORROW 60.00 X 133864 0 54587 BRIAN FICKETT 60.00 X 37998 0 13438 RICK ECKERT 60.00 X 66434 0 21978 ROBERT SCARBOROUGH 40.00 X 185683 0 15735 HERBERT COCHRELL 40.00 X 165632 0 15735 BRENT FLAMING 50.00 X 151179 0 54108 TERRY STAGG 40.00 X 138585 0 15735 ANTHONY CIPOLLINI 43.00 X 136205 0 53454 1319075 0 310671 36 0 1 0 LASKOWSKI CONSTRUCTION PO BOX 6420 PAHRUMP NV 89041 SOLAR WATER HEATER INSTALLATIONS 747118 ELECTRICAL CONSULTANTS INC 3521 GABEL RD BILLINGS MT 59102 ELECTRICAL ENGINEERING 576855 NATIVE RESOUCES NEVADA 6420 CAMERON AVE SUITE 207 LAS VEGAS NV 89118 REPLANTING 283352 SOUTHERN NEVADA ENVIRONMENTAL STE 1 6295 MCLEOD DR LAS VEGAS NV 89120 BIOLOGICAL MONITORING 181910 PINNACLE DATA SYSTEMS PO BOX 102017 BIRMINGHAM AL 35210 BILL PRINTING/MAILING 150965 8 ELECTRIC ENERGY SALES 221000 51297460 51297460 PATRONAGE DIVIDENDS 221000 634914 600213 34701 WHEELING INCOME 221000 61360 61360 51993734 26070 26070 27985 83991 27985 83991 111976 9043 102933 1515672 1774291 -258619 -258619 SATELLITE INTERNET 519100 186299 186299 LONG DISTANCE SERVICE 517000 272 272 186571 52059732 51709457 221272 129003 33141 50427 697695 3342819 1155784 1532525 401553 4704680 3947309 PURCHASED POWER 27517018 DISTRIBUTION EXPENSE 3264375 ADMIN. & GENERAL EXP 933486 CUSTOMER SERVICE 724312 TRANSMISSION EXPENSE 693090 346889 49345103 8403769 1100000 2481074 2503131 51300 1507648 2048998 1780506 5154936 5208243 187376584 46030078 137063650 141346506 3119684 3436747 2155501 1547030 153175143 165733580 2912094 4619549 97936766 112234553 13025576 8263714 113874436 125117816 X 166850 165950 0 0 39133857 40449814 39300707 40615764 153175143 165733580 X 2714629 -1399572 X X 0 1 0 X 0 15000 15000 15000 0 ASSEMBLY DEMOCRATIC CAUCUS 2251 N RAMPART BLVD 341 LAS VEGAS NV 89128 880205213 1500 0 ASSEMBLY REPUBLICAN CAUCUS 7310 W SMOKE RANCH ROAD STE R LAS VEGAS NV 89128 880468267 1500 0 NEVADA SENATE DEMOCRATS 2251 N RAMPART BLVD 341 LAS VEGAS NV 89128 880316606 1500 0 SENATE REPUBLICAN LEADERSHIP CONFERENCE PO BOX 281 RENO NV 895040281 880468043 1500 0 MIKE SCHNEIDER CAMPAIGN 6381 SANDPIPER WAY LAS VEGAS NV 89103 880468055 1000 0 COMMITTEE TO ELECT MARCUS CONKLIN 1600 PALMAE LAS VEGAS NV 89128 383644220 1000 0 COMMITTEE TO ELECT DEBBIE SMITH 3270 WILMA DRIVE SPARKS NV 894311173 880467783 1000 0 COMMITTEE TO ELECT J OCEGUERA 4560 EL CAMPANA LAS VEGAS NV 89121 880467487 1000 0 FRIENDS FOR STEVEN HORSFORD 3450 W CHEYENNE AVE STE 100 NORTH LAS VEGAS NV 89032 651226240 1000 0 FRIENDS FOR MARILYN KIRKPATRICK 4747 SHOWDOWN DRIVE NORTH LAS VEGAS NV 89031 200990079 1000 0 FRIENDS OF H GANSERT 316 CALIFORNIA AVE 302 RENO NV 89509 743251121 1000 0 FRIENDS OF ED GOEDHART PO BOX 277 AMARGOSA VALLEY NV 89020 263000673 1500 0 FRIENDS OF DAVID BOBZIEN 1605 WESLEY DR RENO NV 895032332 272886033 500 0 Organizations Direct and Indirect Political Campaign Activities: Part I-A, Line 1: THE COOPERATIVE CONTRIBUTES FUNDS TO POLITICAL ACTION COMMITTEES (PAC'S) THAT SUPPORT CANDIDATES AND POLITICAL PARTIES WHO SUPPORT RURAL ELECTRIC COOPERATIVES. 4000769 4000769 6409736 2250058 4159678 156194555 43780020 112414535 20771524 20771524 141346506 BANK OVERDRAFT 899017 CONSUMER DEPOSITS 992788 DEFERRED CREDIT - CONSUMER ADVANCES FOR LINE CONSTRUCTION 412673 ACCUMULATED PROVISION FOR POST-RETIREMENT HEALTH BENEFITS 3736100 ACCRUED COMPENSATED ABSCENCES 651178 OTHER CURRENT AND ACCRUED LIABILITIES 307098 DEFERRED COMPENSATION 1264860 8263714 52059732 49345103 2714629 -1399572 -1399572 1315057 51919738 0 51919738 139994 139994 52059732 49205109 0 49205109 139994 139994 49345103 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 THEIR TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE, OR OTHER STATE TAXING AUTHORITY. Part XI, Line 8 - Other Adjustments: NET DECREASE IN MEMBERSHIPS -900. DISCOUNT FROM ESTATE RETIREMENTS 726,622. RETIREMENT OF CAPITAL CREDITS -2,326,494. OTHER COMPREHENSIVE INCOME ADJUSTMENT FOR POST-RETIREMENT BENEFITS 201,200. Part XII, Line 4b - Other Adjustments: EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 139,994. Part XIII, Line 4b - Other Adjustments: EXPENSES RECORDED IN NON-OPERATING MARGINS RECLASSED TO EXPENSES 139,994. Part VIII THE AMOUNT OF INVESTMENTS - PROGRAM RELATED ASSETS ON FORM 990, PAGE 11, PART X, LINE 13 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 VIII HAS BEEN LEFT BLANK 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 1 X TO ASSIST INDIVIDUALS IN NEED WITH THEIR ELECTRIC BILL 493 50427 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: INDIVIDUALS SEEKING ASSISTANCE WITH ELECTRIC BILLS MUST SUBMIT AN APPLICATION FORM TO THEIR LOCAL SOCIAL SERVICE AGENCY. APPLICANTS WILL BE ASKED THE FOLLOWING: A) WHAT ARE THE UNUSUAL CIRCUMSTANCES THAT REQUIRE YOU TO SEEK ASSISTANCE? B) IF YOU RECEIVE ASSISTANCE, WILL YOU BE ABLE TO KEEP CURRENT ON FUTURE UTILITY BILLS? C) DO YOU LIVE IN ANY FORM OF SUBSIDIZED HOUSING? D) HAVE YOU ENTERED INTO A BILL PAYMENT ARRANGEMENT WITH THE COOPERATIVE? E) HAVE YOU APPLIED FOR ASSISTANCE FROM ANY OTHER STATE OR FEDERAL LOW INCOME ENERGY ASSISTANCE PROGRAM BEFORE APPLYING HERE? FUNDS MAY BE USED TO PAY PAST DUE BILL OR RESTORE SERVICE IF SERVICE WAS TERMINATED. FUNDS MAY NOT BE USED FOR DEPOSITS, RETURNED CHECK FEES, DAMAGE CHARGES, ENERGY THEFT CHARGES, FINAL BILLS OR IRRIGATION AND GENERAL SERVICE ACCOUNTS. 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 1 1 X X 1 0 0 TOM HUSTED 226796 0 0 0 14299 0 46097 0 19804 0 306996 0 0 0 MINDY MORROW 110080 0 12692 0 11092 0 34311 0 20276 0 188451 0 0 0 ROBERT SCARBOROUGH 83533 0 0 0 102150 0 0 0 15735 0 201418 0 0 0 HERBERT COCHRELL 83314 0 0 0 82318 0 0 0 15735 0 181367 0 0 0 BRENT FLAMING 130339 0 3000 0 17840 0 38373 0 15735 0 205287 0 0 0 TERRY STAGG 97913 0 0 0 40672 0 0 0 15735 0 154320 0 0 0 ANTHONY CIPOLLINI 108938 0 3000 0 24267 0 31616 0 21838 0 189659 0 0 0 Part I, Line 4a DURING 2009, THE ASSOCIATION OFFERED A SPECIAL RETIREMENT PLAN (SERP) TO EMPLOYEES AGE 53 WITH 5 YEARS OF SERVICE TO THE ASSOCIATION. AS PART OF THE SERP, THE ASSOCIATION OFFERED TO PROVIDE POST-RETIREMENT MEDICAL BENEFITS TO THE EMPLOYEES. BELOW IS THE AMOUNT OF SERP COMPENSATION PAYMENTS MADE TO EACH EMPLOYEE LISTED ON SCHEDULE J PART II. HERBERT COCHRELL $83,314 ROBERT SCARBOROUGH $83,533 TERRY STAGG $97,913 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. TOM HUSTED ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $46,097 401(K) EMPLOYER MATCH -0- TOTAL COLUMN C: $46,097 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (46,097) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 77,648 TOTAL COOPERATIVE CASH CONTRIBUTION $77,648 MINDY MORROW ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $31,311 401(K) EMPLOYER MATCH 3,000 TOTAL COLUMN C: $34,311 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (31,311) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 34,804 TOTAL COOPERATIVE CASH CONTRIBUTION $37,804 BRENT FLAMING ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $35,373 401(K) EMPLOYER MATCH 3,000 TOTAL COLUMN C: $38,373 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (35,373) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 30,263 TOTAL COOPERATIVE CASH CONTRIBUTION $33,263 ANTHONY CIPOLLINI ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $28,616 401(K) EMPLOYER MATCH 3,000 TOTAL COLUMN C: $31,616 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (28,616) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 32,320 TOTAL COOPERATIVE CASH CONTRIBUTION $35,320 Part II Column B(III) Other Compensation INCLUDED IN COLUMN B (III) ARE DEFERRED COMPENSATION PAYMENTS RELATED TO THE POST-RETIREMENT HEALTH INSURANCE PLAN ADMENDMENT AND CURTAILMENT THE ASSOCIATION ENTERED INTO WITH CERTAIN EMPLOYEES. IN EXCHANGE FOR FOREGOING THEIR POST-RETIREMENT HEALTH INSURANCE BENEIFT, THE EMPLOYEES ARE ELIGIBLE FOR CASH PAYMENTS TO BE PAID IN 2008 THROUGH 2012, BASED ON YEARS OF SERVICE, ONGOING EMPLOYMENT AND OTHER FACTORS. BELOW IS THE AMOUNT OF DERFERRED COMPENSATION PAYMENTS MADE TO EACH EMPLOYEE LISTED ON SCHEDULE J PART II. TOM HUSTED $1,878 ROBERT SCARBOROUGH $90,925 HERBERT COCHRELL $40,661 BRENT FLAMING $14,607 TERRY STAGG -0- ANTHONY CIPOLLINI $18,780 Form 990, Part VI, Section A, line 4 THE COOPERATIVE'S BYLAWS WERE AMENDED ON APRIL 30, 2011, DURING THE 2011 ANNUAL MEETING OF THE FULL MEMBERSHIP OF THE COOPERATIVE. ARTICLE VI, SECTION 3 WAS AMENDED TO UPDATE THE LANGUAGE FOR CONSISTENCY BETWEEN HOW A BOARD OF DIRECTOR IS REMOVED AND ELECTED. ARTICLE VI, SECTION 10 WAS AMENDED TO CREATE CONSISTENCY WITH CURRENT BUSINESS PRACTICES WHERE THE COOPERATIVE PROVIDES FIDUCIARY AND FIDELITY INSURANCE FOR ITS DIRECTORS AND OFFICERS. ARTICLE VII, SECTION 2 WAS AMENDED TO ALLOW THE BOARD TO ELECT TO PROVIDE CAPITAL CREDIT RETIREMENT FOR A PORTION OF NEWER MEMBERS. OTHER CHANGES TO THE BYLAWS WERE MINOR TYPOGRAPHICAL, GRAMMATICAL, OR REVISIONARY CHANGES. 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. BYLAW AMENDMENTS. 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 FILING THE FORM 990. Form 990, Part VI, Section B, line 12c DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY. THE CONFLICT OF INTEREST POLICY IS EXPLAINED TO ALL NEW DIRECTORS COMING ON THE 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. BOARD MINUTES ARE NOTED WHEN A DIRECTOR HAS A CONFLICT OF INTEREST. 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 NEVADA 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 NEVADA 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. THE COOPERATIVE'S BYLAWS, ARTICLES OF INCORPORATION AND SEVERAL YEARS OF ANNUAL REPORTS ARE ALSO 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. 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 $3,000 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 HIGHLY COMPENSATED EMPLOYEES, 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 OFFICER OR HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER OR HIGHLY COMPENSATED EMPLOYEES, THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE INSURANCE PREMIUMS PAID FOR THE BENEFIT OF THE OFFICER OR HIGHLY COMPENSATED 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. PATRONAGE DIVIDENDS Form 990, Part VIII, Line 2 PATRONAGE DIVIDENDS 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 ELECTRIC UTILITIES. THE UNIFORM SYSTEM OF ACCOUNTS 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 $4,040,514 LESS DIRECTORS FEES REPORTED ON 1099-MISC (62,400) LESS OFFICERS BENEFITS INCLUDED IN LINE 5 (155,904) PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 12,681 PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 2,254,463 PLUS DEFERRED COMPENSATION RELATED TO POST-RETIREMENT PLAN 2,578,375 RECONCILIATION TO W-3 $8,667,729 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. OUTSIDE SERVICES EMPLOYED $221,139 OFFICE SUPPLIES AND EXPENSE 79,847 INSURANCE 45,498 GENERAL ADVERTISING 148,775 MEETINGS EXPENSE 84,281 MAINTENANCE OF GENERAL PLANT 48,967 MISCELLANEOUS GENERAL EXPENSE 304,979 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $933,486 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. SATELLITE INTERNET EXPENSES $140,086 SALES EXPENSE 205,955 OTHER DEDUCTIONS 848 TOTAL OTHER EXPENSES PER FORM 990 LINE 24F $346,889 Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: NET DECREASE IN MEMBERSHIPS -900. DISCOUNT FROM ESTATE RETIREMENTS 726,622. RETIREMENT OF CAPITAL CREDITS -2,326,494. OTHER COMPREHENSIVE INCOME ADJUSTMENT FOR POST-RETIREMENT BENEFITS 201,200. Total to Form 990, Part XI, Line 5: -1,399,572. AUDIT COMMITTEE Form 990, Part XII, Line 2c THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE FINANCIAL STATEMENT AUDIT AND SELECTING THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. VALLEY ELECTRIC TRANSMISSION ASSOCIATION LLC 800 E HIGHWAY 372 PAHRUMP NV 89041 274844226 TRANSMISSION OF ELECTRICITY. NV 0 0 VALLEY ELECTRIC ASSOCIATION INC VALLEY ELECTRIC CHARITABLE FOUNDATION 800 E HIGHWAY 372 PAHRUMP NV 89048 263157116 TO PROVIDE SCHOLARSHIPS AND GRANTS TO MEMBERS OF THE COOPERATIVE'S AREA. NV 501(c)(3) Line 7 NA 0 VEA PAC PO BOX 237 PAHRUMP NV 89041 274721243 LOBBYING AT STATE AND FEDERAL LEVELS FOR RURAL ELECTRIC COOPERATIVES. NV 527 NA 0 VALLEY ELECTRIC SATELLITE TV INC 800 E HWY 372 PAHRUMP NV 89041 880412804 CABLE TV SERVICE - DISSOLVED IN 2010 NV N/A C 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA