2020-11-11T08:11:10-06:00 2019-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2019-01-01 750597925 TAYLOR ELECTRIC COOPERATIVE INC TAYL 3257938500 PO BOX 250 MERKEL TX 79536 NANCY BRISCO CFO 3257938500 2020-11-08 1 WILLIAM M MILLER P00439459 8067473806 2020-11-08 X 65.182.80.152 2020-11-08 16:14:45 CS P 93747BBE803527A59C7AA0A113D32836965EB064 587A88673713A033F58E04FDF6801CBB1F7DD2F2 2019 2021-04-22 16:20:28Z RYAN BARTLETT PO BOX 250 MERKEL TX 79536 50524616 0 X WWW.TAYLORELECTRIC.COM X 1939 TX TO PROVIDE ELECTRIC POWER TO RURAL AREAS AT COST ON A COOPERATIVE BASIS. 7 7 98 0 47579 0 0 0 47245386 49987997 84959 183421 280733 249787 47611078 50421205 91286 98785 6017639 7822615 7161403 7413468 0 0 0 35718020 36662568 48988348 51997436 -1377270 -1576231 148877027 170362742 87626298 103861368 61250729 66501374 NONE 0 0 ELECTRIC DIVISION:PROVIDING ELECTRIC ENERGY TO OUR MEMBERS AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. THERE WERE 18,146 ACTIVE SERVICES AT YEAR END. FIBER INTERNET DIVISION:A SEPARATE DIVISION OF THE COOPERATIVE WAS CREATED TO PROVIDE FIBER INTERNET SERVICE TO ITS MEMBERS THROUGH THE CONSTRUCTION OF A FIBER OPTIC NETWORK. FIBER INTERNET SERVICES ARE PROVIDED TO MEMBERS ON A PATRONAGE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL TO THE EXTENT OF MARGINS FOR SUCH DIVISION. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 1 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 0 0 1 189 0 98 1 1 1 0 0 0 0 0 0 51191172 1711012 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X NANCY BRISCO CFO 3257938500 226 CR 287 MERKEL TX 79536 X RYAN BARTLETT PRESIDENT/CEO 54.00 X 278582 0 63716 NANCY BRISCO CFO 60.00 X 201127 0 74580 DAVID THOMAS CONSTRUCTION OPS MANAGER 40.00 X 127536 0 105452 KENNETH WELLS DIRECTOR OF BUSINESS DEV 40.00 X 129394 0 89811 WADE HATCH DIRECTOR OF ELECTRIC OPS 40.00 X 149641 0 57771 ROBERT STEPHENS WORKING FOREMAN 40.00 X 109527 0 54126 SEAN KRAUSE DIRECTOR OF ENGINEERING 40.00 X 115749 0 36446 RICHARD PETREE DIRECTOR 6.00 X 27000 0 0 CECIL DAVIS CHAIRMAN 2.00 X X 20000 0 0 LELAND ROBINSON VICE CHAIRMAN 2.00 X X 20000 0 0 DAVID MCFALL SECRETARY/TREASURER 5.00 X X 20000 0 0 GARLAND CARTER DIRECTOR 4.00 X 20000 0 0 KATHRYN RAINEY DIRECTOR 4.00 X 20000 0 0 GAYLA SIMMONS DIRECTOR 5.00 X 20000 0 0 1258556 0 481902 9 0 1 0 PRIMARY UTILITY SERVICES LLC 4231 CR 230 SNYDER TX 79549 CONSTRUCTION CONTRACTOR 4220971 ALPHA TECHNOLOGIES 3767 ALPHA WAY BELLINGHAM WA 98226 FIBER CONSTRUCTION CONTRACTOR 3592364 LOWER COLORADO RIVER AUTHORITY PO BOX 301142 DALLAS TX 75303 CONSTRUCTION CONTRACTORS 2659204 RE-CON COMPANY OF TEXAS 12 NE 52ND STREET OKLAHOMA CITY OK 73105 CONSTRUCTION CONTRACTORS 1301830 WAMPOLE-MILLER INC 301 ALAN WOOD RD CONSHOHOCKEN PA 19428 CONSTRUCTION CONTRACTORS 1251454 11 X SALES OF ELECTRICITY 221000 44211848 44211848 PATRONAGE DIVIDENDS 221000 5042150 5042150 FIBER INTERNET SERVICE REVENUE 221000 370762 339174 31588 SERVICE FEES 221000 353577 353577 TRANSMISSION ACCESS 221000 6738 6738 2922 2922 49987997 173311 173311 85679 28791 56888 56888 31918 24970 34541 24431 10110 10110 10110 21076 50189 -29113 -29113 POLE ATTACHMENT INCOME 221000 139599 139599 AIR EVAC REVENUE 524298 15991 15991 66422 66422 222012 50421205 50025636 47579 347990 X 98785 7822615 765005 4186027 1187843 945136 329457 4009170 5697311 PURCHASED POWER 21189594 ADMIN & GENERAL EXPENSE 2304315 DISTRIBUTION EXPENSE 1361662 CONSUMER EXPENSE 975948 1124568 51997436 5245383 2893048 4263861 4901130 2440 1770 2929028 2401494 176599455 49809211 106968686 126790244 29128681 32882010 338948 493046 148877027 170362742 4187537 4352527 107811 106445 73538507 91975432 9792443 7426964 87626298 103861368 X 113445 116685 151504 151504 60985780 66233185 61250729 66501374 148877027 170362742 X -1576231 6826876 X X 0 1 X 0 0 0 1 X 2083881 2083881 7626410 2633514 4992896 154505332 46983734 107521598 344796 12039036 191963 12191869 126790244 PATRONAGE CAPITAL - GSEC 25818199 C PATRONAGE CAPITAL - TEC 1040294 C PATRONAGE CAPITAL - NISC 56710 C PATRONAGE CAPITAL - CFC 3519424 C PATRONAGE CAPITAL - NRTC 4499 C PATRONAGE CAPITAL - SEDC 115270 C PATRONAGE CAPITAL - CRC 6296 C PATRONAGE CAPITAL - FEDERATED 71517 C PATRONAGE CAPITAL - OTHER 11311 C CASH SURRENDER VALUE OF EMPLOYEE INS 38490 C MEMBER CAPITAL SECURITIES 2200000 C 32882010 ACCRUED OPERATING TAXES 82300 CUSTOMER DEPOSITS 1071125 ACCUMULATED PROVISION FOR PENSIONS/BENEFITS 35961 DEFERRED CREDITS - UNCLAIMED CAPITAL CREDITS 912811 DEFERRED CREDITS - OTHER 101645 CUSTOMER ADVANCES FOR CONSTRUCTION 2444989 UNDERBILLED FUEL POWER 2778133 7426964 X 50164245 0 50164245 256960 256960 50421205 43917861 0 43917861 8079575 8079575 51997436 PART IV, LINE 2B: PURSUANT TO SECTION 74.3013 OF THE TEXAS PROPERTY CODE, THE COOPERATIVE HAS ESTABLISHED A RURAL SCHOLARSHIP FUND WITH AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. 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 AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. 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 AMOUNTS DESIGNATED UNCLAIMED UNDER STATE LAW. 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. 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 POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS), OR OTHER STATE TAXING AUTHORITY AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 256,960. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES RECLASSIFIED FROM NON-OPERATING MARGINS 256,960. PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 7,822,615. 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. PART XII, LINE 4B: FOR THE AUDITED FINANCIAL STATEMENTS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID OR ALLOCATED TO THE MEMBERS IS REPORTED AS AN INCREASE IN EQUITY AND NOT AS AN EXPENSE. THEREFORE, NET INCOME PER THE AUDITED FINANCIAL STATEMENTS IS REPORTED GROSS OF THE AMOUNT OF PATRONAGE DIVIDENDS THAT ARE EITHER ALLOCATED OR TO BE ALLOCATED AT THE TIME THE AUDITED FINANCIAL STATEMENTS ARE PREPARED. HOWEVER, BECAUSE THE ALLOCATION OF PATRONAGE DIVIDENDS IS ONE ASPECT OF HOW THE COOPERATIVE FULFILLS ITS TAX EXEMPT PURPOSE OF OPERATING ON A COOPERATIVE BASIS, THE AMOUNT OF PATRONAGE DIVIDENDS EITHER ALLOCATED OR TO BE ALLOCATED TO THE MEMBERS IS REPORTED ON FORM 990, PART IX, LINE 4 AS "BENEFITS PAID TO MEMBERS". PATRONAGE DIVIDENDS ARE ALLOCATED ON A PATRONAGE BASIS AND DONE SO PURSUANT TO A PRE-EXISTING OBLIGATION AS PROVIDED FOR IN THE "NON-PROFIT OPERATION" ARTICLE OF THE COOPERATIVE'S BYLAWS. 0 DISABILITY RESOURCES INC PO BOX 1880 ABILENE TX 79604 752157839 501(C)(3) 15500 CHARITABLE EVENT HENDRICK MEDICAL CENTER FOUNDATION 1900 PINE ST ABILENE TX 79601 237413284 501(C)(3) 10000 CHARITABLE EVENT BUTMAN METHODIST CAMP 158 CO RD 674 MERKEL TX 79536 751025501 501(C)(3) 5896 BOOK MATERIALS DONATION OF MATERIALS TO CAMP 3 PART II: ALL GRANTS, SPONSORSHIPS, AND/OR DONATIONS ARE MADE TO NON-PROFIT AND CIVIC ORGANIZATIONS THAT ARE LOCATED IN THE COOPERATIVE'S SERVICE AREA, AND ARE INTENDED TO IMPROVE THE COMMUNITIES IN WHICH OUR MEMBERS RESIDE. X 0 0 0 RYAN BARTLETT PRESIDENT/CEO 218763 0 57580 0 2239 0 36937 0 26779 0 342298 0 0 0 NANCY BRISCO CFO 158469 0 37580 0 5078 0 56721 0 17859 0 275707 0 0 0 DAVID THOMAS CONSTRUCTION OPS MANAGER 120847 0 5809 0 880 0 86336 0 19116 0 232988 0 0 0 KENNETH WELLS DIRECTOR OF BUSINESS DEV 114696 0 12136 0 2562 0 70623 0 19188 0 219205 0 0 0 WADE HATCH DIRECTOR OF ELECTRIC OPS 138232 0 9736 0 1673 0 38136 0 19635 0 207412 0 0 0 ROBERT STEPHENS WORKING FOREMAN 78007 0 31137 0 383 0 28494 0 25632 0 163653 0 0 0 SEAN KRAUSE DIRECTOR OF ENGINEERING 103342 0 11720 0 687 0 20874 0 15572 0 152195 0 0 0 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, YEARS OF SERVICE AND THE CURRENT INTEREST RATE ENVIRONMENT. 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 CONTRIBUTIONS TO THE PLAN IN LIEU OF THE ACTUARIAL INCREASE ARE EXPENSED IN THE FINANCIAL STATEMENTS. RYAN BARTLETT: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 25,737 EMPLOYER CONTRIBUTION TO 401(K) PLAN 11,200 TOTAL REPORTED IN COLUMN C $ 36,937 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (25,737) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 68,546 EXPENSE TO THE COOPERATIVE $ 79,746 NANCY BRISCO: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 48,723 EMPLOYER CONTRIBUTION TO 401(K) PLAN 7,998 TOTAL REPORTED IN COLUMN C $ 56,721 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (48,723) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 53,886 EXPENSE TO THE COOPERATIVE $ 61,884 DAVID THOMAS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 81,134 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,202 TOTAL REPORTED IN COLUMN C $ 86,336 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (81,134) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 41,745 EXPENSE TO THE COOPERATIVE $ 46,947 KENNETH WELLS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 65,411 EMPLOYER CONTRIBUTION TO 401(K) PLAN 5,212 TOTAL REPORTED IN COLUMN C $ 70,623 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (65,411) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 38,291 EXPENSE TO THE COOPERATIVE $ 43,503 WADE HATCH: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 32,060 EMPLOYER CONTRIBUTION TO 401(K) PLAN 6,076 TOTAL REPORTED IN COLUMN C $ 38,136 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (32,060) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,244 EXPENSE TO THE COOPERATIVE $ 46,320 ROBERT STEPHENS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 24,598 EMPLOYER CONTRIBUTION TO 401(K) PLAN 3,896 TOTAL REPORTED IN COLUMN C $ 28,494 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (24,598) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 27,702 EXPENSE TO THE COOPERATIVE $ 31,598 SEAN KRAUSE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 16,494 EMPLOYER CONTRIBUTION TO 401(K) PLAN 4,380 TOTAL REPORTED IN COLUMN C $ 20,874 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (16,494) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 40,620 EXPENSE TO THE COOPERATIVE $ 45,000 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 FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE HAS NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, THE QUESTION HAS BEEN ANSWERED "NO". FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO THE BOARD FOR DISCUSSION AND REVIEW 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 ALL NEW EMPLOYEES AND DIRECTORS ARE REQUIRED TO SIGN A CONFLICT OF INTEREST CERTIFICATION WHEN THEY BEGIN EMPLOYMENT WITH THE COOPERATIVE. ALL EMPLOYEES, DIRECTORS AND OFFICERS ARE REQUIRED TO REVIEW AND BE FAMILIAR WITH THE POLICIES OUTLINED IN THE COOPERATIVE'S CONFLICT OF INTEREST POLICY AND ARE REQUIRED TO DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY TO THE FULL BOARD OF DIRECTORS AS SOON AS POSSIBLE. THE PRESIDENT/CEO REGULARLY MONITORS AND ENFORCES THIS POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS UTILIZE INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION FOR THE PRESIDENT/CEO. THE PRESIDENT/CEO UTILIZES INTERNAL AND/OR EXTERNAL RESOURCES WHEN DETERMINING THE COMPENSATION OF THE ORGANIZATION'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER OR KEY EMPLOYEE, IF ANY. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE PROVIDES A SUMMARIZED COPY OF AUDITED FINANCIAL STATEMENTS TO THE MEMBERS OF THE COOPERATIVE AT THE ANNUAL MEETING. 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 ANY SUCH DOCUMENT. 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 AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE COOPERATIVE ALSO PROVIDES HEALTH AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES IS COMPRISED OF ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE TOTAL AMOUNT CONTRIBUTED BY THE COOPERATIVE TO THE DEFINED CONTRIBUTION 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 UNIFORM SYSTEM OF ACCOUNTS (USOA) AS PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION FOR CLASS A AND B ELECTRIC UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (CFC). THE USOA 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 USOA. 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 TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 4,951,032 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-MISC (147,000) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (138,296) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 98,414 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,396,323 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 636,633 TOTAL WAGES ACCRUED AND/OR PAID $ 6,797,106 FORM 990, PART IX, LINE 24E: OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: TAXES $ 102,736 SALES 656,631 FIBER INTERNET OPERATING 139,563 AIR EVAC 15,210 ELECTRICIAN & OTHER MISC. 210,428 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 1,124,568 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 PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2019 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 IX, LINE 24: ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 3,201,538 OFFICE SUPPLIES 519,950 OUTSIDE SERVICES 254,080 INJURIES AND DAMAGES 281,994 EMPLOYEE BENEFITS (70,000) REGULATORY COMMISSION 75,205 DIRECTORS 167,697 ANNUAL MEETING 200,455 MISCELLANEOUS GENERAL 395,135 MISCELLANEOUS FIBER 3,142 MAINTENANCE OF GENERAL PLANT 869,439 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 5,898,635 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (147,000) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (2,213,495) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (1,233,825) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,304,315 FORM 990, PART XI, LINE 9: PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 7,822,615. PATRONAGE CAPITAL RETIRED - TOTAL -998,979. NET CHANGE IN MEMBERSHIPS 3,240. 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. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. TAYLOR ELECTRIC TRUST PO BOX 250 MERKEL TX 79536 262612715 CHARITY TX 501(C)(3) LINE 10 TAYLOR ELECTRIC COOPERATIVE 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 TAYLOR ELECTRIC TRUST N N/A - LESS THAN $50,000 TAYLOR ELECTRIC TRUST O N/A - LESS THAN $50,000