2016-11-04T11:50:39-05:00 2015-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2015-01-01 740620793 FAYETTE ELECTRIC COOPERATIVE INC FAYE 9799683181 DRAWER 490 LA GRANGE TX 78945 GARY DON NIETSCHE GENERAL MANAGER 9799683181 2016-10-28 1 Matt R Willis P00419741 8067473806 2016-10-28 X 2015 2017-02-10 21:41:12Z GARY DON NIETSCHE DRAWER 490 LA GRANGE TX 78945 32543259 0 X WWW.FAYETTEELECTRICCOOP.COM X 1939 TX TO PROVIDE RELIABLE, COST EFFECTIVE ELECTRIC SERVICE TO OUR MEMBERS/OWNERS. 7 7 44 0 136 0 0 0 32739925 32501513 22180 23646 6095 5058 32768200 32530217 13176 13145 2032011 2438344 2617764 2913368 0 0 0 28105249 27165360 32768200 32530217 0 0 77218836 78966327 44155339 45045835 33063497 33920492 IT IS THE MISSION OF FAYETTE ELECTRIC COOPERATIVE, INC. TO PROVIDE RELIABLE, COST EFFECTIVE SERVICE TO OUR MEMBERS/OWNERS WHILE SUPPORTING THE COMMUNITIES IN WHICH WE OPERATE. 0 0 SALE OF ELECTRIC ENERGY TO MEMBERS - 14,215 METERS SERVICES WERE PROVIDED POWER AT YEAR END AT COST ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 0 1 0 1 0 0 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 0 0 0 1 19 0 44 1 1 1 0 0 0 0 33242623 468983 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 GARY DON NIETSCHE 9799683181 357 N WASHINGTON ST LA GRANGE TX 78945 X DAVID G LEHMANN PRESIDENT 3.87 X X 18541 0 0 JOSEPH D KRUPPA VICE-PRESIDENT 5.90 X X 19536 0 0 BILL BRISCOE SECRETARY/TREASURER 2.50 X X 17686 0 0 DAVID A STANCIK DIRECTOR 6.04 X 19136 0 0 JOHN C IVY DIRECTOR 1.11 X 17136 0 0 LEO C HENKE JR DIRECTOR 6.23 X 18936 0 0 GALE LINCKE DIRECTOR 3.75 X 18136 0 0 GARY DON NIETSCHE GENERAL MANAGER 60.00 X 130623 0 75527 LEONARD A ZBRANEK ENGINEERING SUPERVISOR 40.00 X 101059 0 43916 360789 0 119443 2 0 1 0 MCCOY TREE SURGERY COMPANY PO BOX 720342 NORMAN OK 73072 TREE TRIMMING CONTRACTOR 851458 SENDERO POWER LINE CONSTRUCTION PO BOX 2209 VICTORIA TX 77905 POWER LINE CONSTRUCTION 818642 LINE TECH 402 TECHNOLOGY DRIVE BASTROP TX 78602 POWER LINE CONSTRUCTION 289067 SCHNEIDER ENGINEERING INC 191 MENGER SPRINGS PARKWAY BOERNE TX 78006 ENGINEERING SERVICES 161652 DIG TECH 402 TECHNOLOGY DRIVE BASTROP TX 78602 UNDERGROUND INSTALLATIONS 104871 5 X ELECTRIC ENERGY SALES 221000 32003519 32003519 PATRONAGE DIVIDENDS 221000 412121 412121 SERVICE FEES 221000 56410 56410 OTHER PROGRAM REVENUE 221000 29463 29463 32501513 23646 23646 572 0 572 572 572 13218 13042 176 40 136 JOINT POLE RENTAL INCOME 221000 4310 4310 4310 32530217 32502125 136 27956 X 13145 2438344 335257 1554875 193742 693355 136139 2004020 2609063 PURCHASED POWER 19534834 DISTRIBUTION EXPENSE 1912003 ADMIN & GENERAL 729173 CONSUMER ACCOUNT EXPENS 368530 7737 32530217 X 47586 0 2477160 2538642 1641811 1497610 6802015 7316440 82434723 17824354 63432489 64610369 2350501 2459445 467274 543821 77218836 78966327 4302259 2934181 10535 5871 36867310 37741540 2975235 4364243 44155339 45045835 X 169940 177385 0 0 32893557 33743107 33063497 33920492 77218836 78966327 X 0 856995 X X 0 1 X 1 0 0 1 X 216000 216000 1905422 511390 1394032 79138475 17312964 61825511 1174826 1174826 64610369 CONSUMER DEPOSITS 385496 REFUNDABLE AID TO CONSTRUCTION 1243390 DEFERRED CREDIT 1813472 PATRONAGE CAPITAL PAYABLE 921885 4364243 X 32530217 0 32530217 0 32530217 30091873 0 30091873 2438344 2438344 32530217 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. 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 THEIR TAX POSITIONS WILL BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS),AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. SCHEDULE D Part VIII: THE AMOUNT OF INVESTMENTS - PROGRAM RELATED 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% 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 FAYETTE COMMUNITY FOUNDATION PO BOX 430 LA GRANGE TX 789450430 742997477 501(C)(3) 5200 DONATION TO A COMMUNITY FUND WHOSE DOLLARS SUPPORT ACTIVITIES IN THE COOPERATIVE'S SERVICE AREA. 1 FORM 990, SCHEDULE I, 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 0 0 0 GARY DON NIETSCHE GENERAL MANAGER 126869 0 152 0 3602 0 46725 0 28802 0 206150 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, 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. GARY DON NIETSCHE: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 46,725 TOTAL REPORTED IN COLUMN C 46,725 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN (46,725) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN 21,468 EXPENSE TO THE COOPERATIVE $ 21,468 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 FROM TIME TO TIME THE ENTIRE BOARD WILL GO INTO EXECUTIVE SESSION FOR DISCUSSING ITEMS OF A SENSITIVE AND CONFIDENTIAL NATURE. WHEN THIS OCCURS MANAGEMENT AND OTHERS IN ATTENDANCE ARE REMOVED FROM THE MEETING ROOM. ITEMS DISCUSSED IN EXECUTIVE SESSION ARE NOT DOCUMENTED. HOWEVER, ACTIONS TAKEN BY THE BOARD AFTER EXECUTIVE SESSIONS ARE ADJOURNED ARE FULLY DOCUMENTED IN THE WRITTEN MINUTES. Form 990, Part VI, Section B, line 11 MANAGEMENT PRESENTED A COPY OF THE FORM 990 TO 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 12c THE BOARD MUST ANNUALLY DISCLOSE, SIGN AND ATTEST TO ANY CONFLICT OF INTERESTS BETWEEN SUCH BOARD MEMBER AND THE COOPERATIVE. THE COOPERATIVE'S BYLAWS ADDRESS HOW A BOARD MEMBER WOULD BE IN CONFLICT IF SUCH BOARD MEMBER HOLDS A PUBLIC OFFICE FOR WHICH A SALARY IS PAID OR IS EMPLOYED BY OR FINANCIALLY INTERESTED IN A COMPETING BUSINESS OR ENTERPRISE FROM WHICH THE COOPERATIVE BUYS FROM OR SELLS TO. 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 OF SUCH POSITIONS FROM TEXAS AND THE NATION. THE BOARD OF DIRECTORS AND THE GENERAL MANAGER USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE OTHER OFFICERS AND KEY EMPLOYEES, IF ANY. THE SURVEY SHOWS COMPARATIVE SALARIES OF SUCH POSITIONS FROM TEXAS AND THE NATION. Form 990, Part VI, Section C, line 19 THE COOPERATIVE WILL PROVIDE A COMPLETE COPY OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. THE COOPERATIVE PROVIDES ANNUALLY A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE IN THE NOTICE OF ANNUAL MEETING MAILED TO ALL MEMBERS AND AT THE ANNUAL MEETING. FINALLY, THE BY-LAWS ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE. Form 990, Part VII, Column F THE ORGANIZATION 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 THE PLAN ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES (HCE'S), MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE ORGANIZATION ALSO PROVIDES HEALTH, DENTAL AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS AND HCE'S, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER AND HCE'S ARE COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN AND INSURANCE PAID ON BEHALF OF AND FOR BENEFIT OF THE OFFICER AND HCE'S. Form 990, Part VII THE BOARD OF DIRECTORS CONSIDERS THE GENERAL MANAGER TO BE BOTH THE TOP MANAGEMENT OFFICIAL AND THE TOP FINANCIAL OFFICIAL. THEREFORE, ONLY THE GENERAL MANAGER IS LISTED AS AN EMPLOYEE OFFICER. Form 990, Part VIII, Line 2B 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 ELECTRIC SERVICE PROVIDED BY THE ORGANIZATION 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 UTILITIES MODIFIED FOR ELECTRIC BORROWERS OF THE NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION (CFC). THE UNIFORM SYSTEM OF ACCOUNTS 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 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. THE FOLLOWING SCHEDULE RECONCILES AMOUNTS REPORTED ON LINES 5-7 TO TOTAL WAGES ACCRUED AND/OR PAID: TOTAL PER LINES 5-7 $ 1,890,132 LESS DIRECTORS FEES REPORTED ON 1099-MISC (129,107) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (75,527) PLUS SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 719 PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 551,005 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 202,691 TOTAL WAGES ACCRUED AND/OR PAID $ 2,439,913 Form 990, Part IX, Line 24 ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: OFFICE SUPPLIES AND EXPENSE $ 202,694 OUTSIDE SERVICES EMPLOYED 87,768 INJURIES AND DAMAGES 22,251 CHRISTMAS BONUS AND SVC AWARDS 12,216 REGULATORY COMMISSION 52,914 ASSOCIATE MEMBER DUES 51,478 DIRECTOR EXPENSE 22,540 MAINTENANCE OF GENERAL PLANT 164,495 MISCELLANEOUS ADMINISTRATIVE AND GENERAL 112,817 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 729,173 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 THE AMOUNT OF PATRONAGE CAPITAL THAT IS EITHER ALLOCATED OR TO BE ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2015 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 X, Lines 17 and 25 THE COOPERATIVE PREVIOUSLY INCLUDED ACCRUED EXPENSES COMPRISED OF (1) ACCRUED EMPLOYEE COMPENSATED ABSENCES, (2) ACCRUED TAXES, (3) ACCRUED INTEREST AND (4) ACCRUED PAYROLL AS COMPONENTS OF OTHER LIABILITIES ON LINE 25 OF PART X. HOWEVER, FOR THE 2015 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS ON LINE 17. TO INCREASE CONSISTENCY, ACCRUED EXPENSES IN THE AMOUNT OF $658,908 FOR THE 2014 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 25 TO LINE 17. Form 990, Part XI, line 9: NET CHANGE IN MEMBERSHIP EQUITIES 7,445. RETIREMENT OF PATRONAGE CAPITAL -1,588,794. PATRONAGE CAPITAL ASSIGNABLE 2,438,344. FORM 990, PART XII, LINE 2C THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE ANNUAL FINANCIAL STATEMENT AUDIT AND TO HELP SELECT THE INDEPENDENT AUDITOR WHO WILL PERFORM THE AUDIT. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR.