2016-11-15T11:30:51-06:00 2015-12-31 750882037 BOLINGER SEGARS GILBERT AND MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2015-01-01 750405473 LYNTEGAR ELECTRIC COOPERATIVE INC LYNT 8065614588 PO BOX 970 TAHOKA TX 79373 GREG HENLEY CEO 8065614588 2016-11-10 1 Matt R Willis P00419741 8067473806 2016-11-10 X 2015 2017-02-10 21:41:12Z GREG HENLEY PO BOX 970 TAHOKA TX 79373 63672100 0 X WWW.LYNTEGAR.COOP X 1938 TX TO PROVIDE QUALITY AND RELIABLE ELECTRIC SERVICE TO MEMBERS OF THE COOPERATIVE. 7 6 122 0 145630 0 0 0 80346962 61409145 1337098 1436616 497008 532192 82181068 63377953 6374 4935 5256452 2869989 7002891 7729893 0 0 0 68545786 52073900 80811503 62678717 1369565 699236 212426314 226576725 105812304 119604094 106614010 106972631 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 - 22,392 ACTIVE SERVICES AT YEAR END WERE PROVIDED ELECTRICITY ON A COOPERATIVE BASIS THROUGH THE ALLOCATION OF PATRONAGE CAPITAL. 0 0 0 0 0 0 0 1 0 1 1 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 X 60 0 122 1 1 1 0 0 0 0 58255178 3484684 0 X 7 6 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X GREG HENLEY CEO 8065614588 1701 US HIGHWAY 87 TAHOKA TX 79373 X EARL J BROWN JR PRESIDENT 6.90 X X 29969 0 0 WAYNE T HOWARD VICE PRESIDENT 3.10 X X 21401 0 0 BILLY WEAVER SECRETARY-TREASURER 5.30 X X 27725 0 0 RICKY DAY DIRECTOR 2.90 X 20062 0 0 HR BARRON DIRECTOR 2.70 X 21653 0 0 BENJAMIN FRANKLIN DIRECTOR 3.00 X 19362 0 0 KEVIN MITCHELL DIRECTOR 2.80 X 19712 0 0 GREG HENLEY CEO 43.00 X 187064 0 53320 RAY BOX CFO 45.00 X 124291 0 41492 GLENN ANDERSON LINE DEPARTMENT MANAGER 40.00 X 121035 0 37347 WILLIAM ATEN MANAGER OF ENGINEERING 45.00 X 119014 0 39140 BARRY PITTMAN MANAGER MEMBER SERVICES 45.00 X 112065 0 38938 MENFORD R GANDY MANAGER OUTSIDE OPERATIONS 45.00 X 117545 0 36578 940898 0 246815 6 0 1 0 PLASKA PO BOX 7630 AMARILLO TX 79114 SUBSTATION CONSTRUCTION 3646877 BIG V CONSTRUCTION PO BOX 27 QUITAQUE TX 79255 LINE CONSTRUCTION 298855 HAVLAK INSPECTION PO BOX 33 GARDEN CITY TX 79739 POLE INSPECTION 112636 3 X ELECTRICITY SALES 221000 58129513 58129513 PATRONAGE DIVIDENDS 221000 3279632 3266419 13213 61409145 774565 774565 1 1 15390 9938 5821 0 9569 9938 19507 9938 9569 587818 175996 0 101763 587818 74233 662051 662051 164232 186563 -22331 -22331 OTHER PASS-THRU INVESTMENT INCOME 523000 495688 154748 340940 OTHER INVESTMENT INCOME 523000 35690 35690 POLE ATTACHMENT INCOME 221000 3637 3637 535015 63377953 61405870 145630 1826453 X 4935 2869989 566051 5115338 360512 1299415 388577 3867073 6376755 PURCHASED POWER 35759949 DISTRIBUTION EXPENSE 3683068 ADMIN. & GENERAL 1602061 CUSTOMER SERVICE 377154 407840 62678717 X 387053 368380 796275 1050475 4455000 3832171 2515536 2473713 36817 135419 187099484 49370431 127545513 137729053 21776813 18502451 54299277 61744312 614030 740751 212426314 226576725 7865027 6787174 141516 135554 95473068 104120995 2332693 8560371 105812304 119604094 X 26740 26650 0 0 106587270 106945981 106614010 106972631 212426314 226576725 X 699236 -1151961 811346 X X 0 1 X 0 0 0 1 X 312958 312958 8667063 911268 7755795 175825349 48459163 127366186 2294114 2294114 137729053 COMMON STOCKS 3579592 F ALTERNATIVE INVESTMENTS 5051174 F MUTUAL FUNDS 6152669 F CORPORATE BONDS 7765 F EXCHANGE-TRADED FUNDS (ETF) & CLOSED-END FUNDS (CEF) 3711251 F 18502451 PATRONAGE CAPITAL - CFC 1882291 C PATRONAGE CAPITAL - NISC 41195 C PATRONAGE CAPITAL - NRTC 452400 C PATRONAGE CAPITAL - TEC 658796 C PATRONAGE CAPITAL - GSEC 41105551 C PATRONAGE CAPITAL - OTHER 2717 C CONTRIBUTED CAPITAL - GSEC 4693200 C CAPITAL TERM CERTIFICATES - CFC 2562405 C MEMBER CAPITAL SECURITIES - CFC 5000000 C OTHER INVESTMENTS - MEMBERSHIPS 4660 C COMMERCIAL PAPER - CFC 5341097 C 61744312 POWER COST OVER RECOVERY 1656966 ACCUMULATED POST RETIREMENT BENEFIT OBLIGATION 700427 UNCLAIMED PATRONAGE CAPITAL 852471 OTHER DEFERRED CREDITS 1676 ACCRUED TAXES 7732 AMOUNTS DUE TO MEMBERS 5341099 8560371 X 62558631 0 62558631 819322 819322 63377953 59433159 0 59433159 3245558 3245558 62678717 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 TEXAS 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 TEXAS 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 DESIGNED UNCLAIMED UNDER TEXAS 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 OR OTHER STATE TAX AUTHORITY, AND THAT ALL TAX BENEFITS ARE LIKELY TO BE REALIZED UPON SETTLEMENT WITH TAXING AUTHORITIES. Part XI, Line 4b - Other Adjustments: INVESTEMENT EXPENSES NETTED WITH INVESTMENT INCOME ON FINANCIAL STATEMENTS 375,569. BOOK TO TAX ADJUSTMENTS FOR INCOME REPORTED ON PARTNERSHIP K-1'S 443,753. Part XII, Line 4b - Other Adjustments: PATRONAGE CAPITAL ASSIGNABLE 2,869,989. INVESTEMENT EXPENSES NETTED WITH INVESTMENT INCOME ON FINANCIAL STATEMENTS 375,569. 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. 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. X X 0 0 0 GREG HENLEY CEO 180496 0 2614 0 3954 0 19417 0 33903 0 240384 0 0 0 RAY BOX CFO 119427 0 2305 0 2559 0 12940 0 28552 0 165783 0 0 0 GLENN ANDERSON LINE DEPARTMENT MANAGER 106040 0 8119 0 6876 0 11273 0 26074 0 158382 0 0 0 WILLIAM ATEN MANAGER OF ENGINEERING 117928 0 470 0 616 0 12627 0 26513 0 158154 0 0 0 BARRY PITTMAN MANAGER MEMBER SERVICES 106535 0 1336 0 4194 0 11544 0 27394 0 151003 0 0 0 MENFORD R GANDY MANAGER OUTSIDE OPERATIONS 110764 0 3157 0 3624 0 11991 0 24587 0 154123 0 0 0 CODY HOGG MR. CODY HOGG IS RELATED TO KEVIN MITCHELL, DIRECTOR. 36305 MR. HOGG IS AN EMPLOYEE OF THE COOPERATIVE AND ALSO THE SON-IN-LAW OF KEVIN MITCHELL, DIRECTOR. 0 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. 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 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, LEGAL COUNSEL IS REQUIRED TO REVIEW THE CONFLICT OF INTEREST POLICY WITH THE DIRECTORS AND OFFICERS AT THE FIRST MEETING OF THE BOARD OF DIRECTORS FOLLOWING ELECTIONS. EACH DIRECTOR AND OFFICER MUST ALSO COMPLETE AND SIGN A CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM. THEREAFTER, 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/CEO. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS/CEOS FROM COOPERATIVES LOCATED IN TEXAS AND THE NATION. THE BOARD AND THE GENERAL MANAGER/CEO USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE COOPERATIVE'S OTHER EMPLOYEES MEETING THE DEFINITION OF OFFICER AND HIGHLY COMPENSATED 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 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 BASE AND A MATCHING CONTRIBUTION. EMPLOYER CONTRIBUTIONS TO THIS PLAN ARE AVAILABLE TO PARTICIPATING EMPLOYEES, INCLUDING OFFICERS AND HIGHLY COMPENSATED EMPLOYEES, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLAN. THE COOPERATIVE ALSO PROVIDES HEALTH, DENTAL, VISION AND LIFE INSURANCE TO ALL EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE TOTAL AMOUNT CONTRIBUTED TO THE 401(K) PENSION PLAN AND THE 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 PER PERSON 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 RUS UNIFORM SYSTEM OF ACCOUNTS AS PRESCRIBED FOR ELECTRIC BORROWERS OF THE RURAL UTILITIES SERVICES (RUS). 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 $ 5,681,389 LESS DIRECTORS FEES REPORTED ON 1099-MISC (159,884) LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (94,812) PLUS SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,912,128 PLUS SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 1,377,453 TOTAL WAGES ACCRUED AND/OR PAID $ 8,716,274 FORM 990, PART IX, LINE 24 ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: SAFETY AND TRAINING $ 108,435 OFFICE SUPPLIES AND EXPENSE 383,189 OUTSIDE SERVICES EMPLOYED 119,980 INJURIES AND DAMAGES 149,291 REGULATORY COMMISSION EXPENSE 108,399 DIRECTOR'S EXPENSES 18,747 DUES PAID ASSOCIATED ORGANIZATIONS 86,266 ANNUAL MEETING 95,226 GENERAL ADVERTISING 90,498 MAINTENANCE OF GENERAL PLANT 271,067 MISCELLANEOUS GENERAL EXPENSE 170,963 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 1,602,061 FORM 990, PART IX, LINE 24E OTHER EXPENSE IS COMPRISED OF THE FOLLOWING: SALES EXPENSE $ 19,593 BROKERAGE FEES ON INVESTMENTS 148,700 TRANSMISSION EXPENSE 13,361 SATELLITE AND INTERNET OPERATING EXPENSES 12,947 INVESTMENT EXPENSES AND DEDUCTIONS 213,239 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 407,840 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 IX, LINE 1 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. EACH GRANT, SCHOLARSHIP AND/OR DONATION MADE DURING THE YEAR WAS BELOW THE REPORTING THRESHOLD OF SCHEDULE I, PART II. Form 990, Part X, LINES 17 AND 25 THE COOPERATIVE PREVIOUSLY INCLUDED ACCRUED EXPENSES (COMPRISED OF (1) ACCRUED PAYROLL AND EMPLOYEE COMPENSATED ABSENCES, (2) ACCRUED INTEREST (3) ACCRUED EXPENSES - OTHER.) 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 $3,016,120 FOR THE 2014 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 25 TO LINE 17. Form 990, Part XI, line 9: NET CHANGE IN MEMBERSHIPS -90. OTHER COMPREHENSIVE INCOME - POST RETIREMENT HEALTH BENEFITS -3,300. OTHER - BOOK/TAX DIFFERENCE ON OTHER INVESTMENT INCOME -443,753. PATRONAGE CAPITAL RETIRED -1,611,500. PATRONAGE CAPITAL ASSIGNABLE 2,869,989. 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. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. LEC DEVELOPMENT LLC PO BOX 970 TAHOKA TX 79373 752452483 SATELLITE TV & INTERNET & INVESTMENTS TX 1353044 20003115 LYNTEGAR ELECTRIC COOPERATIVE INC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 NA