2011-08-12T08:18:06-05:00 2010-12-31 BOLINGER SEGARS GILBERT & MOSS LLP 8215 NASHVILLE AVENUE LUBBOCK TX 79423 990 2010-01-01 740620793 FAYETTE ELECTRIC COOPERATIVE INC FAYE 9799683181 DRAWER 490 LA GRANGE TX 78945 GARY DON NIETSCHE 9799683181 2011-08-11 1 Matt R Willis 8067473806 2011-08-11 2010 2016-02-24 21:20:13Z GARY DON NIETSCHE DRAWER 490 LA GRANGE TX 78945 26150088 0 X WWW.FAYETTEELECTRICCOOP.COM X 1939 TX TO PROVIDE RELIABLE, COST EFFECTIVE SERVICE TO OUR MEMBERS/OWNERS. 7 7 49 0 -800 -800 0 0 25485073 26098393 28395 22218 6910 2793 25520378 26123404 0 0 0 0 2392655 2478808 0 0 0 21463758 21644834 23856413 24123642 1663965 1999762 57229260 60130332 30367786 31355640 26861474 28774692 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 - 13,248 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 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 17 0 49 1 1 1 0 0 0 0 26311658 364169 0 X 7 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X GARY DON NIETSCHE 9799683181 357 N WASHINGTON ST LA GRANGE TX 78945 DAVID G LEHMANN 5.20 X X 19428 0 0 JOSEPH D KRUPPA 7.90 X X 19736 0 0 BILL BRISCOE 8.60 X X 19381 0 0 DAVID A STANCIK 6.10 X 19636 0 0 LEO C HENKE JR 5.70 X 19136 0 0 JOHN C IVY 2.70 X 18936 0 0 GALE LINCKE 4.00 X 17936 0 0 GARY DON NIETSCHE 40.00 X 116921 0 52183 251110 0 52183 1 0 1 0 SENDERO POWER LINE CONSTRUCTION 1140 WESTPARK AVENUE VICTORIA TX 77905 LINE CONSTRUCTION 894495 MCCOY TREE SURGERY COMPANY PO BOX 872119 KANSAS CITY MO 64187 ROW CLEARANCE AND TREE TRIMMING 775003 LINE TECH 402 TECHNOLOGY DRIVE BASTROP TX 78602 LINE CONSTRUCTION 448330 SCHNEIDER ENGINEERING 191 MENGER SPRINGS PARKWAY BOERNE TX 78006 ENGINEERING SERVICES 112401 4 ELECTRIC ENERGY SALES 221000 25713141 25713141 PATRONAGE DIVIDENDS 221000 336547 336547 ELECTRIC SERVICE FEES 221000 48705 48705 26098393 22218 22218 4883 4883 4883 572 4311 24594 26684 -2090 -1290 -800 26123404 26097675 -800 26529 303293 1285241 173421 606999 109854 1390451 1916870 PURCHASED POWER 15315656 DISTRIBUTION EXPENSE 2137924 ADMIN & GENERAL 600088 CONSUMER ACCOUNT EXPENS 267369 SALES EXPENSES 8638 7838 24123642 166197 629934 2186238 1892054 1506814 1559169 83784 67787 65583148 11735996 51377796 53847152 1870141 1987102 38290 147134 57229260 60130332 1927799 1929583 24764066 26239563 3675921 3186494 30367786 31355640 X 151200 154335 0 0 26710274 28620357 26861474 28774692 57229260 60130332 X 1999762 -86544 X X 0 1 1 X 0 216000 216000 1874660 394972 1479688 62559163 11341024 51218139 933325 933325 53847152 CONSUMER DEPOSITS 224021 ACCRUED EMPLOYEE COMPENSATED ABSENCES 189786 ACCRUED TAXES 4109 ACCRUED INTEREST 267072 ACCRUED PAYROLL 87894 LCRA FUEL REFUND 220466 REFUNDABLE AID TO CONSTRUCTION 1177013 DEFERRED CREDIT 713842 POWER COST RECOVER - OVERBILLED 302291 3186494 26123404 24123642 1999762 -86544 -86544 1913218 26123404 0 26123404 0 26123404 24123642 0 24123642 0 24123642 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 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 8 - Other Adjustments: NET CHANGE IN MEMBERSHIP EQUITIES 3,135. RETIREMENT OF PATRONAGE CAPITAL -89,679. Part IX - THE AMOUNT OF OTHER ASSETS ON FORM 990, PAGE 11, PART X, LINE 15 DOES NOT EQUAL OR EXCEED 5% OF 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 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. X 1 1 X X 0 0 0 GARY DON NIETSCHE 114655 0 152 0 2114 0 30380 0 21803 0 169104 0 0 0 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. GARY DON NIETSCHE ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN $ 30,380 TOTAL COLUMN C: $ 30,380 LESS: ACTUARIAL INCREASE IN DEFINED BENEFIT PLAN: (30,380) ADD: CASH CONTRIBUTION TO DEFINED BENEFIT PLAN: 18,155 TOTAL COOPERATIVE CASH CONTRIBUTION $ 18,155 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. THE DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS; 2. THE DISSOLUTION/LIQUIDATION OF THE COOPERATIVE; AND 3. THE MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION. 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. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: NET CHANGE IN MEMBERSHIP EQUITIES 3,135. RETIREMENT OF PATRONAGE CAPITAL -89,679. Total to Form 990, Part XI, Line 5: -86,544. AUDIT COMMITTEE 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. PATRONAGE DIVIDENDS 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. EXECUTIVE SESSION MINUTES Form 990, Part VI, 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. 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 MODIFIED FOR ELECTRIC BORROWERS OF THE NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION. 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. RECONCILLIATION 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 $1,588,534 LESS DIRECTORS FEES REPORTED ON 1099-MISC (134,189) PLUS SALARIES AND WAGES ALLOCATED TO ASSET ACCOUNTS 827,543 LESS EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (52,183) RECONCILIATION TO W-3 $2,229,705 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 OFFICE SUPPLIES & EXPENSE $ 167,870 OUTSIDE SERVICES EMPLOYED 62,668 INJURIES AND DAMAGES 9,726 REGULATORY COMMISSION 42,573 ASSOCIATE MEMBER DUES 43,424 PROPERTY TAX 1,818 CAPITAL CREDITS EXPENSE 47,905 MAINTENANCE OF GENERAL PLANT 167,061 MISCELLANEOUS ADMINISTRATIVE AND GENERAL 57,043 TOTAL ADMINISTRATIVE AND GENERAL EXPENSE PER 990 $ 600,088 TO PROVIDE DETAIL REGARDING OFFICER BENEFITS 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, MEETING THE ELIGIBILITY REQUIREMENTS OF SUCH PLANS. THE ORGANIZATION ALSO PROVIDES HEALTH, DENTAL AND LIFE INSURANCE TO ALL EMPLOYEES, INCLUDING OFFICERS, THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR THE OFFICER IS COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN FOR THE OFFICER AND INSURANCE PAID ON BEHALF OF AND FOR BENEFIT OF THE OFFICER. GENERAL MANAGER RESPONSIBILITIES 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.