TIN:
SCHEDULE O
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
Attach to Form 990 or 990-EZ.
Go to www.irs.gov/Form990 for the latest information.
OMB No. 1545-0047
2019
Open to Public
Inspection
Inspection
Name of the organization
LEA COUNTY ELECTRIC COOPERATIVE INC
Employer identification number
85-0096243
85-0096243
| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 4 | DURING THE YEAR, THE MEMBERS OF THE COOPERATIVE APPROVED AMENDMENTS TO THE BYLAWS AT THE ANNUAL MEETING. THE FOLLOWING IS A SUMMARY OF CHANGES: ARTICLE I - MEMBERSHIP SECTION 2, REGARDING MEMBERSHIP CERTIFICATES WAS REMOVED. ARTICLE III - MEETINGS OF MEMBERS SECTION 1, ANNUAL MEETING, WAS AMENDED TO STATE THE ANNUAL MEETING MAY BE HELD AT ONE OF THE COUNTIES SERVED BY THE COOPERATIVE. SECTION 3, NOTICE OF MEMBERS' MEETINGS, WAS AMENDED TO STATE THAT NOTICE OF MEETINGS MAY BE DELIVERED ELECTRONICALLY. SECTION 4, QUORUM, WAS AMENDED TO STATE A QUORUM SHALL BE MET WHEN FIVE PER CENTUM (5%) OF THE MEMBERS, AS REFLECTED ON THE MEMBERSHIP ROLLS OF THE COOPERATIVE ON THE RECORD DATE WHICH WILL BE THE END OF THE MONTH PRIOR TO THE ANNUAL MEETING DAY OF THE MEMBER MEETING HAVE REGISTERED DURING THE REGISTRATION PERIOD, WHICH SHALL BE DETERMINED BY THE BOARD BUT WHICH SHALL NOT BE ANY LONGER THAT SEVEN (7) DAYS PRIOR TO THE ANNUAL MEETING. SECTION 6, CREDENTIALS AND ELECTION COMMITTEE, WAS AMENDED TO STATE THE BOARD OF TRUSTEES SHALL, AT LEAST SIXTY (60) DAYS BEFORE ANY MEETING OF THE MEMBERS APPOINT A CREDENTIALS AND ELECTION COMMITTEE. THE COMMITTEE SHALL CONSIST OF AN UNEVEN NUMBER OF MEMBERS, NOT LESS THAN FIVE(5), WHO ARE NOT EXISTING COOPERATIVE EMPLOYEES, AGENTS, OFFICERS, TRUSTEES OR KNOWN CANDIDATES FOR TRUSTEE, AND WHO ARE NOT MEMEBERS OF THE SAME HOUSEHOLD OF EXISTING COOPERATIVE EMPLOYEES, AGENTS, OFFICERS, TRUSTEES OR KNOWN CANDIDATES FOR TRUSTEE. SECTION 8, ORDER OF BUSINESS, WAS AMENDED TO ADD THAT THE FIRST ORDER OF BUSINESS IS TO DETERMINE THE EXISTENCE OF A QUORUM BASED ON REGISTRATION OF THE MEMBERS. ARTICLE IV - TRUSTEES SECTION 4, NOMINATIONS, WAS AMENDED TO STATE THE SECRETARY SHALL BE RESPONSIBLE FOR SERVING WITH THE NOTICE OF THE MEETING. ARTICLE V - MEETINGS OF TRUSTEES SECTIONS 1 AND 2, REGULAR MEETINGS AND SPECIAL MEETINGS, WAS AMENDED TO STATE REGULAR MEETINGS OF THE BOARD OF TRUSTEES SHALL ALSO BE HELD MONTHLY AT SUCH TIME AND PLACE IN A COUNTY SERVED BY THE COOPERATIVE. SECTION 3, NOTICE OF TRUSTEES' MEETINGS, WAS AMENDED TO STATE NOTICE OF THE MEETINGS MAY BE SENT ELECTRONICALLY. ARTICLE VI - OFFICERS SECTION 11, COMPENSATION, WAS AMENDED TO STATE THE POWERS, DUTIES, AND COMPENSATION OF OFFICERS, AGENTS AND THE MANAGER SHALL BE FIXED BY THE BOARD OF TRUSTEES. A COMPLETE COPY OF THE BYLAWS CAN BE FOUND AND VIEWED ON THE COOPERATIVE'S WEBSITE AT: HTTPS://WWW.LCECNET.COM/BYLAWS |
| 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 TRUSTEES. 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 5. AMENDMENT TO THE BYLAWS |
| 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 15A | THE BOARD OF TRUSTEES USE A COMPENSATION SURVEY WHEN DETERMINING THE COMPENSATION OF THE GENERAL MANAGER. THE SURVEY SHOWS COMPARATIVE SALARIES FOR GENERAL MANAGERS FROM SIMILARLY SITUATED COOPERATIVES LOCATED IN NEW MEXICO AND THE NATION. OTHER THAN THE GENERAL MANAGER, THE COOPERATIVE DID NOT HAVE ANY EMPLOYEES MEETING THE DEFINITION OF OFFICER OR KEY EMPLOYEE. THEREFORE, AND PURSUANT TO FORM 990 INSTRUCTIONS, LINE 15B HAS BEEN ANSWERED "NO". |
| FORM 990, PART VI, SECTION C, LINE 19 | THE COOPERATIVE PROVIDES A COMPLETE COPY OF ITS GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS TO ANY MEMBER WHO REQUESTS A COPY OF ANY SUCH DOCUMENT. ANNUALLY, THE COOPERATIVE MAILS A COPY OF THE AUDITED BALANCE SHEET AND INCOME STATEMENT TO THE MEMBERS OF THE COOPERATIVE WITH THE ANNUAL REPORT. |
| 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, DENTAL, VISION AND LIFE INSURANCE TO ALL ELIGIBLE EMPLOYEES THROUGH A QUALIFIED PLAN. THE AMOUNTS REPORTED ON PART VII, COLUMN (F) FOR OFFICERS AND HIGHLY COMPENSATED EMPLOYEES ARE COMPRISED OF THE ACTUARIAL INCREASE IN THE DEFINED BENEFIT PLAN, THE EMPLOYER CONTRIBUTIONS 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 A FUNDED WELFARE BENEFIT PLAN. THE VALUE OF THESE BENEFITS HAS NOT BEEN ESTIMATED. |
| FORM 990, PART VII, SECTION A: | THE BOARD OF TRUSTEES 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 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 (USOA) AS PRESCRIBED RUS ELECTRIC BORROWERS. THE USOA DOES NOT RECORD EXPENSES IN THE GENERAL EXPENSE CATEGORIES PROVIDED ON PART IX LINES 1-23. THE COOPERATIVE SEPARATELY STATES 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 $ 5,082,795 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-MISC (210,658) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (156,909) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 40 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 1,055,283 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 1,033,109 TOTAL WAGES ACCRUED AND/OR PAID $ 6,803,660 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE AND GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL $ 2,414,353 OFFICE SUPPLIES 341,891 OUTSIDE SERVICES EMPLOYED 226,298 INJURY & DAMAGES 86,202 EMPLOYEE BENEFITS (232,552) REGULATORY COMISSION 311,182 TRUSTEES 308,913 ASSOCIATION DUES 163,376 MISCELLANEOUS GENERAL 36,153 ADVERTISING - CONSERVATION & SAFETY 371,734 ANNUAL MEETING 98,139 CAPITAL CREDIT 4,848 MAINTENANCE OF GENERAL PLANT 207,931 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 4,338,468 LESS: RECLASS OF DONATIONS TO PART IX, LINE 1 (27,642) LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (210,658) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,431,852) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (427,767) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 2,240,549 |
| FORM 990, PART IX, LINE 24E: | OTHER EXPENSES ARE COMPRISED OF THE FOLLOWING: TRANSMISSION $ 434,611 CUSTOMER ACCOUNTS & SERVICE 488,749 TAXES - PROPERTY & OTHER 78,561 SALES 9,609 TOTAL OTHER EXPENSES PER FORM 990 LINE 24E $ 1,011,530 |
| 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 CALENDAR TAX 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 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 XI, LINE 9: | PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 6,308,836. PATRONAGE CAPITAL RETIRED -5,239,834. NET CHANGE IN MEMBERSHIPS 455. OTHER COMPREHENSIVE INCOME PROVISION FOR PENSIONS AND BENEIFTS 478,046. |
| FORM 990, PART XII, LINE 2C: | THE BOARD AS A WHOLE IS RESPONSIBLE FOR OVERSEEING THE AUDIT AND SOLICITING THE CPA WHO WILL PERFORM THE AUDIT. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2019
Additional Data
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