| Return Reference | Explanation |
|---|---|
| FORM 990, PART VI, SECTION A, LINE 4 | DURING THE YEAR THE COOPERATIVE'S BYLAWS WERE AMENDED. THE FOLLOWING IS A SUMMARY OF THE CHANGES: ARTICLE II - DEFINITIONS, AMENDED THE DEFINITION OF "MEMBER" TO MEAN "A PATRON WHO HAS NOT OPTED OUT OF MEMBERSHIP AS PROVIDED FOR IN THESE BYLAWS. THE TERM "MEMBER" AS USED IN THESE BYLAWS INCLUDES SPOUSES HOLDING A JOINT MEMBERSHIP. MEMBERS ARE ENTITLED TO VOTE FOR DIRECTORS AS PROVIDED IN THESE BYLAWS." THE DEFINITION OF "PATRON" WAS AMENDED TO STATE "MEANS A PERSON OR ENTITY THAT RECEIVES OR HAS RECEIVED ELECTRIC ENERGY FROM THE COOPERATIVE FOR ITS OWN USE AT THE PREMISE SPECIFIED ON A REQUEST FOR SERVICE." ARTICLE III - MEMBERSHIP SECTION 1. REQUIREMENTS FOR MEMBERSHIP, WAS AMENDED TO STATE "ANY PERSON OR ENTITY THAT RECEIVES ELECTRIC SERVICE FROM THE COOPERATIVE FOR ITS OWN USE IS DEEMED TO HAVE CONSENTED TO BE A MEMBER OF THE COOPERATIVE." ARTICLE VIII - NONPROFIT OPERATION AND CAPITAL CREDITS SECTION 2. ALLOCATION OF PATRONAGE CAPITAL, ADDED THE FOLLOWING PARAGRAPH "PROVIDED, HOWEVER, IF COSTS AND EXPENSES EXCEED THE AMOUNTS RECEIVED AND RECEIVABLE FROM AND DIRECTLY RELATED TO THE FURNISHING OF ELECTRIC ENERGY, HEREINAFTER REFERRED TO AS "LOSS", THE BOARD OF DIRECTORS SHALL HAVE THE AUTHORITY, UNDER ACCEPTED ACCOUNTING PRACTICES, LOAN COVENANTS, AND FEDERAL COOPERATIVE TAX LAW, TO PRESCRIBE THE ACCOUNTING PROCEDURES UNDER WHICH SUCH LOSS MAY BE ADDRESSED." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTPS://CORE.COOP. |
| 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, AS PROVIDED FOR IN ITS BYLAWS. THERE IS ONLY ONE CLASS OF MEMBERS. |
| FORM 990, PART VI, SECTION A, LINE 7A | THE COOPERATIVE IS DIVIDED INTO SEVEN DISTRICTS, AND EACH DISTRICT IS REPRESENTED BY ONE BOARD MEMBER (DIRECTOR). BOARD MEMBERS ARE ELECTED BY THE RESPECTIVE DISTRICT MEMBERS TO STAGGERED FOUR-YEAR TERMS. ELECTIONS ARE BY MAIL BALLOT, BUT MEMBERS MAY VOTE IN PERSON AT THE ANNUAL MEETING. |
| FORM 990, PART VI, SECTION A, LINE 7B | IN ADDITION TO VOTING IN DIRECTOR ELECTIONS, THE MEMBERS ALSO MUST VOTE AND APPROVE ANY OF THE FOLLOWING ACTS THAT ARE FIRST APPROVED BY A A TWO-THIRDS MAJORITY OF THE BOARD OF DIRECTORS: 1.AMENDMENT TO THE ARTICLES OF INCORPORATION 2.DISSOLUTION/LIQUIDATION OF THE COOPERATIVE 3.MERGER OR CONSOLIDATION OF THE COOPERATIVE WITH ANOTHER ORGANIZATION 4.DISPOSAL OF A SUBSTANTIAL PORTION OF THE COOPERATIVE'S ASSETS |
| FORM 990, PART VI, SECTION B, LINE 11B | THE FORM 990, INCLUDING THE RELATED SCHEDULES, IS COMPLETED AND FILED BY BSGM, THE COOPERATIVE'S EXTERNAL CPA FIRM. FORM 990 INFORMATION IS PROVIDED TO BSGM BY STAFF OF THE COOPERATIVE UNDER THE DIRECTION OF THE CFO AND/OR CONTROLLER, WHO IN TURN REVIEWS THE GOVERNANCE, MANAGEMENT, AND DISCLOSURE SECTIONS REQUIRED BY THE FORM 990, AND PRESENTS A DRAFT OF THE COMPLETED REPORT TO THE CEO AND BOARD OF DIRECTORS FOR REVIEW. |
| FORM 990, PART VI, SECTION B, LINE 12C | OFFICERS, DIRECTORS, AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE ANY CONFLICTS OF INTEREST AS EVENTS OR CIRCUMSTANCES GIVING RISE TO A CONFLICT OCCUR. THE CEO REVIEWS ANY POTENTIAL CONFLICTS THAT ARE BROUGHT TO HIS ATTENTION AND MAKES THE DETERMINATION FOR KEY EMPLOYEES. THE BOARD OF DIRECTORS REVIEWS AND MAKES DETERMINATIONS FOR THE CEO AND AT THE DIRECTOR LEVEL. RESTRICTIONS ON PERSONS WITH A CONFLICT GENERALLY RESULT IN REMOVING THE PERSON FROM DECISION-MAKING AUTHORITY CONCERNING THE CONFLICT AND MAY, IN THE CASE OF DIRECTORS, INCLUDE MANDATORY ABSTENTION FROM VOTING ON THE RELATED AGENDA ITEM. |
| FORM 990, PART VI, SECTION B, LINE 15 | COMPENSATION OF THE CEO IS EVALUATED AND APPROVED BY THE BOARD OF DIRECTORS, IN COMPARISON WITH INDUSTRY STANDARDS AND OTHER COOPERATIVES. COMPENSATION FOR MANAGEMENT EMPLOYEES, INCLUDING SALARIES AND BENEFITS, IS EVALUATED BY PERSONNEL OF THE PEOPLE OPERATIONS DEPARTMENT UNDER THE DIRECTION OF THE CEO, USING COMPARISONS WITH INDUSTRY STANDARDS, WITH OTHER COOPERATIVES, AND IN CONSIDERATION OF LOCAL EMPLOYMENT AND ECONOMIC MARKETS. THE RESULTING RECOMMENDATIONS ARE REVIEWED BY THE CEO AND WITH THE BOARD OF DIRECTORS. |
| FORM 990, PART VI, SECTION C, LINE 19 | THE BYLAWS OF THE COOPERATIVE, THE ANNUAL REPORT, AND BOARD MINUTES ARE AVAILABLE ON THE COOPERATIVE'S WEBSITE AT WWW.CORE.COOP. THE COOPERATIVE'S ARTICLES OF INCORPORATION ARE AVAILABLE ON THE COLORADO SECRETARY OF STATE'S WEBSITE. OTHER COOPERATIVE DOCUMENTS, SUCH AS THE FORM 990, ARE AVAILABLE TO THE PUBLIC UPON REQUEST AT THE COOPERATIVE'S HEADQUARTERS OFFICE. |
| FORM 990, PARTS VI & VII: | THE COOPERATIVE PROVIDED EACH DIRECTOR, OFFICER AND KEY EMPLOYEE, WHO SERVED IN THESE ROLES DURING THE YEAR, A QUESTIONNAIRE. THE COMPLETED QUESTIONNAIRES AND TIME LOGS ARE USED TO COMPLETE THE APPLICABLE QUESTIONS ON THE FORM 990 PERTAINING TO BUSINESS RELATIONSHIPS AMONG DIRECTORS, OFFICERS, AND KEY EMPLOYEES, AS WELL AS TO DETERMINE IF THERE ARE ANY TRANSACTIONS WHICH MUST BE REPORTED IN DETAIL ON SCHEDULE L - "TRANSACTIONS WITH INTERESTED PERSONS". FOR THE 2023 CALENDAR YEAR, ALL DIRECTORS, OFFICERS AND KEY EMPLOYEES REQUIRED TO COMPLETE A QUESTIONNAIRE DID SO WITH THE EXCEPTION OF ONE. FOR THIS ONE INDIVIDUAL, THE COOPERATIVE RELIED UPON INFORMATION USED TO PREPARE PRIOR YEAR FORMS 990 FILINGS. |
| FORM 990, PART VI, LINE 16B | THE COOPERATIVE PARTICIPATES IN A JOINT VENTURE BY VIRTUE OF PURCHASING AN UNDIVIDED OWNERSHIP INTEREST IN AN ELECTRIC GENERATION FACILITY. THE PURCHASE WAS MADE PURSUANT TO THE LONG-TERM POWER NEEDS AND CONTRACTUAL PROCUREMENT REQUIREMENTS. |
| 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 SINGLE-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, KEY EMPLOYEES 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 THE OFFICERS, KEY EMPLOYEES 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. |
| FORM 990, PART VIII, LINE 2: | 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 THE ELECTRIC SERVICE PROVIDED BY THE COOPERATIVE TO ITS MEMBERS. |
| 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 ALLOCATED TO THE PATRONS RESULTING FROM THEIR PURCHASE OF ELECTRICITY FROM THE COOPERATIVE FOR THE 2023 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, 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 $ 27,251,880 LESS: DIRECTOR FEES REPORTED ON FORMS 1099-NEC (377,232) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (612,462) LESS: KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (634,022) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGIN 3,496 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 7,083,733 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING AND OTHER ACCOUNTS 3,547,574 TOTAL WAGES ACCRUED AND/OR PAID $ 36,262,967 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 12,851,970 OFFICE SUPPLIES 7,791,171 OUTSIDE SERVICES 11,561,524 INSURANCES AND DAMAGES 3,391,255 MISCELLANEOUS GENERAL 204,670 DIRECTORS 493,753 DUES AND SUBSCRIPTIONS 238,251 MAINTENANCE OF GENERAL PLANT 3,015,632 RENTS 5,921 INTERNAL CHARGES FOR POWER (153,070) TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 39,401,077 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (377,232) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (9,832,926) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (4,218,270) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 24,972,649 |
| FORM 990, PART IX, LINE 24E: | OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER EXPENSES $ 4,162,714 OTHER DEDUCTIONS 7,415,275 TAXES 10,997,840 TRANSMISSION 948,096 TOTAL OTHER EXPENSES PER FORM 990, PART IX $ 23,523,925 |
| FORM 990, PART IX | THE FINANCIAL STATEMENTS ARE PREPARED IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AS APPLIED TO REGULATED ENTERPRISES, WHICH CONFORM TO POLICIES PRESCRIBED BY THE FEDERAL ENERGY REGULATORY COMMISSION'S UNIFORM SYSTEM OF ACCOUNTS (USOA). 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 X, LINES 4 & 15: | THE COOPERATIVE PREVIOUSLY INCLUDED ACCRUED UNBILLED UTILITY REVENUE AS A COMPONENT OF "ACCOUNTS RECEIVABLE" ON LINE 4 OF PART X. HOWEVER, FOR THE 2023 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS AS "OTHER ASSETS" ON LINE 15. TO INCREASE CONSISTENCY, ACCRUED UNBILLED UTILITY REVENUE IN THE AMOUNT OF $24,874,729 FOR THE 2022 CALENDAR YEAR HAS BEEN RECLASSED FROM LINE 4 TO LINE 15. |
| FORM 990, PART X,LINES 29 & 30: | THE COOPERATIVE PREVIOUSLY INCLUDED MEMBERSHIP FEES AS "PAID IN OR CAPITAL SURPLUS" ON LINE 30 OF PART X. HOWEVER, FOR THE 2023 CALENDAR YEAR, THE COOPERATIVE BEGAN REPORTING THESE AMOUNTS AS "CAPITAL STOCK" ON LINE 29. TO INCREASE CONSISTENCY, REFUNDABLE MEMBERSHIP FEES IN THE AMOUNT OF $764,425 FOR THE 2022 CALENDAR YEAR HAVE BEEN RECLASSED FROM LINE 30 TO LINE 29. |
| FORM 990, PART XI, LINE 9: | BOOK-TAX ADJUSTMENT: DEFERRED REVENUE ALLOCATED -7,500,000. PATRONAGE CAPITAL ASSIGNABLE 24,946,779. PATRONAGE CAPITAL RETIRED -5,113,779. PATRONAGE CAPITAL RETIRED - UNCLAIMED 1,956,197. PATRONAGE CAPITAL RETIRED - DISCOUNT 150,237. DONATED CAPITAL 125,824. ACCUMULATED OTHER COMPREHENSIVE INCOME - PENSION & BENEFITS 616,496. |
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