| Return Reference | Explanation |
|---|---|
| FORM 990, PART I: | IN GENERAL, WHEN AN ELECTRIC COOPERATIVE BASES THE PATRONAGE DIVIDEND CALCULATION ON ITS NET BOOK INCOME/(LOSS), PAGE 1, PART I, LINE 19 - REVENUE LESS EXPENSES - WILL BE $0. FOR THE CURRENT YEAR, PAGE 1, PART I, LINE 19 REPORTS NET INCOME OF $2,517,747, WHICH IS THE EFFECT OF PRIOR YEAR WATER DIVISION LOSSES AND G&T CAPITAL CREDITS RETAINED. THE FOLLOWING SCHEDULE IS PROVIDED TO FURTHER EXPLAIN THE IMPACT OF THIS TRANSACTION: ADD: G&T CAPITAL CREDITS RETAINED $ 2,732,604 LESS: WATER DIVISION INCOME (214,857) (A) - NET INCOME ON PAGE 1, PART I, LINE 19 $ 2,517,747 (B) - BENEFITS PAID TO MEMBERS (I.E. PATRONAGE DIVIDENDS), PART I, LINE 14 $ 911,132 TOTAL 2023 NET MARGIN PER FINANCIAL STATEMENTS (A + B) $ 3,428,879 |
| FORM 990, PART VI, SECTION A, LINE 2 | BRUCE MUELLER (GM), WESLEY CAMPBELL (TRUSTEE), AND JOSHUA YOUNG (TRUSTEE), SERVED ON THE BOARD OF SUNFLOWER ELECTRIC POWER CORPORATION AT THE REQUEST OF AND FOR THE BENEFIT OF THE COOPERATIVE. |
| 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 3 - MEETINGS OF MEMBERS SECTION 5. VOTING, WAS AMENDED TO STATE "EACH MEMBER SHALL BE ENTITLED TO ONLY ONE VOTE, WHETHER BY MAIL BALLOT FOR THE ELECTION OF TRUSTEES OR IN-PERSON, UPON EACH MATTER SUBMITTED TO A VOTE OF THE MEMBERS." ARTICLE 4 - TRUSTEES SECTION 1. GENERAL POWERS, WAS AMENDED TO STATE "THE BOARD OF TRUSTEES SHALL HAVE THE POWER TO MAKE, ADOPT AND ENFORCE SUCH POLICIES NOT INCONSISTENT WITH LAW, THE ARTICLES OF INCORPORATION OF THE COOPERATIVE OR THESE BYLAWS AS IT MAY DEEM ADVISABLE FOR THE NOMINATION, QUALIFICATION, AND ELECTION OF TRUSTEES, AND FOR THE MANAGEMENT, ADMINISTRATION, AND REGULATION OF THE BUSINESS OF THE COOPERATIVE." SECTION 2. ELECTION AND TENUE OF OFFICE, WAS AMENDED TO STATE "TRUSTEES SHALL BE ELECTED BY MAIL BALLOT PRIOR TO EACH ANNUAL MEETING OF THE MEMBERS AND SHALL BE ELECTED FOR A THREE-YEAR TERM BEGINNING ON THE DATE OF THE NEXT ANNUAL MEETING OF THE MEMBERS." THE SECTION GOES ON TO STATE "AT LEAST 25 DAYS PRIOR TO THE ANNUAL MEETING, THE SECRETARY SHALL MAIL A BALLOT TO EACH MEMBER. AT A MINIMUM THE BALLOT MUST HAVE THE NAME OF EACH NOMINEE, THE DATE UPON WHICH THE BALLOT MUST BE RECEIVED BY THE COOPERATIVE FOR TABULATION AND THE DISTRICT FOR WHICH THE NOMINEE IS SEEKING ELECTION. ALL MAIL BALLOTS WILL BE TABULATED FOR THE PURPOSE OF THE ELECTION OF TRUSTEES IF RECEIVED BY THE COOPERATIVE AT LEAST FIVE (5) DAYS PRIOR TO THE DATE OF THE ANNUAL MEETING. IF AN ELECTION OF TRUSTEES SHALL NOT BE HELD ON THE DAY DESIGNATED HEREIN FOR THE ANNUAL MEETING, OR ANY ADJOURNMENT THEREOF, A SPECIAL MEETING OF THE MEMBERS SHALL BE HELD FOR THE PURPOSE OF ELECTING TRUSTEES WITHIN REASONABLE TIME THEREAFTER USING THE MAIL BALLOT FORMAT." SECTION 3. QUALIFICATIONS, AMENDED PART 4 TO STATE "DOES NOT MEET ALL QUALIFICATION REQUIREMENTS AS SET FORTH IN COOPERATIVE POLICY ADOPTED BY THE BOARD OF TRUSTEES. AND GOES ON TO STATE NOTHING CONTAINED IN THIS SECTION SHALL PROHIBIT THE BOARD OF TRUSTEES FROM ESTABLISHING ADDITIONAL QUALIFICATIONS FOR TRUSTEES BY COOPERATIVE POLICY." A COMPLETE COPY OF THE BYLAWS CAN BE FOUND ON THE COOPERATIVE'S WEBSITE: HTTS://WWW.WECI.NET/CO-OP-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 WITH ANOTHER COOPERATIVE 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 AND PAID PREPARER REVIEW DRAFTS OF FORM 990 PRIOR TO E-FILING. BOARD REVIEWS ANNUAL FILINGS AT MONTHLY MEETINGS. |
| FORM 990, PART VI, SECTION B, LINE 12C | THE COOPERATIVE ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. EACH EMPLOYEE AND BOARD MEMBER ARE REQUIRED TO BE FAMILIAR WITH THE POLICY AND DISCLOSE ANY ACTION OR SITUATION THAT MIGHT VIOLATE THE POLICY. |
| FORM 990, PART VI, SECTION B, LINE 15 | ANNUALLY, THE BOARD OF TRUSTEES AND A COMPENSATION COMMITTEE REVIEW AND EVALUATE THE GENERAL MANAGER'S PERFORMANCE AND ESTABLISH A COMPENSATION LEVEL. THE GENERAL MANAGER REVIEWS A COMPENSATION SURVEY AND EVALUATES PERFORMANCE OF ALL OTHER STAFF AND ESTABLISHES COMPENSATION LEVELS IN ACCORDANCE WITH BUDGETED AMOUNTS REVIEWED AND APPROVED BY THE BOARD OF TRUSTEES. |
| FORM 990, PART VI, SECTION C, LINE 19 | GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. |
| FORM 990, PART IX: | ALTHOUGH THE COOPERATIVE IS NO LONGER A RURAL UTILITIES SERVICE (RUS) BORROWER, ITS ACCOUNTING RECORDS ARE MAINTAINED IN ACCORDANCE WITH THE RUS UNIFORM SYSTEM OF ACCOUNTS (USOA) PRESCRIBED FOR RUS ELECTRIC BORROWERS. 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 ITS 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 $ 7,423,382 LESS: TRUSTEE FEES REPORTED ON FORMS 1099-NEC (297,647) LESS: EMPLOYEE OFFICER BENEFITS INCLUDED IN LINE 5 (367,925) LESS: KEY EMPLOYEE BENEFITS INCLUDED IN LINE 5 (631,121) PLUS: SALARIES AND WAGES ALLOCATED TO NONOPERATING MARGINS 2,716,673 PLUS: SALARIES AND WAGES CAPITALIZED DIRECTLY TO PLANT 5,710,550 PLUS: SALARIES AND WAGES CAPITALIZED/EXPENSED INDIRECTLY THROUGH CLEARING & OTHER ACCOUNTS 43,913 TOTAL WAGES ACCRUED AND OR PAID $14,597,825 |
| FORM 990, PART IX, LINE 24: | ADMINISTRATIVE & GENERAL EXPENSE IS COMPRISED OF THE FOLLOWING: ADMINISTRATIVE & GENERAL SALARIES, BENEFITS, & OTHER $ 5,721,972 OFFICE SUPPLIES 1,437,362 COMPUTERS/IT 1,191,778 OUTSIDE SERVICES 207,828 INSURANCES 377,700 REGULATORY COMMISSION 1,162 DIRECTORS 382,302 MAINTENANCE OF GENERAL PLANT 139,976 MISCELLANEOUS GENERAL 212,896 TOTAL ADMIN & GENERAL EXP PER FINANCIAL STATEMENTS $ 9,672,976 LESS: RECLASS OF DIRECTOR FEES TO PART IX, LINE 5 (297,647) LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (1,510,209) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (684,806) TOTAL ADMIN & GENERAL EXPENSE PER FORM 990, PART IX $ 7,180,314 |
| FORM 990, PART IX, LINE 4: | PURSUANT TO THE FORM 990 INSTRUCTIONS, THE AMOUNT OF PATRONAGE DIVIDENDS PAID TO THE 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 PATRONAGE DIVIDEND REPORTED AS AN EXPENSE ON PART IX, LINE 4 IN THE AMOUNT OF $911,132 IS BASED ON THE NET MARGINS FROM THE PROVISION OF ELECTRIC ENERGY. THIS AMOUNT IS ALLOCATED TO THE 2023 PATRONS BASED ON 2023 PATRONAGE. IT IS DETERMINED ON AN ACCRUAL BASIS AND EXCLUSIVE OF THE PATRONAGE CAPITAL ALLOCATED FROM THE POWER SUPPLY COOPERATIVE. ALTHOUGH THE PATRONAGE CAPITAL ALLOCATED BY THE POWER SUPPLIER IS DIRECTLY RELATED TO THE NET MARGINS FROM THE PROVISION OF ELECTRIC ENERGY, AS NOTED BELOW, SUCH AMOUNTS ARE ALLOCATED WHEN THE CASH REDEMPTION IS RECEIVED. THE BYLAWS OF THE COOPERATIVE AUTHORIZE THE BOARD OF DIRECTORS TO ADOPT POLICIES REGARDING THE SEPARATE ALLOCATION AND REDEMPTION OF THE PATRONAGE CAPITAL ALLOCATED TO IT FROM THE POWER SUPPLIER. PURSUANT TO APPLICABLE POLICIES, THE POWER SUPPLY RELATED PATRONAGE CAPITAL IS ALLOCATED ON A TAX BASIS (I.E. WHEN REDEEMED BY THE POWER SUPPLIER AND RECEIVED IN CASH BY THE COOPERATIVE). THE AMOUNTS RECEIVED ARE THEN SUBSEQUENTLY ALLOCATED BY THE COOPERATIVE TO ITS PATRONS FOR THE YEARS BEING REDEEMED BY THE POWER SUPPLIER. BY TAKING THIS APPROACH, THE COOPERATIVE'S PATRONS WHO PAID FOR THE RESPECTIVE POWER RECEIVE THE ALLOCATION. ACCORDINGLY, THIS ALLOCATION METHODOLOGY IS CONSISTENTLY APPLIED AND EQUITABLE TO THE PATRONS. DURING 2023, THE COOPERATIVE RECEIVED $2,517,747 FROM THE POWER SUPPLIER FOR PRIOR YEARS AND HAS SUBSEQUENTLY ALLOCATED THIS AMOUNT TO THE PATRONS OF, AND ON THE BASIS OF PATRONAGE FOR, APPLICABLE PRIOR YEARS. ALTHOUGH THE TOTAL PATRONAGE DIVIDEND ALLOCATED TO THE PATRONS IS $3,428,879(I.E. $911,132 OF ACCRUAL BASIS NET MARGRINS FROM THE PROVISION OF ELECTRIC ENERGY PLUS $2,517,747 IN PATRONAGE CAPITAL REDEMPTIONS RECEIVED FROM THE POWER SUPPLIER), THE TAX BASIS AMOUNT IS ONLY BEING DISCLOSED DUE TO DIFFERENCES IN THE TIME BETWEEN WHEN THE COOPERTIVE IS ALLOCATED PATRONAGE CAPITAL BY AND WHEN IT RECEIVES A REDEMPTION OF PATRONAGE CAPITAL FROM THE POWER SUPPLIER. |
| FORM 990, PART IX, LINE 24E: | OTHER EXPENSES IS COMPRISED OF THE FOLLOWING: CONSUMER EXPENSE $ 1,552,438 DISTRIBUTION EXPENSE 5,696,700 NON-UTILITY EXPENSE 79,240 SALES EXPENSE 357,407 TRANSMISSION 128,662 TOTAL OTHER EXPENSES PER FINANCIAL STATEMENTS $ 7,814,447 LESS: RECLASS OF LABOR TO PART IX, LINES 5 & 7 (4,616,480) LESS: RECLASS OF BENEFITS TO PART IX, LINES 8-10 (2,093,350) TOTAL OTHER EXPENSES PER FORM 990, LINE 24 $ 1,104,617 |
| FORM 990, PART XI, LINE 9: | PATRONAGE CAPITAL ALLOCATED OR TO BE ALLOCATED 911,132. PATRONAGE CAPITAL RETIRED - TOTAL -1,078,961. PATRONAGE CAPITAL RETIRED - DISCOUNT 47,611. UNCLAIMED PROPERTY 298,790. |
| FORM 990, PART XII, LINE 2C: | THE BOARD OF DIRECTORS HAVE ASSIGNED MEMBERS TO AN AUDIT COMMITTEE TO OVERSEE THE FINANCIAL STATEMENT AUDIT AND SELECT THE INDEPENDENT FINANCIAL STATEMENT AUDITOR. PROCEDURAL CHANGES DID NOT OCCUR DURING THE YEAR. |
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