Ckenergy Electric Cooperative Inc

“The cooperative was formed by the members to provide electric service at cost on a cooperative basis.”

“The members of the cooperative vote on the board of trustees. Elections are done on a one member one vote basis by district.”

“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”

“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".”

“Management presented a copy of the form 990 to the board for discussion and review prior to filing.”

“Each trustee and employee must disclose any situation, which in his or her opinion violates, may violate, or could appear to violate the intent of this policy. A review of the policy will take place as needed, and amendments to the policy will be made as necessary.”

“The board of trustees periodically use a compensation survey when determining the compensation of the general manager. The survey shows comparative salaries for general managers from cooperatives located in oklahoma and the nation. For officers and highly compensated employees the board approves annual cost of living adjustments and budget for total labor. The ceo ultimately approves the salaries based on these actions of the board.”

“The cooperative provides a summarized copy of the audited financial statements to the members of the cooperative at the annual meeting. 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.”

“In order to provide retirement benefits to its employees, 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 to the plan are available to participating employees, including employee officers, key employees, and highly compensated employees, meeting the eligibility requirements of the plan. 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 employee officers, key employees, and highly compensated employees is comprised of the actuarial increase in the defined benefit plan and insurance paid on behalf of and for their benefit. In addition to the above plans, the cooperative also provides post-retirement health insurance benefits through an unfunded welfare benefit plan. The value of these benefits has not been estimated.”

“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.”

“The cooperative annually provides each trustee who served on the board during the year a questionnaire. The completed questionnaires are used to complete the applicable questions on the form 990 pertaining to business relationships among trustees, 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". If the cooperative was unable to obtain a completed questionnaire, the cooperative relied upon the completed information for the prior year. William lee retired and a completed questionnaire was not received from him; therefore, his prior year questionnaire has been relied on for the preparation of the return. There are no known changes from 2023 to 2024.”

“The accounting records of the cooperative are maintained in accordance with the rural utilties services (rus) uniform system of accounts (usoa) as 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 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.”

“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 2024 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.”

“Salaries and wages are allocated to asset, liability, and expense accounts based on the accounting system described above. The following schedule reconciles the amounts reported on lines 5-7 to total wages accrued and/or paid: total per lines 5-7 $ 8,726,431 less: trustee fees reported on forms 1099-nec (263,768) less: employee officer benefits included on line 5 (513,399) less: key employee benefits included on line 5 (111,979) plus: salaries and wages allocated to nonoperating margin 1,574 plus: salaries and wages capitalized directly to plant 1,478,601 plus: salaries and wages capitalized/expensed indirectly through clearing & other accounts 431,474 total wages accrued and/or paid $ 9,748,934”

“Administrative & general expense is comprised of the following: administrative & general salaries, benefits, & other $ 1,479,196 office supplies 223,242 outside services (55,414) insurances 827,494 employee benefits 169,862 trustees 415,653 miscellaneous general 148,355 maintenance of general plant 1,124,713 duplicate charges (credit) (48,118) regulatory commission 6,203 total admin & general exp per financial statements $ 4,291,186 less: reclass of trustee fees to part ix, line 5 (263,768) less: reclass of labor to part ix, lines 5 & 7 (1,508,612) less: reclass of benefits to part ix, lines 8-10 (917,941) total admin & general expense per form 990, part ix $ 1,600,865”

“Other expenses is comprised of the following: customer accounts $ 698,684 customer service & information 630,331 electrician service 3,654 sales 950,879 total other expenses per form 990, part ix $ 2,283,548”

“Patronage capital allocated or to be allocated 5,878,675. Patronage capital retired -2,054,121. Unclaimed patronage retirements retained under state law 1,224,556. Other comprehensive income - provision for pension and benefits -4,112. Net change in memberships 995.”

“The board of trustees 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.”