Wheatland Electric Cooperative Inc

“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.”

“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.”

“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”

“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 and paid preparer review drafts of form 990 prior to e-filing. Board reviews annual filings at monthly meetings.”

“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.”

“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.”

“Governing documents and financial statements are made available to the public upon request.”

“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 $2,907,228, which is the effect of prior year water division losses and non-cash g&t capital credits retained. The following schedule is provided to further explain the impact of this transaction: add: g&t capital credits retained $ 2,893,300 add: water division income 13,928 (a) - net income on page 1, part i, line 19 $ 2,907,228 (b) - benefits paid to members (i.e. Patronage dividends), part i, line 14 $ 8,506,384 total 2024 net margin per financial statements (a + b) $ 11,413,612”

“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. Director thon and key employees brungardt and klaus are no longer with the cooperative; therefore, their prior year questionnaire was relied upon while preparing the return. There were no known changes from 2023 to 2024.”

“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.”

“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 $ 7,929,302 less: trustee fees reported on forms 1099-nec (302,771) less: employee officer benefits included in line 5 (389,062) less: key employee benefits included in line 5 (565,714) plus: salaries and wages allocated to nonoperating margins 2,667,099 plus: salaries and wages capitalized directly to plant 6,393,504 plus: salaries and wages capitalized/expensed indirectly through clearing & other accounts 54,782 total wages accrued and or paid $15,787,140”

“Administrative & general expense is comprised of the following: administrative & general salaries, benefits, & other $ 5,858,186 office supplies 1,312,687 computers/it 1,247,344 outside services 192,854 insurances 416,364 regulatory commission 477 directors 423,458 maintenance of general plant 165,027 miscellaneous general 195,502 total admin & general exp per financial statements $ 9,811,899 less: reclass of donations to part ix, line 1 13,586 less: reclass of director fees to part ix, line 5 (302,771) less: reclass of labor to part ix, lines 5 & 7 (1,589,931) less: reclass of benefits to part ix, lines 8-10 (683,396) total admin & general expense per form 990, part ix $ 7,249,387”

“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 $8,506,384 is based on the net margins from the provision of electric energy. This amount is allocated to the 2024 patrons based on 2024 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 2024, the cooperative received $2,907,228 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 $11,413,612(i.e. $8,506,384 of accrual basis net margrins from the provision of electric energy plus $2,907,228 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.”

“Other expenses is comprised of the following: water expenses $ 1,252,228 distribution expense 5,611,503 non-utility expense 84,553 sales expense 405,516 transmission 109,610 total other expenses per financial statements $ 7,463,410 less: reclass of labor to part ix, lines 5 & 7 (4,591,800) less: reclass of benefits to part ix, lines 8-10 (1,973,682) total other expenses per form 990, line 24 $ 897,928”

“Patronage capital allocated or to be allocated 8,506,384. Patronage capital retired - total -1,540,861. Patronage capital retired - discount 59,604. Unclaimed property 360,621.”

“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.”