Eastern Slope Rural Telephone Assoc Inc

“The cooperative was formed by the members to provide telephone and other telecommunications service at cost on a cooperative basis.”

“The members of the cooperative vote on the board of directors. 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 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 provided a complete copy of the form 990 to the board subsequent to filing the return.”

“The board of directors use a compensation survey when determining the compensation of the general manager. The survey shows comparative salaries for general managers from similarly situated cooperatives. The board of directors and general manager use a compensation survey when determining the compensation of the cooperative's other employees meeting the definition of officer. The survey shows comparative salaries from similarly situated cooperatives.”

“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 any such document. A complete copy of the bylaws can be found on the cooperative's website: www.easternslopetech.com.”

“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, meeting the eligibility requirements of such plans. The cooperative also provides health and life insurance to all employees through a qualified plan. The amounts reported on part vii, column (f) for the officers are comprised of the amounts contributed to both the defined benefit and defined contribution pension plans and the insurance premiums paid for their benefit. In addition to the above pension plans, the cooperative also provides post-retirement health insurance benefits through a welfare benefit plan. The value per person of these benefits has not been estimated.”

“Patronage dividends result 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 telephone service provided by the cooperative to its members.”

“The accounting records of the company conform to the uniform system of accounts prescribed by the federal communications commission (fcc) for telephone companies as modified by the colorado public utilities commission (cpuc). The usoa does not record expenses in the general expense categories provided on part ix lines 1 - 23. The cooperative will break out 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 will be reported on line 24 under the expense categories required by the usoa.”

“All grants, sponsorships and/or donations are made to non-profit and civic organizations that are located in the cooperative's service area, and are intended to improve the communities in which our members reside. Each grant, sponsorship and/or donation made during the year was below the reporting threshold of part ii.”

“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 $ 2,098,743 plus: allocation to assets 189,497 plus: allocation to affiliated company 170,751 less: director fees reported on form 1099-nec (133,626) less: employee officer benefits reported on line 5 (57,348) total wages accrued and/or paid $ 2,268,017”

“Change in tax status: for the 2023 calendar tax year, the amount of revenue and income that was received or receivable from members was less than 85%. Therefore, the cooperative operated as a taxable cooperative and filed form 1120 in lieu of form 990. For the 2024 calendar tax year, the cooperative once again received more than 85% of its its income from members and qualifies to file form 990. Due to the fact that the cooperative filed form 1120 in the immediately preceding calendar tax year, the beginning balance sheet numbers for the cooperative agree to the ending balance sheet reported on the 2023 form 1120.”

“Patronage capital assignable 418,825. Oci - pension & benefits -518,228. Patronage capital retired - total -493,175. Changes in available for sale debt securities 6,009.”