TREASURER'S REPORT

By John Klauder, District 6 Director, CCD, BLC, DGC

For the year ended December 31, 2024, the Board of Directors engaged bhm cpa group, inc. to perform an audit of the cooperatives’ books and records. The bhm group has extensive experience in auditing both utilities and cooperatives.

On March 26, 2025, bhm issued the audit report for the year ended December 31, 2024. The audit report contained an unmodified opinion, which in accounting terms is a clean opinion from the auditor.

In 2024, total revenues for the cooperatives were approximately $136.6 million. Total operating expenses for the year were $128.5 million, of which $61.8 million was for purchased energy. Patronage capital received from other cooperatives was $1.7 million. The net margin for the consolidated group was $9.4 million.

Consolidated comprehensive income for 2024 was $10 million. Comprehensive income is calculated by adding net margin and unrealized gains/ losses on postretirement benefits plans.

Comprehensive income by entity for the year are as follows:

• Licking Rural Electric - $4,211,000

• National Gas & Oil - $2,885,000

• NGO Transmission - $1,888,000

• NGO Development – $668,000

• NGO Propane - $338,000

As of December 31, 2024, your cooperative had total assets of $384 million, which includes $312 million in net plant assets. The cooperatives invested $29.7 million in new plant assets throughout the year. The company had $41 million of patronage capital in other cooperatives, including Buckeye Power and Cooperative Finance Corporation (CFC). Included in total assets was $1.5 million in cash and short-term investments. Total liabilities were $288 million as of year-end.

The cooperative has total equity of $96 million as of December 31, 2024. Equity as a percentage of assets for the combined entities has grown to 25 percent.

The Energy Cooperative serves approximately 72,100 meters. During 2024, we paid out approximately $8.7 million in taxes. The cooperative retired $395,000 in patronage capital credits to estates and $635,000 in general retirements to electric members. If you have additional questions about this financial report, please contact the office at 740-344-2102.