TREASURER'S REPORT

By John Klauder, District 6 Director, CCD, BL, DCG

For the year ending December 31, 2023, 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 auditing both utilities and cooperatives. On March 21, 2024, bhm issued the audit report for the year ended December 31, 2023. The audit report contained an unmodified opinion, which in accounting terms is a clean opinion from the auditor.

In 2023, total revenues for the cooperatives were approximately $130.5 million. Total operating expenses for the year were $127.7 million of which $63 million was for purchased energy. Patronage capital received from other cooperatives was $3.1 million. The net margin for the consolidated group was $6 million.

Consolidated comprehensive income for 2023 was $5.5 million. Comprehensive income is calculated by adding net margin and unrealized gains/losses on post-retirement benefit plans.

Comprehensive income by entity for the year are as follows:

• Licking Rural Electric - $2,985,000

• National Gas & Oil - $2,309,000

• NGO Transmission - $409,000

• NGO Development – ($593,000)

• NGO Propane - $430,000

As of December 31, 2023, your cooperative had total assets of $372 million, which includes $298 million in net plant assets. The cooperatives invested $27.9 million in new plant assets throughout the year. The company had $42 million of patronage capital in other cooperatives, including Buckeye Power and Cooperative Finance Corporation (CFC). Included in total assets was over $2 million in cash and short-term investments. Total liabilities were $285 million as of year-end.

The cooperative has equity of $86.6 million as of December 31, 2023. Equity as a percentage of assets for the combined entities has grown to 23.3 percent.

The Energy Cooperative serves approximately 71,300 meters. During 2023, we paid out approximately $8.5 million in taxes. The cooperative retired $830,000 in patronage capital credits to estates and $640,000 in general retirements to electric members.