20260129Raft River REC Audit Report 2023.pdf

Raft River Rural Electric Cooperative, Inc.
Financial Report
December 31, 2023 and 2022

Raft River Rural Electric Cooperative,Inc.
Table of Contents
December 31,2023 and 2022
Page
Independent Auditor's Report............................................................................................................ 1-2
Financial Statements:
BalanceSheets........................................................................................................................................3
Statementsof Operations........................................................................................................................4
Statementsof Cash Flows.......................................................................................................................5
Notes to Financial Statements ..........................................................................................................6-17
Compliance Reports:
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards.............................18-19
Schedule of Findings and Responses....................................................................................................20
Status of Prior Year Findings ...............................................................................................................21
Independent Auditor's Report on Compliance with Aspects of Contractual
Agreements and Regulatory Requirements for Electric Borrowers............................................22-23

® DeCoria & Company PC
CERTIF IED PUBLIC A C C O U N T A N T S
Independent Auditor's Report
Board of Directors
Raft River Rural Electric Cooperative, Inc.
Malta,Idaho
Opinion
We have audited the accompanying financial statements of Raft River Rural Electric Cooperative, Inc.,
which are comprised of the balance sheets as of December 31, 2023 and 2022, and the related statements
of operations, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Raft River Rural Electric Cooperative, Inc. as of December 31, 2023 and 2022, and
the results of its operations and its cash flows for the years then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of Raft River Rural Electric Cooperative, Inc. and to meet our
other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events considered in the aggregate, that raise substantial doubt about Raft River Rural Electric
Cooperative, Inc.'s ability to continue as a going concern within one year after the date that the financial
statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards will always detect a material misstatement when it exists.
1
Ph: 307.885.4272 1 Fax: [phone] South Washington, Suite 8 1 P.O. Box 460 1 Afton, WY 83110

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements, including omissions, are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards,we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of Raft River Rural Electric Cooperative, Inc.'s internal control.
Accordingly,no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about Raft River Rural Electric Cooperative, Inc.'s ability to continue
as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
Other Reporting Required by Governmental Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 1, 2024 on our consideration of Raft River Rural Electric Cooperative, Inc.'s internal control
over financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of
our testing of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
Raft River Rural Electric Cooperative, Inc.'s internal control over financial reporting and compliance.
;Vow -� e , pe,
DeCoria& Company,PC
Evanston,Wyoming
February 1, 2024
2

Financial Statements

Raft River Rural Electric Cooperative,Inc.
Statements of Cash Flows
Years Ended December 31,2023 and 2022
2023 2022
Cash flows from operating activities:
Net margins $ 4,702,964 $ 2,528,284
Adjustments to reconcile net margins to net cash
provided by operating activities:
Depreciation and amortization expense 2,519,854 2,477,782
Gain on sale of general plant (69,066) (111,031)
Changes in:
Accounts receivable,net 143,816 (70,828)
Materials and supplies inventory (212,384) (215,747)
Prepaid expenses (13,550) 9,588
Deferred charges 28,226 169,355
Accounts payable (45,818) (180,232)
Consumer deposits (197,362) (228,529)
Other current and accrued liabilities (4,128) 37,198
Deferred credits 138,545 2,714
Net cash provided by operating activities 6,991,097 4,418,554
Cash flows from investing activities:
Additions to utility plant (6,120,601) (4,754,793)
Proceeds from sale of general plant 110,000 225,686
Net change in temporary investments (79,997) 268,908
Net change in investments in associated organizations (23,525) (31,397)
Net cash used by investing activities (6,114,123) (4,291,596)
Cash flows from financing activities:
Issuances and redemptions of memberships,net 3,680 3,678
Other changes in other equities 105,553 68,436
Retirements of patronage capital credits (1,250,017) (949,529)
Principal payments on long-term debt (712,386) (758,374)
Net borrowings on lines of credit 500,000 Net cash used by financing activities (1,353,170) (1,635,789)
Net decrease in cash,cash equivalents and restricted cash (476,196) (1,508,831)
Cash,cash equivalents and restricted cash,beginning of year 762,069 2,270,900
Cash,cash equivalents and restricted cash,end of yea $ 285,873 $ 762,069
Supplemental disclosures of cash flow information:
Cash paid during the year for interes $ 580,165 $ 524,020
The accompanying notes are an integral part of the financial statements. 5

Raft River Rural Electric Cooperative,Inc.
Balance Sheets
December 31,2023 and 2022
2023 2022
ASSETS
Noncurrent assets:
Net utility plant(Note 3) $ 53,988,703 $ 50,428,890
Investments in associated organizations(Note 4) 1,102,333 1,078,808
Total noncurrent assets 55,091,036 51,507,698
Current assets:
Cash,cash equivalents and restricted cash(Notes 5 and 10) 285,873 762,069
Temporary investments(Note 6) 1,156,581 1,076,584
Accounts receivable,net(Note 7) 1,268,954 1,412,770
Interest receivable 5,435 5,435
Materials and supplies inventory 1,955,139 1,742,755
Prepaid expenses 79,585 66,035
Total current assets 4,751,567 5,065,648
Deferred charges(Note 8) - 28,226
Total assets $ 59,842,603 $ 56,601,572
MEMBERS'EQUITY AND LIABILITIES
Members' equity:
Memberships $ 42,655 $ 38,975
Patronage capital(Note 9) 40,296,772 37,092,232
Other equities 4,238,163 3,884,203
Total members'equity 44,577,590 41,015,410
Commitments and contingencies(Note 13)
Noncurrent liabilities:
Long-term debt,due after one year(Note 10) 10,966,734 11,620,059
Current liabilities:
Long-term debt,due within one year(Note 10) 653,325 712,386
Lines of credit(Note 11) 500,000 -
Accounts payable 423,355 469,173
Consumer deposits 1,685,305 1,882,667
Other current and accrued liabilities 712,779 716,907
Total current liabilities 3,974,764 3,781,133
Deferred credits(Note 12) 323,515 184,970
Total liabilities 15,265,013 15,586,162
Total members'equity and liabilities $ 59,842,603 $ 56,601,572
The accompanying notes are an integral part of the financial statements. 3

Raft River Rural Electric Cooperative,Inc.
Statements of Operations
Years Ended December 31,2023 and 2022
2023 2022
Operating revenues:
Sales of electricity $ 19,245,106 $ 20,274,013
Other operating revenue,net 585,016 623,386
Total operating revenues, net 19,830,122 20,897,399
Operating expenses:
Cost of power(Note 14) 7,884,137 10,927,476
Transmission expense 184,681 149,240
Distribution expense- operations 1,837,612 1,790,218
Distribution expense-maintenance 932,226 971,472
Consumer accounts expense 266,192 177,869
Consumer service and information expense,net 140,230 134,122
Sales expense 23,846 28,984
Administration and general expense 1,033,818 1,015,466
Depreciation and amortization expense 2,185,418 2,135,387
Taxes-property and gross revenue 317,323 354,838
Total operating expenses 14,805,483 17,685,072
Operating margins before finance charges 5,024,639 3,212,327
Finance charges:
Interest on long-term debt 536,542 523,256
Interest expense-other 33,540 36,764
Total finance charges 570,082 560,020
Net operating margins 4,454,557 2,652,307
Non-operating margins(deficit):
Investment income 52,265 46,270
Other capital credits 44,738 63,698
Gain on sale of general plant 69,066 111,031
Unrealized gain(loss)on investments 119,540 (295,909)
Other non-operating margins,net (37,202) (49,113)
Total non-operating margins (deficit),net 248,407 (124,023)
Net margins $ 4,702,964 $ 2,528,284
The accompanying notes are an integral part of the financial statements. 4

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
1. Organization
Raft River Rural Electric Cooperative, Inc. ("the Cooperative") is an electric distribution cooperative
whose main office is located in Malta,Idaho. Its service area consists of south-central Idaho,northwestern
Utah and northeastern Nevada. The majority of the Cooperative's load is the result of deep well irrigation,
which is the result of a basic agricultural environment, with less significant amounts derived from
residential and commercial loads.
The mission of the Cooperative is to deliver safe, reliable, cost-effective services to energize its
communities.
2. Summary of Significant Accounting Policies
Basis of Accountiniz
The Cooperative is subject to the accounting and reporting rules and regulations of the Rural Utilities
Service (RUS). The Cooperative follows the Federal Energy Regulatory Commission's Uniform System
of Accounts prescribed for Class A and Class B Electric Utilities, as modified by RUS. As a result, the
Cooperative's application of accounting principles generally accepted in the United States of America
differs in certain respects from such application by non-regulated enterprises. The differences relate
primarily to the time at which various items enter into the determination of net margins in order to follow
the principle of matching costs and revenues. The Cooperative uses the accrual method of accounting.
Establishment of Electric Rates
Rates charged to members are established by the Cooperative's Board of Directors ("the Board") and are
not subject to regulation.
Net Utili , Plant
Utility plant is recorded at cost, which includes contracted work, direct labor and materials, and indirect
charges for engineering, supervision, and other similar overhead items. Customer participation payments
for construction reduce the amounts capitalized to utility plant. Major additions and betterments with a
cost of$5,000 or more are reviewed for capitalization. Costs of routine repairs and maintenance that do
not improve or extend the useful lives of the related assets, and the replacement and renewal of items
determined to be less than units of plant, are charged to maintenance as incurred. When units of
transmission or distribution plant are retired, sold or otherwise disposed of in the ordinary course of
business, their average book cost is removed from utility plant and the cost,plus the cost of removal, less
net salvage, is removed from accumulated depreciation. When general plant assets are retired, sold or
otherwise disposed of in the ordinary course of business, their net book value is removed from utility
plant and the resulting gain or loss,if any, is recognized.
6

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
2. Summary of Significant Accounting Policies, Continued
Net Utility Plant, Continued
Depreciation is computed using the straight-line method,which is applied to groups of assets according to
class. Rates, which are determined by RUS recommendation, are based on an estimation of useful lives
for each asset group as follows:
Transmission plant 2.75%
Distribution plant:
Overhead 2.83%
Underground 4.00%
General plant:
Power operated equipment 7.99%
Other utility plant 2.00%
Office furniture 6.00%
Transportation equipment Various
Depreciation on most transportation equipment is calculated on a five-year life. Depreciation on
transportation and work equipment is allocated to clearing accounts, and subsequently charged to
construction work orders or maintenance expense.
Valuation of Long-Lived Assets
Management of the Cooperative periodically reviews the net carrying value of its assets for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset might not be
recoverable. These reviews consider the net realizable value of each asset to determine whether an
impairment in value has occurred, and whether there is a need for any asset impairment write-down.
Impaired assets are reported at the lower of cost or net realizable value. At December 31, 2023 and 2022,
no assets were considered to be impaired.
Investments
Held-to-maturity securities, if any, are those debt securities the Cooperative has the positive intent and
ability to hold to maturity. These securities are reported at amortized cost.
Trading securities, if any, are debt and equity securities that are held principally for the purpose of selling
them in the near future. The Cooperative reports these securities at fair value, with unrealized gains and
losses included in earnings.
Investments in associated organizations are recorded at the face value of related certificates.
Cash and Cash Equivalents
The Cooperative considers all short-term deposits and highly liquid investments with original maturities
of three months or less when purchased to be cash equivalents.
7

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
2. Summary of Significant Accounting Policies, Continued
Accounts Receivable
Accounts receivable are stated at the amount that management of the Cooperative expects to collect from
outstanding balances. Management provides for probable uncollectible amounts through an allowance for
doubtful accounts. Additions to the allowance for doubtful accounts are based on management's
judgement, considering historical write-offs, review of specific past-due accounts, collections and current
credit conditions. Generally, the Cooperative considers accounts receivable past due after 30 days.
Balances which remain outstanding after management has used reasonable collection efforts are written
off through a charge to the allowance for doubtful accounts and a credit to the applicable accounts
receivable. Payments received on accounts receivable subsequent to being written off are recorded as a
bad debt recovery. Changes in the allowance for doubtful accounts have not been material to the financial
statements.
Materials and Supplies Inventory
Materials and supplies inventory consist primarily of items needed for construction and maintenance of
electric plant and is recorded at average cost. Usable material from plant retirements is returned to
inventory at the current average cost.
Deferred Charges and Deferred Credits
In accordance with ASC Topic 980, Regulated Operations, certain costs and income may be capitalized
as a regulatory asset or liability that would otherwise be charged to expenses or revenues when certain
conditions are met. Regulatory assets and liabilities are recorded when it is probable that future rate
increases or rate reductions will permit recovery. Additionally, the Cooperative accounts for customer
participation payments for irrigation meters,residential meters and construction in deferred credits. When
a project is completed, any deferred credits are applied to the work order and remaining costs, if any, are
posted to utility plant.
Patronage Capital
The Cooperative operates as a regulated, non-public entity. Amounts received from the furnishing of
electric energy in excess of operating costs and expenses are assigned to patrons on a patronage basis. All
other amounts received by the Cooperative from its operations,which are in excess of costs and expenses,
are allocated to its patrons on a patronage basis to the extent they are not required to offset current or prior
deficits. Patronage basis is defined as allocating to patrons on the basis of total power billings for each
patron.
Financial Instruments
ASC Topic 825, Financial Instruments, permits entities to choose to measure many financial assets and
liabilities at fair value. The fair value of a financial instrument is the amount that would be received from
the sale of an asset or paid for the transfer of a liability in an orderly transaction between market
participants (i.e., an exit price). At December 31, 2023 and 2022, the carrying value of financial
instruments, such as receivables, accounts payable and accrued liabilities, approximated their fair values
based on the short-term maturities of those instruments.
8

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
2. Summary of Significant Accounting Policies, Continued
Fair Value Measurements
ASC Topic 820, Fair Value Measurements and Disclosures, established a fair value hierarchy for those
assets and liabilities measured at fair value, that distinguishes between assumptions based on market data
(observable inputs) and the organization's own assumptions (unobservable inputs). The hierarchy consists
of: Level 1 —quoted market prices in active markets for identical instruments; Level 2—inputs other than
Level 1 inputs that are observable; and Level 3 — unobservable inputs developed using estimates and
assumptions determined by the organization. ASC Topic 820 defines fair value as the amount that would
be received from the sale of an asset or paid for the transfer of a liability in an orderly transaction between
market participants. The inputs and methodology used for valuing the Cooperative's financial assets and
liabilities are not indicators of the risks associated with those instruments.
At December 31, 2023 and 2022, the assets and liabilities of the Cooperative that were measured at fair
value on a recurring basis are summarized as follows:
December 31,2023
Level Level Level Total
Temporary Investments $ 1,156,581 $ -- $ -- $ 1,156,581
December 31,2022
Level Level Level Total
Temporary Investments $ 1,076,584 $ -- $ -- $ 1,076,584
Certain assets and liabilities are measured at fair value on a nonrecurring basis;that is,the instruments are
not measured at fair value on an ongoing basis, but are subject to fair value adjustments only in certain
circumstances (for example, when there is evidence of impairment). The Cooperative had no assets or
liabilities measured at fair value on a nonrecurring basis during 2023 or 2022.
Revenue Reco nig tion
The Cooperative utilizes cycle billing and records revenue billed to its members when the meters are read
each month. Substantially all of the Cooperative's members' meters were read as of December 31, 2023.
Accordingly, management believes that any unbilled revenue would not be material to the financial
statements, and therefore has not provided an accrual for unbilled accounts receivable.
Clearing Accounts
Overhead costs, including indirect labor, payroll burden, insurance, depreciation, transportation charges,
and stores expense, are charged to clearing accounts on a monthly basis. The amounts charged to the
clearing accounts are cleared each month of substantially all actual expenses. Transportation and
equipment charges are allocated directly to construction work orders to the extent that usage relates to
construction in progress. Remaining transportation and equipment expense, along with all other amounts
charged to the clearing accounts, are allocated to open work orders or maintenance expense accounts
based on equipment usage, labor charges, or material issuances, depending on the nature of the charge.
9

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
2. Summary of Significant Accounting Policies, Continued
Income Taxes
The Cooperative is a tax-exempt organization under the provisions of Section 501(c)(12) of the Internal
Revenue Code. Accordingly, no provision for income taxes is recorded in the accompanying financial
statements. However, the Cooperative is subject to tax on unrelated business income, if any. The
Cooperative had no unrelated business income during 2023 or 2022. The Cooperative has not identified
any uncertain income tax positions that would jeopardize its tax-exempt status.
The Cooperative's income tax returns are subject to review and examination by federal authorities. With
few exceptions, the tax returns essentially remain open for possible examination for a period of three
years after the respective filing deadlines of those returns.
Credit Risk
Financial instruments which potentially subject the Cooperative to concentrations of credit risk consist
principally of cash, cash equivalents and restricted cash,temporary investments and receivables.
The Cooperative maintains its cash in bank deposit accounts which, at times, may exceed federally
insured limits. The Cooperative has not experienced any losses in such accounts and management
believes it is not exposed to any significant credit risk on cash, cash equivalents and restricted cash, as the
repurchase account used by the Cooperative is backed by government securities.
Temporary investments are exposed to various risks such as significant world events, interest rate, credit
and overall market volatility risks. Due to the level of risk associated with certain investment securities, it
is reasonably possible that changes in the fair value of investments could occur in the near term and that
such changes could materially affect the amounts reported in the Balance Sheets.
Concentrations of credit risk with respect to trade receivables are limited due to the Cooperative's large
number of members. Credit is extended to members without collateral requirements; however, deposits
are obtained from certain members and formal shut-off policies and procedures exist.
Accounting Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the
United States of America requires management of the Cooperative to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying notes. Accordingly, actual
results could differ from those estimates and affect the amounts reported in the financial statements.
Subsequent Events
The Cooperative has evaluated subsequent events through February 1, 2024, the date these financial
statements were available to be issued. No material subsequent events have occurred since
December 31,2023 that required recognition or disclosure in these financial statements.
10

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
3. Net Utility Plant
Net utility plant consists of the following at December 31,2023 and 2022:
2023 2022
Organization and franchises $ 42,105 $ 42,105
Transmission plant 17,519,095 17,452,744
Distribution plant 56,718,743 54,646,326
General plant 10,317,711 10,273,581
Plant in service 84,597,654 82,414,756
Less: Accumulated depreciation (36,589,438) (35,143,291)
48,008,216 47,271,465
Construction in progress 5,980,487 3,157,425
53,988,703 S 50,428.890
Depreciation and amortization, including depreciation allocated to clearing accounts, totaled $2,519,854
and $2,477,782 for 2023 and 2022, respectively. Depreciation on transportation and work equipment that
was allocated to clearing accounts and subsequently charged to work orders or maintenance expense
totaled$334,436 and$342,395 in 2023 and 2022,respectively.
Customer participation payments are offset against the cost of construction in determining the amount to
capitalize into utility plant. Participation payments offset against construction costs totaled $535,976 and
$534,652 for 2023 and 2022,respectively.
4. Investments in Associated Organizations
Investments in associated organizations consist of the following at December 31,2023 and 2022:
2023 2022
PNGC membership $ 14,910 $ 14,910
Federated Insurance patronage capital 217,536 209,787
National Rural Utilities Cooperative Finance
Corporation(CFC)patronage capital 208,048 195,881
CFC capital term certificates 488,164 488,905
Other patronage capital and memberships 173,675 169,325
1,102,333 S 1,078.808
11

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
5. Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash consist of cash on hand and deposits held in checking and
money market accounts with a local bank. Custodial credit risk is the risk that in the event of a bank
failure, the Cooperative's deposits may not be returned to it. The Cooperative's deposits are insured by
the Federal Deposit Insurance Corporation(FDIC)up to $250,000 at December 31,2023.
The combined carrying amount of cash, cash equivalents and restricted cash (see Note 10) on the
Cooperative's books at December 31, 2023 was $285,873 and bank balances totaled $320,947. The
difference between the carrying amount of cash and cash equivalents on the Cooperative's books and the
bank and non-bank brokerage institutions balances consisted of outstanding checks and deposits not
processed by the bank and non-bank brokerage institutions as of December 31,2023.
A summary of the total insured and uninsured bank balances at December 31,2023 is as follows:
Total bank and non-bank brokerage institutions balances $ 320,947
Repurchase account covered by government securities (246,029)
Portion insured by FDIC (74,918)
Uninsured cash balances $
The following table provides a reconciliation of cash, cash equivalents and restricted cash, to the total
reported in the balance sheets and the statements of cash flows at December 31,2023 and 2022:
2023 2022
Cash and cash equivalents $ 284,873 $ 761,069
Restricted cash and cash equivalents 1,000 1,000
$ 285,873 $ 762,069
6. Temporary Investments
The following table summarizes cost and fair value information for temporary investments on the
Cooperative's books at December 31,2023 and 2022:
2023 2022
Cost Fair Value Cost Fair Value
Trading Securities 1,037,041 1,156,581 1,372,493 1,076,584
The Cooperative had no held-to-maturity or available-for-sale securities for 2023 and 2022. The
cumulative unrealized gain(loss) on trading securities at December 31, 2023 and 2022 was $119,540 and
$(295,909),respectively.
12

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
7. Accounts Receivable
Accounts receivable are summarized as follows at December 31, 2023 and 2022:
2023 2022
Accounts receivable $ 1,301,117 $ 1,442,770
Less allowance for doubtful accounts (32,163) (30,000)
1,268,954 1.412.770
8. Deferred Charges
In December 2012, the Insurance and Financial Services Committee of the National Rural Electric
Cooperative Association (NRECA) Board of Directors approved a plan to allow cooperatives that are
participants in the Retirement Security Plan (RS Plan) to make a prepayment in exchange for reduced
future required contributions. The prepayment amount was a cooperative's share, as of January 1, 2013,
of future contributions required to fund the RS Plan's unfunded value of benefits earned to date using RS
Plan actuarial valuation assumptions. The prepayment amount typically equaled approximately 2.5 times
a cooperative's annual RS Plan required contribution as of January 1, 2013. In general, a participating
cooperative's billing rate was reduced by approximately 25% retroactive to January 1, 2013. It was
estimated that the 25% differential in billing rates would continue for approximately 15 years, although
changes in interest rates, asset returns and other plan experience could have an impact on the differential
billing rates and the 15-year period.
In March 2013, the Cooperative made a prepayment of $1,693,550 to the NRECA RS Plan. The
Cooperative followed RUS guidance and amortized this amount over 10 years, at the rate of
approximately $14,113 per month. During the years ended December 31, 2023 and 2022, the Cooperative
recorded amortization totaling $28,226 and $169,355, respectively. At December 31, 2023 and 2022, the
remaining unamortized prepayment amount was $0 and$28,226,respectively.
9. Patronage Capital
Patronage capital is summarized as follows at December 31,2023 and 2022:
2023 2022
Assignable $ 4,454,557 $ 2,652,307
Assigned 35,842,215 34,439,925
40,296,772 37,092.232
13

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
10. Long-Term Debt
Long-term debt of the Cooperative consists of notes payable to National Rural Utilities Cooperative
Finance Corporation (CFC), CoBank, and Federal Financing Bank (FFB) administered by Rural Utilities
Services (RUS).
Substantially all of the Cooperative's assets are pledged as collateral for long-term debt payable to CFC,
CoBank, and FFB which is both unsecured and uncollateralized. The loan agreements contain various
restrictive covenants that limit the retirement of capital credits and require maintenance of various
financial ratios. At December 31, 2023 and 2022, the Cooperative was in compliance with all restrictive
covenants. Further, as a RUS borrower, proceeds from the sale of collateralized assets are to be restricted
for reinvestment in RUS approved assets. At both December 31, 2023 and 2022,the Cooperative reported
restricted cash for the future reinvestment in assets of$1,000(see Note 5).
Long-term debt consists of the following at December 31,2023 and 2022:
2023 2022
Notes payable to CFC,due in quarterly installments
of approximately$180,000, including fixed and variable
interest, currently at 3.910%to 7.650%,maturing
through 2046 $ 5,824,609 $ 6,207,417
Note payable to CoBank,due in monthly installments
of$14,219, including interest at 3.179%,
maturing in 2025 222,067 382,487
Notes payable to FFB, due in quarterly installments
of$94,743, including interest at 2.714%to
3.705%,maturing through 2045 5,573,383 5,742,541
11,620,059 12,332,445
Less current maturities (653,325) (712,386)
10,966,734 S 11,620.059
Scheduled principal maturities on long-term debt are as follows:
Year Ending December 31,
2024 $ 653,325
2025 437,523
2026 438,155
2027 405,858
2028 471,407
Thereafter 9,213,791
11,620,059
14

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
11. Lines of Credit
The Cooperative has a committed perpetual $1,000,000 unsecured line of credit with CFC. The line has a
variable interest rate that is established periodically by CFC,with a cap of 1.00%over the prime rate. The
interest rate as of December 31, 2023 was 7.25%. The outstanding borrowings against this line of credit
were$0 at both December 31,2023 and 2022.
The Cooperative has an uncommitted perpetual $3,000,000 unsecured line of credit with CFC. The
money is contingent on CFC having sufficient cash on hand to allow the Cooperative to draw on this line.
The line has a variable interest rate that is established periodically by CFC, with a cap of 1.00% over the
prime rate. The interest rate as of December 31,2023 was 7.05%. The outstanding borrowings against this
line of credit were $500,000 and$0 at December 31,2023 and 2022,respectivley.
The Cooperative has a committed perpetual $2,000,000 unsecured line of credit with CoBank. The line
has a weekly quoted variable interest rate that is established periodically by CoBank. The interest rate as
of December 31, 2023 was 7.74%. The outstanding borrowings against this line of credit were $0 at both
December 31,2023 and 2022.
12. Deferred Credits
Deferred credits are summarized as follows at December 31,2023 and 2022:
2023 2022
Customer participation payments $ 319,061 $ 181,964
Other deferred credits 4,454 3,006
$ 323,515 $ 184,970
Customer participation payments consist of prepayments for irrigation meters, residential meters and
utility plant construction.
13. Commitments and Contingencies
Retirement Plans
The Retirement Security Plan (RS Plan), sponsored by the National Rural Electric Cooperative
Association (NRECA), is a defined benefit, multi-employer, pension plan qualified under Section 401,
and tax-exempt under Section 501(a) of the Internal Revenue Code. The plan sponsor's Employer
Identification Number is 53-0116145 and the Plan Number is 333. A unique characteristic of a multi-
employer plan compared to a single employer plan is that all plan assets are available to pay benefits of
any plan participant. Separate asset accounts are not maintained for participating employers. This means
that assets contributed by one employer may be used to provide benefits to employees of other
participating employers.
15

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
13. Commitments and Contingencies,Continued
Retirement Plans, Continued
The Cooperative's contributions to the RS Plan in 2023 and 2022 represented less than 5 percent of the
total contributions made to the RS Plan by all participating employers. The Cooperative's contributions to
the RS Plan for 2023 and 2022 totaled $533,372 and $508,761, respectively. There have been no
significant changes that affect the comparability of 2023 and 2022 contributions.
For the RS Plan, a "zone status" determination is not required, and therefore not determined, under the
Pension Protection Act (PPA) of 2006. In addition, the accumulated benefit obligations and plan assets
are not determined or allocated separately by individual employer. In total, the RS Plan was over 80%
funded on both January 1, 2023 and 2022 based on the PPA funding target and PPA actuarial value of
assets on those dates. Because the provisions of the PPA do not apply to the RS Plan, funding
improvement plans and surcharges are not applicable. Future contribution requirements are determined
each year as part of the actuarial valuation of the plan and may change as a result of plan experience.
The Cooperative also has a 401(k) savings plan for all employees who have met minimum eligibility
requirements. The Cooperative's contributions to the 401(k) savings plan totaled $103,717 and $85,949
for 2023 and 2022,respectively.
On October 1, 2015, the Cooperative amended the RS Plan so that employees hired subsequent
January 1, 2015 would not be eligible for participation in the RS Plan. Additionally, for those employees
hired after January 1, 2015, the Cooperative amended the 401(k)plan, replacing the former 1% employer
matching contribution with an employer base contribution of 15%, not to exceed the maximum amount
permitted by the Internal Revenue Code.
Both plans are administered by the NRECA. A copy of the annual reports for both plans can be obtained
by writing to the office of the Plan Administrator,National Rural Electric Cooperative Association, 4301
Wilson Boulevard,Arlington,VA 22203.
Joint Use Agreement
In November 1996, the Cooperative signed a joint use agreement with Albion Telephone Company for
50% ownership and use of a facility on Bureau of Land Management property. The Cooperative's share
of the cost of maintenance of the building was $0 for both 2023 and 2022.
Power Supply Contracts
During 2008,the Cooperative executed a new Membership and Requirements Power Purchase Agreement
with Pacific Northwest Generating Cooperative (PNGC) that became effective on November 1, 2008.
Power deliveries pursuant to the agreement commenced on October 1, 2011 and the contract will remain
in effect for a minimum of 20 years. It will automatically be extended to match the term of subsequent
resource and financial commitments made by PNGC on behalf of its members under this agreement.
16

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2023 and 2022
13. Commitments and Contingencies,Continued
Power Supply Contracts, Continued
Bonneville Power Administration (BPA) Tier 1 charges for the Load Following Product will be passed
through to the Cooperative using BPA billing determinants, including any credits or discounts such as
low density discounts and irrigation rate mitigation program credits. The terms of the Tier 1 contract with
BPA include provisions for "true up" adjustments at the end of each operating year. The potential
amounts of such adjustments, if any, cannot be reasonably estimated. PNGC will acquire energy at the
lowest cost possible to meet the combined load requirements of its members above their BPA High Water
Mark(HWM) entitlements.
Member Reimbursement Agreement
Under the terms of an amended agreement dated September 21, 2011, which will remain in effect for a
minimum of 20 years, in conjunction with the Membership and Requirements Power Purchase
Agreement, the Cooperative agreed to guarantee its pro rata share of certain obligations and borrowings
of PNGC, together with other member cooperatives of PNGC. The Cooperative's guarantee is limited to
its member share, based on its load percentage. PNGC had no borrowings outstanding at either
December 31, 2023 or 2022, therefore, the Cooperative's guarantee at those dates was $0. The
Cooperative's maximum contingent liability associated with PNGC's credit facilities is approximately
$1,340,000. PNGC's current credit facility expires September 30,2031.
Forward Power Costs
Through its membership in PNGC, the Cooperative has, at times, incurred costs associated with
forward contracts. The Cooperative had no liability associated with any forward contracts at either
December 31,2023 or 2022.
14. BPA Power Dividend Distribution
BPA utilizes a Power Reserves Distribution Clause (Power RDC). The Power RDC is a rate mechanism
that permits repurposing a portion of BPA's financial reserves for other "high-value Power purposes"
when BPA's financial reserves exceed certain pre-defined levels.
On January 6, 2023, BPA concluded its decision process on the application of the fiscal year 2022 Power
RDC. BPA applied $350 million for a dividend distribution to reduce fiscal year 2023 power rates. The
portion applicable to the Cooperative during fiscal year 2023 was $2,107,235, and was applied against the
cost of power in the Statements of Operations for the year ended December 31,2023.
On November 16, 2023, BPA concluded its decision process on the application of the fiscal year 2023
Power RDC. BPA applied $165.4 million for a dividend distribution to reduce fiscal year 2024 power
rates. The portion applicable to the Cooperative during fiscal year 2024 will be approximately
$1,060,000.
17

Compliance Reports

® DeCoria & Company PC
CERTIF IED PUBLIC A C C O U N T A N T S
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
Board of Directors
Raft River Rural Electric Cooperative,Inc.
Malta,Idaho
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of Raft River Rural
Electric Cooperative, Inc. ("the Cooperative"), which are comprised of the balance sheets as of
December 31, 2023 and 2022, and the related statements of operations and cash flows for the years then
ended, and the related notes to the financial statements, and have issued our report thereon dated
February 1, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements,we considered the Cooperative's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements,but
not for the purpose of expressing an opinion on the effectiveness of the Cooperative's internal control.
Accordingly,we do not express an opinion on the effectiveness of the Cooperative's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe
than a material weakness,yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control that
might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that were not identified. Given these limitations, during our audit we did not
identify any deficiencies in internal control that we consider to be material weaknesses. We did identify
one deficiency in internal control, described in the accompanying Schedule of Findings and Responses as
Finding 2023-001,that we consider to be a significant deficiency.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Cooperative's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements,noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
The Cooperative's Response to the Finding
18
Ph: 307.885.4272 1 Fax: [phone] South Washington, Suite 8 1 P.O. Box 460 1 Afton, WY 83110

Government Auditing Standards requires the auditor to perform limited procedures on the Cooperative's
response to the finding identified in our audit and described in the accompanying Schedule of Findings
and Responses. The Cooperative's response was not subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly,we express no opinion on the response.
Purpose of this Report
The sole purpose of this report is to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
;9 Gr.O' zt, � C/. . pe
DeCoria& Company,PC
Evanston,Wyoming
February 1,2024
19

Raft River Rural Electric Cooperative,Inc.
Schedule of Findings and Responses
Year Ended December 31,2023
Section I—Summary of Auditor's Results
Financial Statements
Type of report the auditor issued on whether the financial statements
audited were prepared in accordance with U.S. GAAP(see Note 2): Unmodified
Internal control over financial reporting:
• Material weakness(es)identified? ❑ Yes ®No
• Significant deficiency(ies)identified? ® Yes ❑None reported
Noncompliance material to financial statements noted? ❑ Yes ®No
Section II—Financial Statement Findings
This section identifies the significant deficiencies, material weaknesses, and instances of non-compliance
related to the financial statements that are required to be reported in accordance with Government
Auditing Standards.
Finding 2023-001
Condition The size of the Cooperative's staff is not large enough to permit a complete
segregation of duties for an effective system of internal control over financial
reporting.
Criteria An effective system of internal control over financial reporting requires that
closely related duties be segregated.
Effect The concentration of closely related duties and responsibilities by a small staff
makes it difficult to establish a complete system of automatic internal checks on
the accuracy and reliability of the accounting records.
Cause The Cooperative's staff is too small to allow a complete segregation of duties.
Recommendation Although the Cooperative's staff is not large enough to permit a complete
segregation of duties for an effective system of internal control over financial
reporting,we recommend that officials be aware that the condition does exist.
Management's Management and the Cooperative's Board of Directors are aware of this
Response condition and have made a conscious decision to accept the resulting degree of
risk because of cost or other considerations.
20

Raft River Rural Electric Cooperative,Inc.
Status of Prior Year Findings
Year Ended December 31,2023
Finding 2022-001
Condition The size of the Cooperative's staff is not large enough to permit a complete segregation
of duties for an effective system of internal control over financial reporting.
Status This condition still exists at December 31,2023. See Finding 2023-001.
21

® DeCoria & Company PC
CERTIF IED PUBLIC ACCOIJITANTS
Independent Auditor's Report on Compliance with Aspects of Contractual
Agreements and Regulatory Requirements for Electric Borrowers
Board of Directors
Raft River Rural Electric Cooperative,Inc.
Malta,Idaho
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of Raft River Rural
Electric Cooperative, Inc. ("the Cooperative"), which are comprised of the balance sheet as of
December 31, 2023, and the related statements of operations and cash flows for the year then ended, and
the related notes to the financial statements, and have issued our report thereon dated February 1, 2024. In
accordance with Government Auditing Standards, we have also issued our report dated February 1, 2024,
on our consideration of the Cooperative's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws,regulations, contracts and grant agreements and other matters.
No reports other than the reports referred to above and our schedule of findings and responses related to
our audit have been furnished to management.
In connection with our audit, nothing came to our attention that caused us to believe that the Cooperative
failed to comply with the terms, covenants, provisions, or conditions of their loan, grant, and security
instruments as set forth in 7 CFR Part 1773, Policy on Audits of Rural Utilities Service Borrowers,
§1773.33 and clarified in the RUS policy memorandum dated February 7, 2014, insofar as they relate to
accounting matters as enumerated below. However, our audit was not directed primarily toward obtaining
knowledge of noncompliance. Accordingly, had we performed additional procedures, other matters may
have come to our attention regarding the Cooperative's noncompliance with the above-referenced terms,
covenants,provisions, or conditions of the contractual agreements and regulatory requirements, insofar as
they relate to accounting matters.
In connection with our audit, we noted no matters regarding the Cooperative's accounting records to
indicate that the Cooperative did not:
• Maintain adequate and effective accounting procedures;
• Utilize adequate and fair methods for accumulating and recording labor, material and overhead
costs, and the distribution of these costs to construction, retirement and maintenance or other
expense accounts;
• Reconcile continuing property records to the controlling general ledger plant accounts;
• Clear construction accounts and accrue depreciation on completed construction;
• Record and properly price the retirement of plant;
• Seek approval of the sale, lease or transfer of capital assets and disposition of proceeds for the
sale or lease of plant,material or scrap;
• Maintain adequate control over materials and supplies;
• Prepare accurate and timely financial and operating reports;
• Obtain written RUS approval to enter into any contract for the management, operation or
maintenance of the borrower's system if the contract covers all or substantially all of the electric
system;
22
Ph: 307.885.4272 1 Fax: [phone] South Washington, Suite 8 1 P.O. Box 460 1 Afton, WY 83110

• Disclose material related party transactions in the financial statements, in accordance with
requirements for related parties in accounting principles generally accepted in the United States
of America;
• Record depreciation in accordance with RUS requirements (see RUS Bulletin 183-1,
Depreciation Rates and Procedures);
• Comply with the requirements for the detailed schedule of deferred debits and deferred credits;
and
• Comply with the requirements for the detailed schedule of investments.
This report is intended solely for the information and use of the Board of Directors, management, and the
RUS and supplemental lenders and is not intended to be and should not be used by anyone other than
these specified parties..However,this report iisa matter of public record and its distribution is not limited.
WIW.A, � (. . p ,
DeCoria& Company,PC
Evanston,Wyoming
February 1, 2024
23