20260129Raft River REC Audit Report 2024.pdf

Raft River Rural Electric Cooperative, Inc.
Financial Report
December 31, 2024 and 2023

Raft River Rural Electric Cooperative,Inc.
Table of Contents
December 31,2024 and 2023
Page
IndependentAuditor's Report............................................................................................................ 12
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, 2024 and 2023, 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, 2024 and 2023, 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 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 Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
January 31, 2025 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, IIn�c.'s internal control over financial reporting and compliance.
DeCoria& Company,PC
Evanston,Wyoming
January 31, 2025
2

Financial Statements

Raft River Rural Electric Cooperative,Inc.
Balance Sheets
December 31,2024 and 2023
2024 2023
ASSETS
Noncurrent assets:
Net utility plant(Note 3) $ 55,835,023 $ 53,988,703
Investments in associated organizations(Note 4) 1,083,549 1,102,333
Total noncurrent assets 56,918,572 55,091,036
Current assets:
Cash,cash equivalents and restricted cash(Notes 5 and 10) 784,148 285,873
Temporary investments(Note 6) 1,218,381 1,156,581
Accounts receivable,net(Note 7) 1,366,813 1,268,954
Interest receivable 5,450 5,435
Materials and supplies inventory 1,869,027 1,955,139
Prepaid expenses 85,899 79,585
Total current assets 5,329,718 4,751,567
Total assets $ 62,248,290 $ 59,842,603
MEMBERS'EQUITY AND LIABILITIES
Members' equity:
Memberships $ 45,605 $ 42,655
Patronage capital(Note 9) 41,065,598 40,296,772
Other equities 4,568,552 4,238,163
Total members'equity 45,679,755 44,577,590
Commitments and contingencies(Note 13)
Noncurrent liabilities:
Long-term debt,due after one year(Note 10) 10,489,211 10,966,734
Current liabilities:
Long-term debt,due within one year(Note 10) 477,523 653,325
Lines of credit(Note 11) 2,500,000 500,000
Accounts payable 426,196 423,355
Consumer deposits 1,781,264 1,685,305
Other current and accrued liabilities 610,206 712,779
Total current liabilities 5,795,189 3,974,764
Deferred credits(Note 12) 284,135 323,515
Total liabilities 16,568,535 15,265,013
Total members'equity and liabilities $ 62,248,290 $ 59,842,603
The accompanying notes are an integral part of the financial statements. 3

Raft River Rural Electric Cooperative,Inc.
Statements of Operations
Years Ended December 31,2024 and 2023
2024 2023
Operating revenues:
Sales of electricity $ 20,414,515 $ 19,245,106
Other operating revenue 546,813 585,016
Total operating revenues 20,961,328 19,830,122
Operating expenses:
Cost of power(Note 14) 10,698,128 7,884,137
Transmission expense 189,467 184,681
Distribution expense- operations 1,912,545 1,837,612
Distribution expense-maintenance 1,167,937 932,226
Consumer accounts expense 317,519 266,192
Consumer service and information expense,net 147,175 140,230
Sales expense 25,899 23,846
Administration and general expense 973,096 1,033,818
Depreciation and amortization expense(Note 3) 2,244,316 2,185,418
Taxes-property and gross revenue 388,980 317,323
Total operating expenses,net 18,065,062 14,805,483
Operating margins before finance charges 2,896,266 5,024,639
Finance charges:
Interest on long-term debt 594,614 536,542
Interest expense-other 32,826 33,540
Total finance charges 627,440 570,082
Net operating margins 2,268,826 4,454,557
Non-operating margins:
Investment income 86,291 52,265
Other capital credits 32,077 44,738
Gain(loss)on sale of general plant (78,968) 69,066
Unrealized gain on investments 98,272 119,540
Other non-operating margins(deficit),net 73,196 (37,202)
Total non-operating margins,net 210,868 248,407
Net margins $ 2,479,694 $ 4,702,964
The accompanying notes are an integral part of the financial statements. 4

Raft River Rural Electric Cooperative,Inc.
Statements of Cash Flows
Years Ended December 31,2024 and 2023
2024 2023
Cash flows from operating activities:
Net margins $ 2,479,694 $ 4,702,964
Adjustments to reconcile net margins to net cash
provided by operating activities:
Depreciation and amortization expense(Note 3) 2,546,115 2,519,854
(Gain)loss on sale of general plant 78,968 (69,066)
Changes in:
Accounts receivable,net (97,859) 143,816
Interest receivable (15) -
Materials and supplies inventory 86,112 (212,384)
Prepaid expenses (6,314) (13,550)
Deferred charges(Note 8) - 28,226
Accounts payable 2,841 (45,818)
Consumer deposits 95,959 (197,362)
Other current and accrued liabilities (102,573) (4,128)
Deferred credits (39,380) 138,545
Net cash provided by operating activities 5,043,548 6,991,097
Cash flows from investing activities:
Additions to utility plant (4,556,433) (6,120,601)
Proceeds from sale of general plant 85,030 110,000
Net change in temporary investments (61,800) (79,997)
Net change in investments in associated organizations 18,784 (23,525)
Net cash used by investing activities (4,514,419) (6,114,123)
Cash flows from financing activities:
Issuances and redemptions of memberships,net 2,950 3,680
Other changes in other equities 119,521 105,553
Retirements of patronage capital credits (1,500,000) (1,250,017)
Principal payments on long-term debt (653,325) (712,386)
Net borrowings on lines of credit 2,000,000 500,000
Net cash used by financing activities (30,854) (1,353,170)
Net increase(decrease)in cash,cash equivalents and restricted cash 498,275 (476,196)
Cash,cash equivalents and restricted cash,beginning of year 285,873 762,069
Cash,cash equivalents and restricted cash,end of year $ 784,148 $ 285,873
Supplemental disclosures of cash flow information:
Cash paid during the year for interest $ 664,129 $ 580,165
The accompanying notes are an integral part of the financial statements. 5

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2024 and 2023
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 Accountin)z
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 31,2024 and 2023
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 following RUS recommendations, 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, 2024 and 2023,
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 the 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 31,2024 and 2023
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. Changes 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 consists 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, 2024 and 2023, 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 31,2024 and 2023
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, 2024 and 2023, the assets and liabilities of the Cooperative that were measured at fair
value on a recurring basis are summarized as follows:
December 31,2024
Level Level Level Total
Temporary Investments $ 1,218,381 $ -- $ -- $ 1,218,381
December 31,2023
Level Level Level Total
Temporary Investments $ 1,156,581 $ -- $ -- $ 1,156,581
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 2024 or 2023.
Revenue Reco nig tion
The Cooperative 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, 2024. 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 31,2024 and 2023
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 2024 or 2023 and 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. 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 January 31, 2025, the date these financial
statements were available to be issued. No material subsequent events have occurred since
December 31,2024 that required recognition or disclosure in these financial statements.
10

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2024 and 2023
3. Net Utility Plant
Net utility plant consists of the following at December 31, 2024 and 2023:
2024 2023
Organization and franchises $ 42,105 $ 42,105
Transmission plant 19,052,077 17,519,095
Distribution plant 58,815,583 56,718,743
General plant 10,487,830 10,317,711
Plant in service 88,397,595 84,597,654
Less: Accumulated depreciation (37,753,379) (36,589,438)
50,644,216 48,008,216
Construction in progress 5,190,807 5,980,487
55,835,023 S 53,988.703
Depreciation and amortization, including depreciation allocated to clearing accounts, totaled $2,546,115
and $2,519,854 for 2024 and 2023, respectively. Depreciation on transportation and work equipment that
was allocated to clearing accounts and subsequently charged to work orders or maintenance expense
totaled$301,799 and$334,436 in 2024 and 2023,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 $409,904 and
$535,976 for 2024 and 2023,respectively.
4. Investments in Associated Organizations
Investments in associated organizations consist of the following at December 31,2024 and 2023:
2024 2023
PNGC membership $ 14,910 $ 14,910
Federated Insurance patronage capital 226,286 217,536
National Rural Utilities Cooperative Finance
Corporation(CFC)patronage capital 214,467 208,048
CFC capital term certificates 450,194 488,164
Other patronage capital and memberships 177,692 173,675
1,083,549 S 1,102.333
11

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2024 and 2023
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 31,2024.
The combined carrying amount of cash, cash equivalents and restricted cash (Note 10) on the
Cooperative's books at December 31, 2024 was $784,148 and bank balances totaled $793,401. The
difference between the carrying amount of cash and cash equivalents on the Cooperative's books and the
bank balance consisted of outstanding checks and deposits not processed by the bank as of
December 31,2024.
A summary of the total insured and uninsured bank balances at December 31, 2024 is as follows:
Total bank and non-bank brokerage institutions balances $ 793,401
Repurchase account covered by government securities (691,502)
Portion insured by FDIC (101,899)
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, 2024 and 2023:
2024 2023
Cash and cash equivalents $ 783,148 $ 284,873
Restricted cash 1,000 1,000
$ 784,148 $ 285,873
6. Temporary Investments
The following table summarizes cost and fair value information for temporary investments on the
Cooperative's books at December 31,2024 and 2023:
2024 2023
Cost Fair Value Cost Fair Value
Trading Securities 1,120,109 1,218,381 1,037,041 1,156,581
The Cooperative had no held-to-maturity or available-for-sale securities at December 31, 2024 and 2023.
The cumulative unrealized gain on trading securities for 2024 and 2023 was $98,272 and $119,540,
respectively.
12

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2024 and 2023
7. Accounts Receivable
Accounts receivable are summarized as follows at December 31,2024 and 2023:
2024 2023
Accounts receivable $ 1,402,347 $ 1,301,117
Less allowance for doubtful accounts (35,534) (32,163)
1,366,813 1.268.954
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 impacted 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, 2024 and 2023, the Cooperative
recorded amortization totaling $0 and $28,226, respectively. At both December 31, 2024 and 2023, the
remaining unamortized prepayment amount was $0.
9. Patronage Capital
Patronage capital is summarized as follows at December 31,2024 and 2023:
2024 2023
Assignable $ 2,268,826 $ 4,454,557
Assigned 38,796,772 35,842,215
41,065,598 40,296.772
13

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2024 and 2023
10. Long-Term Debt
Long-term debt of the Cooperative consists of notes payable to CFC, CoBank, and Federal Financing
Bank(FFB) administered by RUS.
Substantially all of the Cooperative's assets are pledged as collateral for long-term debt payable to CFC,
CoBank, and FFB. The loan agreements contain various restrictive covenants that limit the retirement of
capital credits and require maintenance of various financial ratios. At December 31, 2024 and 2023, the
Cooperative was in compliance with all restrictive covenants. Further, as a RUS borrower, proceeds from
the sale of collateralized assets are restricted for reinvestment in RUS approved assets. At both December
31, 2024 and 2023, the Cooperative reported restricted cash of$1,000 for future reinvestment in assets
(Note 5).
Long-term debt consists of the following at December 31, 2024 and 2023:
2024 2023
Notes payable to CFC, due in quarterly installments
of approximately$117,000, including fixed and variable
interest, currently at 3.910%to 5.520%,maturing
through 2046 $ 5,559,419 $ 5,824,609
Note payable to CoBank,due in monthly installments
of$14,219, including interest at 3.179%,
maturing in 2025 56,417 222,067
Notes payable to FFB, due in quarterly installments
of$94,743, including interest at 2.714%to
3.705%,maturing through 2045 5,350,898 5,573,383
10,966,734 11,620,059
Less current maturities (477,523) (653,325)
10,489,211 10,966.734
Scheduled principal maturities on long-term debt are as follows:
Year Ending December 31,
2025 $ 477,523
2026 438,155
2027 405,858
2028 471,407
2029 546,556
Thereafter 8,627,235
10,966,734
14

Raft River Rural Electric Cooperative,Inc.
Notes to Financial Statements
December 31,2024 and 2023
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, 2024 was 7.25%. The outstanding borrowings against this line of credit
were$0 at both December 31,2024 and 2023.
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, 2024 was 6.55%. The outstanding borrowings against this
line of credit were $2,500,000 and$500,000 at December 31, 2024 and 2023,respectively.
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, 2024 was 6.36%. The outstanding borrowings against this line of credit were $0 at both
December 31,2024 and 2023.
12. Deferred Credits
Deferred credits are summarized as follows at December 31,2024 and 2023:
2024 2023
Customer participation payments $ 276,443 $ 319,061
Other deferred credits 7,692 4,454
$ 284,135 $ 323,515
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 31,2024 and 2023
13. Commitments and Contingencies,Continued
Retirement Plans, Continued
The Cooperative's contributions to the RS Plan in 2024 and 2023 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 2024 and 2023 totaled $583,633 and $533,372, respectively. There have been no
significant changes that affect the comparability of 2024 and 2023 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, 2024 and 2023 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 $125,424 and $103,717
for 2024 and 2023,respectively.
On October 1, 2015, the Cooperative amended the RS Plan so that employees hired subsequent to
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 ATC Communication 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 2024 and 2023.
Power Supply Contracts
The Cooperative signed and agreed to an amended and restated Membership and Requirements Power
Purchase Agreement with Pacific Northwest Generating Cooperative (PNGC) that became effective on
October 1, 2023 for 30 years. It will automatically be extended each year, unless given written notice by
the Cooperative, 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 31,2024 and 2023
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 Contract
High Water Mark(CHWM) 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, 2024 or 2023, therefore, the Cooperative's guarantee at those dates was $0. The
Cooperative's maximum contingent liability associated with PNGC's credit facility 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 31,2024 or 2023.
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 was $942,358, and was applied
against the cost of power in the Statements of Operations for the year ended December 31,2024.
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 the 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, 2024 and 2023, 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
January 31, 2025.
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 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
2024-001,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
from 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.
18
Ph: 307.885.4272 1 Fax: [phone] South Washington, Suite 8 1 P.O. Box 460 1 Afton, WY 83110

The Cooperative's Response to the Finding
Government Auditing Standards require 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.
Wnz& � eow , pe
DeCoria& Company,PC
Evanston,Wyoming
January 31, 2025
19

Raft River Rural Electric Cooperative,Inc.
Schedule of Findings and Responses
Year Ended December 31,2024
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 2024-001
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 31,2024
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.
Status This condition still exists at December 31,2024. See Finding 2024-001.
21

® DeCoria & Company PC
CERTIF IED PUBLIC A C C O U N T A N T S
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, 2024, 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 January 31,2025. In
accordance with Government Auditing Standards, we have also issued our report dated January 31, 2025,
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 is a matter of public record and its distribution is not limited.
pwr .t' -� (:�. pe
DeCoria& Company,PC
Evanston,Wyoming
January 31,2025
23