Audit 324227

Title: Basis of Presentation Accounting Policies: The Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of the Cooperative for the fiscal year. The information in this schedule only presents a selection portion of the operation of the Cooperative, it is not intended to and does not present the financial position, operation or cash flows of the Cooperative. The SEFA is present using the accrual basis of accounts, which is described in Note 1 of the Cooperative consolidated financial statements. The Cooperative records the federal awards as a reduction of plant in service or repairs and maintenance expense in its consolidated financial statement, as the receipts from the public assistance grant are a reimbursement of the Cooperative's costs or repairs and maintenance expenses. The amounts reported in the Schedule for the year ended December 31, 2022 related to the costs incurred in connections with the Oklahoma Severe Winter Storm, DR-4575, which were incurred during the years ended December 31, 2020 and 2021. The Cooperative received appropriate approvals from FEMA in 2022. De Minimis Rate Used: N Rate Explanation: Actual cost of disaster damage work performed The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Western Farmers Electric Cooperative (the Cooperative) for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirement of the Uniform Guidance. Because the schedule only presents a select portion of the operation of the Cooperative, it is not intended to and does not present the financial position, operation, or cash flows of the Cooperative.

Title: Basis of Accounting Accounting Policies: The Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of the Cooperative for the fiscal year. The information in this schedule only presents a selection portion of the operation of the Cooperative, it is not intended to and does not present the financial position, operation or cash flows of the Cooperative. The SEFA is present using the accrual basis of accounts, which is described in Note 1 of the Cooperative consolidated financial statements. The Cooperative records the federal awards as a reduction of plant in service or repairs and maintenance expense in its consolidated financial statement, as the receipts from the public assistance grant are a reimbursement of the Cooperative's costs or repairs and maintenance expenses. The amounts reported in the Schedule for the year ended December 31, 2022 related to the costs incurred in connections with the Oklahoma Severe Winter Storm, DR-4575, which were incurred during the years ended December 31, 2020 and 2021. The Cooperative received appropriate approvals from FEMA in 2022. De Minimis Rate Used: N Rate Explanation: Actual cost of disaster damage work performed The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the Cooperative’s consolidated financial statements.

Title: Relationship to the Consolidated Financial Statements Accounting Policies: The Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of the Cooperative for the fiscal year. The information in this schedule only presents a selection portion of the operation of the Cooperative, it is not intended to and does not present the financial position, operation or cash flows of the Cooperative. The SEFA is present using the accrual basis of accounts, which is described in Note 1 of the Cooperative consolidated financial statements. The Cooperative records the federal awards as a reduction of plant in service or repairs and maintenance expense in its consolidated financial statement, as the receipts from the public assistance grant are a reimbursement of the Cooperative's costs or repairs and maintenance expenses. The amounts reported in the Schedule for the year ended December 31, 2022 related to the costs incurred in connections with the Oklahoma Severe Winter Storm, DR-4575, which were incurred during the years ended December 31, 2020 and 2021. The Cooperative received appropriate approvals from FEMA in 2022. De Minimis Rate Used: N Rate Explanation: Actual cost of disaster damage work performed The Cooperative records the federal awards as a reduction of plant in service or repairs and maintenance expense in its consolidated financial statements, as the receipts from the public assistance grant are a reimbursement of the Cooperative costs or repairs and maintenance expenses. The amounts reported in the Schedule for the year ended December 31, 2022 related to the costs incurred in connections with the Oklahoma Severe Winter Storm, DR-4575, which were incurred during the years ended December 31, 2020 and 2021. The Cooperative received appropriate approvals from FEMA in 2022.