2021-04-27T16:25:03-05:00 2020-12-31 450250958 Eide Bailly LLP 1730 Burnt Boat Loop Ste 100 Bismarck ND 585030886 990 2020-01-01 450115790 Cass County Electric Cooperative Inc CASS 7013564400 3312 42nd St S No 200 Fargo ND 58104 Chad Sapa CFO 7013564400 2021-04-27 1 Chad Sapa 999009999 Lisa Chaffee CPA P00193453 7012551091 2021-04-27 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z Chad Sapa 3312 42nd St S No 200 Fargo ND 58104 141249727 0 X www.casscountyelectric.com X 1937 ND To serve our member's energy needs with affordable and reliable electricity. 9 9 105 0 0 0 0 0 140308267 139379056 1320196 876636 238844 238844 141867307 140494536 103660 103548 7417203 6867445 12424289 12589561 0 0 0 119959370 117944503 139904522 137505057 1962785 2989479 285510375 289161420 167539956 163075755 117970419 126085665 X The mission of Cass County Electric Cooperative: To serve our member's energy needs with affordable and reliable electricity. 1 0 Sale of electric energy to 53,421 accounts at the end of the 2020 year. 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 131 0 1 105 1 0 0 0 0 0 139053512 1793446 0 0 0 X 9 9 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X Chad Sapa 7013564400 3312 42nd St S Ste 200 Fargo ND 58104 Marcy Svenningsen Chairman 6.70 X X 11510 0 0 Jeffrey Triebold Vice Chairman 4.50 X X 12685 0 0 Glenn Mitzel Secretary 3.30 X X 10485 0 0 Sidney Berg Director 4.60 X X 10435 0 0 Douglas Anderson Director 1.90 X 9860 0 0 Wendy Loucks Director 4.80 X 12485 0 0 Tom Seymour Director 4.80 X 15360 0 0 Kalvin Hoff Treasurer 4.00 X 11935 0 0 Terry Kraft Director 0.70 X 3102 0 0 Marshal Albright CEO 42.30 X 301074 0 56501 Chad Sapa CFO 43.30 X 257189 0 166803 Tim Sanden CIO/VP Information Technol 42.10 X 211924 0 50938 Jodi Bullinger VP Engineering & Operation 40.70 X 196199 0 185320 Paul Matthys VP Member & Energy Service 41.00 X 190150 0 123128 Steven Peterson Line Crew Foreman 47.00 X 128638 0 65334 Todd Bollinger Member Service Manager 40.70 X 123680 0 72114 1506711 0 720138 46 0 1 0 MPM Construction PO Box 202 Horace ND 58047 Electrical Contractor 1712287 Jerry's Excavating PO Box 809 Casselton ND 58012 Electrical Contractor 1298219 Carr's Tree Service PO Box 250 Ottertail MN 56571 Tree Clearing 626415 Dakota Hills Electric Inc PO Box 185 Kindred ND 58051 Electrical Contractor 479915 Arvig Construction 150 Second St SW Perham MN 56573 Electrical Contractor 479548 9 Electric Sales 221000 137051335 137051335 Capital Credits 211110 2327721 2327721 139379056 820556 820556 408391 187547 220844 220844 220844 544624 79100 542704 24940 1920 54160 56080 56080 Dispatching Services 900099 18000 18000 18000 140494536 139379056 0 1115480 X 103548 6867445 808004 9137363 1928403 715791 4590972 8063313 Cost of Power 101711501 Distribution Expenses 8346128 Administrative and Gene 3840703 Customer Service Expens 2932106 -11540220 137505057 22852810 28586505 15013441 13121061 1294 427 3158110 4225869 1181533 833123 296818429 74490316 213071974 222328113 17227469 4391540 7919685 10567513 5084059 5107269 285510375 289161420 13263060 13083487 5458996 5725796 18338 18741 143625107 138653289 5174455 5594442 167539956 163075755 X 0 0 21311871 23569574 96658548 102516091 117970419 126085665 285510375 289161420 X 2989479 178499 4947268 X 0 1 X 1 0 0 1 X 592484 592484 17432768 7874504 9558264 269465579 66591780 202873799 9327598 24032 9303566 222328113 Customer Deposits 2637959 Other Liabilities 332371 Installation Costs of Equip 411252 Postretirement Benefits 2212860 5594442 X 140494536 0 140494536 0 140494536 130637612 0 130637612 6867445 6867445 137505057 Part IV, Line 2b: The members of the Cooperative can elect to round up their monthly electric bill to the next dollar. These funds collected from the membership are held in a Cooperative account until they are released to the Cass County Electric Cooperative Foundation. These funds are transferred directly to the Cass County Electric Cooperative Foundation on a monthly basis. Funds that exist at the end of year are a result of a timing difference in the receipt of the funds and the release of them to the Cass County Electric Cooperative Foundation. For the year ended December 31, 2020 the account held $18,741. Part X, Line 2: The Cooperative evaluates its tax positions that have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions. As of December 31, 2020 and 2019, the unrecognized tax benefit accrual was zero. The Cooperative will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. Part XII, Line 4b - Other Adjustments: Patronage Capital Credits Allocated During Current Year 6,867,445. 1 Fueling Our Future LLP Chamber 202 1st Ave N Moorhead MN 56560 832467021 15000 Economic Growth Greater FM EDC 51 Broadway Suite 500 Fargo ND 58102 456011769 501(c)(3) 40000 Local Economic Growth ND Chapter of Dollars for Scholars Bank of ND 1200 Memorial Hwy Bismarck ND 585065509 371517987 501(c)(3) 9500 Education Valley Prosperity Partnership GFMEDC 51 Broadway Suite 500 Fargo ND 58102 461988505 501(c)(3) 5000 Economic Development 4 0 Part I, Line 2: This organization is a member of the Fueling Our Future, LLP and the Valley Prosperity Partnership and receive reports as to how the grant money is spent. The Greater FM EDC reports on how the funds are spent. The ND Dollars for Scholars forward the names of the students and parents receiving scholarships. X 0 0 0 Chad Sapa CFO 210496 0 30679 0 16014 0 133678 0 33125 0 423992 0 0 0 Jodi Bullinger VP Engineering & Operation 159474 0 23201 0 13524 0 153711 0 31609 0 381519 0 0 0 Marshal Albright CEO 283781 0 2860 0 14433 0 25650 0 30851 0 357575 0 0 0 Paul Matthys VP Member & Energy Service 151395 0 21582 0 17173 0 92718 0 30409 0 313277 0 0 0 Tim Sanden CIO/VP Information Technol 171280 0 25390 0 15254 0 18587 0 32351 0 262862 0 0 0 Todd Bollinger Member Service Manager 120570 0 1238 0 1872 0 45174 0 26940 0 195794 0 0 0 Steven Peterson Line Crew Foreman 127055 0 1047 0 536 0 36094 0 29240 0 193972 0 0 0 Schedule J, Part II, Column C, Deferred Compensation Included in other compensation is the estimated current year increase in the actuarial value of the defined benefit plan. These amounts do not represent any current year contributions to the plan. They are estimates of the increase in the actuarial value of the plans received from the NRECA. The current year expense and the increase in actuarial value for each employee are reflected in the statement for Form 990, Part VII, Column f. Paul Matthys VP of Member and Energy Services Computer loan X 1397 427 0 0 1 427 Form 990, Part III, line 2 In the fall of 2020, we installed three electric vehicle charging stations on our system where anyone in the area can charge their electric vehicle at rates we set. Form 990, Part VI, Section A, line 4 Article 2: To provide for virtual annual meeting and electronic voting. Article 3: That directors attending meeting virtually are considered as attending in-person. Form 990, Part VI, Section A, line 6 CCEC has one class of members. A person is eligible to become a member of the cooperative effective the date the person initially uses or requests to use electric service and meets the requirements set forth in Article I of the Cooperative's Bylaws. Form 990, Part VI, Section A, line 7a One member, one vote. CCEC members have the right and authority to elect the Board of Directors. Three directors stand for election each year at the annual business meeting. Members also have the right to request a special meeting of the membership when the request is based on valid member demand. Members may consider, vote or act upon other matters as provided by applicable laws. Form 990, Part VI, Section A, line 7b CCEC membership has the right and authority to have the final decision role on the following matters: **The disposition of cooperative assets if proposed sale is over 5% of total assets during a 12-month period. No less than two-thirds of the entire membership must approved the proposed transfer. ** A proposed merger or consolidation; a majority of the members present and voting in person at the member meeting must approve the consolidation or merger. Form 990, Part VI, Section A, line 8b The Board of Directors is the sole body with governing authority over the Cooperative. All committees serve in an advisory capacity. Appropriate records are maintained of proceedings at all governance meetings as well as its advisory standing committees. Form 990, Part VI, Section B, line 11b Board policy 202 regarding Tax Status/Reporting establishes that following the initial preparation of the draft Form 990, the CFO and President/CEO must review the report and submit it to the Board of Directors for approval. The Board must approve the completed Form 990 before it is filed. Form 990, Part VI, Section B, line 12c CCEC Policy 110 Conflict of Interest requires Directors and employees of the Cooperative to disclose annually: **The receipt of any gifts, fees, loans or favors with a value in excess of $100; **Any business transaction that may be considered in competition with the cooperative or deemed a conflict of interest; **The policy also prohibits the use of non-public corporate information for financial or business opportunity benefit. ***Action: Should a conflict be disclosed the board must provide the director an opportunity to comment orally and in writing regarding the information or fact before making a determination. If the board determines that a director is not in compliance with the policy the board will act appropriately including the possibility of sanction, disqualification and/or removal. Legal counsel reviews disclosures. Individuals with a conflict must abstain from voting. Form 990, Part VI, Section B, line 15a At the board reorganization meeting held annually, the board reviews director compensation and benefits. The last review of director compensation was done in 2020. The most current NRECA Director Compensation Survey is provided for review. Note: this survey is done every other year (most current 2020) and was provided to the board in July 2020. A new survey will be conducted in 2022. A CEO evaluation of compensation is done annually by the Board of Directors during an executive session; the CEO is not present during the meeting. As established by Board Policy 105.4, the Board Compensation Committee collects, verifies and analyzes comparative data on compensation which is then provided and reviewed by the board (executive session minutes are kept by legal counsel). The board Chairman is responsible for discussing the outcome of the evaluation with the CEO. The last CEO evaluation occurred in March 2020. An annual performance appraisal is required for all employees; the appraisals on top management personnel are completed by the President/CEO in accordance with Board Policy 224. Local, regional and national wage and salary data is used to determine the wage scale, which is approved annually by the Board of Directors. Form 990, Part VI, Section C, line 19 The Cooperative's Bylaws and Articles of Incorporation are posted on the website (www.casscountyelectric.com). A paper copy is made available to any member upon request. The financial statements are mailed to all members of the Cooperative in the annual report issue of Cooperative's official newsletter, The Highline Notes. The Conflict of Interest Policy is available to the public upon request. Form 990, Part IX, Functional Expense, Line 24e Other Expenses: The salaries, pension, and payroll taxes reported on lines 5-10 are already included in distribution expense, administrative & general expense and customer expense. Therefore, these amounts are being subtracted out as an other deduction on line 24e in the amount of $(12,589,561). Form 990, Part IX, Functional Expense, Line 4 Benefits Paid to Members- The Cooperative has interpreted the instructions to Part IX, Line 4, to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the Bylaws of the Cooperative. Form 990, Part XI, line 9: Retired Capital Credits to Patrons -1,920,177. Patronage Capital Credits Allocated During Current Year 6,867,445. Form 990, Part VII, Column F Estimated Amount of Other Compensation: Because Part IX, line 5 captures only the current year expense of the defined benefit plan of the Cooperative, the compensation in Part IX, line 5 is less than that reported in Part VII. Included in deferred compensation is the current year estimated increase in the actuarial value of the defined benefit plan for the following employees: Chad Sapa $118,540, Jodi Bullinger $142,174, Paul Matthys $81,935, Steven Peterson $29,322, and Todd Bollinger $37,569. These amounts are estimates in the increase of the value of the plan and are not current year expenses of the Cooperative. The current year expense for this defined benefit plan are as follows: Chad Sapa $47,124, Jodi Bullinger $38,093, Paul Matthys $34,808, Steven Peterson $21,085, and Todd Bollinger $27,513.