2020-10-05T20:44:28-05:00 2019-12-31 450250958 EIDE BAILLY LLP 200 E 10TH ST STE 500 SIOUX FALLS SD 571046375 990 2019-01-01 460213171 FEM ELECTRIC ASSOCIATION INC FEME 6054266891 PO BOX 468 IPSWICH SD 574510468 SCOTT MOORE GENERAL MANAGER/CEO 6054266891 2020-09-29 1 LAURIE HANSON P00851848 6053391999 2020-09-29 184.83.199.194 2020-09-29 14:30:07 CD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 50CCFF325394DF76E401CCE6D67578A0FB45D135 2019 2021-04-22 16:20:28Z SCOTT MOORE PO BOX 468 IPSWICH SD 574510468 17269106 0 X WWW.FEMELECTRIC.COOP X 1949 SD TO SAFELY PROVIDE RELIABLE, COST-EFFICIENT ELECTRICITY AND OTHER SERVICES. 5 5 18 0 171578 80951 0 0 17474672 16540908 111932 53316 73280 155708 17659884 16749932 8669 8254 282026 210932 1870617 1940803 0 0 0 13369354 13617138 15530666 15777127 2129218 972805 40563224 41357973 25999515 26033779 14563709 15324194 TO ENHANCE THE QUALITY OF LIFE OF OUR MEMBERS, BY SAFELY PROVIDING RELIABLE, COST-EFFICIENT ELECTRICITY AND OTHER SERVICES. 0 0 PROVIDED ELECTRIC SERVICE TO APPROXIMATELY 1,297 MEMBERS AND HAVE APPROXIMATELY 2,045 MILES OF OVERHEAD AND UNDERGROUND LINE. IN 2019, OVERHEAD LINE DECREASED 56 MILES AND UNDERGROUND INCREASED 61 MILES. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 23 0 18 1 1 1 0 0 0 0 16370146 1299633 0 0 0 X 5 5 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 0 1 1 0 0 X SCOTT MOORE 6054266891 PO BOX 468 IPSWICH SD 574510468 GARY BACHMAN PRESIDENT 5.00 X X 10811 0 0 GERALD HAUPT VICE PRESIDENT (UNTIL 06/19) 2.00 X X 2106 0 0 TOM THORPE ASSISTANT SEC/TREAS /VP (BEG 07/19) 2.50 X X 10511 0 0 LARRY BOWAR SECRETARY 3.50 X X 8411 0 0 FRANK HEINZ TREASURER (UNTIL 06/19) 3.00 X X 1756 0 0 PAULA PETERSEN TREASURER (BEG 07/19) 3.00 X X 6306 0 0 ERIC ODENBACH ASSISTANT SEC/TREAS (BEG 07/19) 4.00 X X 4206 0 0 SCOTT MOORE GENERAL MANAGER/CEO/CFO 42.00 X 140206 0 94242 184313 0 94242 1 0 1 0 K&H ELECTRIC INC PO BOX 656 LINTON ND 58552 PLOWING/BORING/TRENCHING 290416 1 SALE OF POWER 221000 15741126 15741126 COOP CAPITAL CREDITS 221000 729306 729306 PARTNERSHIP INCOME 541900 70476 106832 -36356 16540908 85606 85606 21230 53520 -32290 -32290 -32290 621362 465654 155708 90962 64746 16749932 16561394 171578 16960 8254 210932 246524 1269254 317463 107562 837131 1026763 INCOME TAXES 36000 COST OF POWER 10764482 ADMIN & GENERAL 1053027 DISTRIBUTION-OPERATIONS 678824 -779089 15777127 644346 2456205 1004602 0 928132 1375843 4734 46118 687528 578974 485272 631422 35932391 9587041 26382296 26345350 988105 9430594 9916388 7615 7673 40563224 41357973 1394274 1705888 24538383 24304798 66858 23093 25999515 26033779 X 0 0 0 0 14563709 15324194 14563709 15324194 40563224 41357973 X 972805 -212320 X 0 1 X 1 0 64000 2674 66674 3422224 436110 2986114 32443493 9150931 23292562 26345350 MEMBERSHIPS 4300 C EAST RIVER ELECTRIC POWER COOPERATIVE 7889590 C RURAL ELECTRIC SUPPLY COOPERATIVE 102357 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 1005115 C NATIONAL RURAL TELECOMMUNICATIONS COOPERATIVE 209107 C OTHER COOPERATIVES 33452 C FEDERATED RURAL ELECTRIC INSURANCE 80867 C RURAL ELECTRIC ECONOMIC DEVELOPMENT, INC. 46000 C OTHER INV-FEDERAL EC DEV LOANS 545500 C OTHER INV-NISC 100 C 9916388 CUSTOMER DEPOSITS 8619 DEFERRED CREDITS 14474 23093 X 16749932 0 16749932 0 16749932 15566195 0 15566195 210932 210932 15777127 PART X, LINE 2: THE ASSOCIATION IS EXEMPT FROM INCOME TAXES UNDER SECTION 501 (C)(12) OF THE INTERNAL REVENUE CODE AND IS ANNUALLY REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) WITH THE IRS. IN ADDITION, THE ASSOCIATION IS SUBJECT TO INCOME TAX ON NET INCOME THAT IS DERIVED FROM BUSINESS ACTIVITIES THAT ARE UNRELATED TO ITS PURPOSE. THE ASSOCIATION FILES AN EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURN (FORM 990T) WITH THE IRS TO REPORT ITS UNRELATED BUSINESS TAXABLE INCOME. THE ASSOCIATION BELIEVES IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN AFFECTING ITS ANNUAL FILING REQUIREMENTS, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. THE ASSOCIATION WOULD RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF SUCH INTEREST AND PENALTIES ARE INCURRED. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2019 MARGINS TO MEMBERS IN 2020 210,932. X X 0 0 0 SCOTT MOORE GENERAL MANAGER/CEO/CFO 140206 0 0 0 0 0 71843 0 24674 0 236723 0 0 0 SCHEDULE J, PART II, LINE 1, COLUMN C PART II COLUMN C INCLUDES $66,169 OF CHANGE IN ACTUARIAL BENEFITS FOR MR. MOORE'S DEFINED BENEFIT PLAN. ACTUAL CONTRIBUTIONS TO THIS PLAN BY THE COOPERATIVE WERE $31,864. FORM 990, PART VI, SECTION A, LINE 4 CHANGES TO THE BYLAWS INCLUDE: - TO BE ELIGIBLE TO BECOME OR REMAIN A DIRECTOR OR TO HOLD ANY POSITION OF TRUST IN THE COOPERATIVE A PERSON MUST BE A BONA FIDE PERMANENT RESIDENT OF THE DISTRICT IN WHICH HE/SHE RESIDES. IF SUCH PERSON MOVES OUT OF THE DISTRICT TO WHICH HE/SHE WAS ELECTED AS A DIRECTOR, HE/SHE WILL VACATE THEIR POSITION ON THE BOARD. - THE OFFICERS OF THE COOPERATIVE SHALL BE MANAGER/CEO, PRESIDENT, VICE PRESIDENT, SECRETARY, TREASURER, AND ASSISTANT SECRETARY/TREASURER. FORM 990, PART VI, SECTION A, LINE 6 EACH MEMBER HOLDS ONE MEMBERSHIP AND HAS ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7A A NOMINATION COMMITTEE IS FORMED FROM THE MEMBERSHIPS IN THE DISTRICT(S) OF THE BOARD MEMBER BEING ELECTED. THAT COMMITTEE IS RESPONSIBLE FOR NOMINEES TO BE PLACED ON THE BALLOT. AN ELECTION IS HELD AT THE ANNUAL MEETING AND EACH MEMBERSHIP HAS ONE VOTE IN THE ELECTION OF THE BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO BY-LAWS MUST BE APPROVED BY MEMBERS. EACH MEMBERSHIP HAS ONE VOTE WITH THE SAME VOTING RIGHTS. FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE DOES NOT HAVE COMMITTEES WITH BROAD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE GENERAL MANAGER/CEO WILL REVIEW THE FORM 990 BEFORE IT IS SUBMITTED TO THE IRS. THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS AT A BOARD MEETING HELD PRIOR TO THE FILING OF THE 990. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR WILL DISCLOSE IN WRITING TO THE BOARD OF DIRECTORS AT THE NEXT SCHEDULED BOARD MEETING ANY CONFLICT OF INTEREST, AS OUTLINED IN THE POLICY, AS THEY EXIST OR WHEN THEY MAY BE INVOLVED IN THE FUTURE. THE BOARD OF DIRECTORS MONITORS CONFLICTS AND IS OVERSEEN BY THE ASSOCIATION'S ATTORNEY. FORM 990, PART VI, SECTION B, LINE 15A THE SDREA ANNUAL WAGE AND SALARY STUDY IS USED AS A BENCHMARK FOR WAGES FOR ALL EMPLOYEES. THE BOARD USES THE SDREA WAGE AND SALARY SURVEY RESULTS. IT IS REVIEWED IN EXECUTIVE SESSION AND DECIDED ON BY THE BOARD. THIS PROCESS WILL BE UNDERTAKEN ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 ALL DOCUMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. AN ANNUAL REPORT ON FINANCIAL STATEMENTS IS GIVEN TO THE MEMBERS ANNUALLY. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -508,543. ALLOCATION OF 2019 MARGINS TO MEMBERS IN 2020 210,932. INCREASE IN OTHER EQUITIES 85,291. FORM 990, PART VI, SECTION B, LINE 16B THE ORGANIZATION HAS NOT ADOPTED A WRITTEN POLICY HOWEVER, THE RURAL DEVELOPMENT UTILITITES PROGRAM LIMITS THE AMOUNT OF INCOME THAT CAN BE MADE FROM NONOPERATING VENTURES. OVER 85% OF GROSS REVENUES NEED TO COME FROM COOPERATIVE MEMBERSHIPS. FORM 990, PART VII, COLUMN F, OTHER COMPENSATION: INCLUDED IN OTHER COMPENSATION IS THE ESTIMATED CURRENT YEAR INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN FOR THE GENERAL MANAGER/CEO. THE CURRENT YEAR INCREASE OR DECREASE DOES NOT REPRESENT CURRENT YEAR CONTRIBUTIONS TO THE PLAN. RATHER, IT IS AN ESTIMATE OF THE INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE PLAN AS CALCULATED BY THE PLAN ADMINISTRATOR FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 6-10 ARE INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, LABOR, PENSION AND PAYROLL TAXES ARE SHOWN AS A REDUCTION TO OTHER EXPENSES ON LINE 24E. FORM 990, PART IX, LINE 4, BENEFITS PAID TO OR FOR 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 BY-LAWS OF THE COOPERATIVE.