2019-08-01T13:47:14-05:00 2018-12-31 410746479 CLIFTONLARSONALLEN LLP 2689 COMMERCE DRIVE NW SUITE 201 ROCHESTER MN 55901 990 2018-01-01 410155615 BLUE EARTH-NICOLLET-FARIBAULT COOPERATIVE ELECTRIC ASSOCIATION BLUE 5073877963 PO BOX 8 MANKATO MN 560020008 DAVID SUNDERMAN CEO 5073877963 2019-07-26 1 CRAIG POPENHAGEN P01587689 5072802300 67.137.57.251 2019-07-26 08:47:30 CD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 882631625C917AF9EBBC1D429A06E96E58975401 2018 2019-02-21 02:37:17Z BENCO ELECTRIC COOPERATIVE DAVID SUNDERMAN PO BOX 8 MANKATO MN 560020008 49270005 0 X WWW.BENCO.ORG X 1937 MN TO SAFELY PROVIDE THE BEST POSSIBLE SERVICE, AT THE LOWEST POSSIBLE COST, CONSISTENT WITH SOUND BUSINESS MANAGEMENT. 9 9 46 0 19318 14238 0 0 45840080 47756572 109701 252444 1687367 1012106 47637148 49021122 0 0 747174 834001 669194 766237 0 0 0 42943494 44560985 44359862 46161223 3277286 2859899 103142625 110994265 65741597 70727020 37401028 40267245 TO SAFELY PROVIDE THE BEST POSSIBLE SERVICE, AT THE LOWEST POSSIBLE COST, CONSISTENT WITH SOUND BUSINESS MANAGEMENT. 0 0 SALE OF 408,276,094 KWH TO 18,702 ELECTRIC SERVICES. MAINTAINED 3,605 MILES OF UNDERGROUND AND OVERHEAD DISTRIBUTION LINES. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 1 41 0 46 1 1 1 0 0 0 0 0 0 48070323 1192239 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 1 1 X SANDY SOWIEJA 5073877963 20946 549TH AVENUE PO BOX 8 MANKATO MN 56002 GARFIELD ECKBERG DIRECTOR - PART YEAR 8.10 X 5525 0 0 DUANE EHRICH DIRECTOR 7.20 X 11775 0 0 TERRY GENELIN DIRECTOR 8.40 X 11625 0 0 MARILYN LYNCH TREASURER 11.80 X X 16775 0 0 HARLAN LANZ SECRETARY 13.20 X X 16325 0 0 WARREN JOHNSON CHAIRMAN 8.40 X X 19840 0 0 BRADLEY LEIDING DIRECTOR 7.70 X 13725 0 0 BLAKE MESHKE DIRECTOR 7.00 X 11900 0 0 GARY STENZEL VICE CHAIRMAN 9.20 X X 13950 0 0 JOHN WELLS DIRECTOR 12.70 X 17925 0 0 DAVID SUNDERMAN CEO 40.00 X 217294 0 62542 SANDY SOWIEJA MANAGER OF FINANCE AND ADMINISTRATION 40.00 X 123508 0 44639 TIM BRAULICK MANAGER OF OPERATIONS/ENG 40.00 X 128355 0 44283 CLAY HILL CREW CHIEF 40.00 X 122773 0 35301 DUANE HAGEN CREW CHIEF 40.00 X 120067 0 35313 WADE GROSKREUTZ LINE TECH 40.00 X 109537 0 39361 LEN DOHM LINE TECH 40.00 X 110159 0 42893 WADE HENSEL FORMER CEO 0.01 X 178889 0 0 1249947 0 304332 8 1 1 1 UNITED BUILDERS PO BOX 157 BLUE EARTH MN 56013 BUILDERS 1930089 ZINNIEL BORING 61710 SUNSET LANE NEW ULM MN 56073 BORING 1243393 CARR'S TREE SERVICE PO BOX 250 OTTERTAIL MN 56571 TREE TRIMMING 550745 VANGUARD 4311 OAK WOOD LANE WEST DES MOINES MN 50265 LOCATORS 175665 EIR PO BOX 86 FARMINGTON MN 55024 TESTING 100450 5 SALE OF POWER 221000 47756572 47756572 47756572 230869 230869 85240 63665 21575 21575 21575 116833 185218 -68385 -68385 CAPITAL CREDITS 900099 1001835 1001835 NORTH MANKATO JOINT VENTURE 900099 50290 50290 HEARTLAND SECURITY SERVICES K-1 561700 19318 19318 9048 9048 1080491 49021122 48699070 19318 302734 834001 766237 1796910 3303251 COST OF POWER 31817986 DISTRIBUTION EXPENSE - 2974623 DISTRIBUTION EXPENSE - 2285823 SALES EXPENSE 949907 1432485 46161223 7707226 9326952 4152101 4320395 38544 261246 1084411 889281 91482 113245 121019130 46667189 69017236 74351941 1648829 1528707 18604566 19511639 8827 8827 789403 682032 103142625 110994265 7063118 6166898 272131 371144 56656599 62197696 1749749 1991282 65741597 70727020 X 0 0 0 0 37401028 40267245 37401028 40267245 103142625 110994265 X 2859899 6318 X X 0 1 X 1 0 284867 284867 4302356 1136499 3165857 7083198 4397233 2685965 109348709 41133457 68215252 74351941 PATRONAGE CAPITAL IN ASSOC ORGANIZATIONS 18089562 C NRUCFC 1337061 C OTHER INVESTMENTS IN ASSOC ORGANIZATIONS 85016 C 19511639 CONSUMER DEPOSITS 2620 ASSET RETIREMENT OBLIGATION 41150 DEFERRED COMPENSATION 454686 ACCUM PROVISION FOR PENSION AND BEN 1492826 1991282 X 49001803 0 49001803 19318 19318 49021121 45327222 0 45327222 834001 834001 46161223 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN RECORDED AT DECEMBER 31, 2018 AND 2017. THE COOPERATIVE EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2018 AND 2017. PART XI, LINE 4B - OTHER ADJUSTMENTS: HEARTLAND SECURITY SERVICES K-1 19,318. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE DIVIDENDS ALLOCATED 834,001. X X 0 1 X X X 0 0 0 DAVID SUNDERMAN CEO 217294 0 0 0 0 0 37904 0 24638 0 279836 0 0 0 SANDY SOWIEJA MANAGER OF FINANCE AND ADMINISTRATIO 123508 0 0 0 0 0 21202 0 23437 0 168147 0 0 0 TIM BRAULICK MANAGER OF OPERATIONS/ENG 128355 0 0 0 0 0 22038 0 22245 0 172638 0 0 0 CLAY HILL CREW CHIEF 122773 0 0 0 0 0 22634 0 12667 0 158074 0 0 0 DUANE HAGEN CREW CHIEF 120067 0 0 0 0 0 22634 0 12679 0 155380 0 0 0 LEN DOHM LINE TECH 110159 0 0 0 0 0 20577 0 22316 0 153052 0 0 0 WADE HENSEL FORMER CEO 178889 0 0 0 0 0 0 0 0 0 178889 0 0 0 PART I, LINE 1A THE ASSOCIATION PROVIDES TRAVEL FOR THE CEO'S SPOUSE TO THE NRECA ANNUAL MEETING. THE ASSOCIATION REIMBURSES EMPLOYEES $120 FOR THEIR ANNUAL HEALTH CLUB FEES. LISTED EMPLOYEES THAT TOOK ADVANTAGE OF THIS REIMBURSEMENT IN 2018 WERE SANDY SOWIEJA, TIM BRAULICK, & STEVE BARRER. PART I, LINE 1B THE BOARD OF DIRECTORS HAS TO APPROVE TRAVEL FOR THE CEO'S SPOUSE. PART I, LINE 3 SURVEYS OF COMPARABLE MN ELECTRIC COOPERATIVES ARE CONDUCTED AND USED TO DETERMINE EXECUTIVE COMPENSATION. BRAD LEIDINGGARY STENZEL BOARD MEMBER 23685480 BRAD LEIDING WAS A BOARD MEMBER OF GREAT RIVER ENERGY WHICH IS THE COOPERATIVES POWER SUPPLIER THROUGH APRIL 2018. GARY STENZEL REPLACED BRAD LEIDING AS A BOARD MEMBER OF GRE. 0 FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE IS COMPRISED OF A SINGLE CLASS OF APPROXIMATELY 18,702 MEMBER-OWNERS, EACH OF WHICH HAS EQUAL RIGHTS IN OWNERSHIP, GOVERNANCE, AND VOTING RIGHTS AT THE ANNUAL MEETING, WITH THE EXCEPTION OF MEMBER-OWNERS WHO ARE ELECTED TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBER-OWNERS OF THE COOPERATIVE HAVE THE AUTHORITY TO ELECT THE MEMBERS OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO THE GOVERNING DOCUMENTS (BYLAWS AND ARTICLES OF INCORPORATION) MUST BE APPROVED BY THE MEMBER-OWNERS AFTER THEY HAVE BEEN APPROVED BY THE BOARD OF DIRECTORS. APPROVAL OCCURS WHEN AT LEAST 50% OF THE MEMBER-OWNERS VOTING TO APPROVE. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH BOARD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. ALL COMMITTEE RECOMMENDATIONS ARE TAKEN TO THE FULL BOARD FOR ACTION. FORM 990, PART VI, SECTION B, LINE 11B THE LEADERS OF EVERY DEPARTMENT, CEO, AND BOARD OF DIRECTORS WILL REVIEW THE 990 PRIOR TO SUBMITTING IT TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE COOPERATIVE MAINTAINS A WRITTEN POLICY AS TO WHAT INCLUDES A CONFLICT OF INTEREST AND HOW ANY POTENTIAL ISSUES WILL BE HANDLED. BOARD POLICY STATES THAT DIRECTORS MUST DISCLOSE ANY POSSIBLE CONFLICTS OF INTEREST. THE POLICY COVERS ALL DIRECTORS AND EMPLOYEES. DETERMINATIONS OF WHETHER A CONFLICT EXISTS AND REVIEW OF POTENTIAL CONFLICTS ARE MADE BY THE BOARD OF DIRECTORS FOR BOARD MEMBERS AND THE CEO, DEPARTMENT HEADS FOR EMPLOYEES, AND CEO FOR DEPARTMENT HEADS. FORM 990, PART VI, SECTION B, LINE 15 SURVEYS OF COMPARABLE MINNESOTA ELECTRIC COOPERATIVES ARE CONDUCTED AND USED TO DETERMINE EXECUTIVE COMPENSATION. THERE ARE NO WRITTEN CONTRACTS FOR EXECUTIVES. THERE IS ALSO A PERFORMANCE REVIEW IN THE COMPENSATION PROCESS. THE BOARD MEETS TO DISCUSS THE SALARY OF THE CEO, USING NRECA'S COMPENSATION DATA ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST AND PUBLISHED WITH THE ANNUAL REPORT TO MEMBERS. FORM 990, PART XI, LINE 9: CAPITAL CREDITS RETIRED -808,500. MEMBERSHIP CHANGES 136. PATRONAGE DIVIDENDS ALLOCATED 834,001. HEARTLAND SECURITY SERVICES K-1 -19,318. ROUNDING -1. FORM 990, PART XII, LINE 2C THE PROCESS FOR OVERSIGHT OF THE ANNUAL FINANCIAL STATEMENT AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART IX, LINE 4 THE IRS INSTRUCTIONS STATE THAT PATRONAGE DIVIDENDS PAID BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI ON PAGE 12 OF THE FORM 990 AND IN PART XII ON SCHEDULE D. BENCO ELECTRIC TRUST PO BOX 8 MANKATO MN 56002 411985835 CHARITABLE MN 501(C)(3) LINE 7 BENCO ELECTRIC COOPERATIVE 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 NO TRANSACTIONS OVER 50000 0