2019-06-06T14:42:58-05:00 2018-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2018-01-01 380289531 Alger Delta Cooperative Electric Association ALGE 9064284141 426 N 9th St Gladstone MI 49837 Thomas Harrell General Manager 9064284141 2019-06-04 1 LISA CHAFFEE CPA P00193453 7012398500 2019-06-04 199.247.45.22 2019-06-04 16:42:36 CD P 66CC91E6B7F11C4783FFFA5645E675327CB67316 3F1B4C4A1C1F32CA3CD03C05270CE62742EA9E6E 2018 2019-02-21 02:37:17Z Thomas Harrell 426 N 9th St Gladstone MI 49837 15572459 0 X www.algerdelta.com X 1937 MI Electrical distribution utility providing service to rural areas 9 9 23 0 0 0 0 0 15321054 15322017 175180 246579 0 0 15496234 15568596 174 157 1432919 1316888 1970331 1901388 0 0 0 12371230 12350159 15774654 15568592 -278420 4 43267177 42111110 27934990 25894923 15332187 16216187 Electrical distribution utility providing service to rural areas 0 0 Provided electrical service to the rural areas of Marquette, Alger, Delta, Dickinson, Schoolcraft and Menominee counties in the Upper Peninsula of Michigan a total of 8,914 members were served in 2018. 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 0 0 0 0 0 0 0 0 0 1 24 0 1 23 1 0 0 0 0 0 15731741 352619 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 0 X X Amanda Seger 9064284141 426 N 9th Street Gladstone MI 49837 X Paul Sederquist President 3.00 X X 6200 0 0 Dave Prestin Vice-President 3.00 X X 4150 0 0 Darryl Small Secretary/Treasurer 3.00 X X 15000 0 0 Dave Anthony President (Jan-Apr) 3.00 X X 2250 0 0 Ivy Netzel Director (Jul-Dec) 3.00 X 5500 0 0 Raymond Young Director 3.00 X 5650 0 0 Michael Lawless Director 3.00 X 7650 0 0 Karen Alholm Director 3.00 X 6800 0 0 Kirk Bruno Director 3.50 X 6850 0 0 Doug Bovin Director 3.00 X 6450 0 0 Thomas Harrell CEO 40.00 X 157893 0 39883 Amanda Seger CFO 40.00 X 112792 0 43494 Todd Wilson Working Foreman 49.00 X 128695 0 36845 William Carlson Lead Lineman 48.00 X 111957 0 28320 Jon Conger Lead Lineman 48.00 X 117237 0 16127 Troy Tiernan Operations Manager 40.00 X 101919 0 42639 Steve LaBonte Lead Lineman 45.00 X 104279 0 22641 901272 0 229949 7 0 1 0 WPPI 1425 Corp Center Dr Sun Prairie WI 53590 Power Supplier 6720163 Bugle Contracting 11880 Co 426 R Rd Cornell MI 49818 Brushing 1015299 MP Systems PO Box 370 Iron Mountain MI 49801 Highline Contractor 911367 Resco PO Box 684141 Chicago IL 60695 Material Supply 730924 Utility System Engineering inc PO Box 670390 Northfield OH 44067 Engineering Services 458453 15 Electricity Sales 221000 15006046 15006046 Capital Credits 221000 202368 202368 ATC LLC Investment 900099 110540 110540 Miscellaneous Revenue 900099 3063 3063 15322017 242079 242079 8363 3863 4500 4500 4500 15568596 15322017 0 246579 X 157 1316888 448275 1181288 161613 110212 1090937 1661859 Purchased Power 6910281 Distribution Expense 2689219 Administrative and Gene 1083020 Customer Service Expens 325633 -1410790 15568592 2823319 901935 940001 849933 320500 417776 561714 523875 55291503 18095144 36512495 37196359 2105679 2217795 3469 3437 43267177 42111110 1883824 1758673 423899 323380 25457007 23639205 170260 173665 27934990 25894923 X 80923 80923 0 0 15251264 16135264 15332187 16216187 43267177 42111110 X 4 883996 X 0 1 X 1 0 179524 179524 908436 440341 468095 52140904 17654803 34486101 2062639 2062639 37196359 NRUCFC 436703 C RESC 127867 C Memberships 6912 C Other 280467 C American Transmission Company, LLC 1284234 C Federated Insurance 81612 C 2217795 Customer Deposits 173665 173665 X 15568596 0 15568596 0 15568596 14251704 0 14251704 1316888 1316888 15568592 Part X, Line 2: The Association is exempt from income taxes under Section 501(c)(12). The Association is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. The Association 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, 2018 and 2017, the unrecognized tax benefit accrual was zero. The Association 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 1,316,888. X X 0 0 0 Thomas Harrell CEO 148802 0 0 0 9091 0 23251 0 20467 0 201611 0 0 0 Amanda Seger CFO 112238 0 0 0 554 0 17127 0 29274 0 159193 0 0 0 Todd Wilson Working Foreman 128307 0 0 0 388 0 17665 0 20950 0 167310 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 plan received from the NRECA. The current year expense and the increase in actuarial value for each employee is reflected in the Schedule O statement for Form 990, Part VII, column F. Form 990, Part VI, Section A, line 6 Alger Delta Cooperative is an electric cooperative providing electricity to customers in nine rural districts. Each customer is a member of the Cooperative with one voting right each. Form 990, Part VI, Section A, line 7a Alger Delta Cooperative is an electric Cooperative consisting of nine districts. The members in each district nominate and vote for their director. Each director is elected for a term of three years. Three directors are elected each year. Form 990, Part VI, Section A, line 7b Members retain the right to vote on the sale, merger, acquisition or dissolution of the cooperative; members have the right to vote to reinstate expelled members; they have the right to vote to elect or remove their district representative (board member); and they have the right to vote to amend the bylaws of the organization. Form 990, Part VI, Section A, line 8b There are no committees that can act on behalf of the governing board. Form 990, Part VI, Section B, line 11b The Form 990 is reviewed by the General Manager. It is also provided at a board meeting for the Board's review and approval prior to being filed with the IRS. Form 990, Part VI, Section B, line 12c All employees and Directors are annually required to review the conflict of interest policy and disclose if they have an actual or potential conflict of interest. The General Manager reviews all reported actual or potential conflicts to determine if a conflict exists. The Board of Directors reviews the General Manager and other manager disclosures. If an actual or potential conflict is determined to exist that individual must abstain from any participation relative to the conflicting issue(s). Form 990, Part VI, Section B, line 15a The Board annually reviews the General Manager's performance based on the performance review and the National Compensation Survey. The deliberation process was substantiated in board minutes. The General Manager reviews the CFO's performance annually using same survey. Form 990, Part VI, Section C, line 19 Each new member is referred to a copy of the company's by-laws on our website, and mailed our "Code of Conduct". The governing documents and the financial statements are available on our website. They are also available upon request, along with the conflict of interest policy. Form 990, Part VII, Section A, Column (F) Included in column "F", estimated amount of other compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Thomas Harrell: $23,251 Amanda Seger: $17,127 Troy Tiernan: $22,320 William Carlson: $10,255 Todd Wilson: $17,665 Stephen LaBonte Jr: $20,525 Johnathon Conger: $5,472 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 was as follows: Thomas Harrell: $31,417 Amanda Seger: $23,787 Troy Tiernan: $22,148 William Carlson: $16,154 Todd Wilson: $17,405 Stephen LaBonte Jr: $16,154 Johnathon Conger: $16,154 Form 990, Part IX, Statement of Functional Expenses, Line 24e The labor, 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 included on line 24e in the amount of $(1,901,388). Form 990, Part IX, Line 4 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: Patronage Capital Credits Allocated During Current Year 1,316,888. Retirement of Capital Credits -541,638. Unclaimed Credits 108,746.