2018-06-14T10:25:35-05:00 2017-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2017-01-01 382214287 Michigan Electric Cooperative Association MICH 5173516322 201 Townsend St No 900 Lansing MI 48933 Craig Borr President/CEO 5173516322 2018-06-08 1 LISA CHAFFEE CPA P00193453 7012398500 2018-06-08 2017 2022-09-23 18:48:47Z Craig Borr 201 Townsend St No 900 Lansing MI 48933 3070297 0 X www.meca.coop X 1978 MI To promote and serve the needs of the member cooperatives. 20 20 6 24 90000 -1251 0 0 3115933 3066583 18368 3647 0 0 3134301 3070230 0 0 0 0 847897 932936 0 0 0 2056898 2004262 2904795 2937198 229506 133032 1977345 1792816 1401581 1084020 575764 708796 X To promote and serve the needs of the member cooperatives. 0 0 GENERAL MEMBERSHIP DUES:Represent the legislative and regulatory interests of Michigan's electric cooperatives with a unified message that ensures their ability to provide safe, reliable and affordable electricity to member-consumers. Develop and implement strategic communications that advance cooperative priorities and member-consumer engagement. PUBLICATIONS:Create and publish Michigan Country Lines magazine 10 times annually in partnership with Michigan's electric cooperatives to advance cooperative priorities and member-consumer engagement. SAFETY/LOSS SERVICES:Empower the safety culture of Michigan's electric cooperatives and utility partners through a comprehensive safety program. ENERGY EFFICIENCY PROGRAMS:Facilitate the collaborative implementation of energy initiatives on behalf of Michigan's electric cooperatives.EDUCATION/TRAINING PROGRAMS:Coordinate education and training resources for Michigan's electric cooperative directors, managers, employees and future leaders. 0 0 0 1 0 0 0 1 0 1 0 0 0 0 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 20 0 1 6 1 1 1 0 0 0 0 0 X 20 20 1 1 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 0 0 0 X Homeworks Tri-County Electric Cooperative 5176477554 7973 E Grand River Avenue Portland MI 48875 X X Bob Kran Chair 1.00 X X 0 0 0 Mark Kappler Vice Chair 1.00 X X 0 0 0 Eric Baker Secretary/Treasurer 1.00 X X 0 0 0 Tony Anderson Director 1.00 X 0 0 0 John Olson Director 1.00 X 0 0 0 Louis Wenzlaff Director 1.00 X 0 0 0 Bill Scott Director 1.00 X 0 0 0 Sandy Borowicz Director 1.00 X 0 0 0 Deborah Miles Director 1.00 X 0 0 0 Darryl Small Director 1.00 X 0 0 0 Robert Hance Director 1.00 X 0 0 0 Dale Farrier Director 1.00 X 0 0 0 Dallas Braun Director 1.00 X 0 0 0 Kimberly Molitor Director 1.00 X 0 0 0 Tom Sobeck Director 1.00 X 0 0 0 Terry Pahl Director 1.00 X 0 0 0 Fred Turk Director 1.00 X 0 0 0 Calvin Koski Director 1.00 X 0 0 0 Luke Pohl Director 1.00 X 0 0 0 Tom Harrell Director 1.00 X 0 0 0 Craig Borr President/CEO 40.00 X 0 0 0 Art Thayer Director of Energy Efficie 45.80 X 138621 0 52302 Doug Snitgen Executive Vice President 44.70 X 135583 0 40808 Jerrold McElroy Director of Safety & Loss 52.10 X 131766 0 56050 Casey Clark Director of Communications 46.60 X 123737 0 25048 529707 0 174208 4 0 1 0 Wolverine Power Supply Cooperative Inc 10125 W Watergate Rd Cadillac MI 49601 Mgmt/Admin Services 386826 Freeport Press PO Box 198 Freeport OH 43973 Printing/Publishing 371009 Dykema-Gossett PLLC 201 Townsend St Ste 900 Lansing MI 48933 Law Firm 272293 Susan Schlaybaugh 3640 Sawgrass Circle Lansing MI 48911 Lobbyist 104880 4 General Membership Due 900099 1242914 1242914 Publications 511120 949782 859782 90000 Safety/Loss Services 900099 533968 533968 Energy Efficiency Prog 900099 249464 249464 Education/Training Pro 611710 89425 89425 1030 1030 3066583 3714 3714 67 -67 -67 -67 3070230 2976583 90000 3647 X 932936 75446 47135 107770 479947 2500 816764 23781 38446 156725 56685 7887 13153 Workshops 96977 Youth Programs 46441 Membership Dues 24886 9719 2937198 1632561 1498918 20303 3554 301527 271481 47007 35432 15687 11575 7267 7288 1977345 1792816 151282 134733 266305 0 983994 949287 1401581 1084020 X 575764 708796 575764 708796 1977345 1792816 133032 0 X 0 1 X 1 0 1 0 0 0 1 X 47007 35432 11575 11575 X 3070230 0 3070230 0 3070230 2937198 0 2937198 0 2937198 Part IV, Line 2b: The Association acts as the custodian for funds of members for the purpose of facilitating transactions at the discretion of those members in the amount of $949,287 for the year ending December 31, 2017. The Association entered into an agreement to act as the billing agent on behalf of members with respect to the Energy Optimization program mandated by Michigan Public Act 295 of 2008. The Association acts strictly in an agency capacity and therefore no revenue or expense is reflected in the financial statements under this program. Part X, Line 2: A tax-exempt status was granted to the Association by the Internal Revenue Service in 1978. However, under current tax laws, the Association is liable for federal and state income taxes on advertising and other business income unrelated to its exempt status. The Association files an Exempt Organization Business Income Tax Return (Form 990-T) with the IRS to report its unrelated business taxable income. The Association has net operating losses related to business income unrelated to its exempt purpose totaling $698,522 and $688,876 as of December 31, 2017 and 2016, respectively. These net operating losses expire from 2018 through 2036. As of December 31, 2017 and 2016, 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. X 1 1 0 0 0 Art Thayer Director of Energy Efficie 135231 0 0 0 3390 0 34941 0 17361 0 190923 0 0 0 Doug Snitgen Executive Vice President 135308 0 0 0 275 0 27232 0 15856 0 178671 0 0 0 Jerrold McElroy Director of Safety & Loss 131158 0 0 0 608 0 33428 0 24585 0 189779 0 0 0 Casey Clark Director of Communications 123500 0 0 0 237 0 11592 0 15650 0 150979 0 0 0 Part I, Line 1a Policy states as part of MECA's Health and Wellness cost sharing plan, MECA covers 75% of membership dues for an individual employee to join a health club, up to a maximum of $75.00 per month. Part I, Line 3 The services of the President/CEO are provided to the Association under a management services agreement with Wolverine Power Cooperative, one of its member cooperatives. The filing organization relies on Wolverine Power Cooperative to determine the compensation for the President/CEO. They use a compensation committee, the written employment contract, compensation survey and approval by the board or compensation committee to determine his compensation. Schedule J, Part II, Column C, Deferred Compensation The estimated current year increase in the actuarial value of the defined benefit plan is included in other compensation for employees listed in Part II of Schedule J. 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 on the Schedule O for Form 990, Part VII, Column F. Form 990, Part VI, Section A, line 1 The Executive Committee consists of the Chairman, Vice-Chairman, and Secretary-Treasurer of the Association. Although the Bylaws give the authority to the Executive Committee to act on behalf of the full governing Board during intervals between the meetings of the Board, the Executive Committee currently is only providing recommendations to the full Board. Form 990, Part VI, Section A, line 2 Kimberly Molitor, Eric Baker and Craig Borr have a business relationship. Form 990, Part VI, Section A, line 3 The services of the President/CEO are provided to the Association under a management services agreement with Wolverine Power Supply Cooperative, Inc, one of its member cooperatives. This annual management services agreement outlines the responsibilities and duties of the President/CEO, as well as the proposed costs for his services to the Association. The President/CEO's compensation is included in the management services figure to Wolverine Power Supply Cooperative, Inc. listed in Part VII, Section B. Form 990, Part VI, Section A, line 6 The organization has members of which each member has one voting right. Form 990, Part VI, Section A, line 7a Each corporate member shall be entitled to two representatives on the Board of Directors. Such representatives shall be nominated by the board of the corporate member, subject to election by a majority of the votes cast at the annual meeting of the members. Form 990, Part VI, Section A, line 7b At all meetings of the members at which a quorum is present, all questions shall be decided by a vote of a majority of the members delegates voting thereon except as otherwise provided by law, the articles of incorporation or the bylaws. Each member shall be entitled to only two votes upon each matter submitted to a vote at a meeting of the members. Form 990, Part VI, Section A, line 8b No Committee acted on behalf of the board. Form 990, Part VI, Section B, line 11b The 990 is received and reviewed for accuracy by the Executive Vice President, Reporting Agent and President/CEO. Upon approval, it is provided to the entire Board of Directors for its review and discussion, as needed, at a regularly scheduled meeting. After any concerns presented by the Board of Directors are addressed, the President/CEO signs and files the return. Form 990, Part VI, Section B, line 12c The conflict of interest policy is reviewed annually. All directors are required to disclose any conflicts of interest and to notify the Board of any conflicts that may arise throughout the year. The Board will then determine if a conflict does exist and how to proceed. Form 990, Part VI, Section B, line 15 The services of the President/CEO are provided to the Association under a management services agreement with one of its member cooperatives. This management services agreement outlines the responsibilities and duties of the President/CEO as well as the proposed costs for his services to the Association for the contract term. The managment contract that was in effect for 2017 was approved by the Association's Board of Directors in June 2015. The current management services contract was approved by the Association's Board of Directors in June 2017 and runs for a three-year period (2018-2020). As the President/CEO is an employee of one of the association's member cooperatives, salary and related compensation is annually reported on the Form 990 of that member cooperative. The annual salary of the President/CEO is set by the member cooperative based upon survey information provided by the National Rural Electric Cooperative Association (NRECA) for similar association positions throughout the country. Form 990, Part VI, Section C, line 19 The governing documents are available online at www.meca.coop. Conflict of interest policy, and financial statements are available upon request. 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. This amount is an estimate in the increase of the value of the plan and is not a current year expense of the cooperative. The estimated increase for the individuals reported on Part VII are as follows: Art Thayer $31,560 Doug Snitgen $23,849 Jerrold McElroy $30,178 Casey Clark $8,505 The current year expense for this defined benefit plan was as follows: Art Thayer $23,750 Doug Snitgen $23,569 Jerrold McElroy $23,569 Casey Clark $22,391 Form 990, Part IX, line 11g Outside Contractor - General 374,836. Outside Contractor - LC&S 14,547. Outside Contractor - Country Lines 87,000. Outside Contractor - EO 3,564.