2016-11-04T09:50:26-05:00 2015-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2015-01-01 450173086 North Central Electric Cooperative Inc NORT 7012282202 538 11th St West No 1 Bottineau ND 58318 Wayne Martian General Manager 7012282202 2016-11-02 1 LISA CHAFFEE CPA P00193453 7012398500 2016-11-02 2015 2017-02-10 21:41:12Z Wayne Martian 538 11th St West No 1 Bottineau ND 58318 24090547 0 X www.nceci.com X 1941 ND The exempt purpose of the organization is to provide electricity to members. 9 9 41 0 28468 24956 0 0 23889391 23378617 29056 44771 124418 79384 24042865 23502772 0 0 1207084 1222844 3386128 3686187 0 0 0 19452269 18592752 24045481 23501783 -2616 989 61562035 68584315 40718593 46963540 20843442 21620775 None 0 0 Sale of electricity and electrical services to 7,728+ residential and commercial members. Service encompasses over 3,258 miles of utility line. 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 24 0 1 41 1 1 1 0 0 0 0 23494356 123091 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X Tori Kling 7012282202 538 11th Street West Suite 1 Bottineau ND 58318 X Jean Brandt President 6.00 X X 10800 0 0 Jesse Fahnestock Vice President 6.00 X X 10800 0 0 Lori Kittleson Secretary/Treasurer 6.00 X X 7800 0 0 Kenneth Haarsager Director 6.00 X 6500 0 0 Kenneth Brenden Director 6.00 X 8300 0 0 David O'Connell Director 6.00 X 9200 0 0 Christine Peterson Director 6.00 X 8900 0 0 Raymond Keplin Director 6.00 X 7100 0 0 Margaret Leonard Director (partial year) 6.00 X 2150 0 0 RJ Paul Director 6.00 X 3750 0 0 Wayne Martian General Manager 40.00 X 172585 0 14563 Lori Opdahl Business Manager (Jan) 40.00 X 26253 0 5079 Tori Kling Business Manager (Jun - Dec) 40.00 X 58846 0 16313 David Caroline Line Superintendent 40.00 X 108208 0 15879 441192 0 51834 2 0 1 0 Mike Swanson Construction 6250 24th Ave NE Rugby ND 58368 Construction 2248035 Central Trenching Inc 5200 7th Ave SW Minot ND 58701 Boring 327659 Parisien's Tree Service PO Box 777 Belcourt ND 58316 Trim/Brush Trees 229855 Widseth Smith Nolting & Assoc Inc 216 S Main St Crookston MN 56716 Engineering 185624 4 Sale of Electricity 221000 22675311 22675311 Capital Credits 221000 703306 703306 23378617 58863 58863 15000 0 15000 15000 15000 14092 -14092 -14092 -14092 638067 573683 64384 35916 28468 23502772 23414533 28468 59771 X 1222844 343271 2649658 476208 217050 1448686 1954535 UBI Taxes 2100 Cost of Power 13960746 Distribution Expense - 2699659 Administrative & Genera 1042141 -2515115 23501783 X 29154 293228 1000000 2730072 3168280 1797 3979 1574 578 1466625 1223643 755602 879506 77744714 28471609 44515878 49273105 221795 244500 11839538 12497496 61562035 68584315 2883455 3271550 1748868 1975659 35719112 35116331 150000 6600000 217158 0 40718593 46963540 X 20843442 21620775 0 0 0 0 20843442 21620775 61562035 68584315 X 989 776344 X 0 1 X 1 0 56779 56779 1990922 928009 1062913 4584668 3272489 1312179 71112345 24271111 46841234 49273105 Patronage Capital 11070426 C Rural Econ Dev Revolving Loan Pool 951848 C Energy Resource Conservation Loans 14160 C Equipment Loans 379330 C Memberships 2277 C Federated Rural Electric Insurance Equity 79455 C 12497496 X 23500672 -2100 -2100 23502772 0 23502772 22276839 0 22276839 1224944 1224944 23501783 Part X, Line 2: The Cooperative is exempt from income taxes under Section 501 (c)(12) of the Internal Revenue Code. The Cooperative is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. The Cooperative files an Exempt Organization Business Income Tax Return (Form 990-T) with the IRS to report its unrelated business taxable income. 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, 2015 and 2014, the unrecognized tax benefit accrual was zero. The Cooperative will recognized future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. The Cooperative is no longer subject to Federal tax examinations by tax authorities for years before 2012 and state examinations for years before 2012. Part XI, Line 2d - Other Adjustments: Expenses included with income for financial statements -2,100. Part XII, Line 4b - Other Adjustments: Expenses included with income for financial statements 2,100. Patronage Capital Credits Allocated For Current Year 1,222,844. X X 0 0 0 Wayne Martian General Manager 169241 0 300 0 3044 0 6034 0 10720 0 189339 0 0 0 Lori Opdahl Past Business Manager of Organization Equipment Loan X 3000 1066 0 1 1 Tori Kling Business Manager of Organization Equipment Loan X 3000 2913 0 1 1 3979 Form 990, Part VI, Section A, line 6 There is one class of members which all have the same voting rights. Form 990, Part VI, Section A, line 7a Members vote for all open positions in all districts that are up for election that year. Form 990, Part VI, Section A, line 7b Changes to bylaws or articles of incorporation must be approved by members of the Cooperative. Form 990, Part VI, Section A, line 8b There are no committees that have authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11 The General Manager and Business Manager reviewed a draft of the Form 990. The Form 990 was presented at a board meeting prior to filing with the IRS. Form 990, Part VI, Section B, line 12c Directors and management must annually complete a form to disclose any conflicts they might have. The President of the Board reviews the disclosures. For each instance disclosed, the President has discretion to take no action, assure full disclosure to the full board and management, ask the person to recuse him or herself from discussions or decisions relating to the conflict or ask the person to resign. The General Manager monitors proposed or ongoing conflicts and discloses them to the Board President. Form 990, Part VI, Section B, line 15 The Board annually uses a salary survey made available through the North Dakota Association of Rural Electric Cooperatives. The salary deliberation is documented in the minutes. The Board votes on the compensation. This process was last undertaken in October 2015. Compensation for the Business Manager is determined based on Business Manager salaries at other cooperatives across North Dakota, taking into account the results of the ND Association of REC's Wage and Salary Survey. In addition, the Business Manager's years of service to the Cooperative are considered. This process was last undertaken in October 2015. The Board approves all wages. For non-union employees the General Manager makes a recommendation, and the Board votes to approve. For union members, the union negotiates directly with the Board and the General Manager. When an agreement is reached the Board will formally approve the new wage scale. This process was last undertaken in September 2015. Form 990, Part VI, Section C, line 19 The governing documents, 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. The estimated increase for Tori Kling is $7,500; the amount for Lori Opdahl is unavailable. 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 $10,145 and $4,409, respectively. Form 990, Part IX, Statement Of Functional Expenses, Line 24e Allocated Costs: 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 on line 24e in the amount of $(3,686,187). Form 990, Part X, 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: Retirement of Capital Credits -446,500. Patronage Capital Credits Allocated For Current Year 1,222,844.