2016-06-30T08:45:43-05:00 2015-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2015-01-01 382214287 Michigan Electric Cooperative Association MICH 5173516322 201 Townsend St No 900 Lansing MI 48933 Craig Borr President/CEO 5173516322 2016-06-02 1 LISA CHAFFEE CPA P00193453 7012398500 2016-06-02 2015 2016-09-27 15:27:22Z X Craig Borr 201 Townsend St No 900 Lansing MI 48933 3228750 0 X www.meca.coop X 1978 MI To promote and serve the needs of the member cooperatives. 22 22 6 25 90701 -29746 0 0 2948480 3225474 1526 -13335 0 0 2950006 3212139 1500 0 0 0 934189 939818 0 0 0 1994658 2269077 2930347 3208895 19659 3244 2482521 1251320 2139507 905062 343014 346258 X To promote and serve the needs of the member cooperatives. 0 0 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. Assist Michigan's electric cooperatives with the development and implementation of strategic communications that advance their priorities and member-consumer engagement. Empower the safety culture of Michigan's electric cooperatives and utility partners through a comprehensive safety program. Facilitate the collaborative implementation of energy initiatives on behalf of Michigan's electric cooperatives. 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 22 22 1 1 1 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 Jon Zickert Director 1.00 X 0 0 0 Louis Wenzlaff Director 1.00 X 0 0 0 Steve Boeckman Director 1.00 X 0 0 0 Dan Dasho Director 1.00 X 0 0 0 Deborah Miles Director 1.00 X 0 0 0 Nancy Gardner-Platt Director 1.00 X 0 0 0 Robert Hance Director 1.00 X 0 0 0 Ray Wozniak 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 Brian Burns Director 1.00 X 0 0 0 Daniel Sovinski Director 1.00 X 0 0 0 Jerry Akers Director 1.00 X 0 0 0 Robert Schallip 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 Kimber Hansen Director 1.00 X 0 0 0 Richard Walsworth 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 50.50 X 127570 0 52750 Doug Snitgen Executive Vice President 44.80 X 117655 0 34804 Jerrold McElroy Director of Safety & Loss 54.60 X 109620 0 39484 Casey Clark Director of Communications 49.50 X 107112 0 21261 461957 0 148299 4 0 1 0 Wolverine Power Supply Cooperative Inc 10125 W Watergate Rd Cadillac MI 49601 Management Services 364000 Rogers Printing PO Box 215 Ravenna MI 49451 Printing/Publishing Country Lines 190606 Dykema-Gossett PLLC 201 Townsend St Ste 900 Lansing MI 48933 Law Firm 186827 Freeport Press PO Box 198 Freeport OH 43973 Printing/Publishing 126592 Ciessa Design 200 E Grand River Ave Lansing MI 48906 Design for Publication 105232 5 Membership Dues 900099 1493016 1493016 Publications 511120 1133562 1042861 90701 Safety/Loss Services 900099 507342 507342 Education Training 611710 75963 75963 Other Supporting Reven 900099 15591 15591 3225474 2421 2421 855 16611 -15756 -15756 -15756 3212139 3134773 90701 -13335 X 939818 132025 46360 102094 649315 500 831922 20601 39714 117364 60148 22246 13181 Workshops 97717 Youth Programs 46261 Membership Dues 43315 46314 3208895 1271812 862106 753417 19507 44798 354242 341937 116464 96561 51244 19903 7008 7867 2482521 1251320 157231 196353 1150311 831965 708709 2139507 905062 X 343014 346258 343014 346258 2482521 1251320 3244 0 X 0 1 X 1 0 1 0 0 0 1 X 116464 96561 19903 19903 X 3227895 0 3227895 -15756 -15756 3212139 3224651 15756 15756 3208895 0 3208895 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 $708,709 for the year ending December 31, 2015. 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 has net operating losses related to business income unrelated to its exempt purpose. These net operating losses expire from 2018 through 2034. As of December 31, 2015 and 2014, 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 XI, Line 4b - Other Adjustments: Loss on Disposal of Equipment Recorded in Expense on F/S -15,756. Part XII, Line 2d - Other Adjustments: Loss on Disposal of Equipment Recorded in Revenue on 990 15,756. 0 0 0 Art Thayer Director of Energy Efficie 125948 0 0 0 1622 0 31505 0 22406 0 181481 0 0 0 Doug Snitgen Executive Vice President 117442 0 0 0 213 0 22120 0 14986 0 154761 0 0 0 Jerrold McElroy Director of Safety & Loss 108976 0 0 0 644 0 19593 0 21896 0 151109 0 0 0 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 4 The bylaws were amended for the following significant changes: 1) Updated the activities the organization does for its members: * represents cooperatives in legislative and regulatory matters; * acts as a unified voice for Michigan electric cooperatives * promotes and provides safety programs; * assists cooperatives in implementing EO programs; * coordinates education and training; and * engages in other activities for the benefit of Michigan electric cooperatives. 2) Eliminated the need for 2/3 Board vote for member admissions 3) Reduces number of member "voting delegates" at member meetings from 2 delegates to 1 delegate per member. 4) Each delegate member now only has one voting member with one vote. 5) Members can now designate, versus elect, their director to represent them. 6) Required CCD credentialing for all directors within one year of designation. 7) Provided for vacancies to be filled by the affected member. 8) Provided for removal of Directors by the Board for violating duties to the organization or other proper reason. 9) Eliminated "first and "second" Vice Chairman for just one Vice Chairman, with no member having more than one officer serving at the same time. 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 There are no committees that can act of behalf of the board. Form 990, Part VI, Section B, line 11 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 current management services contract was approved by the Association's Board of Directors in June 2015 and runs for a two-year period. 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 infomration 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, 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 Art Thayer, Doug Snitgen, Jerrold McElroy, and Casey Clark were $28,356, $19,184, $16,882, and $6,028 respectively. 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 current year expense for this defined benefit plan was $20,947 for Art Thayer, $19,395 for Doug Snitgen, $17,930 for Jerrold McElroy, and $17,585 for Casey Clark. Form 990, Part IX, line 11g Outside Contractor - General 385,094. Outside Contractor - LC&S 19,540. Outside Contractor - Country Lines 241,200. Outside Contractor - EO 3,481.