2016-06-17T12:38:19-05:00 2015-12-31 450310328 BRADY MARTZ AND ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2015-01-01 410484875 PKM ELECTRIC COOPERATIVE INC PKME 2187454711 406 NORTH MINNESOTA STREET WARREN MN 56672 CHARLES REISEN MANAGER 2187454711 2016-06-13 1 MATT LAUGHLIN P00014168 7017754685 2016-06-10 2015 2016-09-27 15:27:22Z CHARLES REISEN 406 NORTH MINNESOTA STREET WARREN MN 56672 13842667 0 X WWW.PKMCOOP.COM X 1940 MN SALE OF ELECTRICITY TO MEMBERS 9 9 21 0 -27770 -27770 0 0 14424608 13420820 195081 337895 107825 23856 14727514 13782571 6739 0 1094147 0 419316 485618 0 0 0 12906035 13356231 14426237 13841849 301277 -59278 28178248 27722614 14232689 14222439 13945559 13500175 TO PROVIDE ELECTRIC SERVICE TO MEMBERS. 0 0 PROVIDE ELECTRICITY SERVICE TO 3,769 MEMBERS 0 0 0 0 0 0 0 1 0 1 0 0 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 21 1 1 1 0 0 0 0 0 0 13380820 533614 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X MIKE SCHMIDT 2187454711 406 N MINNESOTA STREET WARREN MN 56762 X RONALD REITMEIER PRESIDENT 5.00 X X 7025 0 0 THOMAS WOINAROWICZ VICE PRESIDENT 4.00 X X 7500 0 0 GORDON BERNSTROM SECRETARY TREASURER 5.00 X X 9800 0 0 MICHAEL BEAUDRY DIRECTOR 4.00 X 7450 0 0 JEFFREY FOLLAND DIRECTOR 4.00 X 7450 0 0 STEVE GOODWIN DIRECTOR 4.00 X 6550 0 0 JEROD HANSON DIRECTOR 4.00 X 6550 0 0 WAYNE MALM DIRECTOR 4.00 X 7200 0 0 BLAKE OWENS DIRECTOR 4.00 X 7550 0 0 CHARLES RIESEN MANAGER 40.00 X 141818 0 82913 MIKE SCHMIDT ASSISTANT MANAGER 40.00 X 107626 0 71417 316519 0 154330 2 0 1 0 DR EICHER CONSULTING INC 406 NORTH MINNESOTA WARREN MN 56762 CONSULTING 106082 1 SALE OF ELECTRICITY 221000 13420820 13420820 13420820 197867 197867 140028 0 140028 140028 140028 38295 60096 -21801 -21801 CAPITAL CREDITS 900099 73427 73427 FEDERATED ACQUISITIONS K-1 541900 -165 -165 NSS K-1 541900 -1015 -1015 -26590 -26590 45657 13782571 13472446 -27770 337895 485618 584102 877640 990-T TAXES/REFUND -767 COST OF POWER PURCHASED 9398327 DISTRIBUTION EXPENSE 1216200 ADMINISTRATIVE & GENERA 1172411 108318 13841849 2603661 1633989 1618661 1649252 69486 78154 469407 691143 313132 212349 32636008 11410608 20940600 21225400 847123 908600 1313848 1318783 2330 4944 28178248 27722614 1691085 1654253 232614 222390 1198 1133 12292842 12329413 14950 15250 14232689 14222439 X 0 0 18855 18950 13926704 13481225 13945559 13500175 28178248 27722614 X -59278 -386106 X 0 1 X 1 0 0 1 X 139457 139457 859079 555763 303316 31332424 10854845 20477579 305048 305048 21225400 CONSUMER DEPOSITS 15250 15250 X 13854338 71767 71767 13782571 0 13782571 13841445 0 13841445 404 404 13841849 PART IV, LINE 2B: THE MEMBERS OF THE COOPERATIVE CAN ELECT TO ROUND UP THEIR MONTHLY ELECTRIC BILL TO THE NEXT DOLLAR. THESE FUNDS COLLECTED FROM THE MEMBERSHIP ARE HELD IN A COOPERATIVE ACCOUNT UNTIL THEY ARE RELEASED TO THE PKM ELECTRIC COOPERATIVE TRUST'S OPERATION ROUND-UP PROGRAM. THESE FUNDS ARE TRANSFERRED DIRECTLY TO THE OPERATION ROUND-UP ON A MONTHLY BASIS. FUNDS THAT EXIST AT THE END OF THE YEAR ARE A RESULT OF A TIMING DIFFERENCE IN THE RECEIPT OF THE FUNDS AND THE RELEASE OF THEM TO THE OPERATION ROUND-UP. FOR THE YEAR ENDED DECEMBER 31, 2015, THE ACCOUNT HELD $1,133. PART X, LINE 2: THE COOPERATIVE HAS ADOPTED THE PROVISIONS OF FASB ACCOUNTING STANDARDS CODIFICATION TOPIC ASC 740-10. THE IMPLEMENTATION OF THIS STANDARD HAD NO IMPACT ON THE FINANCIAL STATEMENTS. AS OF DECEMBER 31, 2015, THE UNRECOGNIZED TAX BENEFIT ACCRUAL WAS ZERO. PART XI, LINE 2D - OTHER ADJUSTMENTS: INCOME ON INVESTMENT IN LLCS 71,767. PART XII, LINE 4B - OTHER ADJUSTMENTS: CHARITABLE CONTRIBUTIONS ON K-1 FROM KARIAN PETERSON 404. X X X 0 0 0 CHARLES RIESEN MANAGER 109343 0 0 0 32475 0 53950 0 30498 0 226266 0 0 0 MIKE SCHMIDT ASSISTANT MANAGER 85967 0 0 0 21659 0 40054 0 32536 0 180216 0 0 0 FORM 990, SCHEDULE J, PART II, COLUMN C ON THE SCHEDULE OF OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES, COLUMN C, RETIREMENT AND OTHER DEFERRED COMPENSATION, INCLUDES 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 PLANS RECEIVED FROM THE NRECA. THE CURRENT YEAR EXPENSE AND THE INCREASE IN ACTUARIAL VALUE FOR EACH EMPLOYEE ARE REFLECTED IN THE SCHEDULE O STATEMENT FOR FORM 990, PART VII, COLUMN F. FORM 990, PART VI, SECTION A, LINE 6 THERE IS ONLY ONE CLASS OF MEMBERS. ANY PERSON, FIRM, CORPORATION OR BODY POLITIC MAY BECOME A MEMBER BY (A) PAYING THE PAR VALUE FOR ONE SHARE OF STOCK, (B) AGREEING TO PURCHASE ELECTRIC ENERGY FROM THE COOPERATIVE, (C) AGREEING TO COMPLY WITH AND BE BOUND BY THE ARTICLES OF INCORPORATION AND BYLAWS FORM 990, PART VI, SECTION A, LINE 7A EVERY MEMBER HAS ONE VOTING RIGHT AT THE ANNUAL MEETING TO VOTE ON THE SELECTION OF OFFICERS. FORM 990, PART VI, SECTION A, LINE 7B EVERY MEMBER HAS ONE VOTING RIGHT ON THE APPROVAL OF CHANGES TO THE ORGANIZATION DOCUMENTS AT THE ANNUAL MEETING. THE SALE, LEASE, OR EXCHANGE OF ALL THE COOPERATIVE'S PROPERTY, RIGHTS, PRIVILEGES, AND FRANCHISES MUST BE APPROVED BY 2/3 VOTE OF THE MEMBERS. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES THAT CAN ACT ON BEHALF OF THE GOVERNING BOARD. ALL COMMITTEES MAKE ONLY RECOMMENDATIONS TO THE GOVERNING BOARD WHICH THEN MAKES THE FINAL APPROVAL. FORM 990, PART VI, SECTION B, LINE 11 THE ASSISTANT MANAGER, MIKE SCHMIDT, WILL REVIEW THE FINAL FORM 990. THE FORM 990 WILL BE PROVIDED TO THE BOARD FOR REVIEW ELECTRONICALLY PRIOR TO THE BOARD MEETING. THE ASSISTANT MANAGER WILL ALSO PRESENT THE FORM 990 TO THE MANAGER, CHARLES RIESEN, AND THE FULL GOVERNING BOARD AT A BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY, WHICH COVERS THE BOARD OF DIRECTORS AND OFFICERS OF THE COOPERATIVE, IS DISCUSSED AT A BOARD MEETING. THE MANAGER AND ASSISTANT MANAGER REVIEW ANY CONFLICTS THAT NEED TO BE DISCLOSED. IF A CONFLICT ARISES, IT IS BROUGHT TO THE BOARD'S ATTENTION AND THE INDIVIDUAL WITH THE CONFLICT ABSTAINS FROM VOTING ON THAT ISSUE. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD MEMBERS, WHO ARE INDEPENDENT, REVIEW AND APPROVE THE COMPENSATION OF THE MANAGER BY USING COMPARABILITY DATA ONLY. THE APPROVAL IS RECORDED IN THE BOARD MINUTES. THE BOARD MEMBERS ALSO APPROVE THEIR OWN ADJUSTMENTS TO THEIR COMPENSATION BASED ON COMPARABILITY DATA ONLY. ALL OTHER PAID EMPLOYEES' COMPENSATION IS REVIEWED AND APPROVED BY THE MANAGER. THIS PROCESS IS CONDUCTED EVERY OCTOBER. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE FINANCIAL STATEMENTS ARE AVAILABLE IN THE MONTHLY NEWSLETTER AND EVERY MEMBER IS GIVEN A COPY OF THE GOVERNING DOCUMENTS WHEN THEY BECOME MEMBERS. FORM 990, PART VII, SECTION A, COLUMN (F) INCLUDED IN COLUMN (F), ESTIMATED AMOUNT OF OTHER COMPENSATION FROM THE ORGANIZATION AND RELATED ORGANIZATIONS, IS THE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. THE ESTIMATED INCREASE FOR CHARLES RIESEN IS $37,450 AND FOR MIKE SCHMIDT IS $28,174. 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 $46,740 AND $33,653 RESPECTIVELY. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -458,372. LLC'S INCOME - PER BOOKS 273,477. LLC INCOME PER K-1'S AND FORM 990 -201,306. OTHER INCREASE IN MEMBERSHIP 95.