2015-09-08T10:18:24-05:00 2014-12-31 450250958 EIDE BAILLY LLP 200 EAST 10TH ST PO BOX 5125 SIOUX FALLS SD 571175125 990 2014-01-01 460213171 FEM ELECTRIC ASSOCIATION INC FEME 6054266891 PO BOX 468 IPSWICH SD 574510468 SCOTT MOORE GENERAL MANAGER/CEO 6054266891 2015-08-26 1 LAURIE HANSON P00851848 6053391999 2015-08-26 2014 2016-02-25 16:41:14Z SCOTT MOORE PO BOX 468 IPSWICH SD 574510468 14343921 0 X WWW.FEMELECTRIC.COOP X 1949 SD TO SAFELY PROVIDE RELIABLE, COST-EFFICIENT ELECTRICITY AND OTHER SERVICES. 5 5 22 0 64324 34578 0 0 13611877 13958876 59723 55909 136732 21642 13808332 14036427 7771 54460 971853 1050269 1635657 1674034 0 0 0 10800303 11398992 13415584 14177755 392748 -141328 32316981 29713177 23039981 19807266 9277000 9905911 TO ENHANCE THE QUALITY OF LIFE OF OUR MEMBERS, BY SAFELY PROVIDING RELIABLE, COST-EFFICIENT ELECTRICITY AND OTHER SERVICES. 0 0 PROVIDED ELECTRIC SERVICE TO APPROXIMATELY 1,350 MEMBERS AND REPLACED APPROXIMATELY 238 MILES OF OVERHEAD WITH UNDERGROUND LINES. 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 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 67 0 1 22 1 1 1 0 0 0 0 0 0 14165766 129265 0 X 5 5 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 0 X SCOTT MOORE 6054266891 PO BOX 468 IPSWICH SD 574510468 ALDEN FLAKOLL PRESIDENT UNTIL JUNE 19,2014 5.00 X X 3910 0 0 FRANK HEINZ PRESIDENT 6.50 X X 13210 0 0 GARY BACHMAN VICE PRESIDENT 8.80 X X 12160 0 0 LARRY BOWAR SECRETARY 5.00 X X 10360 0 0 GERALD HAUPT TREASURER 5.00 X X 11860 0 0 TOM THORPE ASSISTANT SEC/TREASURER 5.00 X X 7200 0 0 SCOTT MOORE GENERAL MANAGER/CEO 47.50 X 108797 0 59587 167497 0 59587 1 0 1 0 CO-OP ARCHITECTURE PO BOX 1435 ABERDEEN SD 57401 BUILDING ARCHITECT 115894 K&H ELECTRIC INC 243 S SAINT PAUL AVE LINTON ND 58552 UNDERGROUND LINE BUILDUNDERGROUND LINE 112385 2 SALE OF POWER 221000 13739713 13739713 COOP CAPITAL CREDITS 221000 416179 416179 INTERNET INCOME 517000 5941 440 5501 PARTNERSHIP INCOME 541900 -202957 56107 -259064 13958876 52765 52765 12500 9356 3144 3144 3144 319780 298138 21642 18926 2716 14036427 14175258 64324 -203155 54460 1050269 203504 1155218 218614 96698 689346 726967 UBI TAXES 53454 COST OF POWER 8977362 ADMIN & GENERAL 921773 DISTRIBUTION-MAINTENANC 586819 -556729 14177755 933157 1046660 3122415 0 887071 1141857 53543 44068 970749 771036 682744 645091 27039678 7056042 19724123 19983636 880728 673270 5052752 5398274 9699 9285 32316981 29713177 1126426 1205346 15664447 17067886 6183147 1525252 65961 8782 23039981 19807266 X 0 0 0 0 9277000 9905911 9277000 9905911 32316981 29713177 X -141328 770239 X 0 1 X 1 0 2674 2674 355159 154159 201000 26681845 6901883 19779962 19983636 MEMBERSHIPS 8900 C EAST RIVER ELECTRIC POWER COOPERATIVE 4048815 C RURAL ELECTRIC SUPPLY COOPERATIVE 67143 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 943257 C NATIONAL RURAL TELECOMMUNICATIONS COOPERATIVE 206060 C OTHER COOPERATIVES 25488 C FEDERATED RURAL ELECTRIC INSURANCE 58611 C RURAL ELECTRIC ECONOMIC DEVELOPMENT, INC. 40000 C 5398274 CUSTOMER DEPOSITS 5269 DEFERRED CREDITS 3513 8782 X 13957801 0 13957801 78626 78626 14036427 13048860 0 13048860 1128895 1128895 14177755 PART X, LINE 2: THE ASSOCIATION IS EXEMPT FROM INCOME TAXES UNDER SECTION 501 (C)(12) OF THE INTERNAL REVENUE CODE AND IS ANNUALLY REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT INCOME FROM INCOME TAX (FORM 990) WITH THE IRS. IN ADDITION, THE ASSOCIATION IS SUBJECT TO INCOME TAX ON NET INCOME THAT IS DERIVED FROM BUSINESS ACTIVITIES THAT ARE UNRELATED TO ITS PURPOSE. THE ASSOCIATION FILES AN EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURN (FORM 990T) WITH THE IRS TO REPORT ITS UNRELATED BUSINESS TAXABLE INCOME. A PROVISION FOR INCOME TAXES ON UNRELATED BUSINESS INCOME OF $53,454 AND $17,994 IS INCLUDED WITH NON-OPERATING MARGINS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, RESPECTIVELY. THE ASSOCIATION BELIEVES IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN AFFECTING ITS ANNUAL FILING REQUIREMENTS, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. THE ASSOCIATION WOULD RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF SUCH INTEREST AND PENALTIES ARE INCURRED. GENERALLY, THE ASSOCIATION IS NO LONGER SUBJECT TO FEDERAL TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2011. PART XI, LINE 4B - OTHER ADJUSTMENTS: INTERNET EXPENSES NETTED TO REVENUE FOR GAAP 25,172. INCOME TAX EXPENSE NETTED TO REVENUE FOR GAAP 53,454. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2014 MARGINS TO MEMBERS IN 2015 1,050,269. INTERNET EXPENSES NETTED TO REVENUE FOR GAAP 25,172. INCOME TAX EXPENSE NETTED TO REVENUE FOR GAAP 53,454. 1 NRECA INTERNATIONAL 4301 WILSON BLVD ARLINGTON VA 22203 521387851 501(C)(6) 46090 COST OVERHEAD LINE MATERIAL BUILD OVERHEAD LINES OVERSEAS 0 1 PART I, LINE 2: ALL CONTRIBUTIONS ARE REVIEWED AND APPROVED THROUGH THE BUDGETING PROCESS AND/OR BOARD APPROVAL. X X 0 0 0 SCOTT MOORE GENERAL MANAGER/CEO 106934 0 0 0 1863 0 42485 0 18819 0 170101 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 EACH MEMBER HOLDS ONE MEMBERSHIP AND HAS ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7A A NOMINATION COMMITTEE IS FORMED FROM THE MEMBERSHIPS IN THE DISTRICT(S) OF THE BOARD MEMBER BEING ELECTED. THAT COMMITTEE IS RESPONSIBLE FOR NOMINEES TO BE PLACED ON THE BALLOT. AN ELECTION IS HELD AT THE ANNUAL MEETING AND ALL MEMBERS HAVE ONE VOTE IN THE ELECTION OF THE BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO BY-LAWS MUST BE APPROVED BY MEMBERS. ALL MEMBERS HAVE ONE VOTE WITH THE SAME VOTING RIGHTS. FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE DOES NOT HAVE COMMITTEES WITH BROAD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE GENERAL MANAGER/CEO WILL REVIEW THE FORM 990 BEFORE IT IS SUBMITTED TO THE IRS. THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS AT A BOARD MEETING HELD PRIOR TO THE FILING OF THE 990. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR WILL DISCLOSE IN WRITING TO THE BOARD OF DIRECTORS AT THE NEXT SCHEDULED BOARD MEETING ANY CONFLICT OF INTEREST, AS OUTLINED IN THE POLICY, AS THEY EXIST OR WHEN THEY MAY BE INVOLVED IN THE FUTURE. THE BOARD OF DIRECTORS MONITORS CONFLICTS AND IS OVERSEEN BY THE ASSOCIATION'S ATTORNEY. FORM 990, PART VI, SECTION B, LINE 15A THE SDREA ANNUAL WAGE AND SALARY STUDY IS USED AS A BENCHMARK FOR WAGES FOR ALL EMPLOYEES. THIS PROCESS WAS UNDERTAKEN IN 2014. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -328,498. INCREASE IN OTHER EQUITIES 48,468. ALLOCATION OF 2014 MARGINS TO MEMBERS IN 2015 1,050,269. FORM 990, PART VI, SECTION B, LINE 16B THE ORGANIZATION HAS NOT ADOPTED A WRITTEN POLICY HOWEVER, THE RURAL DEVELOPMENT UTILITITES PROGRAM LIMITS THE AMOUNT OF INCOME THAT CAN BE MADE FROM NONOPERATING VENTURES. OVER 85% OF GROSS REVENUES NEED TO COME FROM COOPERATIVE MEMBERSHIPS. FORM 990, PART VII, COLUMN F, OTHER COMPENSATION: INCLUDED IN OTHER COMPENSATION IS THE ESTIMATED CURRENT YEAR INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN FOR THE GENERAL MANAGER. THE CURRENT YEAR INCREASE OR DECREASE DOES NOT REPRESENT CURRENT YEAR CONTRIBUTIONS TO THE PLAN. RATHER, IT IS AN ESTIMATE OF THE INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE PLAN AS CALCULATED BY THE PLAN ADMINISTRATOR. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 6-10 ARE INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, LABOR, PENSION AND PAYROLL TAXES ARE SHOWN AS A REDUCTION TO OTHER EXPENSES ON LINE 24E. FORM 990, PART IX, LINE 4, BENEFITS PAID TO OR FOR MEMBERS: 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 BY-LAWS OF THE COOPERATIVE. RURAL DAKOTA DEVELOPMENT LLC PO BOX 468 IPSWICH SD 57451 260078214 HOUSING DEVELOPMENT SD FEM ELECTRIC ASSOCIATION INC INVESTMENT INCOME -2012 69328 0 1 0.33330 NORTH STAR ENERGY LLC 4418 MAIN STREET SELBY SD 57472 481268151 LP GAS SALES SD FEM ELECTRIC ASSOCIATION INC UNRELATED 58127 1460043 0 0 0.33330 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0