2015-05-01T15:23:23-05:00 2014-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2014-01-01 410449191 North Star Electric Coop NORT 2186342202 441 State Hwy 172 NW Baudette MN 566230719 Steve Arnesen Board President 2186342202 2015-05-01 1 LISA CHAFFEE CPA P00193453 7012398500 2015-05-01 2014 2016-03-07 17:11:31Z Dan Hoskins 441 State Hwy 172 NW Baudette MN 566230719 14805918 0 X www.northstarelectric.coop X 1940 MN Responsibly provide electric energy and other beneficial services to our member owners. 7 7 27 0 0 0 0 0 14108775 14579604 205109 216651 1294 -160 14315178 14796095 0 0 933201 398910 2303356 2469786 0 0 0 11078621 11927399 14315178 14796095 0 0 32637135 32578359 18979613 19159747 13657522 13418612 To improve the lives of our member-owners and community by responsibly providing clean, affordable electric energy and other beneficial services while maintaining the very highest standards of performance and member satisfaction. 0 0 To provide electric and utility service to 5,339 members under the guidance of the Rural Utility Service Division of the USDA. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 50 0 1 27 1 0 0 0 0 0 14803204 216651 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 0 0 X Ann Ellis 2186342202 441 State Hwy 172 NW Baudette MN 56623 X Steve Arnesen President 13.00 X X 11500 0 0 Bruce Polkinghorne Vice President 6.00 X X 6350 0 0 Michael Hanson Secretary-Treasurer 16.00 X X 15425 0 0 Julian Brzoznowski Director 11.00 X 10000 0 0 Lorraine Nygaard Director 13.00 X 10750 0 0 Michael Trueman Director 5.00 X 7775 0 0 Randall Bergan Director 6.00 X 8375 0 0 Dan Hoskins General Manager 50.00 X 185808 0 75387 Ann Ellis Finance Manager 50.00 X 122752 0 99528 Marty Mollberg Operations 50.00 X 116194 0 88567 494929 0 263482 3 0 1 0 Lake States Construction 25172 Commercial Dr Grand Rapids MN 55744 Power line construction 340614 Central Applicators PO Box 279 Foley MN 56329 Right of Way maintenance/spraying 140548 J&L Construction 32115 Walters Rd Willow River MN 55795 Underground Power Line Construction 133207 3 Electric sales 221000 14485503 14485503 Capital credits 221000 105435 105435 Miscellaneous 900099 -11334 -11334 14579604 216651 216651 9663 9823 -160 -160 14796095 14579444 0 216651 X 398910 503607 1489958 343282 132939 826670 1383399 Cost of Power 8818213 Adminstrative & General 1452907 Distribution Expense 1234109 Customer Expense & Sale 681887 -2469786 14796095 703786 728273 1835181 1763688 341250 296250 586721 620867 1109590 931936 42228063 15587058 26051585 26641005 1523350 1566440 485672 29900 32637135 32578359 1935374 1543023 661668 620673 16107985 16713784 274586 282267 18979613 19159747 X 0 0 0 0 13657522 13418612 13657522 13418612 32637135 32578359 X 0 -238910 X 0 0 0 0 0 56183 56183 3205048 998073 2206975 37737178 14588985 23148193 1229654 1229654 26641005 Member Deposits 82235 Retiree Health Insurance Liability 200032 282267 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 North Star Electric Cooperative Community Trust. These funds are transferred directly to the Trust on a monthly basis. Funds that exist at the end of year are a result of a timing difference in the receipt of the funds and the release of them to the Trust. For the years ending December 31, 2013 and 2014 there was no balance in the account. X X X 0 0 0 Dan Hoskins General Manager 183395 0 0 0 2413 0 55543 0 22837 0 264188 0 0 0 Ann Ellis Finance Manager 121704 0 0 0 1048 0 78455 0 23400 0 224607 0 0 0 Marty Mollberg Operations 115249 0 0 0 945 0 77946 0 12775 0 206915 0 0 0 Form 990, Schedule J, Part II, Column C: Compensation of Officers, Directors, Key Employees, Highest Compensated Employees: Included in other deferred compensation is 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 statement for Form 990, Part VII, Column f. Form 990, Part IV, Line 12 Audited Financials: Although the Cooperative did not have an audit for the calendar year ended December 31, 2014, it did have its annual audit performed by an independent accountant for the period from August 1, 2013 through July 31, 2014. The audit period was chosen in order to reduce the cost of the audit, as it is not performed during peak season for the audit firm. The Cooperative is scheduled to have an independent audit performed for the period August 1, 2014 through July 31, 2015. Form 990, Part VI, Section A, line 6 The Cooperative has 5,339 voting members. Each member has one vote. Form 990, Part VI, Section A, line 7a The Cooperative is divided into 7 districts. Each district is represented by one board member. Members can only vote for board members within their district. Form 990, Part VI, Section A, line 7b Changes to the Cooperative's bylaws must be approved by the Cooperative's members. The directors are limited by the bylaws as to decisions relating to the sale of the Cooperative, mergers and other significant transactions. Form 990, Part VI, Section A, line 8b The Cooperative did not have any committees with the authority to act on behalf of the Board of Directors. Form 990, Part VI, Section B, line 11 The Finance Manager and General Manager reviewed the Form 990 prior to presenting the Form 990 to the Board of Directors. The Board of Directors reviewed and approved the Form 990 at the May 1, 2015 board meeting. Form 990, Part VI, Section B, line 12c The Cooperative expects Directors or employees who have conflicts of interest to disclose them immediately as they occur. Due care is taken to avoid unethical behavior and ensure honesty and accountability. The responsibility for the review and determination of board conflicts rests with the Board President. The responsibility for the review and determination of employees' conflicts rests with the General Manager. All members are required to abstain from voting on any conflict of interest situation that may arise. Form 990, Part VI, Section B, line 15a NRECA data is gathered by the Board of Directors. The General Manager salary will be within the average range of the data - not highest and not lowest. The Board approves the General Manager salary. Minutes are kept of the board meeting deliberations. This annual process last took place in February 2014. The General Manager reviews the performance evaluation of the Finance Manager. This process was last performed in 2014. Form 990, Part VI, Section C, line 19 The Cooperative's bylaws are distributed to all new members. Financial statements are shared with members at the annual meeting. Monthly board meeting minute summaries are reported in the Cooperative's newsletter each month. The Cooperative's code of conduct is 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 is $45,790 for Dan Hoskins, $71,477 for Ann Ellis and $71,535 for Marty Mollberg. This amount is an estimate in the increase of the value of the plan and is not current year expenses of the cooperative. The current year expense for this defined benefit plan was $35,488, $26,415 and $24,271 respectively. Form 990, Part IX, 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 IX, Statement of Functional Expenses, Line 24e 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 $(2,469,786). Form 990, Part XI, line 9: Retirements of Capital Credits -645,158. Changes in Membership -20. Unclaimed and Abandoned Capital Credits -14,938. Gain on Retirement of Capital Credits 22,296. Patronage Capital Allocated in the Current Year 398,910. North Star Electric Cooperative Community Trust PO Box 719 Baudette MN 56623 204992283 Donations for Charitable and Educational Purposes MN 501(c)(3) Line 7 North Star Electric Cooperative 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0