2015-10-29T13:11:17-05:00 2014-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2014-01-01 450217065 Burke-Divide Electric Cooperative BURK 7019396671 PO Box 6 Columbus ND 587270006 Jerry King General Manager 7019396671 2015-10-29 1 LISA CHAFFEE CPA P00193453 7012398500 2015-10-29 2014 2016-02-25 16:41:14Z Jerry King PO Box 6 Columbus ND 587270006 29007162 0 X www.bdec.coop X 1948 ND To provide reliable high quality electricity to members at a competitive cost. 7 6 44 0 0 0 0 0 21400838 28321472 34120 920 267980 10639 21702938 28333031 0 0 6396470 9250178 3177286 3532541 0 0 0 12129181 15550312 21702937 28333031 1 0 57470463 71902817 39205265 45914949 18265198 25987868 X To provide reliable high quality electricity at a competitive cost. To strengthen the area economy and to lead in improving the region's quality of life through innovative, state of the art products and service while operating within cooperative principles.The vision of Burke-Divide Electric is that we are and will be the preferred choice and trusted provider of our member-owners in the areas of low cost power supply, state of the art products and services and that we strive to be a full service organization. 0 0 The Cooperative has 3,501 services, serves 1,449 members and maintains 2,683 miles of line. 0 0 0 0 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 1 0 0 0 0 0 0 0 1 1 0 0 1 338 0 1 44 1 0 0 0 0 0 36356811 920 0 X 7 6 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 0 1 0 0 X Brooke Watterud 7019396671 Burke-Divide Electric Cooperative Columbus ND 587270006 X David Sigloh President 5.00 X X 10566 0 0 Kent Haugland Vice President 5.00 X X 8516 0 0 Lynn Jacobson Secretary/Treasurer 6.00 X X 3866 0 6750 Steven Overlee Assistant Sec/Treas 6.00 X X 16 0 10600 Lane Titus Director 5.00 X 5416 0 0 Kurt Koppelsloen Director 5.00 X 7916 0 0 Jeff Dahlin Director 5.00 X 16 0 7600 Jerry King General Manager 48.00 X 140987 0 46500 Tori Kling Office Manager 45.00 X 99107 0 37616 Lex Lindo Line Foreman 48.00 X 104140 0 26623 380546 0 135689 2 0 1 0 Keller Construction LLC 2902 Yale Court Rapid City SD 57702 Building Line 3383762 Freese & Sonn Inc PO Box 36 Lander WY 82520 URD Construction 1189133 Corwin Utility Electrical Support 4187 Goeneste Withamsville Rd Cincinnati OH 45245 Building Line 1186924 HDR Engineering PO Box 3480 Omaha NE 68103 Engineering Service 1109998 Highmark Inc PO Box 491 Black Hawk SD 57718 Building Substations 711975 8 Electricity 221000 27605028 27605028 G&T Capital Credits 221000 716444 716444 28321472 920 920 2796 0 2796 2796 2796 681974 674131 7843 7843 28333031 28329315 0 3716 X 9250178 386452 2509353 427890 208846 1104316 1341922 Cost of Power 12330880 Distribution 2302855 Admin & General 1365218 Customer Service and Sa 370249 -3265128 28333031 2644326 2669248 3684603 3713559 2151837 2152734 211764 252724 70700233 13418942 44414497 57281291 689023 1821821 2747829 3187103 926584 824337 57470463 71902817 3415623 2698169 5258712 12368526 1764 1789 17529166 17846465 13000000 13000000 39205265 45914949 X 355150 361128 0 0 17910048 25626740 18265198 25987868 57470463 71902817 X 0 7722670 X 0 1 X 1 0 0 1 X 166011 166011 2506309 786596 1719713 45844733 12632346 33212387 22183180 22183180 57281291 X 28333031 0 28333031 0 28333031 19082853 0 19082853 9250178 9250178 28333031 Part IV, Line 2b: The Cooperative collects funds for the Operation Round Up program for the Burke-Divide Electric Trust from the members. These funds are recorded as a liability on the Cooperative financials until they are released to the Trust on a quarterly basis. The Trust uses the expenditures for rural development. The amount in the financial statements at December 31, 2014 was $1,789. Part X, Line 2: The Cooperative is exempt from income taxes under Section 501(c)(12). 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, 2014 and 2013, the unrecognized tax benefit accrual was zero. The Cooperative will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. The Company is no longer subject to Federal tax examinations by tax authorities for years before 2011 and state examinations for years before 2011. The Cooperative undergoes an annual analysis of various tax positions, assessing the likelihood of those positions being upheld upon examination with relevant tax authorities. Part XII, Line 4b - Other Adjustments: Current Year Patronage Capital Allocated to Members 9,250,178. X X 0 1 X X X 0 0 0 Jerry King General Manager 135367 0 250 0 5370 0 30349 0 27243 0 198579 0 0 0 Part I, Line 1a Travel for companions - The Cooperative will pay for the travel expenses for spouses to attend the NRECA Annual Meeting with the General Manager and Board of Directors. Housing allowance - The Cooperative paid for transitional housing for Jerry King until March 31, 2014. Part I, Line 1b The Board of Directors and key employees discuss the payment of travel expenses for spouses. The Board of Directors determined the hiring package for Jerry King when he was hired as General Manager. Kent Haugland Board Director 244000 Cooperative purchased land at FMV from board member, Kent Haugland 0 Form 990, Part VI, Section A, line 1 All board members have one voting right. The President only votes if there is a tie. Form 990, Part VI, Section A, line 6 The Cooperative has 1,449 members. There is only one class of members. Each member is allowed one vote. Each household is considered one member. Form 990, Part VI, Section A, line 7a The members of the Cooperative elect the Board of Directors. Form 990, Part VI, Section A, line 7b Changes to the bylaws and new business activities are both subject to approval of the members. Form 990, Part VI, Section A, line 8b There are no committees that have the authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11 The General Manager and the Office Manager reviewed a draft of the 990 prior to it being electronically sent to the board for their review and final approval before being filed with the IRS. Form 990, Part VI, Section B, line 12c All employees and Board Members are covered under the policy. The General Manager, staff, and the President of the Board of Directors review the suspected conflicts. The General Manager works with the employees to resolve the conflict. If the conflict is deemed detrimental to the Cooperative, the employee/board member would be terminated. The board is responsible for managing the conflicts that may exist with board members and the General Manager. Form 990, Part VI, Section B, line 15a The Board of Directors performs an annual review of the General Manager's performance with the General Manager. This review includes the involvement of a Compensation Committee that performs a compensation survey or study. After the review, the board will go into executive session to determine the adjustment to the salary. The General Manager uses compensation studies to determine the Office Manager's compensation. The board does not approve any other employee salaries. This process is undertaken annually in November. Form 990, Part VI, Section C, line 19 The Cooperative bylaws are distributed upon becoming a member and are available to the public upon request. Financial statements are available at the annual meeting and upon request. Form 990 Part VII, Section A, Column (F) Included in column "F", Other Compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Jerry King is $26,270, $21,297 for Tori Kling and $8,608 for Lex Lindbo. 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 the defined benefit plan was $11,998, $24,296, and $17,840 respectively. Form 990, Part IX, 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 $(3,532,541). 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 XI, line 9: Retirement of Capital Credits -1,533,486. Current Year Patronage Capital Allocated to Members 9,250,178. Donated Capital 5,978. Burke-Divide Electric Trust PO Box 6 Columbus ND 587270006 273710967 Operation Round Up ND 501(c)(3) Line 7 Burke-Divide Electric Cooperative 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0