2015-08-04T10:32:41-05:00 2014-12-31 450310328 BRADY MARTZ AND ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2014-01-01 410484875 PKM ELECTRIC COOPERATIVE INC PKME 2187454711 406 NORTH MINNESOTA STREET WARREN MN 56672 CHARLES REISEN MANAGER 2187454711 2015-07-16 1 MATT LAUGHLIN P00014168 7017754685 2014 2016-04-25 22:37:26Z CHARLES REISEN 406 NORTH MINNESOTA STREET WARREN MN 56672 14801047 0 X WWW.PKMCOOP.COM X 1940 MN SALE OF ELECTRICITY TO MEMBERS 9 8 24 0 14454 12197 0 0 12529845 14424608 193274 195081 -22434 107825 12700685 14727514 6365 6739 0 1094147 1856597 419316 0 0 0 10754691 12906035 12617653 14426237 83032 301277 27215453 28178248 14632932 14232689 12582521 13945559 TO PROVIDE ELECTRIC SERVICE TO MEMBERS. 0 0 PROVIDE ELECTRICITY SERVICE TO 3,739 MEMBERS 0 0 0 0 0 0 0 1 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 1 0 0 0 0 0 0 0 0 1 24 0 1 24 1 1 1 0 0 0 0 0 0 14424608 389012 0 X 9 8 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 0 X MIKE SCHMIDT 2187454711 406 N MINNESOTA STREET WARREN MN 56762 X RONALD REITMEIER PRESIDENT 5.00 X X 5200 0 0 THOMAS WOINAROWICZ VICE PRESIDENT 4.00 X X 4500 0 0 GORDON BERNSTROM SECRETARY TREASURER 5.00 X X 6100 0 0 MICHAEL BEAUDRY DIRECTOR 4.00 X 4950 0 0 JEFFREY FOLLAND DIRECTOR 4.00 X 4800 0 0 STEVE GOODWIN DIRECTOR 4.00 X 4800 0 0 JEROD HANSON DIRECTOR 4.00 X 5550 0 0 WAYNE MALM DIRECTOR 4.00 X 4800 0 0 BLAKE OWENS DIRECTOR 4.00 X 4900 0 0 CHARLES RIESEN MANAGER 40.00 X 132155 0 69730 MIKE SCHMIDT ASSISTANT MANAGER 40.00 X 104713 0 88020 282468 0 157750 2 0 1 0 0 SALE OF ELECTRICITY 221000 14424608 14424608 14424608 195081 195081 54001 73533 -19532 -19532 CAPITAL CREDITS 900099 112903 112903 NSS K-1 541900 16503 16503 FEDERATED ACQUISITIONS K-1 541900 -571 -571 -1478 -1478 127357 14727514 14517979 14454 195081 X 6739 1094147 419316 599251 849603 COST OF POWER PURCHASED 9281157 DISTRIBUTION EXPENSE 1085661 ADMINISTRATIVE & GENERA 904108 ALL OTHER EXPENSES 186255 14426237 2026446 2603661 1802837 1618661 64750 69486 576140 469407 278562 313132 31948959 11008359 20380171 20940600 827552 847123 1257084 1313848 1911 2330 27215453 28178248 2079250 1691085 1171 1198 12537661 12525456 14850 14950 14632932 14232689 X 0 0 18695 18855 12563826 13926704 12582521 13945559 27215453 28178248 X 301277 1061761 X X 0 0 0 0 1 X 138991 138991 856179 542903 313276 29920713 10465456 19455257 1033076 1033076 20940600 CONSUMER DEPOSITS 14950 14950 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, 2014, THE ACCOUNT HELD $1,198. 0 PART I, LINE 2 THE COOPERATIVE MAINTAINS RECORDS TO SUBSTANTIATE THE AMOUNT OF GRANTS BUT DOES NOT MONITOR THE USE OF THE FUNDS. X X X 0 0 0 CHARLES RIESEN MANAGER 123418 0 0 0 8737 0 48707 0 22311 0 203173 0 0 0 MIKE SCHMIDT ASSISTANT MANAGER 96640 0 0 0 8073 0 64998 0 24101 0 193812 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. MINNKOTA POWER COOPERATIVE INC BOARD MEMBER JEFFREY FOLLAND ALSO SERVES ON THE MINNKOTA POWER COOP BOARD 9281157 PKM ELECTRIC COOPERATIVE, INC. PURCHASES ITS WHOLESALE POWER FROM MINNKOTA POWER COOPERATIVE, INC. 0 0 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 $34,715 AND FOR MIKE SCHMIDT IS $ 53,778. 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 $37,511 AND $30,080 RESPECTIVELY. FORM 990, PART IX, LINE 4 AS REQUIRED BY FORM 990 INSTRUCTIONS, FORM 990, PART IX, LINE 4 (BENEFITS PAID TO OR FOR MEMBERS) INCLUDES PATRONAGE DIVIDENDS PAID. THIS AMOUNT IS AN EXPENSE FOR PURPOSES OF FORM 990, BUT IS NOT RECOGNIZED AS AN EXPENSE UNDER G.A.A.P. REPORTING REQUIREMENTS, WHICH ARE USED FOR BOOK INCOME. THE RESULT IS A BOOK TO TAX DIFFERENCE WHICH IS DISCLOSED ON PART XI. IN REFERENCE TO PART IX, LINE 4, THE COOPERATIVE HAS INTERPRETED "PATRONAGE DIVIDENDS PAID" AS CAPITAL CREDITS ALLOCATED TO MEMBERS UNDER THE PREEXISTING OBLIGATIONS PURSUANT TO THE BYLAWS OF THE COOPERATIVE. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -62,815. LLC'S INCOME - PER BOOKS 138,946. LLC INCOME PER K-1'S -105,352. NET FEDERAL INCOME TAX -3,325. OTHER INCREASE IN MEMBERSHIP 160. ALLOCATED CAPITAL CREDITS 1,094,147. FORM 990, PART XII, FINANCIAL STATEMENTS AND REPORTING, LINE 2B THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS WERE FOR THE FISCAL YEAR END FEBRUARY 28, 2015. THE ORGANIZATION DOES NOT HAVE AUDITED FINANCIAL STATEMENTS FOR THE CALENDAR YEAR ENDED DECEMBER 31, 2014 WHICH IS THE PERIOD OF TIME COVERED BY THIS 990 FILING.