2014-05-12T08:36:53-05:00 2013-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2013-01-01 410449191 North Star Electric Coop NORT 2186342202 441 State Hwy 172 NW Baudette MN 566230719 Steve Arnesen Board President 2186342202 2014-05-05 1 LISA CHAFFEE CPA P00193453 7012398500 2014-05-05 2013 2015-11-30 17:44:51Z Dan Hoskins 441 State Hwy 172 NW Baudette MN 566230719 14323359 0 X www.northstarelectric.coop X 1940 MN Responsibly provide electric energy and other beneficial services to our member owners. 7 7 29 0 0 0 0 0 13626242 14108775 191202 205109 -2199 1294 13815245 14315178 0 0 892435 933201 2331881 2303356 0 0 0 10590929 11078621 13815245 14315178 0 0 30251793 32637135 16779678 18979613 13472115 13657522 The mission of North Star Electric Cooperative is to improve the lives of our member-owners and community by responsibly providing electric energy and other beneficial services while maintaining the very highest standard of performance. 0 0 To provide electric and utility service to 5,343 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 1 0 0 0 0 0 0 1 1 0 0 1 38 0 1 29 1 0 0 0 0 0 14161763 192190 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 4.50 X X 13500 0 0 Bruce Polkinghorne Vice President 2.50 X X 4750 0 0 Michael Hanson Secretary-Treasurer 3.80 X X 13275 0 0 Julian Brzoznowski Director 3.80 X 10750 0 0 Lorraine Nygaard Director 2.50 X 9500 0 0 Michael Trueman Director 1.50 X 7650 0 0 Randall Bergan Director 1.30 X 6375 0 0 Dan Hoskins General Manager 50.00 X 173319 0 42140 Ann Ellis Finance Manager 50.00 X 105971 0 79326 345090 0 121466 2 0 1 0 Emblom's Midwest Powerline PO Box 69 Sauk Centre MN 56378 Power line construction 161706 1 Electric sales 221000 13998026 13998026 Capital credits 221000 123667 123667 Miscellaneous 900099 -12918 -12918 14108775 205109 205109 9475 8181 1294 1294 14315178 14110069 0 205109 X 933201 466447 1482362 223477 131070 808073 1001813 Cost of Power 8333789 Adminstrative & General 1341168 Distribution Expense 1242409 Customer Expense & Sale 654725 -2303356 14315178 650221 703786 1416126 1835181 360000 341250 571882 586721 260111 1109590 40895446 14843861 25041596 26051585 1468185 1523350 483672 485672 30251793 32637135 1606238 1935374 222930 661668 1649 14690460 16107985 258401 274586 16779678 18979613 X 0 0 0 0 13472115 13657522 13472115 13657522 30251793 32637135 X 0 185407 X 0 0 0 0 0 56183 56183 3205048 944747 2260301 36154696 13899114 22255582 1479519 1479519 26051585 Member Deposits 79488 Retiree Health Insurance Liability 195098 274586 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. The account balance was $0 and $1,649 for the years ending December 31, 2013 and 2012. 1 Part I, Line 2: The cooperative does donate unclaimed capital credits to charitable tax-exempt organizations, but no donations were more than $5,000. 1 X X X 0 0 0 Dan Hoskins General Manager 170754 0 0 0 2565 0 24841 0 20817 0 218977 0 0 0 Ann Ellis Finance Manager 105507 0 0 0 464 0 61876 0 19809 0 187656 0 0 0 Form 990, Schedule J, Part II, Column C Compensation Of Officers, Directors, Key Employees, Highest Compensated Employees And Independent Contractors: included in other 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. Steve Ellis-Now retired from North Spouse of NSEC Finance Manager 52847 Severance-position eliminated 0 Form 990, Part IV, Line 12 Audited Financials: Although the Cooperative did not have an audit for the calendar year ended December 31, 2013, it did have an audit performed by an independent accountant for the period from August 1, 2012 through July 31, 2013. The audit period was chosen in order to reduce the cost of the audit, as it was not performed during peak season for the audit firm. The Cooperative is scheduled to have an independent audit performed for the period August 1, 2013 through July 31, 2014. Form 990, Part VI, Section A, line 6 The Cooperative has 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 April 30, 2014 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 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 October 2013. The General Manager reviews the performance evaluation of the Finance Manager. This process was last performed in 2013. 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 for Dan Hoskins is $16,088 and for Ann Ellis is $55,878. 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 $40,228 and $25,752 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 $(2,303,356). Form 990, Part XI, line 9: Retirements of Capital Credits -711,734. Changes in Membership 15. Donated Capital Changes -25,642. Patronage Capital Allocated 933,201. Other Capital Changes -10,433. 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