2014-06-16T08:50:14-05:00 2013-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2013-01-01 382214287 Michigan Electric Cooperative Association MICH 5173516322 2859 W Jolly Road Okemos MI 48864 Craig Borr President/CEO 5173516322 2014-06-05 1 LISA CHAFFEE CPA P00193453 7012398500 2014-06-05 2013 2015-11-30 17:44:51Z Craig Borr 2859 W Jolly Road Okemos MI 48864 3036491 0 X www.countrylines.com X 1978 MI To promote and serve the needs of the member cooperatives. 22 22 7 23 64200 -15742 0 0 2776284 2773520 -2069 -39005 24550 10583 2798765 2745098 7696 2880 0 0 829057 895134 0 0 0 1816393 1877835 2653146 2775849 145619 -30751 3112091 2625506 2511727 2302151 600364 323355 X To promote and serve the needs of the member cooperatives. 0 0 Legislative and regulatory support to member cooperatives. "Michigan Country Lines" magazine is produced to communicate important co-op issues to approximately 270,000 member-owners throughout Michigan. It is produced 10 times annually. Safety and loss control services reduce accident risks through employee training. Safety and loss control training is provided to employees of 8 member cooperatives and 19 municipalities. Energy optimization program administration: a State mandated energy efficiency program that is conducted centrally through the Association on behalf of eight of the eleven member cooperatives. 0 0 0 1 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 0 0 1 0 0 0 0 0 0 0 0 1 23 0 1 7 1 1 1 0 0 0 0 0 X 22 22 1 1 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 0 0 0 X Homeworks Tri-County Electric Cooperative 5176477554 7973 E Grand River Avenue Portland MI 48875 X Kenneth Swope Chair 1.00 X X 0 0 0 Robert Schallip 1st Vice Chair 1.00 X X 0 0 0 Jon Zickert 2nd Vice Chair 1.00 X X 0 0 0 Eric Baker Secretary/Treasurer 1.00 X X 0 0 0 Tony Anderson Immediate Past Chair 1.00 X 0 0 0 Louis Wenzlaff Director 1.00 X 0 0 0 Steve Boeckman Director 1.00 X 0 0 0 Dan Dasho Director 1.00 X 0 0 0 Deborah Miles Director 1.00 X 0 0 0 Nancy Gardner-Platt Director 1.00 X 0 0 0 Robert Hance Director 1.00 X 0 0 0 Ray Wozniak Director 1.00 X 0 0 0 Dallas Braun Director 1.00 X 0 0 0 Kimberly Molitor Director 1.00 X 0 0 0 Brian Burns Director 1.00 X 0 0 0 Jerry Akers Director 1.00 X 0 0 0 Bob Kran Director 1.00 X 0 0 0 Mark Kappler Director 1.00 X 0 0 0 Darryl Small Jan-Jun Director 1.00 X 0 0 0 Ed Oplinger Director 1.00 X 0 0 0 Frances Wiideman Director 1.00 X 0 0 0 Richard Walsworth Director 1.00 X 0 0 0 Tom Harrell Director 1.00 X 0 0 0 Craig Borr President/CEO 40.00 X 0 0 0 Art Thayer Director of Energy Efficiencies 51.70 X 118794 0 46661 Doug Snitgen Assistant General Manager 47.90 X 102107 0 33655 Jerrold McElroy Director of Safety & Loss Control 55.40 X 103038 0 31447 323939 0 111763 3 0 1 0 Rogers Printing PO Box 215 Ravenna MI 49451 Printing/Publishing Country Lines 524135 Wolverine Power Supply Cooperative Inc 10125 W Watergate Rd Cadillac MI 49601 Management Services 385425 Dykema-Gossett PLLC 201 Townsend St Ste 900 Lansing MI 48933 Legal Services 115965 3 Publications 511120 1190078 1125878 64200 Membership Dues 900099 1151099 1151099 Safety/Loss Services 900099 396829 396829 Education & Meetings 611710 33464 33464 2050 2050 2773520 2910 2910 10583 0 10583 10583 10583 249478 291393 -41915 -41915 -41915 2745098 2709320 64200 -28422 X 880 2000 895134 78117 44965 94222 390255 250 853747 24219 36265 90425 78093 31553 12654 Youth Programs 50181 Workshops 45322 Membership Dues 42808 4759 2775849 2231217 1962727 339247 204050 72983 38401 68359 340000 160913 87319 393901 73594 6384 6734 3112091 2625506 186979 143408 991713 1011083 1331635 1147660 1400 0 2511727 2302151 X 600364 323355 600364 323355 3112091 2625506 X -30751 -246258 X 0 1 X 1 0 1 0 0 0 1 X 160913 87319 73594 73594 X 2787013 0 2787013 -41915 -41915 2745098 2775849 0 2775849 0 2775849 Part IV, Line 2b: The Association acts as the custodian for funds of members for the purpose of facilitating transactions at the discretion of those members in the amount of $1,147,660 for the year ending December 31, 2013. The Association entered into an agreement to act as the billing agent on behalf of members with respect to the Energy Optimization program mandated by regulators. The Association acts strictly in an agency capacity and therefore no revenue or expense is reflected in the financial statements under this program. Part X, Line 2: A tax-exempt status was granted to the Association by the Internal Revenue Service in 1978. However, under current tax laws, the Association is liable for federal and state income taxes on advertising and other business income unrelated to its exempt status. The Association has net operating losses related to business income unrelated to its exempt purpose. These net operating losses expire from 2014 through 2028. The Association follows the provisions of FASB Accounting Standards Codification Topic ASC 740-10. As of December 31, 2013 and 2012, the unrecognized tax benefit accrual was zero. The Association will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. Part XI, Line 4b - Other Adjustments: Loss on Disposal of Equipment -41,915. 0 0 0 Art Thayer Director of Energy Efficiencies 117315 0 0 0 1479 0 31826 0 16230 0 166850 0 0 0 Part I, Line 3 The services of the President/CEO are provided to the Association under a management services agreement with Wolverine Power Cooperative, one of its member cooperatives. The filing organization relies on Wolverine Power Cooperative to determine the compensation for the President/CEO. They use a compensation committee, the written employment contract, compensation survey and approval by the board or compensation committee to determine his compensation. Schedule J, Part II, Column C, Deferred Compensation: The estimated current year increase in the actuarial value of the defined benefit plan is included in other compensation for employees listed in Part II of Schedule J. 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 on the Schedule O for Form 990, Part VII, Column f. Wolverine Power Supply Cooperative Inc MECA Director is CEO of Wolverine Power Supply Cooperative, Inc. 385425 MECA contracts Wolverine Power Supply Cooperative, Inc. for management and administrative services, as well as reimburses for meeting & travel expenses. 0 Form 990, Part VI, Section A, line 1 The Executive Committee consists of the Chairman, Vice-Chairman, Secretary-Treasurer and two other Directors that are not officers of the Association. Although the Bylaws give the authority to the Executive Committee to act on behalf of the full governing Board during intervals between the meetings of the Board, the Executive Committee currently is only providing recommendations to the full Board. Form 990, Part VI, Section A, line 2 Kimberly Moliter, Eric Baker and Craig Borr have a business relationship. Form 990, Part VI, Section A, line 3 The services of the President/CEO are provided to the Association under a management services agreement with Wolverine Power Supply Cooperative, Inc, one of its member cooperatives. This annual management services agreement outlines the responsibilities and duties of the President/CEO, as well as the proposed costs for his services to the Association. The President/CEO's compensation is included in the management services figure to Wolverine Power Supply Cooperative, Inc. listed in Part VII, Section B. Form 990, Part VI, Section A, line 6 The organization has members of which each member has one voting right. Form 990, Part VI, Section A, line 7a Each corporate member shall be entitled to two representatives on the Board of Directors. Such representatives shall be nominated by the board of the corporate member, subject to election by a majority of the votes cast at the annual meeting of the members. Form 990, Part VI, Section A, line 7b At all meetings of the members at which a quorum is present, all questions shall be decided by a vote of a majority of the members delegates voting thereon except as otherwise provided by law, the articles of incorporation or the bylaws. Each member shall be entitled to only two votes upon each matter submitted to a vote at a meeting of the members. Form 990, Part VI, Section A, line 8b There are no committees that can act of behalf of the board. Form 990, Part VI, Section B, line 11 The 990 is received and reviewed for accuracy by the Assistant General Manager, Reporting Agent and President/CEO. Upon approval, it is provided to the entire Board of Directors for its review and discussion, as needed, at a regularly scheduled meeting. After any concerns presented by the Board of Directors are addressed, the President/CEO signs and files the return. Form 990, Part VI, Section B, line 12c The conflict of interest policy is reviewed annually. All directors are required to disclose any conflicts of interest and to notify the Board of any conflicts that may arise throughout the year. The Board will then determine if a conflict does exist and how to proceed. Form 990, Part VI, Section B, line 15 The Chair of the board distributes an evaluation form to the Board of Directors soliciting input on the performance of the President/CEO. This information is then compiled and shared with the Executive Committee and the President/CEO. The services of the President/CEO are provided to the Association under a management services agreement with one of its member cooperatives. This annual management services agreement outlines the responsibilities and duties of the President/CEO as well as the proposed costs for his services to the Association for the coming year. This management services agreement is discussed and approved annually by the Board of Directors. As the President/CEO is an employee of one of the organization's member cooperatives, salary and related compensation is annually reported on the Form 990 of that member cooperative. The annual salary of the President/CEO is set by the member cooperative based upon survey information provided by the National Rural Electric Cooperative Association (NRECA) for similar association positions throughout the country as well as the written job performance information provided by the Board of Directors. There are no other officers or key employees. Form 990, Part VI, Section C, line 19 The governing documents, conflict of interest policy, and financial statements are 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 Art Thayer, Doug Snitgen and Jerrold McElroy were $28,893, $16,272, and $14,062 respectively. This amount is an estimate in the increase of the value of the plan and is not a current year expense of the cooperative. The current year expense for this defined benefit plan was $25,911 for Art Thayer, $22,930 for Doug Snitgen and $22,172 for Jerrold McElroy. Form 990, Part IX, line 11g Outside Contractor: Total expenses 390,255. Form 990, Part XI, line 9: Payout of Contributed Capital -246,258.