2014-07-30T13:26:48-05:00 2013-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2013-01-01 450217065 Burke-Divide Electric Cooperative BURK 7019396671 PO Box 6 Columbus ND 587270006 Jerry King General Manager 7019396671 2014-07-30 1 LISA CHAFFEE CPA P00193453 7012398500 2014-07-30 2013 2015-11-30 17:44:51Z Jerry King PO Box 6 Columbus ND 587270006 21979924 0 X www.bdec.coop X 1948 ND To provide reliable high quality electricity to members at a competitive cost. 7 7 41 0 0 0 0 0 14020500 21400838 24923 34120 -57438 267980 13987985 21702938 0 0 2419002 6396470 2579341 3177286 0 0 0 8989642 12129181 13987985 21702937 0 1 45337920 57470463 33416030 39205265 11921890 18265198 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 3,727 services, serves 1,443 members and maintains 2,612 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 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 239 0 1 41 1 0 0 0 0 0 40916747 69053 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 X Tori Kling 7019396671 Burke-Divide Electric Cooperative Columbus ND 587270006 X David Sigloh President 10.00 X X 17516 0 0 Kent Haugland Vice President 8.00 X X 12616 0 0 Lynn Jacobson Secretary/Treasurer 8.00 X X 16 0 15000 Steven Overlee Assistant Sec/Treas 5.00 X X 16 0 11850 Lane Titus Director 5.00 X 7566 0 0 Kurt Koppelsloen Director 5.00 X 9816 0 0 Jeff Dahlin Director 5.00 X 16 0 11250 Jason Brothen General Manager (Jan-Apr) 60.00 X 75196 0 38669 Tori Kling Office Manager/Interim General Manager 60.00 X 93210 0 37072 215968 0 113841 0 0 0 0 Midwest Power Inc 7516 Brook Loop Bismarck ND 58503 Building Line 3841887 Keller Construction LLC 2902 Yale Court Rapid City SD 57702 Building Line 3430685 Highmark Inc PO Box 491 Black Hawk SD 57718 Building Substations 1945575 HDR Engineering PO Box 3480 Omaha NE 68103 Engineering Service 1741349 Freese & Sonn Inc PO Box 36 Lander WY 82520 URD Construction 950994 9 Electricity 221000 20773721 20773721 G&T Capital Credits 221000 627117 627117 21400838 18463 18463 3029 233 2796 2796 2796 450 15207 0 0 450 15207 15657 15657 541937 276753 265184 265184 21702938 21666022 0 36916 X 6396470 319971 2294306 374612 188397 1055062 1133892 Cost of Power 9131204 Distribution 2119908 Admin & General 1317182 Customer Service and Sa 359134 -2987201 21702937 6205314 2644326 2050119 3684603 2299318 2151837 195124 211764 56593327 12178830 31742515 44414497 248485 689023 2593206 2747829 3839 926584 45337920 57470463 4905439 3415623 2359405 5258712 610 1764 17150576 17529166 9000000 13000000 33416030 39205265 X 355150 355150 0 0 11566740 17910048 11921890 18265198 45337920 57470463 X 1 6343307 X 0 1 X 1 0 0 1 X 146011 146011 2489309 737943 1751366 41099455 11440887 29658568 12858552 12858552 44414497 X 21702938 0 21702938 0 21702938 15306467 0 15306467 6396470 6396470 21702937 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, 2013 was $1,764. Part X, Line 2: The Cooperative is exempt from income taxes under Section 501(c)(12) of the Internal Revenue Code. The Company has adopted the provisions of FASB Accounting Standards Codification Topic ASC 740-10. The implementation of this standard had no impact on the financial statements. As of both the date of adoption, and as of December 31, 2013, the unrecognized tax benefit accrual was zero. The Company will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. Under normal circumstances, the Cooperative is no longer subject to Federal tax examinations by tax authorities for years before 2010 and state examinations for years before 2010. The Cooperative undergoes an annual analysis of various tax positions, assessing the likelihood of those positions being upheld upon examination with relevant tax authorities, as defined by ASC 740-10. Part XII, Line 4b - Other Adjustments: Current Year Patronage Capital Allocated to Members 6,396,470. Form 990, Part VI, Section A, line 1 All board memberes have one voting right. The President only votes if there is a tie. Form 990, Part VI, Section A, line 6 The Cooperative has 1,443 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 online. 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 Jason Brothen is $30,441 and for Tori Kling is $22,108. 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 $16,514 and $24,692 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 $(3,177,286). 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 -53,163. Current Year Patronage Capital Allocated to Members 6,396,470. Burke-Divide Electric Trust PO Box 6 Columbus ND 587270006 273710967 Operation Round Up ND 501(c)(3) 7 Burke-Divide Electric Cooperative 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0