2014-10-27T08:11:02-05:00 2013-12-31 450250958 EIDE BAILLY LLP 200 EAST 10TH ST PO BOX 5125 SIOUX FALLS SD 571175125 990 2013-01-01 460213171 FEM ELECTRIC ASSOCIATION INC FEME 6054266891 PO BOX 468 IPSWICH SD 574510468 SCOTT MOORE GENERAL MANAGER/CEO 6054266891 2014-10-22 1 LAURIE HANSON P00851848 6053391999 2014-10-22 2013 2015-11-30 17:44:51Z SCOTT MOORE PO BOX 468 IPSWICH SD 574510468 14385532 0 X WWW.FEMELECTRIC.COOP X 1949 SD TO SAFELY PROVIDE RELIABLE, COST-EFFICIENT ELECTRICITY AND OTHER SERVICES. 5 5 25 0 185821 165808 0 0 11976607 13611877 77109 59723 53865 136732 12107581 13808332 6264 7771 404428 971853 1652973 1635657 0 0 0 9844044 10800303 11907709 13415584 199872 392748 34564292 32316981 26444727 23039981 8119565 9277000 TO ENHANCE THE QUALITY OF LIFE OF OUR MEMBERS, BY SAFELY PROVIDING RELIABLE, COST-EFFICIENT ELECTRICITY AND OTHER SERVICES. 0 0 PROVIDED ELECTRIC SERVICE TO APPROXIMATELY 1,304 MEMBERS AND REPLACED APPROXIMATELY 234 MILES OF OVERHEAD WITH UNDERGROUND LINES. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 39 0 1 25 1 1 1 0 0 0 0 0 0 13169836 959302 0 X 5 5 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 0 X SCOTT MOORE 6054266891 PO BOX 468 IPSWICH SD 574510468 ALDEN FLAKOLL PRESIDENT 5.00 X X 6710 0 0 GARY BACHMAN VICE PRESIDENT 8.80 X X 13260 0 0 LARRY BOWAR SECRETARY 5.00 X X 6135 0 0 FRANK HEINZ TREASURER 6.50 X X 7625 0 0 GERALD HAUPT ASSISTANT SEC/TREAS. 5.00 X X 9860 0 0 SCOTT MOORE GENERAL MANAGER/CEO 47.50 X 101462 0 67921 145052 0 67921 1 0 1 0 K&H ELECTRIC INC 243 S SAINT PAUL AVE LINTON ND 58552 BORING URD CABLE 239561 1 SALE OF POWER 221000 12945392 12945392 COOP CAPITAL CREDITS 221000 461617 461617 PARTNERSHIP INCOME 541900 149820 131673 18147 INTERNET INCOME 517000 55048 900 54148 13611877 55923 55923 3800 0 3800 3800 3800 713932 577200 136732 136732 13808332 13544641 185821 77870 7771 971853 192745 1118103 231265 93544 798280 721103 UBI TAXES 17994 COST OF POWER 8606597 ADMIN & GENERAL 775965 DISTRIBUTION-OPERATIONS 499283 -618919 13415584 226093 933157 7911830 3122415 798378 887071 53765 53543 1191495 970749 83368 682744 27681492 7957369 18902180 19724123 747708 880728 4639738 5052752 9737 9699 34564292 32316981 997491 1126426 14640910 15664447 10746179 6183147 60147 65961 26444727 23039981 X 0 0 0 0 8119565 9277000 8119565 9277000 34564292 32316981 X 392748 764687 X X 0 1 X 1 0 2674 2674 350842 140783 210059 27327976 7816586 19511390 19724123 MEMBERSHIPS 8900 C EAST RIVER ELECTRIC POWER COOPERATIVE 3729515 C RURAL ELECTRIC SUPPLY COOPERATIVE 61125 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 927540 C NATIONAL RURAL TELECOMMUNICATIONS COOPERATIVE 207674 C OTHER COOPERATIVES 24239 C FEDERATED RURAL ELECTRIC INSURANCE 53759 C RURAL ELECTRIC ECONOMIC DEVELOPMENT, INC. 40000 C 5052752 CUSTOMER DEPOSITS 7769 DEFERRED CREDITS 3259 OTHER CURRENT LIABILITIES 54933 65961 X 13740125 0 13740125 68207 68207 13808332 12375524 0 12375524 1040060 1040060 13415584 PART X, LINE 2: THE ASSOCIATION BELIEVES IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN AFFECTING ITS ANNUAL FILING REQUIREMENTS, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. THE ASSOCIATION WOULD RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF SUCH INTEREST AND PENALTIES ARE INCURRED. GENERALLY, THE ASSOCIATION IS NO LONGER SUBJECT TO FEDERAL OR STATE TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2010. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES NETTED TO REVENUE FOR GAAP 68,207. PART XII, LINE 4B - OTHER ADJUSTMENTS: ALLOCATION OF 2013 MARGINS TO MEMBERS IN 2014 971,853. EXPENSES NETTED TO REVENUE FOR GAAP 68,207. X X 0 0 0 SCOTT MOORE GENERAL MANAGER/CEO 100216 0 0 0 1246 0 44671 0 24958 0 171091 0 0 0 FORM 990, PART VI, SECTION A, LINE 4 THE COOPERATIVE AMENDED ARTICLE I, SECTION 1, REQUIREMENTS OF MEMBERSHIP, TO RESTRICT TRANSFERABILITY OF MEMBERSHIP TO THE PERVIEW OF THE BYLAWS. THE COOPERATIVE ALSO AMENDED SECTION 1, REQUIREMENTS OF MEMBERSHIP, TO CLARIFY THAT, "IT IS DEEMED THAT ANY FIRM, ASSOCIATION, CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, POLITICAL SUBDIVISION OR INDIVIDUAL (IF AN INDIVIDUAL IS MARRIED, HIS/HER MEMBERSHIP SHALL BE A JOINT MEMBERSHIP ONLY) MAY HOLD ONE (1) MEMBERSHIP ONLY. THE NUMBER OF ACCOUNTS HELD UNDER SAID MEMBERSHIP MAY VARY." THE COOPERATIVE AMENDED ARTICLE III, SECTION 3, CONVERSION OF MEMBERSHIP, TO PROVIDE GUIDANCE IN THE EVENT OF A JOINT MEMBERSHIP DIVORCE. THE AMENDED BYLAWS STATE THE FOLLOWING: "IN THE EVENT OF DIVORCE, THE PARTIES SHALL PROVIDE LEGAL DOCUMENTATION (FINAL DIVORCE DECREE/ORDER) OR FILE WRITTEN DOCUMENTATION, ON FORMS PROVIDED BY THE COOPERATIVE, INDICATING WHO SHALL REMAIN AS A MEMBER OF THE COOPERATIVE AND HOW CAPITAL CREDITS SHALL BE ALLOCATED TO THE PARTIES. FAILURE TO PROVIDE SUITABLE DOCUMENTATION SHALL RESULT IN THE MEMBERSHIP REMAINING THE SAME AS IT WAS PRIOR TO THE DIVORCE." THE COOPERATIVE ADDED ARTICLE VI, SECTION 8, ASSISTANT SECRETARY/TREASURER, TO DEFINE THE ROLES AND RESPONSIBILITIES OF THE OFFICER. THE ADDITION TO THE BYLAWS STATES THE FOLLOWING: "IN THE ABSENCE OF EITHER THE SECRETARY OR THE TREASURER, OR IN THE EVENT OF THE SECRETARY'S OR TREASURER'S INABILITY OR REFUSAL TO ACT, THE ASSISTANT SECRETARY/TREASURER SHALL PERFORM THE DUTIES OF SUCH SECRETARY OR TREASURER, AND WHEN SO ACTING SHALL HAVE ALL THE POWERS OF AND BE SUBJECT TO ALL THE RESTRICTIONS UPON THE SECRETARY OR TREASURER. THE ASSISTANT SECRETARY/TREASURER SHALL ALSO PERFORM SUCH OTHER DUTIES AS FROM TIME TO TIME MAY BE ASSIGNED TO THE DIRECTOR BY THE BOARD OF DIRECTORS." THE COOPERATIVE AMENDED ARTICLE VII, SECTION 2, PATRONAGE CAPITAL IN CONNECTION WITH FURNISHING ELECTRIC ENERGY TO DESCRIBE THE ALLOCATION OF UNCLAIMED RETIRED CAPITAL CREDITS. FORM 990, PART VI, SECTION A, LINE 6 EACH MEMBER HOLDS ONE MEMBERSHIP AND HAS ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7A A NOMINATION COMMITTEE IS FORMED FROM THE MEMBERSHIPS IN THE DISTRICT(S) OF THE BOARD MEMBER BEING ELECTED. THAT COMMITTEE IS RESPONSIBLE FOR NOMINEES TO BE PLACED ON THE BALLOT. AN ELECTION IS HELD AT THE ANNUAL MEETING AND ALL MEMBERS HAVE ONE VOTE IN THE ELECTION OF THE BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO BY-LAWS MUST BE APPROVED BY MEMBERS. ALL MEMBERS HAVE ONE VOTE WITH THE SAME VOTING RIGHTS. FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE DOES NOT HAVE COMMITTEES WITH BROAD AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE GENERAL MANAGER/CEO WILL REVIEW THE FORM 990 BEFORE IT IS SUBMITTED TO THE IRS. THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS AT A BOARD MEETING HELD PRIOR TO THE FILING OF THE 990. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR WILL DISCLOSE IN WRITING TO THE BOARD OF DIRECTORS AT THE NEXT SCHEDULED BOARD MEETING ANY CONFLICT OF INTEREST, AS OUTLINED IN THE POLICY, AS THEY EXIST OR WHEN THEY MAY BE INVOLVED IN THE FUTURE. THE BOARD OF DIRECTORS MONITORS CONFLICTS AND IS OVERSEEN BY THE ASSOCIATION'S ATTORNEY. FORM 990, PART VI, SECTION B, LINE 15A THE SDREA ANNUAL WAGE AND SALARY STUDY IS USED AS A BENCHMARK FOR WAGES. THIS PROCESS WAS UNDERTAKEN IN 2013. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -216,612. INCREASE IN OTHER EQUITIES 9,446. ALLOCATION OF 2013 MARGINS TO MEMBERS IN 2014 971,853. FORM 990, PART XII, LINE 2C: THE ENTIRE BOARD OF DIRECTORS IS RESPONSIBLE FOR THE SELECTION AND OVERSIGHT OF THE INDEPENDENT PUBLIC ACCOUNTANT. FORM 990, PART VI, SECTION B, LINE 16B THE ORGANIZATION HAS NOT ADOPTED A WRITTEN POLICY HOWEVER, THE RURAL DEVELOPMENT UTILITITES PROGRAM LIMITS THE AMOUNT OF INCOME THAT CAN BE MADE FROM NONOPERATING VENTURES. OVER 85% OF GROSS REVENUES NEED TO COME FROM COOPERATIVE MEMBERSHIPS. FORM 990, PART VII, COLUMN F, OTHER COMPENSATION: INCLUDED IN OTHER COMPENSATION IS THE ESTIMATED CURRENT YEAR INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN FOR THE GENERAL MANAGER. THE CURRENT YEAR INCREASE OR DECREASE DOES NOT REPRESENT CURRENT YEAR CONTRIBUTIONS TO THE PLAN. RATHER, IT IS AN ESTIMATE OF THE INCREASE OR DECREASE IN THE ACTUARIAL VALUE OF THE PLAN AS CALCULATED BY THE PLAN ADMINISTRATOR. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 6-10 ARE INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, LABOR, PENSION AND PAYROLL TAXES ARE SHOWN AS A REDUCTION TO OTHER EXPENSES ON LINE 24E. FORM 990, PART IX, LINE 4, BENEFITS PAID TO OR FOR MEMBERS: 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 BY-LAWS OF THE COOPERATIVE. RURAL DAKOTA DEVELOPMENT LLC PO BOX 468 IPSWICH SD 57451 260078214 HOUSING DEVELOPMENT SD FEM ELECTRIC ASSOCIATION INC INVESTMENT INCOME -691 75840 0 1 0.33330 NORTH STAR ENERGY LLC 4418 MAIN STREET SELBY SD 57472 481268151 LP GAS SALES SD FEM ELECTRIC ASSOCIATION INC UNRELATED 133082 1280544 0 0 0.33330 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0