2013-11-11T16:14:02-06:00 2012-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2012-01-01 450173086 North Central Electric Cooperative Inc NORT 7012282202 538 11th St West No 1 Bottineau ND 58318 Wayne Martian 7012282202 2013-11-06 1 LISA CHAFFEE CPA P00193453 7012398500 2013-11-06 2012 2016-02-25 16:41:14Z Wayne Martian 538 11th St West No 1 Bottineau ND 58318 22203209 0 X www.nceci.com X 1941 ND The exempt purpose of the organization is to provide electricity to members. 9 8 44 0 7496 6496 0 0 19014824 21432060 83360 80001 37632 60948 19135816 21573009 0 0 1052170 1849910 2841227 3007521 0 0 0 15242419 16752323 19135816 21609754 0 -36745 53415136 56976766 35531826 37667628 17883310 19309138 None 0 0 Sale of electricity and electrical services to 7,573+ residential and commercial members. Service encompasses over 3,248 miles of utility line. 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 18 0 1 44 1 1 1 0 0 0 0 21903777 111395 0 X 9 8 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X Lori Opdahl 7012282202 538 11th Street West Suite 1 Bottineau ND 58318 X Jean Brandt 6.00 X X 8500 0 0 Margaret Leonard 6.00 X X 10300 0 0 Lori Kittleson 6.00 X X 8100 0 0 David O'Connell 6.00 X 11900 0 0 Christine Peterson 6.00 X 11500 0 0 David Biberdorf 6.00 X 3950 0 0 Kenneth Brenden 6.00 X 7200 0 0 Raymond Keplin 6.00 X 6050 0 0 Kenneth Haarsager 6.00 X 8200 0 0 Jesse Fahnestock 6.00 X 4850 0 0 Wayne Martian 40.00 X 124055 0 11698 Lori Opdahl 40.00 X 70336 0 22255 274941 0 33953 1 0 0 0 Parisien's Tree Service PO Box 777 Belcourt ND 58316 Tree Trimming 134378 1 Sale of Electricity 221000 20799696 20799696 Capital Credits 221000 632364 632364 21432060 83360 83360 10000 0 10000 10000 10000 3359 -3359 -3359 -3359 677789 626841 50948 43452 7496 21573009 21475512 7496 90001 X 1849910 340666 2181089 352138 133628 237523 1377551 1696859 Taxes 972 Cost of Power 12506305 Distribution Expense - 2233146 Administrative & Genera 895590 -2195623 21609754 X 205656 713576 2082025 2599102 2971 2942 974 2854663 3347396 70436 26592 64495170 24945862 37936476 39549308 146989 175362 10115949 10561485 53415136 56976766 2456646 2900363 1283704 1182484 30891476 32584781 900000 1000000 35531826 37667628 X 17883310 19309138 0 0 0 0 17883310 19309138 53415136 56976766 X -36745 1462573 X 0 1 X 1 0 56779 56779 1950123 809869 1140254 480420 387230 93190 3688312 2649854 1038458 58319536 21098909 37220627 39549308 Patronage Capital 9190597 C Rural Econ Dev Revolving Loan Pool 819654 C Energy Resource Conservation Loans 196083 C Equipment Loans 295609 C Memberships 2322 C Federated Rural Electric Insurance Equity 57220 C 10561485 X 21571910 -1099 -1099 21573009 0 21573009 19758745 0 19758745 1851009 1851009 21609754 Description of Uncertain Tax Positions Under FIN 48: Part X, Line 2: The Cooperative is exempt from income taxes under Section 501 (c)(12) of the Internal Revenue Code. The Cooperative has adopted the provisions of Accounting and Standards Codification (ASC) 740-10. As of December 31, 2012, the unrecognized tax benefit accrual was zero. The Cooperative will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if such penalties and interest are incurred. Under normal circumstances, the Cooperative is no longer subject to Federal tax examinations by tax authorities for years before 2009 and state examinations for years before 2009. 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 XI, Line 2d - Other Adjustments: Taxes -972. Miscellaneous non-operating expense -127. Part XII, Line 4b - Other Adjustments: Taxes 972. Patronage Capital Credits Allocated For Current Year 1,849,910. Miscellaneous non-operating expense 127. Lori Opdahl Business Manager of Organization Equipment Loan X 3000 2614 0 1 1 Raymond Keplin Director of Organization ERC Loan X 945 357 0 1 1 2971 Form 990, Part VI, Section A, line 6 There is one class of members which all have the same voting rights. Form 990, Part VI, Section A, line 7a Members vote for all open positions in all districts that are up for election that year. Form 990, Part VI, Section A, line 7b Changes to bylaws or articles of incorporation must be approved by members of the Cooperative. Form 990, Part VI, Section A, line 8b There are no committees that have authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11 The General Manager and Business Manager reviewed a draft of the Form 990. The Form 990 was presented at a board meeting. Form 990, Part VI, Section B, line 12c Directors and management must annually complete a form to disclose any conflicts they might have. The President of the Board reviews the disclosures. For each instance disclosed, the President has discretion to take no action, assure full disclosure to the full board and management, ask the person to recuse him or herself from discussions or decisions relating to the conflict or ask the person to resign. The General Manager monitors proposed or ongoing conflicts and discloses them to the Board President. Form 990, Part VI, Section B, line 15 The Board annually uses a salary survey made available through the North Dakota Association of Rural Electric Cooperatives. The salary deliberation is documented in the minutes. The Board votes on the compensation. This process was last undertaken in September 2012. Compensation for the Business Manager is determined based on Business Manager salaries at other cooperatives across North Dakota, taking into account the results of the ND Association of REC's Wage and Salary Survey. In addition, the Business Manager's years of service to the Cooperative are considered. This process was last undertaken in October 2012. The Board approves all wages. For non-union employees the General Manager makes a recommendation, and the Board votes to approve. For union members, the union negotiates directly with the Board and the General Manager. When an agreement is reached the Board will formally approve the new wage scale. This process was last undertaken in 2012. Form 990, Part VI, Section C, line 19 The governing documents, conflict of interest policy, and financial statements are available upon request. Compensation Of Officers 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 for Lori Opdahl is $5,084. 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 expenses for this defined benefit plan was $10,031. Allocated Costs 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 $(3,007,521). 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. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Retirement of Capital Credits -387,337. Patronage Capital Credits Allocated For Current Year 1,849,910.