2013-09-15T10:56:58-05:00 2012-12-31 450250958 EIDE BAILLY LLP 200 EAST 10TH ST PO BOX 5125 SIOUX FALLS SD 571175125 990 2012-01-01 410254835 TRI-COUNTY ELECTRIC COOPERATIVE TRIC 5078647783 31110 COOPERATIVE WAY PO BOX 626 RUSHFORD MN 55971 BRIAN KRAMBEER 5078647783 2013-09-04 1 LAURIE HANSON P00851848 6053391999 2013-09-04 2012 2016-02-24 21:20:13Z BRIAN KRAMBEER 31110 COOPERATIVE WAY PO BOX 626 RUSHFORD MN 55971 40462467 0 X WWW.TEC.COOP X 1936 MN TO DELIVER HIGH-QUALITY ENERGY SERVICES AT REASONABLE PRICES AND MAXIMIZE VALUE TO OUR MEMBERS. 7 7 56 0 13693 11154 0 0 37790604 39615214 831482 446985 35822 23796 38657908 40085995 17250 16614 1599356 2587201 4311762 4430667 0 0 0 32039765 32986746 37968133 40021228 689775 64767 89364985 88330512 54819310 52000090 34545675 36330422 TO DELIVER HIGH-QUALITY ENERGY SERVICES AT REASONABLE PRICES AND MAXIMIZE VALUE TO OUR MEMBERS CONSISTENT WITH THE WISE USE OF RESOURCES. 0 0 PROVIDED ELECTRIC SERVICE TO APPROXIMATELY 10,866 MEMBERS AND MAINTAINED 3,339 MILES OF 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 1 0 0 0 0 0 0 0 0 1 38 0 1 56 1 1 1 0 0 0 0 38217388 842677 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 1 X BRIAN KRAMBEER 5078647783 31110 COOPERATIVE WAY RUSHFORD MN 55971 JENNIFER SCHARMER 12.00 X X 17654 0 0 RONALD STEVENS 8.00 X X 18059 0 0 ROGER HEGLAND 7.00 X X 16279 0 0 T ALLEN AARSVOLD 7.00 X X 5900 0 0 BETH OLSON 11.00 X 12509 0 0 JEFFREY REDALEN 8.00 X 13559 0 0 DONALD PETERSEN 10.00 X 16559 0 0 PATTY VANGUNDY 6.00 X 10409 0 0 BRIAN KRAMBEER 30.00 X 104344 0 70067 215272 0 70067 1 0 1 1 PUSH INC PO BOX 72 RICE LAKE WI 54868 URD LINE CONSTRUCTION 665404 ELITE TREE INC 1402 WASHINGTON STREET PELLA IA 50219 LINE CLEARANCE 399029 STAR ENERGY SERVICES 6875 COUNTY RD 28 ALEXANDRIA MN 56308 ENGINEERING SERVICES 322186 NORBY TREE SERVICE 39520 120TH STREET MABEL MN 55954 LINE CLEARANCE 108254 4 SALE OF POWER 221000 38217388 38217388 CAPITAL CREDITS 221000 1397826 1397826 39615214 456475 456475 8688 18178 -9490 -9490 -9490 367788 358294 9494 10103 -609 EARNINGS FROM PASSTHROUGH 221000 14302 14302 14302 40085995 39615827 13693 456475 16614 2587201 253440 3301230 687723 188274 2335743 2814785 UBI TAXES 6403 COST OF POWER 25498289 DISTRIBUTION-OPERATIONS 2018430 DISTRIBUTION-MAINTENANC 1922237 -1609141 40021228 6431577 1650271 408963 3711820 3656720 52691 59594 993743 873754 177052 363916 90469767 23197299 65010440 67272468 12987662 14035053 0 9773 89364985 88330512 4244321 4080131 610 47778461 45783019 1800000 1800000 996528 336330 54819310 52000090 X 0 0 0 0 34545675 36330422 34545675 36330422 89364985 88330512 X 64767 1719980 X 0 1 X 0 1 1 0 1 X 435417 435417 5129193 3128329 2000864 84414108 20068970 64345138 491049 491049 67272468 DAIRYLAND POWER COOPERATIVE 12132440 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION 270802 C ACE COMMUNICATIONS GROUP 179014 C RURAL ELECTRIC SUPPLY CENTER 139169 C COOPERATIVE RESPONSE CENTER 9283 C NATIONAL RURAL TELECOMMUNICATIONS COOPERATIVE 1387 C NATIONAL INFORMATION SOLUTIONS COOPERATIVE 11543 C FEDERATED RURAL ELECTRIC INSURANCE EQUITY 138125 C HEARTLAND SECURITY SERVICES LLC 64064 C MINNOWA ALLIANCE LLC 119514 C NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION-CERTIFICATES 820416 C MEMBERSHIPS AND OTHER 149296 C 14035053 DEFERRED CREDITS 281825 CONSUMER DEPOSITS 54505 336330 X 40084412 0 40084412 1583 1583 40085995 37434027 0 37434027 2587201 2587201 40021228 PART IV, LINE 2B: OPERATION ROUND UP, A VOLUNTARY COMMUNITY SUPPORT PROGRAM HELPS LOCAL ORGANIZATIONS AND WORTHY CAUSES VIA SPARE CHANGE. MEMBERS CAN CHOOSE TO HAVE THEIR MONTHLY ELECTRIC BILLS ROUNDED UP TO THE NEAREST DOLLAR, WITH THE EXCEEDING CENTS GOING TOWARDS OPERATION ROUND UP. THE AVERAGE ANNUAL CONTRIBUTION FROM A COOPERATIVE MEMBER IS $6. THE MOST A MEMBER COULD CONTRIBUTE IS $11.88 (99 CENTS PER MONTH). THESE FUNDS ARE SEGREGATED IN THE COOPERATIVE FINANCIALS AND ARE REPORTED IN FORM 990 PART IX LINE 21 AS AN ESCROW ACCOUNT LIABILITY. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE COOPERATIVE ADOPTED THE PROVISIONS OF FASB ACCOUNTING STANDARDS CODIFICATION TOPIC ASC 740-10 (PREVIOUSLY FINANCIAL INTERPRETATION NO. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES), ON JANUARY 1, 2009. THE IMPLEMENTATION OF THIS STANDARD HAD NO IMPACT ON THE FINANCIAL STATEMENTS. AS OF BOTH THE DATE OF ADOPTION, AND AS OF DECEMBER 31, 2012, THERE WAS NO UNRECOGNIZED TAX ACCRUAL. THE COOPERATIVE WOULD RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF INCURRED. GENERALLY, THE COOPERATIVE IS NO LONGER SUBJECT TO FEDERAL OR STATE TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2009. PART XI, LINE 4B - OTHER ADJUSTMENTS: BOOK/TAX DIFFERENCE IN EARNINGS FROM PASSTHROUGH ENTITIES 1,583. PART XII, LINE 4B - OTHER ADJUSTMENTS: CAPITAL CREDITS ALLOCATED IN 2013 FOR 2012 2,587,201. X X X 0 0 0 BRIAN KRAMBEER 102104 0 0 0 2240 0 58650 0 11895 0 174889 0 0 0 FEDERATED RURAL ELECTRIC INSURANCE BRIAN KRAMBEER IS A DIRECTOR OF FREIE AND SERVES AS THE CEO OF TRI-COUNTY 230139 PROPERTY INSURANCE 0 FORM 990, PART VI, SECTION A, LINE 6 CLASS A MEMBER-OWNERS FORM 990, PART VI, SECTION A, LINE 7A ONE VOTE PER MEMBERSHIP FORM 990, PART VI, SECTION A, LINE 7B THE CLASS A MEMBER-OWNERS APPROVE BY-LAW AMENDMENTS. FORM 990, PART VI, SECTION A, LINE 8B THE COOPERATIVE DOES NOT HAVE COMMITTEES THAT ACT ON BEHALF OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 11 THE PRESIDENT/CEO AND MANAGER OF FINANCE/ADMINISTRATION REVIEW THE 990 IN DETAIL. AFTER THEIR REVIEW, THE 990 IS PROVIDED TO EACH BOARD MEMBER. THE 990 WILL BE PRESENTED TO THE BOARD OF DIRECTORS AT THE MEETING HELD PRIOR TO ITS FILING IF SO REQUESTED BY ANY BOARD MEMBER. WHETHER PRESENTED IN A BOARD MEETING OR NOT, THE 990 IS NOT FILED UNTIL EACH BOARD MEMBER HAS BEEN GIVEN A COPY OF IT AND GIVEN AMPLE TIME TO REVIEW IT. FORM 990, PART VI, SECTION B, LINE 12C TRI-COUNTY ELECTRIC COOPERATIVE (TCE) EMPLOYEES AND DIRECTORS ARE COVERED BY THE CONFLICT OF INTEREST POLICY. EACH EMPLOYEE IS RESPONSIBLE FOR ENSURING THAT THE EMPLOYEE'S ACTIONS AND BEHAVIOR ARE IN ACCORDANCE WITH THIS POLICY AND OF DISCLOSING ANY POSSIBLE CONFLICT OF INTEREST. ANY WILLFUL VIOLATION WILL RESULT IN DISCIPLINARY ACTION, UP TO AND INCLUDING DISCHARGE AND REIMBURSEMENT TO TEC OF ANY LOSS ATTRIBUTABLE TO SUCH ACTION. EACH SUPERVISOR AND THE PRESIDENT/CEO IS RESPONSIBLE FOR MAKING EVERY EFFORT TO SEE THAT THIS POLICY IS UNDERSTOOD BY AND FOLLOWED BY THOSE REPORTING TO THAT SUPERVISOR. THE PRESIDENT/CEO SHALL MAKE DECISIONS ON THE ULTIMATE APPLICATION OF THIS POLICY CONSISTENTLY WITH THE BEST INTERESTS OF TEC. EACH DIRECTOR IS RESPONSIBLE FOR ENSURING THAT THE DIRECTORS' ACTIONS AND BEHAVIOR ARE IN ACCORDANCE WITH THIS POLICY AND OF DISCLOSING ANY POSSIBLE CONFLICT OF INTEREST. THE BOARD OF DIRECTORS SHALL BE RESPONSIBLE FOR PERIODIC REVIEW OF THIS POLICY AND MODIFICATIONS TO IT. AN EMPLOYEE MUST DISCLOSE IN WRITING TO HIS/HER SUPERVISOR ANY SITUATION OR TRANSACTION IN WHICH THE EMPLOYEE IS INVOLVED WHICH VIOLATES, MAY VIOLATE, OR COULD APPEAR TO VIOLATE THE INTENT OF THIS POLICY. THE SUPERVISOR, IN COORDINATION WITH MANAGEMENT, SHALL DETERMINE HOW THE SITUATION WILL BE RESOLVED AND ADVISE THE AFFECTED EMPLOYEE AS SOON AS POSSIBLE. A DIRECTOR MUST ANNUALLY COMPLETE A "BUSINESS ETHICS DISCLOSURE REPORT" AND DISCLOSE IN WRITING TO THE BOARD CHAIR ANY SITUATION OR TRANSACTION IN WHICH THE DIRECTOR IS INVOLVED WHICH VIOLATES, MAY VIOLATE, OR COULD APPEAR TO VIOLATE THE INTENT OF THIS POLICY. THE BOARD CHAIR WILL ADVISE TO RESOLVE THE SITUATION AS SOON AS POSSIBLE. ANY EMPLOYEE, DIRECTOR, OR OFFICER WHO VIOLATES TEC'S CODE OF ETHICS IS SUBJECT TO APPROPRIATE DISCIPLINARY ACTION, UP TO AND INCLUDING POSSIBLE DISCHARGE. DIRECTORS ARE ALSO SUBJECT TO REMOVAL AS STIPULATED IN SECTION 3.07 OF THE COOPERATIVE BYLAWS. THE BOARD OF DIRECTORS MONITORS COMPLIANCE OF THE CONFLICT OF INTEREST POLICY BY COMPLETING A YEARLY REVIEW OF THE POLICY. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD USES THE NRECA WAGE AND SALARY SURVEY FOR NATIONAL, REGIONAL AND STATE COMPARISONS. THIS PROCESS IS COMPLETED EVERY YEAR. FORM 990, PART VI, SECTION C, LINE 19 UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -911,188. PATRONAGE ALLOCATED TO PATRONS IN 2013 FOR THE CY ENDING 12/31/2012 2,587,201. CHANGE IN OTHER EQUITIES 45,550. BOOK/TAX DIFFERENCE IN EARNINGS FROM PASSTHROUGH ENTITIES -1,583. ALLOCATED AND OTHER EXPENSE 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. OTHER COMPENSATION 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/CEO. 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. COMPENSATION AND AVERAGE HOURS PER WEEK PART VII, LINE 1A: BRIAN KRAMBEER'S COMPENSATION AND HOURS WORKED PER WEEK ARE SPLIT EVENLY BETWEEN TRI-COUNTY ELECTRIC AND ANOTHER UNRELATED ORGANIZATION, HAWKEYE TRI-COUNTY ELECTRIC. ONLY HALF OF HIS COMPENSATION AND HOURS WORKED PER WEEK ARE REPORTED ON TRI-COUNTY ELECTRIC COOPERATIVE'S FORM 990. 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.