2013-05-30T11:40:36-05:00 2012-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2012-01-01 410449191 North Star Electric Coop NORT 2186342202 441 State Hwy 172 NW Baudette MN 566230719 Steve Arnesen 2186342202 2013-05-29 1 LISA CHAFFEE CPA P00193453 7012398500 2013-05-29 2012 2016-02-25 16:41:14Z Dan Hoskins 441 State Hwy 172 NW Baudette MN 566230719 13824005 0 X www.northstarelectric.coop X 1940 MN Responsibly provide electric energy and other beneficial services to our member owners. 7 7 32 0 0 0 0 0 13149555 13626242 463541 191202 944 -2199 13614040 13815245 0 0 901859 892435 2288744 2331881 0 0 0 10159889 10590929 13350492 13815245 263548 0 28862684 30251793 15650049 16779678 13212635 13472115 The mission of North Star Electric Cooperative is to improve the lives of our member-owners and community by responsibly providing electric energy and other beneficial services while maintaining the very highest standard of performance. 0 0 To provide electric and utility service to 5,340 members under the guidance of the Rural Utility Service Division of the USDA. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 1 23 0 1 32 1 0 0 0 0 0 13658825 307286 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 Ann Ellis 2186342202 441 State Hwy 172 NW Baudette MN 56623 X Steve Arnesen 12.00 X X 13750 0 0 Bruce Polkinghorne 5.00 X X 4200 0 0 Michael Hanson 8.00 X X 8625 0 0 Julian Brzoznowski 8.00 X 9000 0 0 Lorraine Nygaard 6.00 X 6500 0 0 Michael Trueman 4.00 X 7750 0 0 Randall Bergan 4.00 X 7375 0 0 Dan Hoskins 40.00 X 148935 0 152894 Ann Ellis 40.00 X 93101 0 61261 299236 0 214155 1 0 1 0 Lake States Construction 25172 Commercial Drive Grand Rapids MN 55744 Construction 472485 1 Electric sales 221000 13577072 13577072 Capital credits 221000 56404 56404 Miscellaneous 900099 -7234 -7234 13626242 191202 191202 6561 8760 -2199 -2199 13815245 13624043 0 191202 X 892435 414150 1407098 419088 91545 805454 975257 Cost of Power 8071602 Distribution Expense 1271494 Adminstrative & General 1214256 Customer Expense & Sale 584747 -2331881 13815245 761433 650221 1418319 1416126 360000 360000 509288 571882 109451 260111 39268721 14227125 24231109 25041596 1445196 1468185 27888 483672 28862684 30251793 1364328 1606238 91781 222930 1649 13951705 14690460 242235 258401 15650049 16779678 X 0 0 0 0 13212635 13472115 13212635 13472115 28862684 30251793 X 0 259480 X 0 0 0 0 1 X 56183 56183 3188935 891504 2297431 35291670 13335621 21956049 731933 731933 25041596 Member Deposits 74013 Retiree Health Insurance Liability 184388 258401 Part IV, Line 2b: The members of the Cooperative can elect to round up their monthly electric bill to the next dollar. These funds collected from the membership are held in a Cooperative account until they are released to the North Star Electric Cooperative Community Trust. These funds are transferred directly to the Trust on a monthly basis. Funds that exist at the end of year are a result of a timing difference in the receipt of the funds and the release of them to the Trust. For the year ended December 31, 2012 the account held $1,649. X X X 0 0 0 Dan Hoskins 146573 0 0 0 2362 0 135697 0 20464 0 305096 0 0 0 Ann Ellis 92703 0 0 0 398 0 48302 0 15353 0 156756 0 0 0 Supplemental Information Part III Form 990, Schedule J, Part II, Column C, Compensation Of Officers, Directors, Key Employees, Highest Compensated Employees And Independent Contractors: included in column "c" , deferred compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Dan Hoskins is $127,446 and for Ann Ellis is $43,000. This amount is an estimate in the increase of the value of the plan and is not current year expenses of the cooperative. The current year expense for this defined benefit plan was $39,817 and $25,730 respectively. Steve Ellis Spouse of NSEC Finance Manager 123979 Wages & Benefits 0 Form 990, Part IV, Line 12, Audited Financials: Although the Cooperative did not have an audit for the calendar year ended December 31, 2012, it did have an audit performed by an independent accountant for the period from August 1, 2011 through July 31, 2012. The audit period was chosen in order to reduce the cost of the audit, as it was not performed during peak season for the audit firm. The Cooperative is scheduled to have an independent audit performed for the period August 1, 2012 through July 31, 2013. Form 990, Part VI, Section A, line 6 The Cooperative has voting members. Each member has one vote. Form 990, Part VI, Section A, line 7a The Cooperative is divided into 7 districts. Each district is represented by one board member. Members can only vote for board members within their district. Form 990, Part VI, Section A, line 7b Changes to the Cooperative's bylaws must be approved by the Cooperative's members. The directors are limited by the bylaws as to decisions relating to the sale of the Cooperative, mergers and other significant transactions. Form 990, Part VI, Section A, line 8b The Cooperative did not have any committees with the authority to act on behalf of the Board of Directors. Form 990, Part VI, Section B, line 11 The Finance Manager and General Manager reviewed the Form 990 prior to presenting the Form 990 to the Board of Directors. The Board of Directors reviewed and approved the Form 990 at the May 28, 2013 board meeting. Form 990, Part VI, Section B, line 12c The Cooperative expects Directors or employees who have conflicts of interest to disclose them immediately as they occur. Due care is taken to avoid unethical behavior and ensure honesty and accountability. The responsibility for the review and determination of board conflicts rests with the Board President. The responsibility for the review and determination of employees' conflicts rests with the General Manager. All members are required to abstain from voting on any situation that may arise. Form 990, Part VI, Section B, line 15a NRECA data is gathered by the Board of Directors. The General Manager salary will be within the average range of the data - not highest and not lowest. The Board approves the General Manager salary. Minutes are kept of the board meeting deliberations. This annual process last took place in July 2012. The General Manager reviews the performance evaluation of the Finance Manager. This process was last performed in 2012. Form 990, Part VI, Section C, line 19 The Cooperative's bylaws are distributed to all new members. Financial statements are shared with members at the annual meeting. Monthly board meeting minute summaries are reported in the Cooperative's newsletter each month. The Cooperative's code of conduct is 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 Dan Hoskins is $127,446 and for Ann Ellis is $43,000. This amount is an estimate in the increase of the value of the plan and is not current year expenses of the cooperative. The current year expense for this defined benefit plan was $39,817 and $25,730 respectively. 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 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 $(2,331,881). Changes in Net Assets or Fund Balances: Form 990, Part XI, line 9: Retirements of Capital Credits -645,759. Changes in Membership 110. Donated Capital Changes 12,694. Patronage Capital Allocated 892,435. North Star Electric Cooperative Community Trust PO Box 719 Baudette MN 56623 204992283 Donations for Charitable and Educational Purposes MN 501(c)(3) Line 7 North Star Electric Cooperative 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 North Star Electric Cooperative Community Trust L 0 General Ledger North Star Electric Cooperative Community Trust R 0 General Ledger