2012-05-07T13:38:34-05:00 2011-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2011-01-01 450115790 Cass County Electric Cooperative Inc CASS 7013564400 3312 42nd Street S No 200 Fargo ND 58104 Chad Sapa 7013564400 2012-05-04 1 LISA CHAFFEE CPA P00193453 7012398500 2012-05-04 2011 2016-02-24 21:20:13Z Chad Sapa 3312 42nd Street S No 200 Fargo ND 58104 94241340 0 X www.kwh.com X 1937 ND Meet our members' needs with excellent service consisting of reliable and affordable energy 9 8 98 0 1318 0 0 0 81520654 93448182 -168583 340939 23071 22967 81375142 93812088 80026 78466 0 2652703 10069576 9558160 0 0 0 66529956 81056726 76679558 93346055 4695584 466033 180327411 186480857 119021048 121295474 61306363 65185383 The mission of Cass County Electric Cooperative is to meet our members' energy needs with excellent service consisting of reliable and affordable electricity while upholding our core values of integrity, innovation, accountability and commitment to community. 0 0 Sale of electric energy to 36,278 members at year end 2011. 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 80 0 1 98 1 1 1 0 0 0 0 92797637 1036486 0 X 9 8 1 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 0 X Chad Sapa 7013564400 3312 42nd St S Ste 200 Fargo ND 58104 Wendy Loucks 9.90 X X 12549 0 0 Russell Berg 6.40 X X 14449 0 0 John Froelich 5.30 X X 11445 0 0 Sid Berg 4.90 X X 10569 0 0 Douglas Anderson 6.00 X 14135 0 0 Steve Swiontek 4.00 X 8754 0 0 William Bertram 4.40 X 8769 0 0 Robert Huether 7.60 X 8595 0 0 Jeffrey Triebold 3.50 X 9019 0 0 Scott Handy 42.70 X 211039 0 154722 Chad Sapa 44.70 X 189230 0 67968 Tim Sanden 43.80 X 154446 0 84913 Marshal Albright 48.70 X 109903 0 67188 Bradley Schmidt 43.80 X 147675 0 102413 910577 0 477204 5 0 1 0 MPM Construction PO Box 202 Horace ND 58047 Electrical Contractor 1081699 Jerry's Excavating PO Box 809 Casselton ND 58012 Electrical Contractor 424326 Martin Engineering 20997 Co Hwy 20 Pelican Rapids MN 56572 Electrical Contractor 311981 Carr's Tree Service PO Box 250 Ottertail MN 56571 Tree Clearing 248732 Moritz Excavating 1114 10th St SW Valley City ND 58072 Electrical Contractor 219118 5 Sale of Electricity 221000 93040965 93040965 Capital Credits 221000 407217 407217 93448182 340939 340939 445619 388664 56955 56955 35306 21649 6600 40588 -33988 -33988 93812088 93448182 1318 362588 78466 2652703 847761 6747781 1561715 400903 4577822 5290666 Cost of Power 68702286 Distribution 5692533 Administrative and Gene 2805987 Customer Service & Sale 2462848 -8475416 93346055 6467612 5593654 9591251 10774768 1503 1706 1401387 1317651 2892141 2493057 196438232 47298726 144987711 149139506 1311769 2068826 7349983 7549963 6271162 7483763 52892 57963 180327411 186480857 9912162 12190570 156612 152046 12107 105530819 105530857 3421455 3409894 119021048 121295474 X 0 0 6012510 6923092 55293853 58262291 61306363 65185383 180327411 186480857 X 466033 3412987 X 0 1 1 X 0 0 1 610710 610710 15565497 3603870 11961627 175689082 43694856 131994226 4572943 4572943 149139506 Customer Deposits 574962 Other Liabilities 938756 Installation Costs of Equip 234115 Postretirement Benefits 1662061 3409894 93812088 93346055 466033 -31237 3444224 3412987 3879020 94750226 -31237 928787 897550 93852676 -40588 -40588 93812088 90733940 40588 40588 90693352 2652703 2652703 93346055 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 SERVE Foundation. These funds are transferred directly to the SERVE Foundation 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 SERVE Foundation. For the year ended December 31, 2011 the account held $12,107. Description of Uncertain Tax Positions Under FIN 48: Part X: The Cooperative is exempt from income taxes. The Cooperative has adopted the provisions of Accounting and Standards Codification (ASC) 740-10. As of December 31, 2011, 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 2008 and state examinations for years before 2008. 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 8 - Other Adjustments: Retired Capital Credits to Patrons -137,265. Equity Earning From SERVE Co. 928,786. Patronage Capital Credits Allocated During Current Year 2,652,703. Total to Schedule D, Part XI, Line 8: 3,444,224. Part XII, Line 2d - Other Adjustments: Equity Earnings from SERVE Co. 928,787. Part XII, Line 4b - Other Adjustments: Dispatch Expenses Included in Part VIII, Line 10b -40,588. Part XIII, Line 2d - Other Adjustments: Dispatch Expenses Included in Part VIII, Line 10b 40,588. Part XIII, Line 4b - Other Adjustments: Patronage Capital Credits Allocated During Current Year 2,652,703. 1 ND Chapter of Dollars for Scholars PO Box 5509 Bismarck ND 58501 371517987 501(c)(3) 6500 Education Greater Fargo-Moorhead Economic Development Corporation 51 Broadway Suite 500 Fargo ND 58102 456011769 501(c)(3) 50000 Local Economic Growth State Historical Society of ND 612 E Boulevard Bismarck ND 58505 237305181 501(c)(3) 7875 Community Support 3 0 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: The organization receives notification from ND Dollars for Scholars of the scholarship recipients. The organization is a member in the Greater Fargo-Moorhead Economic Development Corporation. They receive reports as to how the grant money is spent by the GFMEDC and the State Historical Society of North Dakota. X X X 0 0 0 Scott Handy 201045 0 2130 0 7864 0 139144 0 15579 0 365762 0 0 0 Chad Sapa 151056 0 21884 0 16290 0 51389 0 16791 0 257410 0 0 0 Tim Sanden 126472 0 17504 0 10470 0 72739 0 12367 0 239552 0 0 0 Marshal Albright 97137 0 1076 0 11690 0 53278 0 14073 0 177254 0 0 0 Bradley Schmidt 126734 0 18003 0 2938 0 86404 0 16009 0 250088 0 0 0 Supplemental Information Part III Schedule J, Part II, Column C, Deferred Compensation: Included in other compensation is the estimated current year increase in the actuarial value of the defined benefit plan. These amounts do not represent any current year contributions to the plan. They are estimates of the increase in the actuarial value of the plans received from the NRECA. The current year expense and the increase in actuarial value for each employee are reflected in the statement for Form 990, Part VII, Column f. Scott Handy Computer Loan X 613 553 0 1 1 Marshal Albright Computer Loan X 769 480 0 1 1 Tim Sanden Computer Loan X 1438 238 0 1 1 Russell Berg Computer Loan X 776 435 0 1 1 1706 Form 990, Part VI, Section A, line 2 All board members have a business relationship as they all serve on the board of a related organization which is taxable as a corporation. Form 990, Part VI, Section A, line 6 CCEC has one class of members. A person is eligible to become a member of the cooperative effective the date the person initially uses or requests to use electric service and meets the requirements set forth in Article I of the Cooperative's Bylaws. Form 990, Part VI, Section A, line 7a One member, one vote. CCEC members have the right and authority to elect the Board of Directors. Three directors stand for election each year at the annual business meeting. Members also have the right to request a special meeting of the membership when the request is based on valid member demand. Members may consider, vote or act upon other matters as provided by applicable laws. Form 990, Part VI, Section A, line 7b CCEC membership has the right and authority to have the final decision role on the following matters: **The disposition of cooperative assets if the proposed sale is over 5% of total assets during a 12-month period. No less than two-thirds of the entire membership must approve the proposed transfer. **A proposed merger or consolidation; a majority of the members present and voting in person at the member meeting must approve the consolidation or merger. Form 990, Part VI, Section A, line 8b The Board of Directors is the sole body with governing authority over the Cooperative. All committees serve in an advisory capacity. Appropriate records are maintained of proceedings at all governance meetings as well as its advisory standing committees. Form 990, Part VI, Section B, line 11 Board policy 202 - Tax Status/Reporting establishes that: following the initial preparation of the draft Form 990, the CFO and President/CEO must review the report and submit it to the Board of Directors for approval. The Board must approve the completed Form 990 before it is filed. Form 990, Part VI, Section B, line 12c CCEC Policy 110 - Conflict of Interest - requires Directors and employees of the Cooperative to disclose annually: **The receipt of any gifts, fees, loans or favors with a value in excess of $100 **Any business transaction that may be considered in competition with the cooperative or deemed a conflict of interest **The policy also prohibits the use of non-public corporate information for financial or business opportunity benefit. ***Action: Should a conflict be disclosed the board must provide the director an opportunity to comment orally and in writing regarding the information or fact before making a determination. If the board determines that a director is not in compliance with the policy the board will act appropriately including the possibility of sanction, disqualification and/or removal. Legal counsel reviews disclosures. Individuals with a conflict must abstain from voting. Form 990, Part VI, Section B, line 15a At the board reorganization meeting held annually, the board reviews the NRECA Director Survey for updated statistics on director compensation and benefits. The next review of director compensation will be done in April 2012. The 2011 NRECA director compensation survey will be provided to the board for review. A CEO evaluation of compensation is done annually by the Board of Directors during an executive session; the CEO is not present during the meeting. Comparative data on compensation is provided and reviewed by the board (executive session minutes are kept by legal counsel). The board Chairman is responsible for discussing the outcome of the evaluation with the CEO. The last CEO evaluation occurred in November 2011. An annual performance appraisal is required for all employees; the appraisals on top management personnel are completed by the President/CEO in accordance with Board Policy 224. Local, regional and national wage and salary data is used to determine the wage scale, which is approved annually by the Board of Directors. Form 990, Part VI, Section C, line 19 The Cooperative's Bylaws and Articles of Incorporation are posted on the website (www.kwh.com). A paper copy is made available to any member upon request. The financial statements are mailed to all members of the Cooperative in the annual report issue of Cooperative's official newsletter, The Highline Notes. The Conflict of Interest Policy is available to the public upon request. Other Expenses Form 990, Part IX, Functional Expense, Line 24e The labor, pension, other employee benefits 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 24f in the amount of $(9,558,158). Benefits Paid to Members Form 990, Part IX, Functional Expense, 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 5: Net unrealized losses on investments: -31,237. Retired Capital Credits to Patrons -137,265. Equity Earning From SERVE Co. 928,786. Patronage Capital Credits Allocated During Current Year 2,652,703. Total to Form 990, Part XI, Line 5: 3,412,987. Form 990, Part VII, Column F, Estimated Amount of Other Compensation - Included in deferred compensation is the current year estimated increase in the actuarial value of the defined benefit plan for the following employees: Scott Handy $128,696, Chad Sapa $42,024, Brad Schmidt $78,805, Marshal Albright $47,992, Tim Sanden $65,071. 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 this defined benefit plan are as follows: Scott Handy $50,458, Chad Sapa $39,073, Brad Schmidt $28,598, Marshal Albright $24,010, Tim Sanden $33,012. Because Part IX, line 5 captures only the current year expense of the defined benefit plan of the Cooperative, the compensation in Part IX, line 5 is less than that reported in Part VII. Southeast Rural Vision Enterprises Co 4100 32nd Ave South Fargo ND 581048608 450436356 Merchandise Sales, Generator Leasing ND N/A C 12097 8274846 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0