2012-06-26T15:57:32-05:00 2011-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2011-01-01 410449191 NORTH STAR ELECTRIC COOP NORT 2186342202 441 STATE HWY 172 NW BAUDETTE MN 566230719 Steve Arnesen 2186342202 2012-06-06 1 LISA CHAFFEE CPA P00193453 7012398500 2012-06-06 2011 2016-02-24 21:20:13Z Dan Hoskins 441 STATE HWY 172 NW BAUDETTE MN 566230719 13619456 0 X WWW.NORTHSTARELECTRIC.COOP X 1940 MN Responsibly provide electric energy and other beneficial services to our member owners 7 7 30 0 0 0 0 0 11626673 13149555 713081 463541 89 944 12339843 13614040 7500 0 0 901859 2226465 2288744 0 0 0 8885174 10159889 11119139 13350492 1220704 263548 27983448 28862684 15707601 15650049 12275847 13212635 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 5,319 members under the guidance of the Rural Utility Service Division of the USDA. 0 0 0 0 0 0 0 0 0 1 0 1 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 20 0 1 30 1 0 0 0 0 0 13124622 463541 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 Steve Arneson 10.00 X X 12500 0 0 Bruce Polkinghorne 8.00 X X 5150 0 0 Michael Hanson 9.00 X X 8850 0 0 Julian Brzoznowski 11.00 X 8000 0 0 Lorraine Nygaard 9.00 X 8500 0 0 Michael Trueman 5.00 X 7000 0 0 Randall Bergan 5.00 X 6625 0 0 Dan Hoskins 40.00 X 136691 0 114663 Ann Ellis 40.00 X 88747 0 42134 282063 0 156797 1 0 1 0 Lake States Construction 25172 Commercial Drive Grand Rapids MN 55744 Construction 212512 Central Applicators PO Box 279 Foley MN 56329 ROW Spraying 139759 2 Electric sales 221000 13113268 13113268 Capital credits 221000 39313 39313 Miscellaneous 900099 -3026 -3026 13149555 199993 199993 263548 263548 263548 263548 6360 5416 944 944 13614040 13150499 0 463541 901859 386750 115760 1278742 417221 90271 836221 962717 Cost of Power 7703546 Distribution Expense 1275830 Adminstrative & General 1093428 Customer Expense & Sale 576891 -2288744 13350492 770349 761433 1533568 1418319 266227 360000 473387 509288 181195 109451 37958670 13727561 23336343 24231109 1386779 1445196 35600 27888 27983448 28862684 1163721 1364328 314214 91781 14008790 13951705 220876 242235 15707601 15650049 X 0 0 0 0 12275847 13212635 12275847 13212635 27983448 28862684 X 263548 673240 X 0 0 0 55183 55183 3145473 828889 2316584 33994045 12898672 21095373 763969 763969 24231109 Investments in Associated Companies 1434281 C Other Investments 10915 C 1445196 Member Deposits 77213 Retiree Health Insurance Liability 165022 242235 X X X 0 0 0 Dan Hoskins 134477 0 0 0 2214 0 96607 0 21260 0 254558 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 $89,012. 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 $35,209. Steve Ellis Spouse of NSEC Finance Manager 115760 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, 2011, it did have an audit performed by an independent accountant for the period from August 1, 2010 through July 31, 2011. 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, 2011 through July 31, 2012. 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 by-laws must be approved by the Cooperative's members. The directors are limited by the by-laws 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 June 2012 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 2011. The General Manager reviews the performance evaluation of the Finance Manager. This process was last performed in 2011. 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 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 $(2,288,744). Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Retirements of Capital Credits -619,156. Changes in Membership -55. Donated Capital/USDA Grant 360,000. Donated Capital Changes 30,590. Patronage Capital Allocated 901,859. Rounding 2. Total to Form 990, Part XI, Line 5: 673,240. North Star Electric Cooperative Community Trust PO Box 719 Baudette MN 56623 204992283 Donations for Charitable and Educational Purposes MN 501(C)(3) 7 North Star Electric Cooperative 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 North Star Electric Cooperative Community Trust K General Ledger North Star Electric Cooperative Community Trust Q General Ledger