2012-07-16T08:37:05-05:00 2011-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2011-01-01 450173086 North Central Electric Cooperative Inc NORT 7012282202 538 11th St West No 1 Bottineau ND 58318 Wayne Martian 7012282202 2012-06-28 1 LISA CHAFFEE CPA P00193453 7012398500 2012-06-28 2011 2016-02-24 21:20:13Z X Wayne Martian 538 11th St West No 1 Bottineau ND 58318 19768691 0 X www.nceci.com X 1941 ND The exempt purpose of the organization is to provide electricity to members. 9 9 39 0 5685 4685 0 0 17649130 19014824 80867 83360 78796 37632 17808793 19135816 0 0 0 1052170 2679932 2841227 0 0 0 13507478 15242419 16187410 19135816 1621383 0 50897677 53415136 33361191 35531826 17536486 17883310 None 0 0 Sale of electricity and electrical services to 7,000+ residential and commercial members. Service encompasses over 3,234 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 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 18 0 1 39 1 1 1 0 0 0 0 19661989 110570 0 X 9 9 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 8200 0 0 David O'Connell 6.00 X X 6800 0 0 Lori Kittleson 6.00 X X 8200 0 0 Margaret Leonard 6.00 X X 8500 0 0 Christine Peterson 6.00 X 9900 0 0 David Biberdorf 6.00 X 8179 0 0 Kenneth Brenden 6.00 X 6200 0 0 Raymond Keplin 6.00 X 6700 0 0 Kenneth Haarsager 6.00 X 7600 0 0 Wayne Martian 40.00 X 106800 0 122371 Dennis Nickelson 40.00 X 67482 0 17919 Lori Opdahl 40.00 X 51662 0 18202 296223 0 158492 1 0 1 0 Parisien's Tree Service PO Box 777 Belcourt ND 58316 Tree Trimming 163288 1 Sale of Electricity 221000 18574365 18574365 Capital Credits 221000 440459 440459 19014824 83350 83350 10000 10000 10000 10000 10 10 10 10 660507 632875 27632 21947 5685 19135816 19036771 5685 93360 X 1052170 386648 1971665 359021 123893 231870 1289501 1646443 Taxes 1459 Cost of Power 11291099 Distribution Expense - 1941556 Administrative & Genera 876780 -2036289 19135816 42283 205656 2219134 2082025 2233 2942 1972848 2854663 66173 70436 61543912 23607436 36601526 37936476 125553 146989 9867927 10115949 50897677 53415136 2084961 2456646 843454 1283704 29882776 30891476 550000 900000 33361191 35531826 X 17536486 17883310 0 0 0 0 17536486 17883310 50897677 53415136 X 0 346824 X 0 1 1 X 0 153348 153348 1929916 770140 1159776 58239700 22837296 35402404 1220948 1220948 37936476 Patronage Capital 8657844 C Rural Econ Dev Revolving Loan Pool 811388 C Energy Resource Conservation Loans 309486 C Equipment Loans 283000 C Memberships 2322 C Federated Rural Electric Insurance Equity 51909 C 10115949 19135816 19135816 0 346824 346824 346824 19134357 -1459 -1459 19135816 0 19135816 18082187 0 18082187 1053629 1053629 19135816 Description of Uncertain Tax Positions Under FIN 48: Part X: The Cooperative is exempt from income taxes under Section 501 (c) (12) of the Internal Revenue Code. The Cooperative has adopted the provisions of FASB Accounting Standards Codification Topic ASC 740-10. Implementation resulted in no cumulative effect adjustment to retained earnings as of the date of adoption. The Cooperative had no unrecognized tax benefits as of December 31, 2011 and 2010. 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 and State tax examinations by tax authorities for years before 2008. The Cooperative undergoes an annual analysis of its 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: Retirement of Capital Credits -732,755. Discounted Estate Retirements 27,409. Patronage Capital Credits Allocated For Current Year 1,052,170. Total to Schedule D, Part XI, Line 8: 346,824. Part XII, Line 2d - Other Adjustments: Taxes -1,459. Part XIII, Line 4b - Other Adjustments: Taxes 1,459. Patronage Capital Credits Allocated For Current Year 1,052,170. X X 0 0 0 Wayne Martian 106164 0 150 0 486 0 115414 0 8338 0 230552 0 0 0 Supplemental Information Part III Included in column "c", deferred compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase for Wayne Martian is $111,645. 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 was $26,267. 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 Accountant 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 2011. 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 2011. 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 2011. 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 Wayne Martian is $111,645, for Dennis Nickelson is $9,800, and for Lori Opdahl is $2,526. 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 were $26,267, $15,881, and $10,956, respectively. 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 $(2,841,227). 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 5: Retirement of Capital Credits -732,755. Discounted Estate Retirements 27,409. Patronage Capital Credits Allocated For Current Year 1,052,170. Total to Form 990, Part XI, Line 5: 346,824.