2011-06-08T08:34:08-05:00 2010-12-31 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2010-01-01 450115790 CASS COUNTY ELECTRIC COOPERATIVE INC CASS 7013564400 3312 42ND STREET SOUTH No 200 FARGO ND 58104 Chad Sapa 7013564400 2011-05-31 1 LISA CHAFFEE CPA 7012398500 2011-05-31 2010 2016-03-07 17:11:31Z Chad Sapa 3312 42ND STREET SOUTH No 200 FARGO ND 58104 82709897 0 X www.kwh.com X 1937 ND Meet our members' needs with excellent service consisting of reliable and affordable energy 9 7 124 0 17668 0 0 0 70233887 81520654 -119531 -168583 -28103 23071 70086253 81375142 79728 80026 0 0 11406254 10069576 0 0 0 54803187 66529956 66289169 76679558 3797084 4695584 171454965 180327411 115465909 119021048 55989056 61306363 X 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 1 Sale of electric energy to 35,241 members at year end 2010. 0 0 0 0 0 0 0 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 1 107 0 1 124 1 1 1 0 0 0 0 81104744 982106 0 X 9 7 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 6.60 X X 10191 0 0 Russell Berg 5.80 X X 13836 0 0 John Froelich 3.90 X X 9291 0 0 Sid Berg 7.40 X X 12561 0 0 Douglas Anderson 5.40 X 16734 0 0 Steve Swiontek 4.00 X 8211 0 0 William Bertram 4.00 X 9161 0 0 Robert Huether 7.50 X 7688 0 0 Jeffrey Triebold 3.30 X 8111 0 0 Scott Handy 42.70 X 204258 0 104043 Chad Sapa 44.70 X 180743 0 71143 Claire Vigesaa 48.70 X 160939 0 54115 Tim Sanden 43.80 X 151726 0 55722 Bradley Schmidt 43.80 X 148319 0 74384 941769 0 359407 5 0 1 0 MPM Construction PO Box 202 Horace ND 58047 Electrical Contractor 1020658 Jerry's Excavating PO Box 809 Casselton ND 58012 Electrical Contractor 353050 Carr's Tree Service PO Box 250 Ottertail MN 56571 Tree Clearing 284284 Martin Engineering 20997 Co Hwy 20 Pelican Rapids MN 56572 Electrical Contractor 219629 Moritz Excavating 1114 10th St SW Valley City ND 58072 Electrical Contractor 166905 5 Sale of Electricity 221000 81323054 81323054 Capital Credits 221000 197600 197600 81520654 336794 336794 410076 393047 17029 17029 5403 11626 15370 520747 -505377 -505377 -505377 427003 420961 6042 6042 81375142 81526057 17668 -168583 80026 1032252 6819944 1654299 563081 4626618 5172632 Cost of Power 54701746 Distribution 5590144 Administrative and Gene 3010378 Customer Service & Sale 2508380 Allocated Costs -10069576 989634 76679558 3717129 6467612 8545265 9591251 2106 1503 1708303 1401387 555096 2892141 188249015 43261304 142107764 144987711 1218596 1311769 7303577 7349983 6232546 6271162 64583 52892 171454965 180327411 8340366 9912162 230004 156612 103894666 105530819 3000873 3421455 115465909 119021048 X 0 0 5099314 6012510 50889742 55293853 55989056 61306363 171454965 180327411 X 4695584 621723 X 0 1 1 X 0 610710 610710 15517354 3121168 12396186 168483245 40140136 128343109 3637706 3637706 144987711 Customer Deposits 566471 Other Liabilities 970268 Installation Costs of Equip 249771 Postretirement Benefits 1634945 3421455 81375142 76679558 4695584 11277 610446 621723 5317307 82201428 11277 776622 787899 81413529 -38387 -38387 81375142 76717945 38387 38387 76679558 0 76679558 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(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 both the date of adoption, and as of December 31, 2010, 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 2007 and state examinations for years before 2007. 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 -166,156. Equity Earning From SERVE Co. 776,622. Donated Capital Holding -20. Part XII, Line 2d - Other Adjustments: Equity Earnings from SERVE Co. 776,622. Part XII, Line 4b - Other Adjustments: Dispatch expenses included in Part VIII, line 10b -38,387. Part XIII, Line 2d - Other Adjustments: Dispatch expenses included in Part VIII, line 10b 38,387. 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 58502 237305181 501(c)(3) 5375 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 1 0 0 Scott Handy 195365 0 2008 0 6885 0 88825 0 15217 0 308300 0 0 0 Chad Sapa 144182 0 23277 0 13284 0 50047 0 21280 0 252070 0 0 0 Claire Vigesaa 122809 0 17386 0 20744 0 39924 0 14191 0 215054 0 0 0 Tim Sanden 122331 0 18700 0 10695 0 39045 0 16845 0 207616 0 0 0 Bradley Schmidt 124800 0 19189 0 4330 0 58078 0 16306 0 222703 0 0 0 Part I, Line 4a Claire J. Vigesaa: $48,294.81 Mr. Vigesaa signed a separation agreement with the cooperative on 8/16/2010; the severance pay of $48,294.81 was based on his salary from the date of his involuntary separation from the cooperative through the end of the year (12/31/2010) and was paid in semi-monthly installments over that period. 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 1521 21 0 1 1 Sid Berg Computer Loan X 659 73 0 1 1 Tim Sanden Computer Loan X 1438 718 0 1 1 Russell Berg Computer Loan X 776 691 0 1 1 1503 Changes in Program Services Form 990, Part III, line 3 The organization no longer performs Home Energy Rating System (HERS). They also no longer wire irrigation and grain bin sites. 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 last review of director compensation was done in April 2010. 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 2010. 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. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized gains on investments: 11,277. Retired Capital Credits to Patrons -166,156. Equity Earning From SERVE Co. 776,622. Donated Capital Holding -20. Total to Form 990, Part XI, Line 5: 621,723. 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 $78,500, Chad Sapa $40,780, Brad Schmidt $50,448, Claire Vigesaa $34,100, Tim Sanden $31,494. 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. These amounts include the current year contribution to the defined benefit plan as follows: Scott Handy $47,668, Chad Sapa $37,636, Brad Schmidt $31,797, Claire Vigesaa $21,198, Tim Sanden $31,797. Because only a portion of the estimated increase in the actuarial value is a current year expense of the Cooperative the total compensation on part IX, line 5, is less than the compensation expense reported on part VII. Southeast Rural Vision Enterprises Co 4100 32nd Ave South Fargo ND 581048608 450436356 Merchandise Sales, Generator Leasing ND N/A C 322246 7889088 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0