2024-09-26T08:38:13-05:00 2023-12-31 450310328 BRADY MARTZ & ASSOCIATES PC PO BOX 1297 BISMARCK ND 585021297 990 2023-01-01 450217439 MCKENZIE ELECTRIC COOPERATIVE INC MCKE 7014449288 3817 23RD AVE NE WATFORD CITY ND 58854 MATT HANSON CEO 7014449288 2024-09-23 1 1 LANCE RAMBOUSEK P01212867 7012231717 2024-09-23 2023 2024-08-08 14:25:15Z MATT HANSON 3817 23RD AVE NE WATFORD CITY ND 58854 441740325 0 X HTTP://WWW.MCKENZIEELECTRIC.COM X 1945 ND THE TAX-EXEMPT PURPOSE OF THE ORGANIZATION IS TO DELIVER ELECTRICITY TO ITS MEMBERS. 9 8 77 0 0 0 0 0 359849028 409144056 1587878 6804528 39645976 25791741 401082882 441740325 0 0 53356302 43355102 7789448 8581070 0 0 0 339937132 389804153 401082882 441740325 0 0 520136868 580205485 141846198 161449114 378290670 418756371 TO MAKE AVAILABLE AND TO SERVE ALL CONSUMERS WITHIN ITS BOUNDARIES WITH ELECTRIC ENERGY. TO ENSURE AN ADEQUATE SOURCE OF CENTRAL STATION POWER AND WORK TO MAKE THAT ENERGY AS RELIABLE AS POSSIBLE AT THE LOWEST COST POSSIBLE. 0 0 THE COOPERATIVE DELIVERS ELECTRIC ENERGY TO MEMBERS. 0 0 0 0 0 0 0 0 0 1 0 1 0 1 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 1 1 0 0 1 192 0 77 1 0 0 0 0 0 0 0 409144056 32596269 0 0 0 X 9 8 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 0 1 1 0 X JAMIE CROSS 7014449288 PO BOX 649 WATFORD CITY ND 58854 X CLAYTON MONSEN PRESIDENT 6.70 X X 25527 0 0 RAY TESCHER VICE PRESIDENT 6.80 X X 34884 0 0 TIM WASEM SECRETARY/TREASURER 4.20 X X 25459 0 0 TRAVIS THOMPSON DIRECTOR-AT-LARGE 7.90 X 34959 0 0 STEPHEN KERSHISNIK DIRECTOR 4.90 X 25327 0 0 KEN SANFORD DIRECTOR 5.90 X 28309 0 0 CAMERON WAHLSTROM DIRECTOR 6.30 X 31919 0 0 CHRIS LINK DIRECTOR 9.60 X 45925 0 0 RICHARD JORE DIRECTOR 3.90 X 26369 0 0 MATT HANSON CEO 57.50 X 256647 0 34312 JAMIE CROSS BUSINESS MANAGER 47.50 X 166654 0 37305 KARL AAKER DIRECTOR OF ENGINEERING SE 42.00 X 168119 0 33826 ZANE FRICK DIRECTOR OF OPERATIONS 46.75 X 162371 0 29555 JAMES HANSEN CONSTRUCTION MANAGER 41.70 X 141842 0 30613 JAMES WILLIAMS JOURNEYMAN LINEMAN 49.50 X 140236 0 15144 RYAN ZASTOUPIL JOURNEYMAN LINEMAN 47.70 X 140683 0 8294 1455230 0 189049 7 0 1 0 BADLANDS ELECTRIC INC PO BOX 473 BAKER MT 59313 LINE CONSTRUCTION 8483401 STOEL RIVES LLP 101 S CAPITOL BLVD STE 1900 BOISE ID 83702 LEGAL SERVICES 7888308 HIGHMARK ERECTORS INC 14667 139TH PLACE PIEDMONT SD 57769 ELECTRICAL CONTRACTOR 3992073 4T CONSTRUCTION INC PO BOX 250 EMMET ID 83617 LINE CONSTRUCTION 3475005 MOUNTAIN PLAINS LLC 1300 TACOMA AVE A BISMARCK ND 58504 CIVIL ENGINEERING 2988372 28 ELECTRIC REVENUE 221000 409144056 409144056 409144056 6756320 6756320 10070 0 10070 10070 10070 48208 0 48208 48208 48208 CAPITAL CREDITS 221000 25496939 25496939 MISC REVENUE 221000 284732 284732 25781671 441740325 434651065 0 7089260 X 43355102 701979 6127825 1234831 516435 1215613 12144660 COST OF POWER 352312123 ADMIN AND GENERAL 16289551 DISTRIBUTION 9502407 TAXES 4574552 -6234753 441740325 94197443 67281119 65714720 123376768 58392841 61820272 11816941 13179149 80589 76456 253788182 120195661 133317449 133592521 156494973 180829387 121912 49813 520136868 580205485 102436135 123647637 29593660 27399397 9816403 10402080 141846198 161449114 X 0 0 255635600 293910629 122655070 124845742 378290670 418756371 520136868 580205485 X 0 40465701 X X 0 1 X 1 1 1 2066039 2066039 32999671 10401420 22598251 209229593 109794241 99435352 9492879 9492879 133592521 PATRONAGE CAPITAL CREDITS - POWER SUPPLIERS 173564408 C CFC INVESTMENT 102012 C PATRONAGE CAPITAL CREDITS - OTHER ASSOC COMPANIES 6162967 C SPECIAL FUNDS - RESERVED CASH 1000000 C 180829387 DEFERRED CREDITS 3515690 PLANT RETIREMENT RESERVE 6886390 10402080 X 441740325 0 441740325 0 441740325 398385223 0 398385223 43355102 43355102 441740325 PART X, LINE 2: IT IS THE OPINION OF MANAGEMENT THAT THE COOPERATIVE HAS NO SIGNIFICANT UNCERTAIN TAX POSITIONS THAT WOULD BE SUBJECT TO CHANGE UPON EXAMINATION. THE FEDERAL INCOME TAX RETURNS OF THE COOPERATIVE ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET MARGINS ALLOCATED 43,355,102. X X X 0 0 0 MATT HANSON CEO 251733 0 0 0 4914 0 28537 0 5775 0 290959 0 0 0 JAMIE CROSS BUSINESS MANAGER 165807 0 0 0 847 0 33636 0 3669 0 203959 0 0 0 KARL AAKER DIRECTOR OF ENGINEERING SE 167253 0 0 0 866 0 26059 0 7767 0 201945 0 0 0 ZANE FRICK DIRECTOR OF OPERATIONS 161814 0 0 0 557 0 23780 0 5775 0 191926 0 0 0 JAMES HANSEN CONSTRUCTION MANAGER 141154 0 0 0 688 0 28559 0 2054 0 172455 0 0 0 JAMES WILLIAMS JOURNEYMAN LINEMAN 139965 0 0 0 271 0 9369 0 5775 0 155380 0 0 0 PART I, LINE 3 THE PROCESS FOR DETERMINING THE COMPENSATION INCLUDES THE REVIEW OF STATE WIDE SALARY DATA THROUGH NDAREC AND CONSULTING, AS NEEDED, BY THE NRECA CONSULTING SERVICE. COMPENSATION FOR ALL MANAGEMENT POSITIONS ARE APPROVED BY THE BOARD. 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 ACTUARIAL VALUE OF THE PLANS RECEIVED FROM NRECA. THE CURRENT YEAR EXPENSE AND INCREASE IN ACTUARIAL VALUE FOR EACH EMPLOYEE IS REFLECTED IN SCHEDULE O STATEMENT FOR FORM 990, PART VII, COLUMN F. FORM 990, PART VI, SECTION A, LINE 6 THE COOPERATIVE IS A MEMBER OWNED COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER OF THE COOPERATIVE HAS ONE VOTE IN ELECTIONS OF THE BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B EACH COOPERATIVE MEMBER IS ALLOWED A VOTE TO APPROVE ANY BY-LAW CHANGES. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 WAS PRESENTED AT A BOARD MEETING. THE CEO AND BUSINESS MANAGER REVIEWED THE FORM 990 PRIOR TO IT BEING PRESENTED TO THE BOARD AND PRIOR TO IT BEING FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C PRIOR TO BECOMING A BOARD MEMBER, AN INDIVIDUAL MUST DISCLOSE ANY POTENTIAL CONFLICTS. A NOMINATING COMMITTEE DETERMINES IF ANY OF THE DISCLOSURES BY A PROSPECTIVE CANDIDATE REPRESENT A CONFLICT OF INTEREST. BOARD MEMBERS ARE REQUIRED TO DISCLOSE ANY CONFLICTS THAT ARISE DURING THEIR TENURE. ANNUALLY THERE IS A DISCUSSION WHEN THE BOARD IS ASKED TO COMPLETE THE RELATIONSHIP LETTERS WHICH ARE COMPLETED FOR THE FORM 990. THE CEO AND BUSINESS MANAGER ARE SUBJECT TO THE EMPLOYEE CONFLICT OF INTEREST POLICY. ANYONE WITH A CONFLICT MUST ABSTAIN FROM VOTING ON THE ISSUE IN QUESTION. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING THE COMPENSATION FOR THE CEO AND BUSINESS MANAGER INCLUDES THE REVIEW OF STATE WIDE SALARY DATA THROUGH NDAREC AND CONSULTING, AS NEEDED, BY THE NRECA CONSULTING SERVICE. COMPENSATION FOR ALL MANAGEMENT POSITIONS AND UNION CONTRACTS ARE APPROVED BY THE BOARD. THIS PROCESS FOR THE CEO AND BUSINESS MANAGER TAKES PLACE ANNUALLY IN SEPTEMBER. FORM 990, PART VI, SECTION C, LINE 19 THE FINANCIAL STATEMENTS ARE PRESENTED AT THE ANNUAL MEETING HELD BY MCKENZIE ELECTRIC COOPERATIVE AND THEY ARE ALSO PUBLISHED IN THE NORTH DAKOTA LIVING MAGAZINE. COPIES OF THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE 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 ALL INDIVIDUALS LISTED ON THE TABLE IS AS FOLLOWS: JAMIE CROSS - $28,551 MATT HANSON - $13,087 KARL AAKER - $15,558 ZANE FRICK - $13,725 JAMES HANSEN - $24,262 JAMES WILLIAMS - $3,086 RYAN ZASTOUPIL - $1,921 THIS AMOUNT IS AN ESTIMATE OF THE INCREASE OF THE VALUE OF THE PLAN AND IS NOT A CURRENT YEAR EXPENSE OF THE COOPERATIVE, THEREFORE THESE AMOUNTS HAVE NOT BEEN CARRIED OVER TO COMPENSATION OF CURRENT OFFICERS, DIRECTORS, TRUSTEES AND KEY EMPLOYEES ON THE STATEMENT OF FUNCTIONAL EXPENSE FOR THE APPLICABLE INDIVIDUALS. THE ACTUAL EXPENSE INCURRED FOR ALL INDIVIDUALS LISTED ON THE TABLE WHO PARTICIPATE IN THE DEFINED BENEFIT PLAN IS AS FOLLOWS: JAMIE CROSS - $56,708 MATT HANSON - $41,201 ZANE FRICK - $23,100 KARL AAKER - $28,278 JAMES HANSEN - $48,512 JAMES WILLIAMS - $16,001 RYAN ZASTOUPIL - $16,697 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, 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 (ALLOCATED COSTS) ON LINE 24E IN THE AMOUNT OF $8,581,070. FORM 990, PART XI, LINE 9: RETIRED CAPITAL CREDITS GAIN 364,133. CAPITAL CREDITS RETIRED -3,253,534. NET MARGINS ALLOCATED 43,355,102. FORM 990, PART XII, LINE 2C OVERSIGHT PROCESS OF THE AUDIT AND SELECTION PROCESS OF THE INDEPENDENT AUDITORS HAS NOT CHANGED FROM PRIOR YEARS. MCKENZIE ELECTRIC OPERATION ROUNDUP INC PO BOX 649 WATFORD CITY ND 58854 311681245 CHARITABLE PURPOSES ND 501(C)(3) LINE 7 MCKENZIE ELECTRIC COOPERATIVE INC 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0