2024-10-07T10:14:58-05:00 2023-12-31 450310328 BRADY MARTZ & ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2023-01-01 410266055 FREEBORN MOWER ELECTRIC COOPERATIVE FREE 5073736421 3366 BRIDGE AVE ALBERT LEA MN 56007 JIM KRUEGER CEO/PRESIDENT 5073736421 2024-09-27 1 1 DAVID HOLT P00014251 7017754685 2024-09-27 2023 2024-10-15 13:58:12Z 3366 BRIDGE AVE ALBERT LEA MN 56007 62135966 0 X WWW.FMEC.COOP X 1936 MN PROVIDE ELECTRIC POWER TO THE MEMBERS OF THE COOPERATIVE WHICH CONSISTS OF APPROXIMATELY 21,100 MEMBERS. 9 9 71 0 59907 40675 0 0 60707650 59790857 112190 138353 1298912 1727673 62118752 61656883 0 0 1981033 2625751 401487 419240 0 0 0 58707749 56840013 61090269 59885004 1028483 1771879 146099899 151110003 102991927 104103861 43107972 47006142 PROVIDE ELECTRIC POWER TO THE MEMBERS OF THE COOPERATIVE WHICH CONSISTS OF APPROXIMATELY 21,100 MEMBERS. 0 0 PROVIDE ELECTRIC POWER TO THE MEMBERS OF THE COOPERATIVE WHICH CONSISTS OF APPROXIMATELY 21,100 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 1 1 1 1 0 1 190 0 1 71 1 1 1 0 0 0 0 59790857 2090308 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X ANGIE KOLKER DIRECTOR OF FINANCE 5073798859 PO BOX 611 ALBERT LEA MN 56007 X JOHN JACK KORMAN BOARD CHAIR 8.00 X 14107 0 0 STEVE GARBISCH TREASURER 3.00 X 12209 0 0 MATT MARAS DIRECTOR (STARTED APRIL 2023) 2.00 X 7352 0 0 DENNIS ANDERSON VICE CHAIRMAN 4.00 X 12248 0 0 FRANK FRYER SECRETARY 3.00 X 12686 0 0 LARRY IRVINE DIRECTOR 4.00 X 11114 0 0 WILLIAM TRYGSTAD DIRECTOR 5.00 X 11638 0 0 JOE PACOVSKY DIRECTOR (THROUGH APRIL 2023) 3.00 X 4669 0 0 RICHARD SCHAUFLER DIRECTOR 10.00 X 13189 0 0 JAY NEITZELL DIRECTOR 3.00 X 10914 0 0 JAMES KRUEGER PRESIDENT/CEO 45.00 X 225361 0 80606 SCOTT SHEELY JOURNEYMAN LINEWORKER 48.00 X 118883 0 35718 JACK KORTAN MANAGER OF OPERATIONS 40.00 X 134884 0 78078 BRAD DEVRIES WORKING FOREMAN 47.00 X 124534 0 38811 AL STADHEIM DIRECTOR OF ENGIN & OPERAT 40.00 X 162105 0 58748 ETHAN EGGUM WORKING FOREMAN 46.00 X 120544 0 38659 996437 0 330620 22 0 1 0 ASPLUNDH TREE EXPERT CO 1700 SOLUTIONS CENTER CHICAGO IL 606771700 TREE CLEARING 874354 E & J UNDERGROUND LLC 15305 HILLSIDE LN SE CHATFIELD MN 55923 DIRECTIONAL BORING 805987 NISC PO BOX 1147 MANDAN ND 58554 SOFTWARE SUPPORT & MAINT; BILLING, PRINT 416998 MASTEC NORTH AMERICA INC PO BOX 70 SHEVLIN MN 56676 DIRECTIONAL BORING 374613 HIGHLINE CONSTRUCTION INC 16124 OLD LAKE ROAD PAYNESVILLE MN 56362 LINE RETIREMENT AND WRECKOUTS 217035 7 SALE OF POWER 221000 59790857 59790857 59790857 192148 192148 196762 135993 246207 140343 -49445 -4350 -53795 -53795 100582 92533 8049 8049 CAPITAL CREDITS 900099 1653514 1653514 HEARTLAND SECURITY SERVICES, LLC 900099 60955 54540 6415 MINNESOTA THREE LLC #46-2958241 900099 5155 -2682 7837 1719624 61656883 61444371 59907 152605 X 2625751 419240 2631524 4466711 COST OF POWER 39827342 DISTRIBUTION EXPENSE - 2754458 DISTRIBUTION EXPENSE - 2467713 ADMINISTRATION & GENERA 2053335 2638930 59885004 3944828 465824 462462 483812 6465285 6364100 2406518 2587429 1036239 1071478 148210857 28536831 112887167 119674026 2538010 2136479 920202 16760921 17005122 146099899 151110003 6328481 5941752 92981856 97329068 3000000 0 681590 833041 102991927 104103861 X 0 0 0 0 43107972 47006142 43107972 47006142 146099899 151110003 X 1771879 250839 1875452 X X 0 1 X 1 0 590957 590957 15395386 1067271 14328115 13830736 4393502 9437234 118393778 23076058 95317720 119674026 PATRONAGE CAPITAL IN ASSOCIATED ORGS 13375195 C CAPITAL TERM CERTIFICATES 740811 C ECONOMIC DEVELOPMENT LOANS 1841145 C SOUTHERN MINNESOTA ENERGY COOPERATIVE 1029787 C OTHER PROGRAM RELATED INVESTMENTS 18184 C 17005122 DEFERRED CREDITS 807552 DEFERRED TAXES 25489 833041 X 61904353 250839 -3369 247470 61656883 0 61656883 57259253 0 57259253 2625751 2625751 59885004 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. HOWEVER, INCOME FROM UNRELATED BUSINESS ACTIVITIES IS SUBJECT TO INCOME TAX AT NORMAL CORPORATE RATES. THE COOPERATIVE'S POLICY IS TO EVALUATE THE LIKELIHOOD THAT ITS UNCERTAIN TAX POSITIONS WILL PREVAIL UPON EXAMINATION BASED ON THE EXTENT TO WHICH THOSE POSITIONS HAVE SUBSTANTIAL SUPPORT WITHIN THE INTERNAL REVENUE CODE AND REGULATIONS, REVENUE RULINGS, COURT DECISIONS AND OTHER EVIDENCE. 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. THE COOPERATIVE IS CURRENT ON ALL REQUIRED TAX FILINGS. PART XI, LINE 2D - OTHER ADJUSTMENTS: INCOME TAX BENEFIT (EXPENSE) -15,997. PARTNERSHIP INCOME BOOK VS. TAX DIFFERENCES MINNESOTA THREE LLC -24,764. PARTNERSHIP INCOME BOOK VS. TAX DIFFERENCES HEARTLAND SECURITY SERVICES LLC 37,392. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE DIVIDENDS ALLOCATED 2,625,751. X X X X 0 0 0 JAMES KRUEGER PRESIDENT/CEO 218773 0 200 0 6388 0 57444 0 25113 0 307918 0 0 0 AL STADHEIM DIRECTOR OF ENGIN & OPERAT 160758 0 200 0 1147 0 35585 0 23953 0 221643 0 0 0 JACK KORTAN MANAGER OF OPERATIONS 132856 0 200 0 1828 0 54915 0 24405 0 214204 0 0 0 BRAD DEVRIES WORKING FOREMAN 123620 0 200 0 714 0 15649 0 24085 0 164268 0 0 0 ETHAN EGGUM WORKING FOREMAN 119742 0 200 0 602 0 15496 0 24085 0 160125 0 0 0 SCOTT SHEELY JOURNEYMAN LINEWORKER 118084 0 200 0 599 0 12556 0 24018 0 155457 0 0 0 SCHEDULE J, PART II, COLUMN C INCLUDED IN COLUMN "C", DEFERRED COMPENSATION, IS THE ESTIMATED ANNUAL INCREASE (DECREASE) IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. FOR THE FOLLOWING INDIVIDUALS, THE ESTIMATED INCREASE (DECREASE) IS: JAMES KRUEGER: $35,434 SCOTT SHEELY: $2,767 JACK KORTAN: $41,236 BRAD DEVRIES: $5,168 AL STADHEIM: $19,214 ETHAN EGGUM: $5,102 THESE AMOUNTS ARE ESTIMATES IN THE INCREASE (DECREASE) OF THE VALUE OF THE PLAN AND ARE NOT CURRENT YEAR EXPENSES OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 6 EACH MEMBER IS A CONSUMER OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A THERE IS ONLY ONE CLASS OF VOTING MEMBERSHIP AND EACH MEMBER IS ALLOWED ONE VOTE. FORM 990, PART VI, SECTION A, LINE 7B THE VOTING MEMBERS OF THE COOPERATIVE APPROVE ANY AMENDMENTS TO THE BYLAWS GOVERNING THE COOPERATIVE. THE GOVERNING BODY OF THE COOPERATIVE ADHERES TO THIS GOVERNING DOCUMENT. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY THE BOARD AND MANAGEMENT TEAM PRIOR TO ITS FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C AN ANNUAL COMPLIANCE CERTIFICATION IS COMPLETED BY EACH BOARD MEMBER, OFFICER, AND KEY EMPLOYEE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS WILL USE NATIONAL, REGIONAL, AND STATE DATA TO DETERMINE THE NEW ANNUAL SALARY FOR THE PRESIDENT/CEO. THE BOARD OF DIRECTORS WILL ALSO UTILIZE THE NATIONAL COMP. STUDY CONDUCTED ANNUALLY BY NRECA AS A GUIDE. EACH NON-UNION EMPLOYEE COMPLETES AN EVALUATION FORM WHICH IS REVIEWED ANNUALLY WITH THEIR SUPERVISOR. WAGE INCREASES ARE BASED UPON PERFORMANCE ANNUALLY. THE UNION EMPLOYEES' WAGE INCREASE IS BASED ON THE UNION CONTRACT. BOTH OF THESE PROCESSES WERE USED DURING THE CURRENT TAX YEAR. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE MAKES ITS GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST AT THE COOPERATIVE. FORM 990, PART VII, SECTION A, LINE 1A: INCLUDED IN PART VII, SECTION A, LINE 1A, COLUMN F, IS THE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. THIS AMOUNT IS AN ESTIMATE OF THE INCREASE OF THE VALUE OF THE PLAN AND IS NOT A CURRENT YEAR EXPENSE OF THE COOPERATIVE. CURRENT YEAR CONTRIBUTIONS INTO THE DEFINED BENEFIT PLAN ARE A CURRENT YEAR EXPENSE AND ARE INCLUDED IN PART IX AS SUCH. FORM 990, PART IX, LINE 4 AS REQUIRED BY FORM 990 INSTRUCTIONS, FORM 990, PART IX, LINE 4 (BENEFITS PAID TO OR FOR MEMBERS) INCLUDES PATRONAGE DIVIDENDS PAID. THIS AMOUNT IS AN EXPENSE FOR PURPOSES OF FORM 990, BUT IS NOT RECOGNIZED AS AN EXPENSE UNDER G.A.A.P. REPORTING REQUIREMENTS, WHICH ARE USED FOR BOOK INCOME. THE RESULT IS A BOOK TO TAX DIFFERENCE WHICH IS DISCLOSED ON PART XI AND ON SCHEDULE D PARTS XI AND XIII. IN REFERENCE TO PART IX, LINE 4, THE COOPERATIVE HAS INTERPRETED "PATRONAGE DIVIDENDS PAID" AS CAPITAL CREDITS ALLOCATED TO MEMBERS UNDER THE PREEXISTING OBLIGATIONS PURSUANT TO THE BYLAWS OF THE COOPERATIVE. FORM 990, PART XI, LINE 9: MINNESOTA THREE LLC K-1 -24,764. INCOME TAX BENEFITS -15,997. CAPITAL CREDITS RETIRED -746,930. PATRONAGE DIVIDENDS ALLOCATED 2,625,751. HEARTLAND SECURITY SERVICES, LLC K- 37,392. FORM 990, PART XII, LINE 2C OVERSIGHT PROCESS OF THE AUDIT AND SELECTION PROCESS OF THE INDEPENDENT AUDITORS HAS NOT CHANGED FROM THE PRIOR YEAR. FREEBORN-MOWER CONSTRUCTION COMPANY 2501 MAIN STREET EAST ALBERT LEA MN 56007 204760363 CONSTRUCTION COMPANY MN 0 0 FREEBORN MOWER ELECTRIC COOPERATIVE FREEBORN MOWER OPERATION ROUND-UP 3366 BRIDGE AVE ALBERT LEA MN 56007 208772314 COMMUNITY TRUST MN 501(C)(3) 7 FREEBORN MOWER ELECTRIC COOPERATIVE 1 MINNESOTA THREE LLC 1775 LAKE SHADY AVE SOUTH ORONOCO MN 55960 462958241 SOLAR GENERATION PLANT MN FREEBORN MOWER ELECTRIC COOPERATIVE UNRELATED 5155 348682 0 1 0.33330 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 FREEBORN MOWER OPERATION ROUND-UP R 101504 CASH TRANSFERRED