2023-08-03T11:41:26-05:00 2022-12-31 450250958 EIDE BAILLY LLP 200 E 10TH ST STE 500 SIOUX FALLS SD 571046375 990 2022-01-01 410252540 FEDERATED RURAL ELECTRIC ASSOCIATION FEDE 5078473520 77100 US HWY 71 JACKSON MN 56143 SCOTT REIMER GENERAL MANAGER 5078473520 2023-08-01 1 SCOTT REIMER XXX-XX-XXXX 1 LAURIE HANSON CPA P00851848 6053391999 2023-07-27 3 AAL1 IAL1 2022 2023-04-26 12:10:37Z SCOTT REIMER 77100 US HWY 71 JACKSON MN 56143 41000708 0 X WWW.FEDERATEDREA.COOP X 1935 MN TO DISTRIBUTE ENERGY AND SERVICES IN A COST EFFECTIVE, RELIABLE, AND EFFICIENT MANNER. 7 7 33 0 550425 28343 0 0 36118685 39596269 90197 127382 -184600 843018 36024282 40566669 11569 17859 1749799 2321232 2775659 2952009 0 0 0 30878492 34961421 35415519 40252521 608763 314148 74873988 81081160 30780643 35807587 44093345 45273573 FEDERATED RURAL ELECTRIC ASSOCIATION IS COMMITTED TO PROVIDING SAFE, RELIABLE AND AFFORDABLE ENERGY AND OTHER ESSENTIAL SERVICES TO OUR MEMBER-OWNERS, WHILE ENHANCING THE LIVES OF THOSE WE SERVE. 0 0 TO PROVIDE RELIABLE ELECTRIC SERVICE TO OVER 5,292 MEMBERS. WITHOUT THE FORMATION OF THIS COOPERATIVE, THESE MEMBERS WOULD NOT HAVE RECEIVED ELECTRIC SERVICE IN 1935. SINCE THAT TIME WE HAVE CONSISTENTLY PROVIDED SERVICE TO ALL RURAL CUSTOMERS IN JACKSON AND MARTIN COUNTIES IN MINNESOTA AS WELL AS SOME SMALLER TOWNS. IN ADDITION, WE PROVIDE ELECTRIC SERVICE TO BOUNDARY CUSTOMERS OF 11 ADDITIONAL COUNTIES INCLUDING APPROXIMATELY 60 MEMBERS IN IOWA. THE COOPERATIVE'S ACQUISITION OF A FIXED INTERNET COMPANY WITH 1,100 CUSTOMERS IN 2021 WAS THE START OF THE BROADBAND DIVISION "FEDERATED BROADBAND." INTERNET SERVICES WERE PROVIDED TO APPROXIMATELY 1,300 CUSTOMERS BY THE END OF 2022. THE COOPERATIVE IS APPLYING FOR BROADBAND GRANTS TO HELP SERVICE AREAS WITHIN AND OVERLAPPING THE ELECTRIC SERVICE TERRITORY. 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 1 170 0 1 33 1 1 1 0 0 0 0 38595402 1322134 0 0 0 X 7 7 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 0 X SCOTT REIMER 5078473520 77100 US HIGHWAY 71 JACKSON MN 56143 DAVID A HANSEN PRESIDENT 4.90 X X 16650 0 0 DAVID E MESCHKE VICE PRESIDENT 2.20 X X 10200 0 0 DARV VOSS SECRETARY-TREASURER 4.20 X X 15600 0 0 BRUCE BROCKMANN DIRECTOR 4.30 X 14250 0 0 GLENN DICKS DIRECTOR 4.20 X 12900 0 0 SCOTT J THIESSE DIRECTOR 4.10 X 13050 0 0 JON SAXEN DIRECTOR 2.70 X 10500 0 0 SCOTT REIMER GENERAL MANAGER 40.00 X 212656 0 64349 JULIE RESCH CFO 40.00 X 100362 0 45867 MATT MADDEN OPERATIONS MANAGER 40.00 X 108959 0 44669 CHRISTOPHER BORCHARDT LINEMAN 40.00 X 103991 0 47031 KOLLIN VANDEVERE JACKSON FOREMAN 40.00 X 103428 0 42687 MICHAEL KLEINSCHMIDT LINEMAN 40.00 X 102638 0 41767 CASEY SCHOELLERMAN LINEMAN 40.00 X 100930 0 43472 926114 0 329842 9 0 1 0 LOOSEBROCK DIGGING SERVICE 221 W 4TH STREET LISMORE MN 56155 CONSTRUCTION 963360 HIGHLINE CONSTRUCTION INC 16124 OLD LAKE RD PAYNESVILLE MN 56362 CONSTRUCTION 541767 CARR'S TREE SERVICE PO BOX 250 OTTERTAIL MN 56571 TREE TRIMMING 295172 STAR ENERGY SERVICES LLC 6875 COUNTY RD 28 SW STE 2 ALEXANDRIA MN 56038 ENGINEERING 228176 FINLEY ENGINEERING COMPANY INC 1981 ENGEBRETSON ST SLAYTON MN 56172 ENGINEERING/PROFESSIONAL SERVICES 134824 5 SALE OF ELECTRICITY 221000 37240052 37240052 G&T CAPITAL CREDITS 221000 1765564 1765564 EQUITY EARNINGS 221000 114851 84268 30583 OTHER CAPITAL CREDITS 221000 110203 110203 365599 365599 39596269 99049 99049 28400 67 28333 28333 28333 172766 433972 -261206 -261206 BROADBAND REVENUE 900099 1095463 576427 519036 CTV REVENUE 900099 4033 3738 295 CONTRACT LABOR 900099 2430 2430 2298 1787 511 1104224 40566669 39888862 550425 127382 17859 2321232 519849 1979911 280051 172198 604364 2081971 FEDERAL INCOME TAX 1202 COST OF POWER 30089462 DISTRIBUTION-MAINTENANC 1087978 DISTRIBUTION-OPERATIONS 1079915 16529 40252521 4443652 2856275 3099992 3078514 1196397 1939282 895626 1180818 73611908 26677765 42371577 46934143 3100573 3873689 18133883 19472035 1632288 1746404 74873988 81081160 4283902 4890232 24407233 27652158 600000 600000 1489508 2665197 30780643 35807587 X 0 0 5471599 6121270 38621746 39152303 44093345 45273573 74873988 81081160 X 314148 866080 X 0 1 X 1 0 163772 163772 3118829 836190 2282639 66764124 25596574 41167550 3565183 245001 3320182 46934143 CFC CAPITAL TERM CERTIFICATES 537751 C CFC MEMBER CAPITAL SECURITIES 100000 C CFC MEMBERSHIP 1000 C COBANK 91647 C COOPERATIVE TV OF SOUTHERN MINNESOTA 225866 C FEDERATED RURAL ELECTRIC INSURANCE 175322 C GREAT RIVER ENERGY MEMBERSHIP 100 C GREAT RIVER ENERGY PATRONAGE CAPITAL 9047015 C L&O (G&T) PATRONAGE CAPITAL 8654749 C NATIONAL RURAL TELECOMMUNICATIONS COOP 106809 C NATIONAL RURAL UTILITIES CFC 91740 C OTHER 1174 C RURAL ELECTRIC SUPPLY COOPERATIVE 210721 C SOUTHERN MINNESOTA ENERGY COOPERATIVE 228141 C 19472035 CUSTOMER DEPOSITS 76734 DEFERRED CREDITS 1999903 FINANCING LEASE LIABILITY 334644 POSTRETIREMENT BENEFIT OBLIGATION 253916 2665197 X 39483327 -1083342 -1083342 40566669 0 40566669 36847947 0 36847947 3404574 3404574 40252521 PART X, LINE 2: THE ASSOCIATION EVALUATES ITS TAX POSITIONS THAT HAVE BEEN TAKEN OR ARE EXPECTED TO BE TAKEN ON INCOME TAX RETURNS TO DETERMINE IF AN ACCRUAL IS NECESSARY FOR UNCERTAIN TAX POSITIONS. AS OF DECEMBER 31, 2022 AND 2021, THE UNRECOGNIZED TAX BENEFITS ACCRUAL WAS ZERO. THE ASSOCIATION WILL RECOGNIZE FUTURE ACCRUED INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IF INCURRED. PART XI, LINE 2D - OTHER ADJUSTMENTS: BROADBAND EXPENSES NETTED WITH REVENUE ON AUDIT -1,079,115. OTHER EXPENSES NETTED WITH REVENUE ON AUDIT -4,227. PART XII, LINE 4B - OTHER ADJUSTMENTS: 2022 MARGINS ALLOCATED IN 2023 2,321,232. OTHER EXPENSES NETTED WITH REVENUE ON AUDIT 4,227. BROADBAND EXPENSES NETTED WITH REVENUE ON AUDIT 1,079,115. X 1 1 X X X 0 0 0 SCOTT REIMER GENERAL MANAGER 203365 0 0 0 9291 0 34160 0 32477 0 279293 0 0 0 MATT MADDEN OPERATIONS MANAGER 107915 0 0 0 1044 0 17864 0 28047 0 154870 0 0 0 CHRISTOPHER BORCHARDT LINEMAN 103597 0 0 0 394 0 17495 0 30618 0 152104 0 0 0 PART I, LINE 1A GROSS UPS: PERSONAL USE FRINGE AUTO BENEFIT FOR THE GENERAL MANAGER. BENEFIT WAS INCLUDED IN TAXABLE INCOME. PART I, LINE 1B THE BOARD APPROVES THAT A VEHICLE IS PROVIDED TO THE GENERAL MANAGER FOR BUSINESS TRAVEL. 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 BOARD MEMBERS. THE MEMBERSHIP OF THE COOPERATIVE ALSO VOTES ON CHANGES TO THE BY-LAWS. FORM 990, PART VI, SECTION A, LINE 7B MERGERS, DISSOLUTION, AND BYLAW CHANGES MUST BE APPROVED BY THE MEMBERS OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. ALL COMMITTEES BRING RECOMMENDATIONS TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11B IT IS THE COOPERATIVE'S POLICY THAT THE BOARD OF DIRECTORS REVIEW THE FORM 990 FILED ON THE ORGANIZATION'S BEHALF BEFORE IT IS FILED WITH THE IRS. EACH BOARD MEMBER INDIVIDUALLY SIGNS A DOCUMENT STATING THEY HAVE REVIEWED THE 990. AFTER THE 990 IS FILED WITH THE IRS, EACH BOARD MEMBER RECEIVES A COMPLETE COPY OF THE FILED DOCUMENT IN THEIR MONTHLY BOARD REPORT. THE REPORT IS DELIVERED ELECTRONICALLY. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS, OFFICERS, AND MEMBERS OF MANAGEMENT MUST ANNUALLY COMPLETE AND SIGN THE CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM AND DELIVER IT TO THE GENERAL MANAGER. IN ADDITION, IF AN OFFICIAL DISCOVERS ANY INFORMATION THAT COULD IMPACT ANOTHER OFFICIAL'S COMPLIANCE WITH THE POLICY, THEY MUST DISCLOSE THE INFORMATION TO THE GENERAL MANAGER IMMEDIATELY. POTENTIAL CONFLICTS OF INTEREST ARE REVIEWED BY THE BOARD OF DIRECTORS. IF THE BOARD DETERMINES THAT A DIRECTOR DOES NOT COMPLY WITH THE POLICY THEN THEY MUST PROVIDE THE DIRECTOR AN OPPORTUNITY TO COMPLY WITH THE POLICY WITHIN THIRTY DAYS. IF THE DIRECTOR DOES NOT COMPLY THEN THE BOARD MUST SANCTION, DISQUALIFY, AND/OR REMOVE THE DIRECTOR AS ALLOWED BY LAW. THE COOPERATIVE'S LEGAL COUNSEL MUST ANNUALLY REVIEW THIS POLICY WITH ALL OFFICIALS. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS MAKES ANNUAL RECOMMENDATIONS REGARDING THE GENERAL MANAGER'S PERFORMANCE AND COMPENSATION. COMPENSATION SURVEYS AND COMPARABILITY DATA ARE USED TO ENSURE THE GENERAL MANAGER'S COMPENSATION IS REASONABLE. FORM 990, PART VI, SECTION C, LINE 19 A NEW MEMBER PACKET WHICH INCLUDES THE STATEMENT OF NONDISCRIMINATION AND INFORMATION ABOUT THE AVAILABILITY OF THE ARTICLES OF INCORPORATION AND THE BYLAWS IS MAILED TO EACH NEW MEMBER. THE BYLAWS AND ARTICLES ARE AVAILABLE UPON REQUEST AND ARE PUBLISHED ON OUR WEBSITE. FEDERATED RURAL ELECTRIC PUBLISHES A SUMMARY REPORT FROM THE FULL AUDIT REPORT PRIOR TO THE ANNUAL MEETING. THIS REPORT IS CONTAINED IN THE MONTHLY NEWS LETTER, "CONNECTIONS," MAILED TO EACH MEMBER OF RECORD. IN ADDITION, THE FULL AUDIT REPORT AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST AT THE COOPERATIVES' CORPORATE OFFICES. THE PUBLIC INSPECTION COPY OF FORM 990 IS AVAILABLE AT GUIDESTAR.ORG OR BY CONTACTING THE COOPERATIVE. FORM 990, PART XI, LINE 9: RETIREMENT OF CAPITAL CREDITS -1,455,152. ALLOCATION OF 2022 MARGINS TO MEMBERS IN 2023 2,321,232. FORM 990, PART IX, LINE 24E STATEMENT OF FUNCTIONAL EXPENSES: THE LABOR, PENSION AND PAYROLL TAXES REPORTED ON LINES 6-10 ARE INCLUDED IN DISTRIBUTION EXPENSE, ADMINISTRATIVE & GENERAL EXPENSE AND CUSTOMER EXPENSE. THEREFORE, LABOR, PENSION AND PAYROLL TAXES ARE SHOWN AS A REDUCTION TO OTHER EXPENSES ON LINE 24E. FORM 990, PART IX, LINE 4, BENEFITS PAID TO OR FOR MEMBERS: 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 BY-LAWS OF THE COOPERATIVE. FEDERATED RURAL ELECTRIC TRUST 77100 HWY 71 S JACKSON MN 561430069 411802809 CHARITABLE MN 501(C)(3) LINE 7 FEDERATED RURAL ELECTRIC ASSOCIATION 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0