2023-09-05T11:17:09-05:00 2022-12-31 450310328 BRADY MARTZ & ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2022-01-01 410266055 FREEBORN MOWER ELECTRIC COOPERATIVE FREE 5073736421 3366 BRIDGE AVE ALBERT LEA MN 56007 JIM KRUEGER CEO/PRESIDENT 5073736421 2023-08-31 1 JIM KRUEGER 999009999 1 DAVID HOLT P00014251 7017754685 2023-08-31 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z 3366 BRIDGE AVE ALBERT LEA MN 56007 62658713 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 70 0 22349 14686 0 0 54475182 60707650 964012 112190 1322946 1298912 56762140 62118752 0 0 1721743 1981033 378723 401487 0 0 0 52976545 58707749 55077011 61090269 1685129 1028483 136719563 146099899 95153817 102991927 41565746 43107972 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 1 214 0 70 1 1 1 0 0 0 0 60707651 1638434 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 13014 0 0 STEVE GARBISCH TREASURER 3.00 X 10176 0 0 BURTON MAGNUSON SECRETARY (THROUGH MARCH 2022) 8.00 X 2517 0 0 DENNIS ANDERSON VICE CHAIRMAN 4.00 X 11494 0 0 FRANK FRYER SECRETARY (FROM MARCH 2022) 3.00 X 12147 0 0 LARRY IRVINE DIRECTOR 4.00 X 11018 0 0 WILLIAM TRYGSTAD DIRECTOR 6.00 X 10908 0 0 JOE PACOVSKY DIRECTOR 5.00 X 11096 0 0 RICHARD SCHAUFLER DIRECTOR 10.00 X 13477 0 0 JAY NEITZELL DIRECTOR (FROM MARCH 2022) 3.00 X 12861 0 0 JAMES KRUEGER PRESIDENT/CEO 45.00 X 215879 0 92371 ALAN CASTERTON WORKING FOREMAN 47.00 X 121274 0 63494 JACK KORTAN MANAGER OF OPERATIONS 40.00 X 131095 0 86988 BRAD DEVRIES WORKING FOREMAN 48.00 X 124863 0 45160 AL STADHEIM DIRECTOR OF ENGIN & OPERATIONS 40.00 X 156517 0 65660 ETHAN EGGUM WORKING FOREMAN 45.00 X 155478 0 42544 1013814 0 396217 17 0 1 0 MASTEC NORTH AMERICA INC PO BOX 70 SHEVLIN MN 56676 DIRECTIONAL BORING 1166497 ASPLUNDH TREE EXPERT CO 1700 SOLUTIONS CENTER CHICAGO IL 606771700 TREE CLEARING 998517 NISC PO BOX 1147 MANDAN ND 58554 SOFTWARE SUPPORT & MAINT; BILLING 384722 DAIRYLAND POWER COOP PO BOX 1450 MINNEAPOLIS MN 55485 RADIO REPAIR, MISC PRINT SERVICES 133463 4 SALE OF POWER 221000 60707650 60707650 60707650 165252 165252 330554 11982 281234 114364 49320 -102382 -53062 -53062 137362 144363 -7001 -7001 CAPITAL CREDITS 900099 1273045 1273045 HEARTLAND SECURITY SERVICES, LLC 900099 22434 21821 613 MINNESOTA THREE LLC #46-2958241 900099 9288 6383 2905 1146 1146 1305913 62118752 61980695 22349 115708 X 1981033 401487 2445105 4269157 COST OF POWER 42466412 DISTRIBUTION EXPENSE - 2569001 DISTRIBUTION EXPENSE - 2494225 ADMINISTRATION & GENERA 2062111 2401738 61090269 1575908 3944828 463082 462462 5793026 6465285 1090787 2406518 1348391 1036239 141149933 28262766 107400425 112887167 2504097 2136479 16543847 16760921 136719563 146099899 6152240 6328481 88202152 92981856 3000000 799425 681590 95153817 102991927 X 0 0 0 0 41565746 43107972 41565746 43107972 136719563 146099899 X 1028483 -418237 931980 X X 0 1 X 1 0 590957 590957 15382043 638632 14743411 13627650 4038013 9589637 111549283 23586121 87963162 112887167 PATRONAGE CAPITAL IN ASSOCIATED ORGS 13311736 C CAPITAL TERM CERTIFICATES 740842 C ECONOMIC DEVELOPMENT LOANS 1627401 C SOUTHERN MINNESOTA ENERGY COOPERATIVE 1072301 C OTHER PROGRAM RELATED INVESTMENTS 8641 C 16760921 DEFERRED CREDITS 667598 DEFERRED TAXES 13992 681590 X 61688050 -418237 -12465 -430702 62118752 0 62118752 59109239 0 59109239 1981030 1981030 61090269 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 EVALUTE 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. PART XI, LINE 2D - OTHER ADJUSTMENTS: INCOME TAX BENEFIT 6,947. PARTNERSHIP INCOME BOOK VS. TAX DIFFERENCES MINNESOTA THREE LLC -24,763. PARTNERSHIP INCOME BOOK VS. TAX DIFFERENCES HEARTLAND SECURITY SERVICES LLC 5,351. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE DIVIDENDS ALLOCATED 1,981,033. ROUNDING ADJUSTMENT -3. X X X X 0 0 0 JAMES KRUEGER PRESIDENT/CEO 210015 0 150 0 5714 0 70761 0 21610 0 308250 0 0 0 AL STADHEIM DIRECTOR OF ENGIN & OPERATIONS 155480 0 150 0 887 0 44050 0 21610 0 222177 0 0 0 JACK KORTAN MANAGER OF OPERATIONS 129671 0 150 0 1274 0 65378 0 21610 0 218083 0 0 0 ETHAN EGGUM WORKING FOREMAN 155070 0 150 0 258 0 20934 0 21610 0 198022 0 0 0 ALAN CASTERTON WORKING FOREMAN 119675 0 150 0 1449 0 41884 0 21610 0 184768 0 0 0 BRAD DEVRIES WORKING FOREMAN 124414 0 150 0 299 0 23550 0 21610 0 170023 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: $49,731 ALAN CASTERTON: $31,816 JACK KORTAN: $52,084 BRAD DEVRIES: $10,478 AL STADHEIM: $28,249 ETHAN EGGUM: $10,921 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: HEARTLAND SECURITY SERVICES, LLC K-1 5,351. MINNESOTA THREE LLC K-1 -24,763. PATRONAGE DIVIDENDS ALLOCATED 1,981,033. INCOME TAX BENEFITS 6,947. CAPITAL CREDITS RETIRED -1,036,588. 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 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 9288 343527 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 102195 CASH TRANSFERRED