2022-05-06T08:34:37-05:00 2021-12-31 410746749 CLIFTONLARSONALLEN LLP 2689 COMMERCE DRIVE NW SUITE 201 ROCHESTER MN 55901 990 2021-01-01 410558175 STEARNS COOPERATIVE ELECTRIC ASSOCIATION STEA 8009620655 900 KRAFT DR SE PO BOX 40 MELROSE MN 56352 ROBIN C DOEGE CEO 8009620655 2022-04-12 1 ROBIN DOEGE 999009999 KATHERINE LUTZKE CPA P01760889 5072802300 2022-04-11 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z STEARNS ELECTRIC ASSOCIATION ROBIN C DOEGE 900 KRAFT DR SE PO BOX 40 MELROSE MN 56352 66118417 0 X WWW.STEARNSELECTRIC.ORG X 1937 MN GENERATION AND PURCHASE OF ELECTRICITY FOR DISTRIBUTION ON A COOPERATIVE BASIS TO MEMBERS. 8 8 75 0 220018 219018 0 0 59677520 61943099 162601 351430 1424927 3087418 61265048 65381947 0 0 3777378 5398280 950459 984669 0 0 0 56537211 58998998 61265048 65381947 0 0 147743922 153957017 77588806 80385184 70155116 73571833 GENERATION AND PURCHASE OF ELECTRICITY FOR DISTRIBUTION AND SALE ON A COOPERATIVE BASIS TO MEMBERS. 0 0 SOLD 539,012,226 KWH TO OUR COOPERATIVE MEMBERS IN 2021. THE AVERAGE NUMBER OF TOTAL SERVICES WAS 27,774. WE OPERATE ON A COOPERATIVE BASIS TO GENERATE, PURCHASE, DISTRIBUTE, AND SELL ELECTRICITY TO OUR MEMBERS. NET PATRONAGE MARGINS, OUR NET INCOME, IS USED TO GROW OUR PLANT AND RETIRE CAPITAL CREDITS. NET MARGINS ARE ALLOCATED TO MEMBERS AND RETURNED TO OUR MEMBERS OVER TIME. 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 66 0 75 1 1 1 0 0 0 0 0 0 64344483 1081467 0 0 0 X 8 8 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 0 X CINDY ANDERSON 8009620655 900 KRAFT DR SE MELROSE MN 56352 ROBIN C DOEGE CEO 45.00 0.00 X 268979 0 105565 MATTHEW R O'SHEA VP OF ENGINEERING & OPERAT 45.00 0.00 X 181372 0 74731 VICTORIA HERKENHOFF VP OF ADMINISTRATION & FIN 45.00 0.00 X 171522 0 77150 GLENN BLOMMEL MANAGER OF OPERATIONS 50.00 0.00 X 161810 0 74768 JAMES PACHAN MANAGER OF ENGINEERING 45.00 0.00 X 138602 0 62940 RYAN A ZIERDEN MANAGER OF IT 50.00 0.00 X 145436 0 54534 CINDY ANDERSON MANGER OF FINANCE 45.00 0.00 X 130698 0 65826 DARLA HONKOMP MANAGER OF MEMBER SERVICES 45.00 0.00 X 119051 0 61649 ARLYN LAWRENZ DIRECTOR 5.00 0.00 X 12850 0 0 STEVEN NOTCH SECRETARY/TREASURER 5.00 0.00 X X 12650 0 0 ANTHONY C AMPE DIRECTOR - PART YEAR 7.00 0.00 X 12200 0 0 RANDALL ROTHSTEIN VICE PRESIDENT 7.00 0.00 X X 12200 0 0 ERIC PETERSON PRESIDENT 7.00 0.00 X X 11900 0 0 GREG BLAINE DIRECTOR 11.00 0.00 X 11800 0 0 JEROME FRIES DIRECTOR 8.00 0.00 X 11800 0 0 LAWRENCE IVERSON DIRECTOR 3.00 0.00 X 11550 0 0 MICHAEL CRAMER DIRECTOR 4.00 0.00 X 7600 0 0 RICHARD NATHE DIRECTOR - PART YEAR 0.01 0.00 X 800 0 0 1422820 0 577163 29 0 1 0 CARR'S TREE SERVICE PO BOX 250 OTTERTAIL MN 56571 TREE CLEARING 1437411 INTEGRITY CONTRACTING INC 17827 COUNTY ROAD 2 SHEVLIN MN 56676 UNDERGROUND POWER LINE UTILITY CONTRACTO 878882 NISC PO BOX 1147 MANDAN ND 58554 SOFTWARE SERVICE/SUPPORT 429654 SKYLINE UTILITIES INC 11352 EASY STREET BRAINERD MN 56401 OVERHEAD POWER LINE UTILITY CONTRACTOR 225522 STAR ENERGY SERVICES LLC 6841 POWER LANE SW ALEXANDRIA MN 56308 GIS MAPPING; SOFTWARE, ENGINEERING, FIEL 207898 7 SALE OF ELECTRICITY 221000 61943099 61943099 61943099 76617 76617 19623 0 19623 19623 19623 864389 589576 274813 274813 219345 55468 161096 146894 14202 14202 CAPITAL CREDITS 523000 2474790 2474790 SUBSIDIARY INCOME 523000 430910 430237 673 MISCELLANEOUS FEES 523000 147893 147893 3053593 65381947 65010221 220018 151708 5398280 984669 1934721 4666213 TAXES 65579 COST OF POWER 40670566 MAINTENANCE 3856239 OPERATIONS 3576281 4229399 65381947 976118 900094 5310493 6946676 6479202 6284872 2365178 2505129 245082 386166 146807446 46280017 97856088 100527429 33353326 35414106 1158435 992545 147743922 153957017 9337660 8841956 65858514 67290880 2392632 4252348 77588806 80385184 X 0 0 0 0 70155116 73571833 70155116 73571833 147743922 153957017 X 0 3416717 X X 0 1 X 1 0 992422 992422 6284534 2260459 4024075 139530490 44019558 95510932 100527429 PATRONAGE CAPITAL 29173471 C INVEST IN CFC-LOAN CTCS 1093751 C INVEST IN ASSOCIATED ORG 13625 C INVEST IN ECON DEV PROJECTS 1529894 C OTHER INVESTMENTS 3603365 C 35414106 DEFERRED CREDITS 3749369 ACCUMULATED PROVISION FOR PENSIONS 502979 4252348 X PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. THE COOPERATIVE'S WHOLLY OWNED SUBSIDIARY, SEA DEVELOPMENT, LLC, IS TREATED AS A DISREGARDED ENTITY FOR INCOME TAX PURPOSES. GAINS AND LOSSES FROM THE LLC ARE INCLUDED WITH THE COOPERATIVE'S UNRELATED BUSINESS INCOME FOR TAX REPORTING PURPOSES. THE COOPERATIVE UTILIZES AN ASSET AND LIABILITY APPROACH TO FINANCIAL ACCOUNTING AND REPORTING FOR INCOME TAXES. DEFERRED INCOME TAXES ARE COMPUTED ANNUALLY FOR DIFFERENCES BETWEEN THE FINANCIAL STATEMENT AND TAX BASIS OF ASSETS AND LIABILITIES THAT WILL RESULT IN TAXABLE OR DEDUCTIBLE AMOUNTS IN THE FUTURE BASED ON ENACTED TAX LAWS AND RATES APPLICABLE TO THE PERIODS IN WHICH THE DIFFERENCES ARE EXPECTED TO AFFECT TAXABLE INCOME. AS OF DECEMBER 31, 2021 AND 2020, THE COOPERATIVE HAS A DEFERRED INCOME TAX ASSET OF $8,096 AND $11,964, RESPECTIVELY, SEE NOTE 16. VALUATION ALLOWANCES ARE ESTABLISHED WHEN NECESSARY TO REDUCE DEFERRED TAX ASSETS TO THE AMOUNT EXPECTED TO BE REALIZED. THE BENEFIT FOR INCOME TAXES IS THE TAX PAYABLE OR REFUNDABLE FOR THE PERIOD PLUS OR MINUS THE CHANGE DURING THE PERIOD IN DEFERRED TAX ASSETS AND LIABILITIES. THE COOPERATIVE EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2021 AND 2020. X X 0 0 0 ROBIN C DOEGE CEO 250551 0 8000 0 10428 0 79332 0 26233 0 374544 0 0 0 MATTHEW R O'SHEA VP OF ENGINEERING & OPERAT 165564 0 7200 0 8608 0 53028 0 21703 0 256103 0 0 0 VICTORIA HERKENHOFF VP OF ADMINISTRATION & FIN 158590 0 7200 0 5732 0 51725 0 25425 0 248672 0 0 0 GLENN BLOMMEL MANAGER OF OPERATIONS 149626 0 6400 0 5784 0 48887 0 25881 0 236578 0 0 0 JAMES PACHAN MANAGER OF ENGINEERING 131402 0 6400 0 800 0 42310 0 20630 0 201542 0 0 0 RYAN A ZIERDEN MANAGER OF IT 137726 0 6400 0 1310 0 43598 0 10936 0 199970 0 0 0 CINDY ANDERSON MANGER OF FINANCE 123441 0 6400 0 857 0 40293 0 25533 0 196524 0 0 0 DARLA HONKOMP MANAGER OF MEMBER SERVICES 111456 0 6400 0 1195 0 36285 0 25364 0 180700 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 PERSONS AND ENTITIES, INCLUDING JOINT MEMBERS, RECEIVING ELECTRIC SERVICE FROM THE COOPERATIVE, AND HAVING VOTING RIGHTS AS REFLECTED ON THE RECORDS OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS ELECT THE BOARD OF DIRECTORS (GOVERNING BODY) BY BALLOT THROUGH ELECTION PROCESS (9 VOTING DISTRICTS). FORM 990, PART VI, SECTION A, LINE 7B REMOVAL OF DIRECTORS FOR CAUSE & REINSTATE AN EXPELLED MEMBER. DISPOSAL OF MORE THAN 25% OF THE COOPERATIVE PROPERTY. MERGE OR CONSOLIDATE WITH ANOTHER ENTITY AND FILE BANKRUPTCY. A BYLAW CHANGE MUST BE APPROVED BY THE MEMBERS. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES THAT HAVE AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE CEO AND THE MANAGER OF FINANCE PROVIDE AND REVIEW FORM 990 WITH DIRECTORS BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C STEARNS ELECTRIC ASSOCIATION'S "CONFLICT OF INTEREST" POLICY APPLIES TO DIRECTORS, OFFICERS, AND SENIOR MANAGEMENT OF THE COOPERATIVE. ANNUALLY, DIRECTORS, OFFICERS AND SENIOR MANAGEMENT SIGN A GIFT STATEMENT ACKNOWLEDGING THEY UNDERSTAND THE COOPERATIVE'S GIFT POLICY AND THAT THEY HAVE NOT RECEIVED GIFTS OF SUCH NATURE. EACH YEAR, THEY ALSO SIGN A "CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE STATEMENT AND DISCLOSE ANY POSSIBLE CONFLICTS OF INTEREST AS DEFINED IN THE CONFLICT OF INTEREST POLICY. THE BOARD OF DIRECTORS REVIEWS SIGNED AND COMPLETED "GIFT STATEMENTS AND "CONFLICT OF INTEREST CERTIFICATIONS" EACH YEAR AND TAKES ACTION AS DEEMED NECESSARY BASED UPON THE POLICY. IF THERE WAS A POTENTIAL / ACTUAL CONFLICT OF INTEREST, THE PROCEEDINGS WOULD BE DOCUMENTED IN THE BOARD MINUTES. ANY NUMBER OF RESTRICTIONS MAY BE IMPOSED ON PERSONS WITH A CONFLICT OF INTEREST SUCH AS REQUIRING DIVESTITURE OF PROPERTY, OR INABILITY TO PARTICIPATE IN, DISCUSS, OR VOTE UPON DECISIONS OR ACTIONS TO WHICH THE CONFLICT IS OR MAY BE RELEVANT. VIOLATION OF THE POLICY MAY RESULT IN DISCIPLINARY ACTIONS, INCLUDING BUT NOT LIMITED TO: TERMINATION OF DIRECTORSHIP OR EMPLOYMENT. FINALLY, ALL EMPLOYEES ARE ALSO EXPECTED TO DISCLOSE POSSIBLE CONFLICTS OF INTEREST AS OUTLINED IN THE EMPLOYEE HANDBOOK. FORM 990, PART VI, SECTION B, LINE 15 A NATIONAL SURVEY IS USED FOR COMPARABILITY DATA. THE BOARD TAKES ACTION INDEPENDENTLY TO ESTABLISH COMPENSATION FOR THE CEO. SALARY ADJUSTMENT FORM IS SIGNED BY BOARD PRESIDENT. THE CEO DETERMINES COMPENSATION FOR KEY EMPLOYEES. A NATIONAL SURVEY IS USED FOR COMPARABILITY DATA. A SALARY FORM IS SIGNED BY EMPLOYEE SUPERVISOR. THIS PROCESS WAS MOST RECENTLY COMPLETED IN 2021. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS & CONFLICT OF INTEREST POLICY ARE AVAILABLE ON REQUEST FROM THE PERSON LISTED IN PART VI-C, LINE 20. FINANCIAL STATEMENTS ARE AVAILABLE PER THE PUBLIC INSPECTION RULES. FORM 990, PART XI, LINE 9: CAPITAL CREDITS RETIRED -2,147,307. PATRONAGE MARGINS ALLOCATED 5,398,280. ESTATE DISCOUNTS RETAINED 165,740. ROUNDING 4. PART XII, LINE 2C: THE PROCESS FOR OVERSIGHT OF THE ANNUAL FINANCIAL STATEMENT AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED. FORM 990, PART IX, LINE 4 THE IRS INSTRUCTIONS STATE THAT PATRONAGE MARGINS ALLOCATED BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI, ON PAGE 12 OF THE FORM 990. SEA DEVELOPMENT LLC 900 KRAFT DR SE MELROSE MN 56352 383733826 LAND/ECONOMIC DEVEOPMENT MN 219301 9668 STEARNS COOPERATIVE ELECTRIC ASSOCIATION 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 SEA DEVELOPMENT LLC S 752844 EXCESS CASH