2022-11-14T16:01:48-07:00 2021-12-31 990 2021-01-01 381101255 THUMB ELECTRIC COOPERATIVE OF MICHIGAN INC THUM 9896588571 2231 Main Street Ubly MI 48475 Deborah Peruski Office Services Manager 9896588571 2022-11-14 1 11 0 AAL2 2021 2022-09-23 18:48:47Z Deborah Peruski 2231 Main Street Ubly MI 48475 24305067 0 X www.tecmi.coop X 1937 MI Electric Cooperative 9 9 37 0 0 0 0 0 22971804 24137746 60615 82975 -80865 50132 22951554 24270853 0 0 1801393 1871021 4573425 4889548 0 0 0 16631255 17843164 23006073 24603733 -54519 -332880 86613506 121318630 59352701 91875386 27260805 29443244 X Electric Cooperative. Added Fiber Division 1/21. 1 0 Electric power and services provided to 12,370 members. The Fiber Division provides broadband to members on a cooperative basis. Infrastructure began in 2021 and services started in 2022. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 1 1 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 1 0 1 17 0 1 37 1 0 0 0 0 0 24979374 2570349 0 0 0 X 9 9 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X Deborah Peruski 9896588571 2231 Main Street Ubly MI 48475 X Dallas Braun General Manager 40 X 245187 0 205382 Deborah Peruski Finance Executive 40 X 109498 0 152458 Bradley Essenmacher Broadband Manager 40 X 167916 0 79289 Mike Kozlowski Lineman 40 X 161449 0 55102 Jim Vogel Lineman 40 X 165325 0 50508 Mike Cleland Lineman 40 X 163039 0 40769 Gary Burns Jr Lineman 40 X 156206 0 36244 Kim Nunn Vice President 2 X X 8700 0 0 Jonathan Findlay President 2 X X 7825 0 0 Randall Dhyse Treasurer 2 X X 7575 0 0 Beth McDonald Secretary 2 X X 7050 0 0 Louis Wenzlaff Director 2 X 6388 0 0 Duane Kursinsky Director 2 X 5075 0 0 Mike Briolat Director 2 X 4700 0 0 Craig Osentoski Director 2 X 4375 0 0 Carl Cousins Director(Jan-July) 2 X 2850 0 0 Matt Sommer Director 2 X 750 0 0 Donald Wolschleger Director(January) 2 X 350 0 0 1224258 0 619752 17 0 1 0 Pulse Broadband LLc 2121 Cooperative Way Ste 600 Herndon VA 20171 Fiber Design/Materials 8838601 Kappen Tree Service 2675 Hurds Corner Road Cass City MI 48726 Tree Trimming 2102890 RESCO PO Box 44430 Madison WI 537444430 Line Construction Materials 1405229 FMCP Dept AT 40305 Atlanta GA 31192 Health Insurance 470335 Dykema Gossett PLLC 400 Renaissance Center Detroit MI 48243 Legal Attorneys 327200 14 0 Sales of Electricity 221000 23659398 23659398 0 0 Fiber Revenue-RDOF 517000 186723 186723 0 0 Service Fees 221000 107666 107666 0 0 Capital Credits 221000 93527 93527 0 0 Pole Attachments 221000 90432 90432 0 0 0 0 0 0 24137746 76673 0 0 76673 0 0 0 0 0 0 0 0 0 49306 0 6411 0 42895 42895 0 0 42895 0 16402 0 10100 0 6302 6302 0 0 6302 0 0 0 0 0 0 0 0 0 0 0 0 24940 17703 7237 7237 0 0 0 0 0 0 0 24270853 24144983 0 125870 X 0 0 0 1871021 505158 3413477 0 694125 0 276788 0 0 0 0 0 0 0 0 0 0 0 1046726 0 0 0 1617400 0 2838155 0 Cost f Power 11150885 Distribution 3523214 Administrative 1487058 Member Service 1069274 -4889548 24603733 0 0 0 0 0 1857808 3675625 0 3275628 5731579 1103010 6833778 84764 160202 116348166 33013992 76503151 83334174 3690602 21501770 98543 81502 86613506 121318630 6336115 11780919 479891 878482 52536695 79215985 0 0 59352701 91875386 X 185386 188026 0 0 27075419 29255218 27260805 29443244 86613506 121318630 X -332880 0 0 0 0 2515319 X 0 1 X 1 0 0 1023423 1023423 0 2365554 1206503 1159051 0 0 0 0 0 108061047 31807489 76253558 0 4898142 0 4898142 83334174 Investment in Affiliage-Notes Receivable 19765538 C Patronage in Associated Organizations 928253 C Capital Term Certificates/Memberships 723588 C Vacant Lot/Hogan Property 84391 C 21501770 0 X 25362333 0 0 0 1091480 1091480 24270853 0 0 0 24270853 22732712 0 0 0 0 0 22732712 0 1871021 1871021 24603733 Schedule D, Part X, Line 2 The Cooperative is exempt from federal income tax under Section 501 (c)(12) of the United States Internal Revenue Code, therefore, no provision for federal income tax is recorded. However, income from unrelated business activities is subject to income tax at normal corporate rates. The Cooperative has adopted the provisions of FASB Accounting Codification Topic ASC 740-10. The Cooperative had no unrecognized tax benefits as of December 31, 2021 and 2020. The Cooperative will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if such penalties and interest are incurred. Under normal circumstances, the Cooperative is no longer subject to Federal and State tax examinations by tax authorities for the years before 2018. Schedule D, Part XI, Line 2d Change in Investment in Subsidiary, $1,091,480. Schedule D, Part XII, Line 4b Patronage Capital Credit Allocated during the current year, $1,871,021. 0 0 0 Dallas Braun General Manager 240827 0 0 0 4360 0 182937 0 26686 0 454810 0 Deborah Peruski Finance Executive 108641 0 0 0 857 0 143508 0 10838 0 263844 0 Bradley Essenmacher Broadband Manager 165153 0 0 0 2763 0 59444 0 22167 0 249527 0 Jim Vogel Lineman 164884 0 0 0 441 0 30149 0 22081 0 217555 0 Mike Cleland Lineman 162855 0 0 0 184 0 21866 0 20623 0 205528 0 Mike Kozlowski Lineman 161266 0 0 0 183 0 31199 0 25661 0 218309 0 Gary Burns Jr Lineman 156052 0 0 0 154 0 17341 0 20623 0 194170 0 Form 990, Part III, Line 2 Broadband infrastructure began in 2021 and services began in 2022. This activity is being conducted on a cooperative basis. This is considered an expansion of the Cooperative's tax exempt purpose under Section 501(c)(12) of the IRC. Form 990, Part VI, Section A, Line 6 The Cooperative has members, each member has one voting right. Form 990, Part VI, Section A, Line 7a The Board of Directors is elected by the members. Form 990, Part VI, Section A, Line 7b Members vote on items affecting the bylaws of the Cooperative. Form 990, Part VI, Section A, Line 8b There are no other committees that act on behalf of the governing Board. Form 990, Part VI, Section B, Line 11b The Form 990 is reviewed and approved by the General Manager and Office Services Manager. The form is then provided to the Board before it is filed with the IRS. Form 990, Part VI, Section B, Line 12c The Board and Management staff conduct a yearly review for any conflicts. The General Manager reviews the documents and determines if a conflict exists. If a conflict exists, the General Manager would request that individual abstain from voting. Form 990, Part VI, Section B, Line 15 The Board annually reviews and approves the compensation for the General Manager and Office Services Manager in conjunction with NRECA compensation study. The Board review and approval is substantiated in the Board minutes. Form 990, Part VI, Section C, Line 19 The governing documents, conflict of interest policy and financial statements are available to the public upon request. Form 990, Part VII, Section A, Line 1a The amounts listed in Column F are the actuarial estimates of the increase in the value of the employees defined benefit pension. The actual current year expense for the defined benefit pension plan was: Dallas Braun $61,327, Deborah Peruski $27,510, Bradley Essenmacher $32,916, James Vogel $20,647, Michael Cleland $20,647, Michael Kozlowski $21,115, and Gary Burns Jr. $20,647. Form 990, Part IX, Line 4 The Cooperative has interpreted the instructions to this line and section to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the Cooperative bylaws. Form 990, Part IX, Line 5 Because Line 5 captures only the current year expense of the defined benefit pension plan of the Cooperative, the compensation in Part IX, Line 5 is less than that reported on Part VII. Form 990, Part IX, Line 24e Other expense, salaries, pension and payroll taxes report on Line 5-10 are already included in distribution expenses, administrative & general and consumer expenses. Therefore, these amounts are being subtracted out as an other deduction on Line 24e in the amount of ($4,889,548). Form 990, Part XI, Line 9 Change in net asset value. Memberships Issued $2,640, Other Equity Transactions $125,108, Retirement of Patronage Capital ($574,930), Patronage Capital Allocation $1,871,021, Change in Investment of Subsidiary $1,091,480. Total Amount on Part XI, Line 9 is $2,515,319. Thumb Energy Services Incorporated 2231 Main Street Ubly MI 48475 383291674 Propane Sales MI Thumb Electric Cooperative C 3830590 21643055 1 1 1 0 0 1 0 1 0 0 0 0 0 0 0 1 1 0 0 1 0 Thumb Energy Services Incorporated a-i 36822 General Ledger Thumb Energy Services Incorporated d 20000000 LTD & LOC Agreement Thumb Energy Services Incorporated f 2350000 General Ledger Thumb Energy Services Incorporated n 132101 General Ledger Thumb Energy Services Incorporated o 127457 Direct Labor Distribution Thumb Energy Services Incorporated r 1258512 General Ledger Schedule R, Part I Air Advantage LLC is a disregarded entity of Thumb Energy Service Inc.