2020-09-03T11:10:44-05:00 2019-12-31 450250958 Eide Bailly LLP 1730 Burnt Boat Loop Ste 100 Bismarck ND 585030886 990 2019-01-01 450173086 North Central Electric Cooperative Inc NORT 7012282202 538 11th St W No 1 Bottineau ND 58318 Wayne Martian General Manager 7012282202 2020-08-27 1 Lisa Chaffee CPA P00193453 7012551091 2020-08-27 63.157.104.106 2020-08-27 11:36:49 CD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 93C0C30FADC8E9ECFACDC91E878616133D2A47FE 2019 2020-11-19 02:30:22Z David O'Connell 538 11th St W No 1 Bottineau ND 58318 30013114 0 X www.nceci.com X 1941 ND The exempt purpose of the organization is to provide electricity to members. 9 9 39 0 0 0 0 0 26280564 29461857 52599 57934 -4111 -47518 26329052 29472273 0 0 2324153 3984425 4133748 4334502 0 0 0 19868257 21290680 26326158 29609607 2894 -137334 78403302 87920042 52594185 59277281 25809117 28642761 X None 0 1 Sale of electricity and electrical services to 4,840 residential and commercial members. Service encompasses over 3,286 miles of utility line. 0 0 0 0 0 0 0 1 0 1 0 1 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 0 1 32 0 1 39 1 0 0 0 0 0 27333927 31590 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 Sarah Dawson 7012282202 538 11th Street West Suite 1 Bottineau ND 58318 X David O'Connell President 10.00 X X 20257 0 0 Stuart Rothe Vice President 3.00 X X 9991 0 0 Lori Kittleson Secretary/Treasurer 4.00 X X 8166 0 0 Jean Brandt Secretary/Treasurer Assist 3.00 X X 7866 0 0 Jesse Fahnestock Director 3.00 X 6666 0 0 Bradley Aho Director 3.00 X 7991 0 0 Kenneth Brenden Director(Jan-June) 3.00 X 3252 0 0 R Jay Paul Director 3.00 X 7866 0 0 Joel Brandvold Director 3.00 X 9991 0 0 Devin Tolstad Director(June-Dec) 3.00 X 4355 0 0 Wayne Martian General Manager 50.00 X 281206 0 21985 Tori Kling Business Manager 50.00 X 124408 0 56585 David Caroline Operations Manager 40.00 X 130921 0 15991 Pete Erickson Member Services Manager 40.00 X 113952 0 14439 Darin Hasenwinkel Journeyman Lineman 43.00 X 107612 0 25819 Jonathan Beyer Engineering Manager 40.00 X 101782 0 54305 Tyler Liebelt Line Crew Foreman 40.00 X 103874 0 30596 1050156 0 219720 7 0 1 0 Central Trenching Inc 5200 7th Ave SW Minot ND 58701 Trenching and Boring 364441 Parisien's Tree Service PO Box 777 Belcourt ND 58316 Trimming Trees 148331 Dakota Tree Service Inc PO Box 195 Devils Lake ND 58301 Trimming Trees 119140 3 Electric Sales 221000 26695344 26695344 Capital Credits 221000 2766513 2766513 29461857 82515 82515 15000 0 15000 15000 15000 16590 41171 -24581 -24581 -24581 437152 499670 -62518 -62518 29472273 29399339 0 72934 X 3984425 568669 2952950 563811 249072 1665496 2615196 UBI Taxes Refund -688 Cost of Power 15412919 Distribution Expense 3274203 Administrative and Gene 1340229 -3016675 29609607 X 1185051 6930130 3155000 3344671 356 92 261 1596497 2097088 392659 393583 92759425 34511778 57467474 58247647 357759 374627 14197852 16409579 50393 122625 78403302 87920042 2830801 3193916 2840222 4210680 6690 1568 46916472 51871117 52594185 59277281 X 25809117 28642761 0 0 0 0 25809117 28642761 78403302 87920042 X -137334 2970978 X 0 1 X 1 0 0 1 X 215810 215810 6261514 1324315 4937199 85602028 33187463 52414565 680073 680073 58247647 Patronage Capital 15033437 C Rural Econ Dev Revolving Loan Pool 941259 C Equipment Loans 315129 C Memberships 2277 C Federated Rural Electric Insurance Equity 117477 C 16409579 X 29472961 688 688 29472273 0 29472273 25625870 0 25625870 3983737 3983737 29609607 Part IV, Line 2b: The members of the Cooperative can elect to round up their monthly electric bill to the next dollar. These funds collected from the membership are held in a Cooperative account until they are released to the North Central Electric Trust, Inc. These funds are transferred directly to the North Central Electric Trust, Inc. on a quarterly basis. Funds that exist at the end of year are a result of a timing difference in the receipt of the funds and the release of them to the North Central Electric Trust, Inc. For the year ended December 31, 2019 the account held $1,568. Part X, Line 2: The Cooperative is exempt from income taxes under Section 501(c)(12) of the Internal Revenue Code. The Cooperative is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. The Cooperative 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, 2019 and 2018, the unrecognized tax benefit accrual was zero. The Cooperative will recognized future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. Part XI, Line 2d - Other Adjustments: UBI tax refund netted with expenses on Form 990 688. Part XII, Line 4b - Other Adjustments: UBI tax refund netted with income for financial statements -688. Patronage Capital Credits Allocated For Current Year 3,984,425. X X X 0 0 0 Wayne Martian General Manager 276588 0 300 0 4318 0 11137 0 14367 0 306710 0 0 0 Tori Kling Business Manager 123532 0 300 0 576 0 38364 0 19891 0 182663 0 0 0 Jonathan Beyer Engineering Manager 98621 0 300 0 2861 0 25726 0 30003 0 157511 0 0 0 Part II Included in column "c" , deferred compensation, is the estimated current year increase in the actuarial value of the defined benefit plan. These amounts do not represent any current year contributions to the plan. They are estimates of the increase in the actuarial value of the plans received from the NRECA. The current year expense and the increase in actuarial value for each employee is reflected in the Schedule O statement for Form 990, Part VII, column F. Jean Brandt Board of Directors Refrigerator X 1200 92 0 0 1 92 Form 990, Part III, line 3 North Central Electric Cooperative, Inc. stopped providing Mainstreet Messenger to members and non-members in December, 2018. The non-member activity was previously reported on the Form 990-T. Form 990, Part VI, Section A, line 6 There is one class of members which all have the same voting rights. Form 990, Part VI, Section A, line 7a Members vote for all open positions in all districts that are up for election that year. Form 990, Part VI, Section A, line 7b Changes to bylaws or articles of incorporation must be approved by members of the Cooperative. Form 990, Part VI, Section A, line 8b There are no committees that have authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11b The General Manager and Business Manager reviewed a draft of the Form 990. The Form 990 was presented at a board meeting prior to filing with the IRS. Form 990, Part VI, Section B, line 12c Directors and management must annually complete a form to disclose any conflicts they might have. The President of the Board reviews the disclosures. For each instance disclosed, the President has discretion to take no action, assure full disclosure to the full board and management, ask the person to recuse him or herself from discussions or decisions relating to the conflict or ask the person to resign. The General Manager monitors proposed or ongoing conflicts and discloses them to the Board President. Form 990, Part VI, Section B, line 15 The Board annually uses a salary survey made available through the North Dakota Association of Rural Electric Cooperatives. The salary deliberation is documented in the minutes. The Board votes on the compensation. Compensation for the Business Manager is determined based on Business Manager salaries at other cooperatives across North Dakota, taking into account the results of the ND Association of REC's Wage and Salary Survey. In addition, the Business Manager's years of service to the Cooperative are considered. The Board approves all wages anually. For non-union employees the General Manager makes a recommendation, and the Board votes to approve. For union members, the union negotiates directly with the Board and the General Manager. When an agreement is reached the Board will formally approve the new wage scale. Form 990, Part VI, Section C, line 19 The governing documents, conflict of interest policy, and financial statements are available upon request. Form 990, Part VII, Section A, Column (F) Included in column "f", estimated amount of other compensation, is the estimated annual increase in the actuarial value of the defined benefit plan. The estimated increase is as follows for those listed in Part VIII: Tori Kling $33,180 Darin Hasenwinkel $12,187 Jon Beyer $21,306 Tyler Liebelt $17,029 These amounts are estimates in the increase of the value of the plan and are not current year expenses of the Cooperative. The current year expense for this defined benefit plan was as follows: Tori Kling $26,071 Darin Hasenwinkel $18,706 Jon Beyer $22,231 Tyler Liebelt $18,706 Form 990, Part IX, Statement Of Functional Expenses, Line 24e Allocated Costs: The labor, pension, and payroll taxes reported on lines 5-10 are already included in distribution expense, administrative & general expense and customer expense. Therefore, these amounts are being subtracted out as an other deduction on line 24e in the amount of $(4,334,502). Form 990, Part X, Line 4: 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 Bylaws of the Cooperative. Form 990, Part XI, line 9: Capital Credits Retired -1,013,447. Patronage Capital Credits Allocated for Current Year 3,984,425. North Central Electric Trust Inc 538 11th Street West Suite 1 Bottineau ND 58318 467523359 Operation Roundup ND 501(c)(3) Line 7 North Central Electric Cooperative Inc 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0