2025-11-03T15:01:53-06:00 2024-12-31 450310328 BRADY MARTZ & ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2024-01-01 410252540 FEDERATED RURAL ELECTRIC FEDE 5078473520 77100 US HWY 71 JACKSON MN 56143 SCOTT REIMER GENERAL MANAGER 5078473520 2025-10-27 1 1 DAVID HOLT P00014251 7017754685 2025-10-27 2024 2025-03-06 01:10:19Z SCOTT REIMER 77100 US HWY 71 JACKSON MN 56143 42169496 0 X HTTPS://WWW.FEDERATEDREA.COOP/ X 1935 MN TO DISTRIBUTE ENERGY AND SERVICES IN A COST EFFECTIVE, RELIABLE, AND EFFICIENT MANNER. 7 7 34 0 698615 35603 0 0 41594550 40298916 338641 323301 1702979 1124595 43636170 41746812 19296 17567 2104231 1908233 3027730 3248117 0 0 0 37085123 36284798 42236380 41458715 1399790 288097 82382527 88539380 35156334 40241685 47226193 48297695 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 5,260 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 ACQUIRED A FIXED INTERNET COMPANY WITH 1,100 CUSTOMERS IN 2021 AND SINCE THEN HAS PURSUED EXPANDING THE BROADBAND DIVISION BY SCALING A FIBER NETWORK DEPLOYMENT AND GROWING ITS CUSTOMER BASE TO 1,800. THE COOPERATIVE HAS BEEN AWARDED TWO MINNESOTA GRANTS AND HAS RECEIVED SUPPORT FROM LOCAL COUNTIES WITHIN AND OVERLAPPING THE ELECTRIC SERVICE TERRITORY IN ITS PURSUIT OF PROVIDING THE HIGHEST QUALITY INTERNET SERVICE TO ALL OF OUR CUSTOMERS. 0 0 0 0 0 0 0 1 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 1 0 0 0 0 0 0 1 1 0 0 1 162 0 1 34 1 1 1 0 0 0 0 41032241 1365575 0 0 0 X 7 7 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 1 0 X SCOTT REIMER 5078473520 77100 US HWY 71 JACKSON MN 56143 DAVID HANSEN PRESIDENT (THROUGH DECEMBER 2024) 4.00 X X 16200 0 0 DARVIN VOSS SECRETARY/TREASURER 3.00 X X 13950 0 0 SCOTT THIESSE DIRECTOR 6.00 X 13800 0 0 BRUCE BROCKMANN DIRECTOR 4.00 X 13050 0 0 GLENN DICKS DIRECTOR 4.00 X 12300 0 0 DAVID MESCHKE VICE PRESIDENT 3.00 X X 11400 0 0 JON SAXEN DIRECTOR 3.00 X 10350 0 0 TYLER AYERS DIRECTOR (START NOVEMBER 2024) 3.00 X 3013 0 0 SCOTT REIMER GENERAL MANAGER 40.00 X 232352 0 72527 JULIE RESCH CFO/OFFICE MANAGER 40.00 X 110627 0 52522 MATT MADDEN OPERATIONS MANAGER 40.00 X 112680 0 53235 ALEX C KUNZ LINEMAN 40.00 X 111203 0 44151 BRANDON CLARKE WELCOME FOREMAN 40.00 X 108420 0 49720 CASEY L SCHOELLERMAR LINEMAN 40.00 X 106780 0 49174 CHRIS BORCHARDT LINEMAN 40.00 X 106520 0 53112 982645 0 374441 12 0 1 0 MIDWEST UTILITY SERVICES LLC 160 SUMMIT AVE MANKATO MN 56001 CONSTRUCTION 2347792 FINLEY ENGINEERING COMPANY INC PO BOX 959624 ST LOUIS MO 63195 ENGINEERING/PROFESSIONAL SERVICES 466233 CARR'S TREE SERVICE INC PO BOX 250 OTTERTAIL MN 56571 TREE TRIMMING 329932 TD & I CABLE MAINTENANCE INC 1378 QUINLAN AVE LAKELAND MN 55043 CONSTRUCTION 319232 STAR ENERGY SERVICES LLC 6841 POWER LANE SW ALEXANDRIA MN 56308 ENGINEERING 190710 6 ELECTRIC SALES 221000 38769490 38769490 BROADBAND REVENUE 517000 1529426 877398 652028 40298916 311039 311039 31525 19263 12262 12262 12262 143573 403421 -259848 -259848 CAPITAL CREDITS 221000 1308738 1308738 PARTNERSHIP INCOME 900099 43393 43393 CTV INCOME 517000 18955 15761 3194 13357 13357 1384443 41746812 40711539 698615 336658 X 17567 1908233 561569 2137499 351226 197823 937971 2122516 COST OF POWER 30451741 BROADBAND EXPENSES 1536665 DISTRIBUTIONS - OPERATI 1351530 ADMIN AND GENERAL 1213835 -1329460 41458715 106176 105081 2926965 3915647 3099752 3075143 621299 496889 1915788 1411286 952410 1475812 81664619 29176013 48032088 52488606 2126055 2249055 20708297 21609313 1520899 1366642 372798 345906 82382527 88539380 4360724 5697038 1069645 1545606 2586 27231208 30464326 800000 1000000 1694757 1532129 35156334 40241685 X 0 0 6482038 7441435 40744155 40856260 47226193 48297695 82382527 88539380 X 288097 783405 X X 0 1 X 1 1 1 0 1 X 128726 128726 3145011 1004105 2140906 73658535 28171908 45486627 4732347 4732347 52488606 CFC CAPITAL TERM CERTIFICATES 533115 C CFC MEMBER CAPITAL SECURITIES 100000 C CFC MEMBERSHIP 1000 C COBANK 101687 C COOPERATIVE TELEVISION ASSOCIATION 266547 C FEDERATED RURAL ELECTRIC SUPPLY INSURANCE 183996 C GREAT RIVER ENERGY MEMBERSHIP 100 C GREAT RIVER ENERGY PATRONAGE CAPITAL 9166232 C L&O POWER COOPERATIVE 10655158 C NATIONAL RURAL TELECOMMUNICATIONS COOP 103892 C NATIONAL RURAL UTITILIES CFC 89026 C OTHER 1174 C RURAL ELECTRIC SUPPLY COOPERATIVE 249638 C SOUTHERN MINNESOTA ENERGY COOPERATIVE 157748 C 21609313 FINANCE LEASE OBLIGATION 275513 POSTRETIREMENT BENEFIT OBLIGATION 206242 CONSUMER DEPOSITS 80980 CONTINGENT LIABILITY 607231 UNCLAIMED CAPITAL CREDIT CHECKS 282975 DEFERRED SPECIAL EQUIPMENT COSTS 78479 OTHER DEFERRED CREDITS 709 1532129 X 40350987 -1395825 -1395825 41746812 0 41746812 38051258 0 38051258 3407457 3407457 41458715 PART IV, LINE 2B: THE MEMBERS OF THE COOPERATIVE CAN ELECT TO ROUND UP THEIR MONTHLY ELECTRIC BILL TO THE NEXT DOLLAR FOR CHARITABLE PURPOSES. THESE FUNDS COLLECTED FROM THE MEMBERSHIP ARE HELD IN A COOPERATIVE ACCOUNT UNTIL THEY ARE RELEASED TO THE FEDERATED RURAL ELECTRIC TRUST. THE BALANCE AT YEAR END ARE THE RESULT OF A TIMING DIFFERENCE IN THE RECEIPT OF FUNDS FROM MEMBERS AND RELEASE TO THE FEDERATED RURAL ELECTRIC TRUST. PART X, LINE 2: THE ASSOCIATION IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. THE ASSOCIATION IS SUBJECT TO INCOME TAX ON ITS UNRELATED BUSINESS INCOME (UBI) AND FILED ANNUALLY ON FEDERAL FORM 990T. 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, 2024 AND 2023, 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: PARTNERSHIP BOOK TO TAX DIFFERENCE 103,399. BROADBAND EXPENSE -1,536,665. INCOME TAX EXPENSE 37,441. PART XII, LINE 4B - OTHER ADJUSTMENTS: BROADBAND EXPENSE 1,536,665. INCOME TAX EXPENSE -37,441. ALLOCATED CAPITAL CREDITS 1,908,233. X 1 1 X X X 0 0 0 SCOTT REIMER GENERAL MANAGER 231397 0 0 0 955 0 37600 0 36577 0 306529 0 0 0 MATT MADDEN OPERATIONS MANAGER 111562 0 0 0 1118 0 19307 0 34850 0 166837 0 0 0 JULIE RESCH CFO/OFFICE MANAGER 110202 0 0 0 425 0 18908 0 34493 0 164028 0 0 0 CHRIS BORCHARDT LINEMAN 106162 0 0 0 358 0 18506 0 35389 0 160415 0 0 0 BRANDON CLARKE WELCOME FOREMAN 108038 0 0 0 382 0 18221 0 32315 0 158956 0 0 0 CASEY L SCHOELLERMAR LINEMAN 106422 0 0 0 358 0 17981 0 31976 0 156737 0 0 0 ALEX C KUNZ LINEMAN 110865 0 0 0 338 0 18809 0 26125 0 156137 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 MANGER FOR BUSINESS TRAVEL. PAMELA HESER DAUGHTER OF DIRECTOR (GLENN DICKS) 48830 COMPENSATION AS EMPLOYEE OF COOPERATIVE 0 FORM 990, PART VI, SECTION A, LINE 4 THE CONTINUED GROWTH AND DEVELOPMENT OF THE FEDERATED BROADBAND DIVISION REQUIRED THAT THE BYLAWS BE UPDATED TO ALLOW BROADBAND TO OPERATE ON A COOPERATIVE BASIS. THE AMENDMENT INCLUDED LANGUAGE TO DEFINE A MEMBER AS ONE TAKING DELIVERY OF ELECTRIC ENERGY WHILE A PATRON (WHO COULD RECEIVE PATRONAGE CAPITAL) WAS DEFINED AS RECEIVING ELECTRIC ENERGY AND OTHER COOPERATIVE SERVICES. A "COOPERATIVE SERVICE" WAS DEFINED AS A LIKE KIND GOOD OR SERVICES PROVIDED BY THE COOPERATIVE, AS DETERMINED BY THE COOPERATIVE'S BOARD OF DIRECTORS. THE AMENDED BYLAWS WERE ADOPTED AUGUST 1, 2024. 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 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 FILLED WITH THE IRS, EACH BOARD MEMBER RECEIVED 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. IN 2024, THE COOPERATIVE CONDUCTED AN ADDITIONAL COMPENSATION STUDY THAT ALSO REVIEWED COMPENSATION FOR THE CFO/OFFICE MANAGER. FOR THE CFO/OFFICE MANAGER AND ALL NONUNION EMPLOYEES, THE GENERAL MANAGER MAKES A RECOMMENDATION TO THE BOARD WHICH THE BOARD APPROVES. 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 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 PATRONAGE DIVIDENDS PAID: AS REQUIRED BY 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: RETIRED CAPITAL CREDITS -1,228,227. PARTNERSHIP BOOK TO TAX DIFFERENCE 103,399. ALLOCATION OF CAPITAL CREDITS 1,908,233. FORM 990, PART XII, LINE 2C THE FULL BOARD OF DIRECOTRS ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT AUDITOR. FEDERATED RURAL ELECTRIC TRUST 77100 HWY 71 S JACKSON MN 561430069 411802809 CHARITABLE MN 501(C)(3) 7 FEDERATD RURAL ELECTRIC ASSOCIATION 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0