2018-07-27T13:14:06-05:00 2017-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2017-01-01 410403745 McLeod Cooperative Power Association MCLE 3208643148 PO Box 70 Glencoe MN 553360070 Carrie L Buckley General Manager 3208643148 2018-07-26 1 LISA CHAFFEE CPA P00193453 7012398500 2018-07-26 2017 2022-09-23 18:48:47Z Carrie L Buckley PO Box 70 Glencoe MN 553360070 21006045 0 X www.mcleodcoop.com X 1935 MN To enhance the quality of life for our members and customers through effective solutions. 9 9 33 0 53399 18642 0 0 22051319 20737083 279342 240334 0 0 22330661 20977417 0 0 1050692 968077 3239510 3230982 0 0 0 17688776 16496349 21978978 20695408 351683 282009 60247674 67508435 32850764 39430064 27396910 28078371 X To deliver energy and other services that will improve the quality of life for our customers, and to maximize customer satisfaction by delivering those services in the most friendly, safe, reliable and competitive manner possible. 1 0 Provided electric service to an average of 6,690 accounts in 2017. We had an increase of 4 miles of line during 2017. The cooperative has 1,896 miles of distribution line as of December 31, 2017. 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 0 0 0 0 0 0 0 1 1 0 0 1 86 0 1 33 1 1 1 0 0 0 0 20304119 471737 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 Carrie L Buckley 3208643148 1231 Ford Ave Glencoe MN 553360070 X Keith Peterson President 4.00 X X 8090 0 6 Roger Karstens Vice President (Jan-Apr) 7.00 X X 2460 0 1 Joel Griebie Director (Jan-Apr )/VP ( -Dec) 5.00 X X 6415 0 6 Doug Kirtz Secretary/Treasurer 4.00 X X 4515 0 6 Gerald Roepke Assistant Secretary/Treas. 6.00 X X 5120 0 3 Alan Duesterhoeft Director 4.00 X 4740 0 6 Oria Brinkmeier Director 8.00 X 7440 0 2 Randy Hlavka Director 6.00 X 6765 0 6 Gary Burdorf Director 6.00 X 7595 0 6 David Resch Director (Starting Apr) 4.00 X 4305 0 4 Carrie L Buckley General Manager 40.00 X 181134 0 92735 Susan Noyes Manager of Finance 40.00 X 76544 0 38230 Daniel Schade Line Superintendent 40.00 X 101146 0 110571 Darrel Beste Manager of Engineering 40.00 X 118097 0 42976 534366 0 284558 3 0 1 0 MP Nexlevel LLC 500 Co Rd 37 East Maple Lake MN 55358 Electrical Installation 584115 Burnham Companies PO Box 1677 Monticello MN 553621677 Tree Cutting 385177 2 Sale of Electricity 221000 20079187 20079187 Capital Credits 221000 605554 605554 Sale of Load Management Equipment 221000 89247 89247 Heartland K-1 812900 18375 18375 Contract Work - Arlington 221000 15349 15349 -70629 -90304 19675 20737083 268962 268962 28628 -28628 -28628 -28628 20977417 20683684 53399 240334 X 968077 760044 1921310 369508 180120 1190061 1790101 Cost of Power 12472385 Distribution 2142725 Administrative & Genera 1130597 Customer Service 1001462 -3230982 20695408 918589 883989 2326825 2632322 2486537 2530480 1251809 822776 708541 879160 56492665 14539844 40782837 41952821 11763366 17751340 9170 55547 60247674 67508435 3560170 4124978 411965 354518 8690 18567 28127693 33983966 742246 948035 32850764 39430064 X 0 0 27396910 28078371 0 0 27396910 28078371 60247674 67508435 X 282009 399452 X 0 1 X 1 0 0 1 X 309518 309518 1419943 608892 811051 52992624 13930952 39061672 1770580 1770580 41952821 Patronage Capital 11003639 C Investment in Assoc. Org - Nongen Funds 6277913 C Investment in Economic Development Project 212677 C Other Investments 257111 C 17751340 Consumer Deposits 103340 Accumulated Provision for Pension & Benefits 629695 Other Regulatory Liability 215000 948035 X 20884739 15293 15293 20869446 107971 107971 20977417 19638084 -89247 -89247 19727331 968077 968077 20695408 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 McLeod Cooperative Power Trust. These funds are transferred directly to the McLeod Cooperative Power Trust periodically throughout the year. 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 McLeod Cooperative Power Trust. For the year ended December 31, 2017 the account held $18,567. Part X, Line 2: The Cooperative is exempt from income taxes under Section 501(c)(12). The Cooperative is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. The Cooperative files an Exempt Organization Business Income Tax Return (Form 990-T) with the IRS to report its unrelated business taxable income. 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, 2017 and 2016, the unrecognized tax benefit accrual was zero. The Cooperative will recognize future accrued interest and penalties related to unrecognized tax benefits in income tax expense if incurred. Part XI, Line 2d - Other Adjustments: Heartland Book Income 15,293. Part XI, Line 4b - Other Adjustments: Heartland K-1 Tax Income 18,724. Sale of Load Management Equipment 89,247. Part XII, Line 2d - Other Adjustments: Sale of Load Management Equipment -89,247. Part XII, Line 4b - Other Adjustments: Patronage Capital Credits Allocated During Current Year 968,077. X X 0 0 0 Carrie L Buckley General Manager 173625 0 175 0 7334 0 64464 0 32362 0 277960 0 0 0 Daniel Schade Line Superintendent 99521 0 175 0 1450 0 78895 0 34128 0 214169 0 0 0 Darrel Beste Manager of Engineering 113472 0 175 0 4450 0 30539 0 15552 0 164188 0 0 0 Schedule J, Part II, column C, Deferred Compensation: Included in other 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. Form 990, Part III, line 2 We have added a new service offering. We are selling automatic generators to members. If you purchase the generator, there is also a 5 year maintenance plan that you must agree to in order to keep the warranty. Form 990, Part VI, Section A, line 6 The members are all the same class. The organization is a member owned electric cooperative. Form 990, Part VI, Section A, line 7a The service territory is divided into districts. Members from that district elect their director to represent them. Directors serve a three year term. Form 990, Part VI, Section A, line 7b If changes are made to the by-laws, the changes will be voted on by the members at the annual meeting. Each member has one vote. Form 990, Part VI, Section A, line 8b There are no committees with authority to act on behalf of the Board of Directors. Form 990, Part VI, Section B, line 11b The Form 990 was reviewed by the Cooperative's CEO & CFO prior to being presented and reviewed by the Board of Directors at the June 2018 board meeting. Form 990, Part VI, Section B, line 12c When obtaining quotes or bids for purchases or contract work, it is management's responsibility to ensure that there are no violations to this policy. The conflict of interest policy applies to the directors, officers and key employees of McLeod Cooperative Power Association, and any related individuals to the directors, officers, or key employees. It is the responsibility of the interested party to disclose any conflicts of interest. The Board interprets and enforces the conflict of interest policy. If it is determined that the policy is not being followed the individual not following the policy may be sanctioned, disqualified, and/or dismissed. In the event that a conflict may occur the interested parties abstain from voting. Form 990, Part VI, Section B, line 15 The General Manager's compensation is reviewed and approved by the Board of Directors. Other officers and employees are reviewed by the General Manager and approved by the Board of Directors. The Board uses comparability data and substantiates their decision in board minutes. Form 990, Part VI, Section C, line 19 The governing documents, conflict of interest policy, and financial statements are made 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 for Carrie L. Buckley is $55,531, Daniel Schade is $73,554, Susan Noyes is $5,620, and Darrel Beste is $24,840. 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 $36,306, $21,616, $8,179 and $23,062, respectively. Form 990, Part IX, Statement of Functional Expenses, Line 24e The labor, pension, other employee benefits, 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 $(3,230,982). Form 990, Part XI, line 9: Patronage Capital Retirements -565,194. Heartland K-1 Tax Income -18,724. Heartland Book Income 15,293. Patronage Capital Credits Allocated During Current Year 968,077. McLeod Cooperative Power Trust 1231 Ford Ave PO Box 70 Glencoe MN 553360070 421620470 Charitable Purposes MN 501(c)(3) Line 7 McLeod Cooperative Power Association 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 0 0