2018-11-09T14:19:17-06:00 2017-12-31 450310328 BRADY MARTZ AND ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2017-01-01 410266055 FREEBORN-MOWER COOPERATIVE SERVICES FREE 5073736421 2501 MAIN STREET EAST ALBERT LEA MN 56007 JIM KRUEGER CEO/PRESIDENT 5073736421 2018-11-07 1 DAVID HOLT P00014251 7017754685 2018-11-07 24.111.23.178 2018-11-07 09:44:14 CS P 391FEDBFF93EAE5F651B54B0E18FE1057DBF5A07 395636C0289E73AFD8F252F18F8A4C9B0684D197 2017 2019-02-21 02:37:17Z 2501 MAIN STREET EAST ALBERT LEA MN 56007 55353319 0 X WWW.FMCS.COOP X 1936 MN PROVIDE ELECTRIC POWER TO THE MEMBERS OF THE COOPERATIVE WHICH CONSISTS OF APPROXIMATELY 21,000 MEMBERS. 9 9 69 0 132015 111888 0 0 50436573 53313338 83569 238064 1004981 1477592 51525123 55028994 0 0 3404228 5584331 341621 353319 0 0 0 49322649 50865039 53068498 56802689 -1543375 -1773695 108699533 112204502 78717098 78807859 29982435 33396643 PROVIDE ELECTRIC POWER TO THE MEMBERS OF THE COOPERATIVE WHICH CONSISTS OF APPROXIMATELY 21,000 MEMBERS. 0 0 PROVIDE ELECTRIC POWER TO THE MEMBERS OF THE COOPERATIVE WHICH CONSISTS OF APPROXIMATELY 21,000 MEMBERS. 0 0 0 0 0 0 0 0 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 1 1 0 0 1 106 0 69 0 1 1 0 0 0 0 53312195 1859979 0 X 9 9 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MN IA X ANGIE KOLKER DIRECTOR OF FINANCE 5073798859 PO BOX 611 ALBERT LEA MN 56007 X ROGER WENESS BOARD CHAIR 10.00 X 14262 0 0 JOHN JACK KORMAN VICE-CHAIR 8.00 X 10405 0 0 STEVE GARBISCH TREASURER 4.00 X 10534 0 0 BURTON MAGNUSON SECRETARY 8.00 X 13418 0 0 DENNIS ANDERSON DIRECTOR 4.00 X 10980 0 0 FRANK FRYER DIRECTOR 2.00 X 12387 0 0 MATTHEW J MARAS TREASURER 4.00 X 3730 0 0 LARRY IRVINE DIRECTOR 2.00 X 10849 0 0 WILLIAM TRYGSTAD DIRECTOR 2.00 X 11157 0 0 JOE PACOVSKY DIRECTOR 8.00 X 8350 0 0 JAMES KRUEGER PRESIDENT/CEO 40.00 X 183107 0 89274 ALAN CASTERTON LINE FOREMAN 50.00 X 108861 0 68956 JACK KORTAN MANAGER OF OPERATIONS-DIST 40.00 X 111375 0 106626 LOREN SPRAGUE LINE FOREMAN 47.00 X 100839 0 68431 AL STADHEIM DIRECTOR OF ENGIN & OPERAT 40.00 X 134961 0 46735 745215 0 380022 5 0 1 0 ASPLUNDH TREE EXPERT CO 1700 SOLUTIONS CENTER CHICAGO IL 606771700 TREE CLEARING 403823 NISC PO BOX 1147 MANDAN ND 58554 SOFTWARE SUPPORT & MAINT; BILLING 381762 MASTEC NORTH AMERICA INC PO BOX 70 SHEVLIN MN 56676 DIRECTIONAL BORING 150680 PREMIER LOCATING PO BOX 459 BUFFALO MN 55313 UNDERGROUND CABLE & WIRE LOCATING 142163 DAIRYLAND POWER COOPERATIVE PO BOX 1450 MINNEAPOLIS MN 554856004 NEWSLETTER; AVL HOSTING; RADIO MAINT 129858 5 SALE OF POWER 221000 53313338 53313338 53313338 167128 167128 174272 146205 152147 97394 22125 48811 70936 70936 76675 74784 1891 1891 CAPITAL CREDITS 900099 1345486 1345486 MINNESOTA THREE LLC #46-2958241 900099 106778 106778 MISCELLANEOUS INCOME 900099 21127 -258 21036 349 2310 2310 1475701 55028994 54658566 132015 238413 X 5584331 353319 1884667 3128315 COST OF POWER 38164037 DISTRIBUTION EXPENSE - 2233228 DISTRIBUTION EXPENSE - 1841203 ADMINISTRATION & GENERA 1465881 2147708 56802689 5509405 4604739 815001 835782 5401306 5651160 769526 791493 1859101 1795106 114043507 31138745 80129602 82904762 1994015 2243972 12221577 13377488 108699533 112204502 6757551 6057873 69506073 70561839 2453474 2188147 78717098 78807859 X 0 0 0 0 29982435 33396643 29982435 33396643 108699533 112204502 X -1773695 161333 5026570 X X 0 1 X 1 0 142471 142471 3087365 1483717 1603648 11008637 3034581 7974056 99805034 26620447 73184587 82904762 PATRONAGE CAPITAL IN ASSOCIATED ORGS 10997248 C CAPITAL TERM CERTIFICATES 758335 C ECONOMIC DEVELOPMENT LOANS 1060100 C SOUTHERN MINNESOTA ENERGY COOPERATIVE 546885 C OTHER PROGRAM RELATED INVESTMENTS 14920 C 13377488 DEFERRED CREDITS 2160745 DEFERRED TAXES 27402 2188147 X 54982219 -46775 -46775 55028994 0 55028994 51218357 0 51218357 5584331 5584331 56802688 PART X, LINE 2: THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. HOWEVER, INCOME FROM UNRELATED BUSINESS ACTIVITIES IS SUBJECT TO INCOME TAX AT NORMAL CORPORATE RATES. THE COOPERATIVE'S POLICY IS TO EVALUTE THE LIKELIHOOD THAT ITS UNCERTAIN TAX POSITIONS WILL PREVAIL UPON EXAMINATION BASED ON THE EXTENT TO WHICH THOSE POSITIONS HAVE SUBSTANTIAL SUPPORT WITHIN THE INTERNAL REVENUE CODE AND REGULATIONS, REVENUE RULINGS, COURT DECISIONS AND OTHER EVIDENCE. IT IS THE OPINION OF MANAGEMENT THAT THE COOPERATIVE HAS NO SIGNIFICANT UNCERTAIN TAX POSITIONS THAT WOULD BE SUBJECT TO CHANGE UPON EXAMINATION. THE FEDERAL INCOME TAX RETURNS OF THE COOPERATIVE ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. PART XI, LINE 2D - OTHER ADJUSTMENTS: INCOME TAX BENEFIT -42,362. PARTNERSHIP INCOME BOOK VS. TAX DIFFERENCES MINNESOTA THREE LLC -300. PARTNERSHIP INCOME BOOK VS. TAX DIFFERENCES HEARTLAND SECURITY SERVICES LLC -4,113. PART XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE DIVIDENDS ALLOCATED 5,584,331. X X X X 0 0 0 JAMES KRUEGER PRESIDENT/CEO 183107 0 0 0 0 0 72037 0 17237 0 272381 0 0 0 ALAN CASTERTON LINE FOREMAN 108861 0 0 0 0 0 51719 0 17237 0 177817 0 0 0 JACK KORTAN MANAGER OF OPERATIONS-DIST 111375 0 0 0 0 0 89389 0 17237 0 218001 0 0 0 LOREN SPRAGUE LINE FOREMAN 100839 0 0 0 0 0 51194 0 17237 0 169270 0 0 0 AL STADHEIM DIRECTOR OF ENGIN & OPERAT 134961 0 0 0 0 0 29498 0 17237 0 181696 0 0 0 SCHEDULE J, PART II, COLUMN C INCLUDED IN COLUMN "C", DEFERRED COMPENSATION, IS THE ESTIMATED ANNUAL INCREASE (DECREASE) IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. FOR THE FOLLOWING INDIVIDUALS, THE ESTIMATED INCREASE (DECREASE) IS: JAMES KRUEGER: $54,406 ALAN CASTERTON: $43,000 JACK KORTAN: $78,083 LOREN SPRAGUE: $42,518 ALLAN STADHEIM: $17,526 THESE AMOUNTS ARE ESTIMATES IN THE INCREASE (DECREASE) OF THE VALUE OF THE PLAN AND ARE NOT CURRENT YEAR EXPENSES OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 6 EACH MEMBER IS A CONSUMER OF THE COOPERATIVE. FORM 990, PART VI, SECTION A, LINE 7A THERE IS ONLY ONE CLASS OF VOTING MEMBERSHIP AND EACH MEMBER IS ALLOWED ONE VOTE. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY THE BOARD AND MANAGEMENT TEAM PRIOR TO ITS FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C AN ANNUAL COMPLIANCE CERTIFICATION IS COMPLETED BY EACH BOARD MEMBER, OFFICER, AND KEY EMPLOYEE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS WILL USE NATIONAL, REGIONAL, AND STATE DATA TO DETERMINE THE NEW ANNUAL SALARY FOR THE PRESIDENT/CEO. THE BOARD OF DIRECTORS WILL ALSO UTILIZE THE NATIONAL COMP. STUDY CONDUCTED ANNUALLY BY NRECA AS A GUIDE. EACH NON-UNION EMPLOYEE COMPLETES AN EVALUATION FORM WHICH IS REVIEWED ANNUALLY WITH THEIR SUPERVISOR. WAGE INCREASES ARE BASED UPON PERFORMANCE ANNUALLY. THE UNION EMPLOYEES' WAGE INCREASE IS BASED ON THE UNION CONTRACT. BOTH OF THESE PROCESSES WERE USED DURING THE CURRENT TAX YEAR. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE MAKES ITS GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST AT THE COOPERATIVE. FORM 990, PART VII, SECTION A, LINE 1A: INCLUDED IN PART VII, SECTION A, LINE 1A, COLUMN F, IS THE ESTIMATED ANNUAL INCREASE IN THE ACTUARIAL VALUE OF THE DEFINED BENEFIT PLAN. THIS AMOUNT IS AN ESTIMATE OF THE INCREASE OF THE VALUE OF THE PLAN AND IS NOT A CURRENT YEAR EXPENSE OF THE COOPERATIVE. CURRENT YEAR CONTRIBUTIONS INTO THE DEFINED BENEFIT PLAN ARE A CURRENT YEAR EXPENSE AND ARE INCLUDED IN PART IX AS SUCH. FORM 990, PART IX, LINE 4 AS REQUIRED BY FORM 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: INCOME TAX BENEFITS -42,362. PATRONAGE DIVIDENDS ALLOCATED 5,584,331. CAPITAL CREDITS RETIRED -510,986. MINNESOTA THREE LLC K-1 -300. HEARTLAND SECURITY SERVICES, LLC K- -4,113. FORM 990, PART XII, LINE 2C OVERSIGHT PROCESS OF THE AUDIT AND SELECTION PROCESS OF THE INDEPENDENT AUDITORS HAS NOT CHANGED FROM THE PRIOR YEAR. FREEBORN-MOWER CONSTRUCTION COMPANY 2501 MAIN STREET EAST ALBERT LEA MN 56007 204760363 CONSTRUCTION COMPANY MN FREEBORN-MOWER COOPERATIVE SERVICES FREEBORN-MOWER OPERATION ROUND-UP 2501 MAIN STREET EAST ALBERT LEA MN 56007 208772314 COMMUNITY TRUST MN 501(C)(3) 7 FREEBORN-MOWER COOPERATIVE SERVICES 1 MINNESOTA THREE LLC 1775 LAKE SHADY AVE SOUTH ORONOCO MN 55960 462958241 SOLAR GENERATION PLANT MN FREEBORN-MOWER COOPERATIVE SERVICES UNRELATED 106778 674501 0 1 0.33330 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 FREEBORN-MOWER OPERATION ROUND-UP R 104806 MEMBER BILLING ROUND UP