2017-07-07T08:34:43-05:00 2016-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2016-01-01 410403745 McLeod Cooperative Power Association MCLE 3208643148 PO Box 70 Glencoe MN 553360070 Carrie L Buckley General Manager 3208643148 2017-06-28 1 LISA CHAFFEE CPA P00193453 7012398500 2017-06-28 198.135.124.201 2017-06-28 11:01:31 CD P 6C9B1A35775087DBDB8A6D25ECA509C7F6C27838 385FD7544B689D76E9DA9F221308BA92DD4DD75D 2016 2021-01-29 14:40:06Z Carrie L Buckley PO Box 70 Glencoe MN 553360070 22335426 0 X www.mcleodcoop.com X 1935 MN To enhance the quality of life for our members and customers through effective solutions. 9 9 35 0 22356 0 0 0 20637735 22051319 264733 279342 0 0 20902468 22330661 0 0 547507 1050692 2895724 3239510 0 0 0 17182788 17688776 20626019 21978978 276449 351683 59006537 60247674 32347947 32850764 26658590 27396910 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. 0 1 Provided electric service to an average of 6,646 accounts in 2016. We had an increase of 2 miles of line during 2016. The cooperative has 1,892 miles of distribution line as of December 31, 2016. 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 1 111 0 1 35 1 1 1 0 0 0 0 21758627 439204 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 6145 0 0 Roger Karstens Vice President 7.00 X X 7015 0 0 Doug Kirtz Secretary/Treasurer 4.00 X X 5340 0 0 Gerald Roepke Assistant Secretary/Treas. 6.00 X X 6015 0 0 Alan Duesterhoeft Director 4.00 X 4665 0 0 Oria Brinkmeier Director 8.00 X 7070 0 0 Randy Hlavka Director 6.00 X 4595 0 0 Joel Griebie Director 5.00 X 5790 0 0 Gary Burdorf Director 6.00 X 8715 0 0 Carrie L Buckley General Manager 40.00 X 175650 0 60765 Susan Noyes Manager of Finance 40.00 X 59198 0 6256 Janice Sanderson Manager of Acc/Finance (Jan-April) 40.00 X 74705 0 24721 Daniel Schade Line Superintendent 40.00 X 96826 0 81448 Darrel Beste Manager of Engineering 40.00 X 114520 0 28749 576249 0 201939 2 0 1 0 MP Nexlevel LLC 500 Co Rd 37 East Maple Lake MN 55358 Construction - Boring 454675 Burnham Companies PO Box 1677 Monticello MN 553621677 Tree Cutting 294488 2 Sale of Electricity 221000 21187579 21187579 Capital Credits 221000 684990 684990 Sale of Load Management Equipment 221000 106414 106414 Miscellaneous Income 900999 69809 69809 Contract Work - Arlington 221000 7546 7546 -5019 -19829 14810 22051319 284107 284107 4765 -4765 -4765 -4765 22330661 22028963 22356 279342 X 1050692 496791 2099295 458458 184966 1165549 1885127 Cost of Power 13345742 Distribution 2309129 Administrative & Genera 1310608 Customer Service 912131 -3239510 21978978 427684 918589 3214515 2326825 2295814 2486537 1293507 1251809 828228 708541 56002439 15219602 39890409 40782837 11047247 11763366 9133 9170 59006537 60247674 3550635 3560170 232789 411965 15898 8690 27784333 28127693 764292 742246 32347947 32850764 X 0 0 26658590 27396910 0 0 26658590 27396910 59006537 60247674 X 351683 386637 X 0 1 X 1 0 0 1 X 309518 309518 1419943 580508 839435 52851443 14639094 38212349 1421535 1421535 40782837 Patronage Capital 10501101 C Investment in Assoc. Org - Nongen Funds 764546 C Investment in Economic Development Project 232990 C Other Investments 264729 C 11763366 Consumer Deposits 100040 Accumulated Provision for Pension & Benefits 642206 742246 X 22227078 10092 10092 22216986 113675 113675 22330661 20821872 -106414 -106414 20928286 1050692 1050692 21978978 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, 2016 the account held $8,690. 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, 2016 and 2015, 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 10,092. Part XI, Line 4b - Other Adjustments: Heartland K-1 Tax Income 7,261. Sale of Equipment Included in Expenses on F/S 106,414. Part XII, Line 2d - Other Adjustments: Sale of Equipment Included in Revenue on 990 -106,414. Part XII, Line 4b - Other Adjustments: Patronage Capital Credits Allocated During Current Year 1,050,692. X X 0 0 0 Carrie L Buckley General Manager 168959 0 5 0 6686 0 55906 0 4859 0 236415 0 0 0 Daniel Schade Line Superintendent 95073 0 180 0 1573 0 69467 0 11981 0 178274 0 0 0 Form 990, Schedule J, Part II, Column C, Compensation of Officers, etc. Compensation of Officers, Directors, Key Employees, Highest Compensated Employees: Included in other 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 are reflected in the statement for Form 990, Part VII, Column f. Form 990, Part III, line 3 We have ceased our Exceed and Wild Blu internet services. These were offered under our non-operating income and they were no longer cost effective to continue as an additional service. 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 May 2017 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 $48,582, Daniel Schade is $65,097, Janice Sanderson is $19,006, and Derrel Beste is $23,436. 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 $28,424, $16,923, $6,877 and $18,055, 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 $(3,239,510). Form 990, Part XI, line 9: Patronage Capital Retirements -666,844. Prepayments -42. Heartland K-1 Tax Income -7,261. Heartland Book Income 10,092. Patronage Capital Credits Allocated During Current Year 1,050,692. 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