2016-08-01T18:33:06-05:00 2015-12-31 450310328 BRADY MARTZ AND ASSOCIATES PC PO BOX 14296 GRAND FORKS ND 582084296 990 2015-01-01 410411772 MILLE LACS ENERGY COOPERATIVE MILL 2189272191 PO BOX 230 AITKIN MN 56431 CAROL L KYAR CONTROLLER 2189272191 2016-07-06 1 DAVID HOLT P00014251 7017754685 2016-07-06 2015 2016-09-27 15:27:22Z JAY PORTER PO BOX 230 AITKIN MN 56431 24253405 0 X WWW.MLECMN.NET X 1939 MN PROVIDES ELECTRIC DISTRIBUTION SERVICE TO 14,969 MEMBERS OF THE COOPERATIVE 7 6 54 0 324327 -504555 0 0 24825991 23230884 378887 326211 1501164 636518 26706042 24193613 0 0 2747517 1133999 262560 390703 0 0 0 23695965 22668911 26706042 24193613 0 0 62912346 63054023 35772824 35503018 27139522 27551005 501(C)12 ELECTRIC DISTRIBUTION COOPERATIVE - EXEMPT PURPOSE IS TO PROVIDE ELECTRICITY TO OUR MEMBERS 0 0 PROVIDE ELECTRIC SERVICE TO 14,969 MEMBERS OF THE COOPERATIVE 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 1 0 0 0 0 0 1 0 0 1 49 0 54 1 1 1 0 0 0 0 23208707 842165 0 X 7 6 0 0 0 0 1 1 1 1 1 0 0 1 0 1 1 1 1 0 X THE ORGANIZATION 2189272191 36559 US HIGHWAY 169 AITKIN MN 56431 HAROLD HARMS PRESIDENT 9.80 X X 14254 0 0 DONALD APPEL VICE PRESIDENT 7.70 X X 14587 0 0 BARBARA WELTY SECRETARY/TREASURER 4.90 X X 13097 0 0 AILEEN R DEMENGE ASST SECRETARY/TREASURER 4.30 X X 12987 0 0 WILLIAM BERNARD DIRECTOR 5.90 X 14775 0 0 DENNIS LAMKE DIRECTOR (FORMER) 8.70 X 4484 0 0 MICHAEL W REEM DIRECTOR 7.20 X 14307 0 0 BRUCE ROBINSON DIRECTOR 4.80 X 9787 0 0 JAY PORTER GENERAL MANAGER 45.60 X 168978 0 20044 CAROL KYAR CONTROLLER 43.50 X 80596 0 22807 STEVEN G MELD FORMER OPERATIONS MANAGER 41.00 X 108965 0 17254 ROBERT PETE LINEMAN 47.30 X 108022 0 24770 TIMOTHY SORENSON LINEMAN 46.70 X 106004 0 21189 670843 0 106064 6 0 1 0 CENTRAL APPLICATORS 3190 HWY 25 NE FOLEY MN 56329 BRUSH SPRAYING & MOWING OF SUBSTATIONS 239316 NISC PO BOX 1147 MANDAN ND 58554 COMPUTER SOFTWARE SERVICES 235157 EAST CENTRAL ENERGY COOP PO BOX 39 BRAHAM MN 55006 PLANT MAINTENANCE, ON CALL SERVICES 126485 R & G WALDHALM CONTRACTORS 3263 LAKETOWN RD STURGEON LAKE MN 55783 CONTRACT WORK 114509 4 ELECTRIC SALES 221000 22815539 22815539 FORFEITED DISCOUNTS 221000 258438 258438 OTHER MISCELLANEOUS REVENUE 221000 130459 130459 POLES, ATTACHMENTS & OTHER RENTAL 221000 26448 2590 23858 23230884 314013 314013 19724 7526 12198 12198 12198 60880 52266 8614 8614 INTERNET, LD, PHONE AND DTV 517000 315713 315713 GENERATION & TRANSMISSION AND OTH 900099 217155 217155 OTHER CAPITAL CREDITS 900099 88610 88610 6426 6426 627904 24193613 23519217 324327 350069 X 1133999 390703 1118117 1674949 COST OF POWER 14437178 DISTRIBUTION - OPERATIO 2634411 ADMINISTRATIVE AND GENE 1487684 UNRELATED BUSINESS EXPE 332739 983833 24193613 379047 227995 3204542 2871676 434994 337868 655193 678722 3434830 3226424 64101969 22707063 40378440 41394906 12177939 12253809 2247361 2062623 62912346 63054023 3550754 3131823 19026 20670 30788730 30985733 1414314 1364792 35772824 35503018 X 0 0 0 0 27139522 27551005 27139522 27551005 62912346 63054023 X 0 411483 X X 0 1 X 1 0 159470 159470 1889080 1169350 719730 10478898 2627102 7851796 51574521 18910611 32663910 41394906 CAPITAL CREDITS OTHER COOP ORGANIZATIONS 11052270 C MEMBERSHIP FEES 1225 C CFC CAPITAL TERM CERTIFICATES 1023199 C MINNESOTA RURAL ELECTRIC TRUST 30608 C ECONOMIC DEVELOPMENT PROJECTS 139942 C INVESTMENT IN INTERNET & LD EQUIP, NET 6565 C 12253809 CUSTOMER ENERGY PREPAYMENTS 283027 DEFERRED COMPENSATION PLAN 167000 SALES TAX REFUND 254540 UNCLAIMED PROPERTY 222133 INSTALLATION COSTS - METERS & TRANSFORMERS 68812 OTHER DEFERRED CREDITS 3669 CUSTOMER DEPOSITS 365611 1364792 X 24193613 0 24193613 0 24193613 23059614 0 23059614 1133999 1133999 24193613 PART X, LINE 2: INCOME TAXES - THE COOPERATIVE IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE; HOWEVER, THE COOPERATIVE IS SUBJECT TO INCOME TAX FROM INCOME DERIVED FROM SOURCES THAT ARE NOT RELATED TO ITS EXEMPT PURPOSE. FOR THE YEARS ENDING DECEMBER 31, 2015 AND 2014, MANAGEMENT HAS ESTIMATED THESE TAXES TO BE INSIGNIFICANT. THE COMPANY'S POLICY IS TO EVALUATE 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 XII, LINE 4B - OTHER ADJUSTMENTS: PATRONAGE DIVIDENDS PAID (ALLOCATED) 1,133,999. X X 0 0 0 JAY PORTER GENERAL MANAGER 168978 0 0 0 0 0 6932 0 13112 0 189022 0 0 0 GREAT RIVER ENERGY HAROLD HARMS REPRESENTS THE COOPERATIVE ON GREAT RIVER ENERGY'S BOARD. 14437178 PURCHASE OF WHOLESALE POWER 0 FORM 990, PART VI, SECTION A, LINE 6 MEMBER OWNED ELECTRIC COOPERATIVE FORM 990, PART VI, SECTION A, LINE 7A WE ARE A COOPERATIVE. BOARD MEMBER POSITIONS COME UP FOR ELECTION EVERY 3 YEARS. ALL MEMBERS ARE ELIGIBLE TO VOTE. THE BOARD IS AUTHORIZED TO FILL A POSITION WHEN VACATED DURING THE YEAR. FORM 990, PART VI, SECTION A, LINE 7B WHERE APPLICABLE, I.E. CHANGES IN ARTICLES OF INCORPORATION BY-LAWS, DISSOLUTION OF COOPERATIVE, ETC. ALL MEMBERS ARE ELIGIBLE TO PARTICIPATE IN THIS DECISION. FORM 990, PART VI, SECTION B, LINE 11 A DRAFT COPY OF THE 990 WAS PROVIDED TO EACH BOARD MEMBER. THIS WAS REVIEWED BY THE CONTROLLER WITH THE BOARD AT THE JULY BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 15 THE WAGE AND SALARY PLAN USED FOR ALL OF THE NON-UNION EMPLOYEES, INCLUDING THE MANAGEMENT TEAM, IS BASED ON SURVEY DATA PROVIDED BY NRECA FOR SIMILAR POSITIONS OF OTHER RURAL ELECTRIC COOPERATIVES IN THE U.S. THE PROCESS USED HAS BEEN APPROVED BY THE BOARD AND IS DOCUMENTED IN POLICY. THE OVERALL PLAN IS REVIEWED ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 MILLE LACS ENERGY COOPERATIVE PUBLISHES ITS ARTICLES OF INCORPORATION AND BYLAWS ON ITS WEBSITE AND ALSO SENDS A COPY TO ALL NEW MEMBERS AND ANY MEMBERS WHO REQUEST A PAPER COPY. THE COOPERATIVE PUBLISHES ITS QUARTERLY FINANCIAL STATEMENTS IN ITS MONTHLY NEWSPAPER "THE OUTLET" (WHICH IS MAILED TO ALL MEMBERS AND ALSO POSTED ON THE WEBSITE); SAME WITH ITS ANNUAL REPORT TO THEIR MEMBERSHIP. FORM 990, PART IX 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 XII 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: RETIREMENT OF CAPITAL CREDITS -722,516. PATRONAGE DIVIDENDS PAID (ALLOCATED) 1,133,999. FORM 990, PART XII, LINE 2C THE PROCESS FOR OVERSEEING THE AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTANT HAS NOT CHANGED FROM THE PRIOR YEAR. MILLE LACS ELECTRIC COMMUNITY TRUST PO BOX 230 AITKIN MN 56431 411902846 COMMUNITY TRUST MN 501(C)(3) LINE 7 N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 MILLE LACS ELECTRIC COMMUNITY TRUST R 62374 CASH DISTRIBUTED