2016-08-08T09:46:47-05:00 2015-12-31 450250958 EIDE BAILLY LLP 4310 17TH AVE S PO BOX 2545 FARGO ND 581082545 990 2015-01-01 450216732 Mountrail-Williams Electric Cooperative MOUN 7015773765 PO Box 1346 Williston ND 588021346 Dale Haugen General Manager 7015773765 2016-07-25 1 LISA CHAFFEE CPA P00193453 7012398500 2016-07-25 2015 2016-12-15 16:53:06Z Dale Haugen PO Box 1346 Williston ND 588021346 220190478 0 X www.mwec.com X 1944 ND Meet the changing needs of members, provide excellent electric service & improve the community. 9 9 122 0 0 0 0 0 190673963 219261249 462201 272431 128291 274952 191264455 219808632 0 0 32534822 33966246 9669610 12379254 0 0 0 148607801 173089151 190812233 219434651 452222 373981 491257767 521973541 393196472 389879853 98061295 132093688 X Mountrail-Williams Electric Cooperative is a member-owned cooperative that exists to meet the changing needs of its membership, to provide them with personal, excellent service and to keep them fully informed about their cooperative. Our mission includes playing a leadership role in the community and contributing to improving the quality of life in our service area. We seek to accomplish these purposes by providing professional and personal development opportunities for employees and directors. Further, we seek to meet our responsibilities through prudent management and with rates that are fair and equitable. 0 0 Provided electric service to approximately 7,362 members servicing 19,390 meters. Added/replaced 5,733 miles of line. 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 1 376 0 1 122 1 0 0 0 0 0 238843328 509677 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 Jay Lux 7015773765 PO Box 1346 Williston ND 588021346 X Roger Sorenson President 4.70 X X 14575 0 0 Robert Grant Vice President 4.90 X X 16754 0 0 Blaine Jorgenson Secretary 4.20 X X 15026 0 0 Cheryl Hartsoch Treasurer 6.40 X X 16351 0 0 Nick Haugen Director 2.70 X 11499 0 0 Warren Bratvold Director 4.20 X 15509 0 0 Garrett Lalim Director 3.20 X 12936 0 0 Larry Johnson Director 4.80 X 17457 0 0 Aaron Lynne Director 6.50 X 25687 0 0 Dale Haugen General Manager 48.30 X 246470 0 117398 Jay Lux Business Manager 43.30 X 157621 0 126997 Bruce Balerud Operations Manager 40.20 X 130600 0 55513 Josh Heredia Operations Manager 44.10 X 141828 0 21949 Mark Telehey Construction Coordinator 50.30 X 131363 0 84987 Jerry Rehak IT/Special Projects Manager 43.50 X 131133 0 64140 Jeremy Folven Line Foreman 51.60 X 136407 0 34529 1221216 0 505513 7 0 1 0 Anderson & Wood Construction 2120 E Lanark St Meridian ID 83642 Powerline & Substation Construction 19531296 J Grubl Excavating LLC PO Box 503 Sturgis SD 57785 Powerline Construction 5488483 HDR Engineering Inc PO Box 3480 Omaha NE 68103 Electrical Engineering 4598164 Keller Construction 2902 Yale Court Rapid City SD 57702 Powerline Construction 4309800 Higher Power LLC 8253 61st Street NW Stanley ND 58784 Powerline Construction 3817258 9 Electric Revenues 221000 211502946 211502946 Capital Credits 221000 7758303 7758303 219261249 290389 290389 17958 -17958 -17958 -17958 638840 363888 274952 274952 219808632 219536201 0 272431 X 33966246 708717 9527491 1401015 742031 14565741 16298274 Cost of Power 133476178 Distribution & Transmis 13854606 Admin & General & Other 4888671 Customer, Sales & Servi 2384935 -12379254 219434651 2138913 5785563 17644207 13384366 13883141 8603965 31966318 30055935 503663369 72657223 399104202 431006146 168033 193076 5500 5500 26338832 32930369 8621 8621 491257767 521973541 25518036 17438587 22035997 17773349 627 1634 337769907 344286291 7871905 10379992 393196472 389879853 X 8263337 8795518 0 0 89797958 123298170 98061295 132093688 491257767 521973541 X 373981 33658412 X 0 1 X 1 0 0 1 X 5395865 5395865 23529253 13098389 10430864 379217782 59558834 319658948 95520469 95520469 431006146 Patronage Capital 31940257 C RESC Stock 5200 C NRUFC Certificates 703975 C Memberships 9975 C Revolving Loan Pool 244184 C Home and Vehicle Loans 26778 C 32930369 Deferred Compensation 179963 Post Retirement Obligation 216750 Reserves For Plant and Power Improvement 7920650 Customer Deposits 2062629 10379992 X 219808632 0 219808632 0 219808632 185468405 0 185468405 33966246 33966246 219434651 Part IV, Line 2b: The Cooperative collects funds for the Operation Round Up program for the Mountrail Cooperative Trust and the Williams Cooperative Trust from the members. These funds are recorded as a liability on the Cooperative financials until they are released to the Trust on a quarterly basis. Mountrail Cooperative Trust receives 45% of the funds, while Williams Cooperative Trust receives 55% of the funds. The amount recorded in the financial statements at December 31, 2015 was $1,634. Part X, Line 2: The Cooperative is exempt from income taxes under Section 501(c)(12). The Cooperative files Federal Form 990T for its Unrelated Business Taxable Income (UBTI). The Cooperative follows the provisions of Accounting and Standards Codification (ASC) 740-10 Accounting for Uncertainty in Income Taxes. As of December 31, 2015 and 2014, 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 such penalties and interest are incurred. Under normal circumstances, the Cooperative and Subsidiary are no longer subject to Federal tax examinations by tax authorities for years before 2012 and state examinations for years before 2012. The Cooperative has undergone an annual analysis of various tax positions, assessing the likelihood of those positions being upheld upon examination with relevant tax authorities, as defined by ASC 740-10. Part XII, Line 4b - Other Adjustments: Patronage Capital Credits Allocated For Current Year 33,966,246. X 1 0 X X 0 0 0 Dale Haugen General Manager 240583 0 500 0 5387 0 102774 0 17074 0 366318 0 0 0 Jay Lux Business Manager 155307 0 500 0 1814 0 112738 0 15973 0 286332 0 0 0 Bruce Balerud Operations Manager 118518 0 500 0 11582 0 44838 0 12005 0 187443 0 0 0 Josh Heredia Operations Manager 131329 0 500 0 9999 0 11803 0 11597 0 165228 0 0 0 Mark Telehey Construction Coordinator 120185 0 500 0 10678 0 69091 0 16940 0 217394 0 0 0 Jerry Rehak IT/Special Projects Manager 128703 0 500 0 1930 0 48201 0 17446 0 196780 0 0 0 Jeremy Folven Line Foreman 126644 0 500 0 9263 0 23886 0 11653 0 171946 0 0 0 Part I, Line 1a Housing prices in MWEC's service area were greatly inflated due to an oil boom. A housing allowance of $750/month was given to all union and some non-union employees as part of their compensation package. This will be reviewed when the union contract runs out in 2018. Schedule J, Part II Column C Compensation of Officers, Directors, Key Employees, Highest Compensated Employees And Independent Contractors: included in other compensation is teh 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 Schedule O statement for Form 990, Part VII, Column F. Form 990, Part VI, Section A, line 6 The Cooperative has one class of members. Each member has one vote. A household is considered to be one member. Form 990, Part VI, Section A, line 7a The members of the Cooperative elect the Board of Directors. Each member has one vote. Form 990, Part VI, Section A, line 7b Changes in the Cooperative's Bylaws and the sale of a high percentage of the Cooperative's assets must be approved by the members. Form 990, Part VI, Section A, line 8b There are no committees with the authority to act on behalf of the full Board of Directors. Form 990, Part VI, Section B, line 11 The Business Manager and General Manager will review a draft. The approved Form 990 will be presented at the July 2016 board meeting. Form 990, Part VI, Section B, line 12c Directors of Mountrail-Williams Electric Cooperative are expected to disclose a situation which, in their opinion, is or could appear to be a conflict of interest. After such a disclosure, the Director must leave the Board meeting when issues involving the conflict of interest are discussed. The Director is not allowed to vote on issues regarding the conflict of interest. Form 990, Part VI, Section B, line 15 The Board performed an evaluation of the General Manager. They compared his compensation with the state wide salary survey as a guide to the compensation amount. The Board votes on the compensation. For the General Manager this is an annual occurrence. The Board voted in 2015 on his 2016 compensation. This process last took place in October of 2015. The Board negotiates with the union in regards to staff increases. The Business Manager's salary is determined by the General Manager. Form 990, Part VI, Section C, line 19 The Organization makes its governing documents, conflict of interest policy and financial statements available upon request. All new members receive a copy of the bylaws upon becoming a member. A financial report is distributed at the members' annual meeting. Form 990, Part VII Other Compensation: 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 Dale Haugen is $93,699, $40,036 for Bruce Balerud, $106,469 for Jay Lux, $6,968 for Josh Heredia, $20,356 for Jeremy Folven, $65,628 for Mark Telehey, and $42,929 for Jerry Rehak. 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 $65,317 for Dale Haugen, $34,566 for Bruce Balerud, $45,123 for Jay Lux, $14,871 for Josh Heredia, $25,306 for Jeremy Folven, $25,306 for Mark Telehey, and $37,948 for Jerry Rehak. Form 990, Part IX, Line 24e Allocated Costs: The labor, pension 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 $(12,379,254). Form 990, Part IX, Functional Expense, Line 4: Benefits Paid to Members: The Cooperative has interpreted the instructions to Part IX, Line 4, to mean patronage capital allocated for the year, rather than patronage capital retired. This is consistent with the Bylaws of the Cooperative. Form 990, Part XI, line 9: Retirement of Capital Credits -387,797. Discounted Estate Requirements 12,302. Unclaimed Capital Credits 67,661. Patronage Capital Credits Allocated For Current Year 33,966,246. Mountrail Cooperative Trust Inc PO Box 1346 Williston ND 58802 911796201 Community Support ND 501(c)(3) 7 Mountrail-Williams Electric Cooperative 1 Williams Cooperative Trust Inc PO Box 1346 Williston ND 58802 911796235 Community Support ND 501(c)(3) 7 Mountrail-Williams Electric Cooperative 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0