2016-06-28T15:38:29-05:00 2015-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2015-01-01 460189704 SIOUX VALLEY SOUTHWESTERN ELECTRIC COOPERATIVE INC SIOU 6055343535 PO BOX 216 COLMAN SD 570170216 RODNEY DEMENT BOARD PRESIDENT 6055343535 2016-06-08 1 CRAIG POPENHAGEN P01587689 5074347000 2015 2016-09-27 15:27:22Z SIOUX VALLEY ENERGY TIM MCCARTHY PO BOX 216 COLMAN SD 570170216 73189496 0 X WWW.SIOUXVALLEYENERGY.COM X 1939 SD TO PROVIDE ELECTRICITY UTILITY TO MEMBERS OF THE COOPERATIVE. 11 11 132 0 46376 -28274 0 0 68195264 70007804 223022 429054 2360388 2456994 70778674 72893852 0 0 6387676 6676098 527276 577311 0 0 0 66220671 65766102 73135623 73019511 -2356949 -125659 184759699 197230446 117970379 126310881 66789320 70919565 SIOUX VALLEY ENERGY'S MISSION IS TO BE ITS CUSTOMERS' CHOICE FOR ENERGY AND DIVERSIFIED SERVICES. 0 0 RURAL ELECTRIC DISTRIBUTION COOPERATIVE PROVIDING 734,644 MEGAWATT HOURS OF ELECTRICITY TO 19,772 MEMBER OWNERS. 0 0 0 0 0 0 0 1 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 143 0 1 132 1 1 1 0 0 0 0 70545824 1729748 0 X 11 11 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X BETTY VANDERWERFF 6055343535 47092 SD HWY 34 COLMAN SD 570170216 JAN BOBENDRIER DIRECTOR 5.00 X 3482 0 0 HENNING HANSEN DIRECTOR 8.00 X 11801 0 0 ALLAN WEINACHT VICE PRESIDENT 6.00 X X 10974 0 0 GARY DROST DIRECTOR 5.00 X 10024 0 0 GREGG JOHNSON DIRECTOR 7.00 X 8812 0 0 MARK ROGEN DIRECTOR 9.00 X 12724 0 0 BRUCE MARTINSON DIRECTOR 9.00 X 13442 0 0 ARLYN ZYLSTRA TREASURER 6.00 X X 9124 0 0 RODNEY DEMENT PRESIDENT 8.00 X X 13074 0 0 ALLAN KOOIMA SECRETARY 15.00 X X 11824 0 0 GARY FISH DIRECTOR 6.00 X 8724 0 0 MARK KAHLER DIRECTOR 8.00 X 12424 0 0 BETTY VANDERWERFF DIRECTOR OF FIN & ACCTG 44.00 X 109760 0 72101 TIM MCCARTHY GENERAL MANAGER/CEO 50.00 X 194124 0 74895 THEODORE SMITH DIRECTOR OF ENG & OPS 44.00 X 138142 0 39128 DEBRA BIEVER DIRECTOR OF CUSTOMER & EMP 44.00 X 125684 0 46646 JUSTIN MOOSE MANAGER OF IT 44.00 X 123376 0 30609 CARRIE LAW DIRECTOR OF COM./GOVT. REL 44.00 X 114687 0 28416 932202 0 291795 6 0 1 0 LEGACY POWER LINE INC PO BOX 469 WADENA MN 56482 UTILITY CONSTRUCTION 1550062 MAY CONSTRUCTION PO BOX 402 MADISON SD 57042 UTILITY CONSTRUCTION 1322280 SUMMIT UTILITY SERVICES LLC PO BOX 282 GLASGO MT 59230 CABLE LOCATING 591862 ASPLUNDH TREE EXPERT CO 708 BLAIR MILL RD WILLOW GROVE PA 19090 TREE TRIMMING 539170 DEWILD GRANT RECKERT & ASSOCIATES PO BOX 511 ROCK RAPIDS IA 51246 ENGINEERING SERVICES 391741 8 SALE OF POWER 221000 70007804 70007804 70007804 419978 74650 345328 30826 21750 9076 9076 9076 250264 273894 -23630 -23630 CAPITAL CREDITS 900099 2508898 2508898 CORSON DEVELOPMENT 900003 17596 17596 UTILITY SAFETY AINNOVATION 900003 -45870 -45870 2480624 72893852 72493072 46376 354404 6676098 577311 4660112 4603250 COST OF POWER 43942583 DIST EXP - OPERATIONS 3816158 ADMIN & GENERAL EXPENSE 2969568 DIST EXP - MAINTENANCE 2275070 3499361 73019511 2479474 1630025 1000086 7253201 6719288 4450742 4377887 541406 598111 186641233 40095119 134375632 146546114 2100564 2014269 33419880 34203712 1236 1236 137564 139718 184759699 197230446 7650316 7822193 5571814 5468623 104256218 112573639 492031 446426 117970379 126310881 X 0 0 0 0 66789320 70919565 66789320 70919565 184759699 197230446 X -125659 4255904 X X 0 1 X 1 0 1 75413 117203 110572 82044 0 878428 878428 7023436 2085504 4937932 13939718 7132862 6806856 164799651 30876753 133922898 146546114 G&T PATRONAGE CAPITAL 29081725 C NRUCFC PATRONAGE CAPITAL 1719850 C PATRONAGE CAPITAL - OTHER 814623 C NRUCFC CAPITAL TERM CERTS 1892380 C VALUE ADDED AG LOANS 358220 C ERC LOANS 251339 C OTHER PROGRAM RELATED 85575 C 34203712 CONSUMER DEPOSITS 432170 PATRONAGE CAPITAL PAYABLE 14256 446426 X PART IV, LINE 1B: CUSTOMERS HAVE THE OPTION OF PARTICIPATING IN OPERATION ROUND-UP. PARTICIPATING CUSTOMERS ROUND THEIR BILLS UP TO THE NEAREST DOLLAR AND THE DIFFERENCE IS CONTRIBUTED TO THE SIOUX VALLEY ENERGY CUSTOMERS' TRUST, WITH THE FUNDS BEING UTILIZED FOR CHARITABLE GIVING. PART X, LINE 2: THE COOPERATIVE HAS BEEN GRANTED TAX EXEMPT STATUS UNDER SECTION 501(C)(12) OF THE INTERNAL REVENUE CODE. SVRT IS A TAXABLE CORPORATION. USI IS ORGANIZED AS AN LLC AND IS TREATED AS A DISREGARDED ENTITY FOR INCOME TAX PURPOSES. INCOME FROM THE LLC IS INCLUDED WITH THE COOPERATIVE'S UNRELATED BUSINESS INCOME FOR TAX REPORTING PURPOSES. DEFERRED TAX ASSETS AND LIABILITIES ARE RECORDED FOR FUTURE TAX CONSEQUENCES ATTRIBUTABLE TO TEMPORARY DIFFERENCES BETWEEN FINANCIAL STATEMENT CARRYING AMOUNTS OF ASSETS AND LIABILITIES AND THEIR RESPECTIVE TAX BASES. PRINCIPALLY, THESE DIFFERENCES RELATE TO DEPRECIATION OF PROPERTY AND EQUIPMENT AND NET OPERATING LOSS CARRYFORWARDS. A VALUATION ALLOWANCE IS PROVIDED WHEN IT IS MORE LIKELY THAN NOT THAT A DEFERRED TAX ASSET WILL NOT BE REALIZED. NET OPERATING LOSS CARRYFORWARDS OF APPROXIMATELY $5,534,000 INCURRED THROUGH DECEMBER 31, 2015 ARE AVAILABLE TO OFFSET FUTURE TAXABLE INCOME OF SVRT. NET OPERATING LOSSES BEGIN EXPIRING IN THE YEAR 2016. AN EQUAL AND OFFSETTING VALUATION ALLOWANCE IS RECORDED AS THE CERTAINTY OF REALIZING THE FUTURE TAX BENEFITS OF THE OPERATING LOSS CARRYFORWARD IS UNCERTAIN AT THIS TIME. THE COOPERATIVE EVALUATED ITS TAX POSITIONS AND DETERMINED THAT IT HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2015 AND 2014. X 1 1 X X 0 0 0 BETTY VANDERWERFF DIRECTOR OF FIN & ACCTG 109760 0 0 0 0 0 45990 0 26111 0 181861 0 0 0 TIM MCCARTHY GENERAL MANAGER/CEO 194124 0 0 0 0 0 46311 0 28584 0 269019 0 0 0 THEODORE SMITH DIRECTOR OF ENG & OPS 138142 0 0 0 0 0 25297 0 13831 0 177270 0 0 0 DEBRA BIEVER DIRECTOR OF CUSTOMER & EMP 125684 0 0 0 0 0 30851 0 15795 0 172330 0 0 0 JUSTIN MOOSE MANAGER OF IT 123376 0 0 0 0 0 20488 0 10121 0 153985 0 0 0 PART I, LINE 1A THE COOPERATIVE OCCASIONALLY PROVIDES CHARTER TRAVEL FOR GROUPS OF ITS DIRECTORS, OFFICERS, AND EMPLOYEES TO ATTEND MEETINGS OF OTHER ORGANIZATIONS WHEN THIS IS MORE COST EFFECTIVE AND EXPEDIENT THAN ARRANGING FOR OTHER COMMERCIALLY AVAILABLE TRAVEL METHODS. FORM 990, PART VI, SECTION A, LINE 6 EACH ELECTRIC ACCOUNT IS A MEMBER. FORM 990, PART VI, SECTION A, LINE 7A COOPERATIVE IS BROKEN INTO 10 DISTRICTS. MEMBERS CAN VOTE FOR THE DIRECTOR FROM THE DISTRICT IN WHICH THE MEMBER IS LOCATED. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO THE COOPERATIVE BY-LAWS ARE VOTED ON AT THE ANNUAL MEETING IN WHICH EACH MEMBER HAS THE RIGHT TO VOTE. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 WILL BE PROVIDED TO ALL MEMBERS OF THE BOARD OF DIRECTORS AT A MEETING PRIOR TO FILING. EACH BOARD MEMBER WILL HAVE THE OPPORTUNITY TO REVIEW THE RETURN AT THAT TIME. THE RETURN WILL ALSO BE REVIEWED IN DETAIL BY THE DIRECTOR OF FINANCE AND ACCOUNTING PRIOR TO FILING OF THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES, DIRECTORS, THE GENERAL MANAGER/CEO, THE MANAGEMENT STAFF, AND THE ATTORNEY MUST BE FAMILIAR WITH THE CONFLICT OF INTEREST POLICY. EACH IS REQUIRED TO EXECUTE A CONFLICT OF INTERST STATEMENT THAT THEY ARE IN COMPLIANCE WITH THE POLICY. ANNUALLY THE DIRECTORS, GENERAL MANAGER/CEO, ATTORNEY AND MANAGEMENT STAFF EXECUTE A NEW STATEMENT. EMPLOYEES EXECUTE ONE AT A TIME OF EMPLOYMENT AND UPDATE WHEN A CONFLICT ARISES. IF A CONFLICT OF INTEREST EXISTS, THEN THE EMPLOYEE AND SUPERVISOR IN COORDINATION WITH MANAGEMENT SHALL COLLECTIVELY DETERMINE WHAT ACTION SHOULD BE TAKEN. IF A DIRECTOR HAS A CONFLICT OF INTEREST HE/SHE SHALL DISQUALIFY THEMSELVES FROM DECISIONS THAT POSE THE CONFLICT OR THE APPEARANCE OF A CONFLICT OF INTEREST. THE DIRECTOR MAY REQUEST AN OPINION OF THE COOPERATIVE ATTORNEY BEFORE SUCH ACTION IS TAKEN. FORM 990, PART VI, SECTION B, LINE 15 SIOUX VALLEY ENERGY USES A NATIONAL COMPENSATION SURVEY PROVIDED TO US BY OUR NATIONAL ASSOCIATION, NRECA. THE NATIONAL AVERAGE PAY IS USED AS A GUIDANCE FOR ESTABLISHING INITIAL SALARIES AND YEARLY SALARY CHANGES. YEARS OF EXPERIENCE IN A POSITION ARE ALSO FACTORED IN. USING THE SURVEY DATA HELPS TO ESURE SALARIES REMAIN COMPETITIVE WITH THOSE OFFERED AT OTHER RURAL ELECTRIC COOPERATIVES AND THAT THE DATA REMAINS CONSISTENT FROM YEAR TO YEAR. THIS PROCESS IS USED FOR ALL POSITIONS AT SIOUX VALLEY ENERGY ON AN ANNUAL BASIS. THE LAST YEAR THIS PROCESS WAS UNDERTAKEN WAS 2015. FORM 990, PART VI, SECTION C, LINE 19 THE COOPERATIVE MAKES ITS GOVERNING DOCUMMENTS AND FINACIAL STATEMENTS AVAILABLE TO THE COOPERATIVE MEMBERS UPON REQUEST. FORM 990, PART XI, LINE 9: EQUITY IN EARNINGS OF SIOUX VALLEY RURAL TELEVISION 143,255. CORSON DEVELOPMENT ASSOCIATION, LLP K-1 -17,596. RETIREMENT OF CAPITAL CREDITS -2,545,853. PATRONAGE DIVIDENDS PAID 6,676,098. FORM 990, PART XII, LINE 2C THE COOPERATIVE'S OVERSIGNT OF THE AUDIT AND SELECTION OF INDEPENDENT AUDITOR HAS NOT CHANGED. FORM 990, PART IX, LINE 4 THE IRS INSTRUCTIONS STATE THAT PATRONAGE DIVIDENDS PAID BY SECTION 501(C)(12) ORGANIZATIONS TO THEIR MEMBERS SHOULD BE REPORTED ON LINE 4. THE ORGANIZATION HAS INTERPRETED PATRONAGE DIVIDENDS PAID TO MEAN PATRONAGE DIVIDENDS ALLOCATED OR TO BE ALLOCATED FOR THE CURRENT YEAR. SINCE THIS ALLOCATION IS NOT AN EXPENSE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), THIS HAS RESULTED IN A RECONCILING ITEM TO NET ASSETS IN PART XI, ON PAGE 12 OF THE FORM 990. UTILITY SAFETY INNOVATIONS LLC PO BOX 47092 SC HWY 34 COLMAN SD 57017 DESIGN UTILITY SAFETY PRODUCTS SD -45870 3035 SIOUX VALLEY SOUTHWESTERN ELECTRIC INC SIOUX VALLEY RURAL TELEVISION INC PO BOX 216 COLMAN SD 57017 460402369 WIRELESS INTERNET SERVICES SD SIOUX VALLEY SOUTHWESTERN ELECTRIC INC C 143255 2035798 1.00000 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 1 1 SIOUX VALLEY RURAL TELEVISION INC A 74650 ACTUAL AMOUNT SIOUX VALLEY RURAL TELEVISION INC O 654734 ACTUAL AMOUNT SIOUX VALLEY RURAL TELEVISION INC R 148761 ACTUAL AMOUNT SIOUX VALLEY RURAL TELEVISION INC S 941766 ACTUAL AMOUNT